AgdaPkt 2009-01-26 clsd and reg - Laserfiche WebLink

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The Affordable Housing Covenant The purpose of the proposed Declaration of Affordability Covenants is to ensure that the City can count the Setaside units towards its regional housing obligation 1 and to ensure (provide a safeguard guarantee) that at least 150/0 of the units ultimately remain affordable to moderate income households for at least 45 years upon transfer and resale. 6.1C Page 2 The Rental Affordable Housing Covenants provide that six of the 43 units are available at the moderate income level for 55 years. When the Ownership Affordable Housing Covenants are invoked, they will provide for the following terms: . Setaside Unit Size for this development shall be one bedrooms ranging in size from 6542, 849, 850, 971, and 973 square feet respectively. . First Right of Refusal shall be granted to the City upon resale of each Setaside Housing Unit. The City may "AssignfJ its Right to Purchase to another Qualified Eligible Buyer. . Restricted Resale Price - Affordability will be preserved in the Setaside Housing units through restricted resale prices by capping appreciation according to the increase in median income from the date of purchase to the date of sale. . Affordable Housing Cost shall include principal, interest, taxes, insurance, utility allowance and maintenance and repair allowance (Homeowners Association fees). . A Buyer Down Payment equal to 10% of the Affordable Unit sales price is required in the definition of Affordable Housing Cost. For purposes of determining the Sales Price of the units: Sales Prices is based on household income at 11 DOlo of median for a household of two persons (number of bedrooms plus 1) calculated at 350/0 of monthly income. For example: ! Median Household income for two people at 11 DOlo of med ian income is $83,600. I Available for housing costs (83,600 x 350/0) = $29,260 I Less HOA Dues ($325.00/mo) = (3,900) Less Utilities = (432) Less taxes & Assessments 1.06760;0 = ($3.299) Income available for mortgage $21,629 Mortgage 6.780/0 = $277,900 Down payment 1 00.10 = $ 30,900 Supported Home Price = $308,800 1 The Redevelopment Agency receives credit for affordable units built outside of the Redevelopment Area, but can only count one-half of the units towards this obligation and the units must be maintained as affordable pursuant to a covenant or other legal means. The City may count 100% of these affordable units toward its Regional Housing Needs Allocation (RHNA) obligations. 2 Two units have 654 square feet.