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EXHIBIT B <br />Methodology for Calculation of Maximum Allowable Resale Price <br />NOTE: THIS IS AN EXAMPLE OF THE CALCULATION PROCESS ONLY <br />The actual costs and percentage of income may vary, depending on the resale <br />requirements. Calculation illustration is for the Maximum Allowable Resale Price for a <br />Low Income unit, calculated pursuant to the provisions of Health and Safety Code Section <br />50052.5(b). Other income levels will vary. <br />Number of bedrooms in house to be sold <br />A. Determine Income Available for Housing <br />1. Determine family size appropriate for the unit size <br />2. Determine the applicable household income maximum based on household size $94,255 <br />appropriate for the unit' - Use 70% of AMI for a 3 person household <br />3. Calculate Income Available for Housing - 30% x income <br />$28,277 <br />B. Determine Annual Housing Costs <br />1. Determine allowance for utilities <br />$2,400 <br />Use San Mateo County Housing Authority's Utility Allowance Schedule <br />2. Property maintenance reserve <br />$1,200 <br />3. Homeowner association fees (if applicable) <br />$3,600 <br />Subtotal <br />$7,200 <br />4. Amount remaining for principal, interest, PMI and property taxes <br />$21,077 <br />Equals Income Available for Housing less other housing costs <br />Property taxes 1.20% of sales price <br />PMI (less than 20% down) 0.80% of loan amount <br />Property insurance 0.35% of loan amount <br />C. Determine House Price Based on Down payment and Interest Rate Assumptions <br />Down payment <br />5% <br />Loan Amotmt <br />$265,000 <br />Interest rate — Use 10 year Freddi Mac average interest rate <br />3.72% <br />Total Purchase Price <br />PY.7R od 7 <br />' For Low Income Units, the product of 30 percent times 70 percent of the area median income adjusted for family size <br />appropriate for the unit is used to determine the Affordable Price. For Moderate Income units, the product of 35 percent times <br />110 percent of area median income adjusted for family size appropriate for the unit is used to determine the Affordable Price. <br />REV: 06-30-22 SK <br />ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 31 of 40) <br />