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Judson Brown, City of Santa Ana June 28, 2021 <br />Housing Opportunity Ordinance: Updated In-Lieu Fee Analysis Page 8 <br /> <br /> 2106011.SA:KHH <br /> 19090.017.021 <br /> <br />1. The household income information used in the calculations is based on 2021 <br />income statistics for Orange County as a whole. The household incomes are <br />published annually by the United States Department of Housing and Urban <br />Development (HUD) and are distributed by the California Department of Housing <br />and Community Development (HCD). <br />2. The household size appropriate for the unit is based on the H&SC Section <br />50052.5 standard, which is set at the number of bedrooms in the home plus one. <br />This is not meant to be an occupancy cap; it is simply a benchmark used to <br />create a consistent methodology for calculating the Affordable Rents. <br />3. The household incomes used in the Affordable Rent calculations are:3 <br />a. Very low income at 50% of area median income (AMI); and <br />b. Low income at 60% of AMI. <br />4. Thirty percent (30%) of defined household income is allocated to housing <br />expenses. <br />5. KMA’s calculations are based on the assumption that the tenants will be <br />required to pay for gas heating, cooking and water heating; and basic electric <br />services. The December 1, 2020 Orange County Housing Authority utilities <br />allowances were applied in this analysis. <br />The resulting Affordable Rents are presented in the following table: <br /> <br /> <br />3 The percentages of the AMI used in the Affordable Rent calculations are benchmarks established by <br />H&SC 50053. The incomes limit used to qualify households to occupy very low income units is defined in <br />H&SC 50105, and the low income limit is defined in H&SC 50079.5. These limits are meant to reflect 80% <br />and 50% of AMI, respectively. However, HUD adjusts the income levels for Orange County to account for <br />conditions that warrant special consideration. The current income qualification limits exceed 80% and <br />50% of AMI, respectively.