Laserfiche WebLink
Exhibit I <br /> AFFORDABLE SALES PRICE <br /> Income criteria used to detennine affordable sales price and affordable housing cost are based on <br /> standards imposed by the Ordinance and California Health and Safety Code Sections 50093 and <br /> 50052.5. <br /> Certain assumptions are used in calculating both the Affordable housing cost and the Affordable <br /> Sales Price for the Affordable Units in this Project. <br /> Affordable housing costs include reasonable costs associated with owning a housing unit. These <br /> include: <br /> • Principal and interest payments for the Affordable Unit with a 10% down payment <br /> • Private mortgage insurance (if applicable) <br /> • Property taxes and assessments <br /> • Homeowner's insurance <br /> • A reasonable allowance for utilities <br /> • A reasonable allowance for unit maintenance; and <br /> • Homeowners maintenance association dues (HOA) <br /> The maximum Affordable Sales Price for an Affordable Unit is the total sales prices a typical <br /> Moderate Income Household (up to 120% of median income), adjusted for the household size <br /> appropriate for the unit size, can afford to pay for housing. Accordingly,the Affordable Sales Price <br /> for the Affordable Units in this Project will be as set forth below unless the Household income of <br /> the Moderate Income Household exceeds 110% of Area Median Income adjusted for household <br /> size, in which case the Affordable Sales Price shall be recalculated in accordance with California <br /> Health and Safety Code ("HSC") Section 50052.5 and the actual income of the Homebuyer to <br /> calculate the Affordable Sales Price for that Homebuyer. Affordable Sales Price shall be <br /> recalculated quarterly and upon annual release of AMI for Orange County by HCD, in accordance <br /> with HSC Section 50052.5. Further, the calculation of the Affordable Sales Price will be based on <br /> actual unrestricted rate price estimates, the percentage of income allocated to housing pursuant to <br /> Health and Safety Code , 50052.5, actual homeowner's association dues, utility costs (based on <br /> similar ro'ects) and a cominercially reasonable interest rate at the time the Homebuyer enters into <br /> a Residential Purchase Agreement with Developer, or its successor in interest <br /> leaQeFs q4 the + zle. In the event that the actual interest rate available <br /> for the Supportable Mortgage is less than the interest rate set forth herein, Developer may elect to <br /> recalculate Affordable Sales Price based on actual interest rate. <br /> The sale price below is based on a target income level established by Health and Safety Code <br /> Section 50052.5,not the income of the actual Homebuyer,except in the case of Homebuyers whose <br /> income exceeds 110% of area median income. The household size adjustment that is used in <br /> determining the income limit for the purpose of setting the maximum Affordable Sales Price is <br /> based on the number of bedrooms in the unit, not the size of the specific Homebuyer's household. <br /> Page 79 <br />