Item 09 - Request for Proposals for Affordable Housing Development

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CITY OF SANTA ANA Affordable Rental Housing Projects (§ 92.252) (1) HOME Rent Limits HUD provides the following maximum HOME rent limits. a. High HOME Rent Limits. If a low-income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family’s monthly adjusted income or 10 percent of the family’s monthly income, then the maximum rent due from the family is the family’s contribution. For other cases, the maximum HOME rents are the lesser of: i. The fair market rent for existing housing for comparable units in the area as established by HUD; or ii. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. In rental projects with five (5) or more HOME-assisted rental units, twenty (20) percent of the HOME- assisted units must be occupied by very low-income families. If a very-low income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family’s monthly adjusted income or 10 percent of the family’s monthly income, then the maximum rent due from the family is the family’s contribution. All other Low HOME rents must meet one (1) of following rent requirements: (1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a)(1)(i), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a)(1)(i). (2) The rent does not exceed 30 percent of the family's adjusted income. (3) The unit is a Low Income Housing Tax Credit (LIHTC) unit and has rents not greater than the gross rent for the rent-restricted residential units as determined under 26 U.S.C 42(g)(2). Minimum Periods of Affordability for Rental Housing The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described more fully below: Rental Housing Activity Length of the Affordability Period Rehabilitation of Acquisition of Existing Housing: Less than $25,000 Per Unit 5 years $25,000 - $50,000 Per Unit 10 years More than $50,000 15 years New Construction or Acquisition of Newly Constructed Housing 20 years Throughout the affordability period, income-eligible households must occupy the HOME-assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME rent. EXHIBIT 1