AGENDA FULL PACKET - Laserfiche WebLink

P23-0177 – 3200 Hopyard Draft Affordable Housing Agreement Page 7 of 9 P23-0177 – 3200 Hopyard Draft Affordable Housing Agreement Page 7 of 9 P23-0177 – 3200 Hopyard Draft Affordable Housing Agreement Page 7 of 9 ATTACHMENT 4 Criteria for Affordable Units Sales Price Setting A.The Affordable Sales Price for the Affordable Units shall meet the definition in Municipal Code section 17.44.030 as reasonably determined by the City and its consultant Bay Area Affordable Homeownership Alliance, Inc. (BAAHA), California Density Bonus Law, and criteria for such calculation will include the definitions and standards set forth below: the “Sales Price” shall be calculated by adding the cash down payment, to the Maximum Mortgage Amount, less lender and escrow fees and costs incurred by the buyer. The Sales Price shall be set before the commencement of the sale process for the Affordable Units. i.The “Smallest Household Size” means the household with the smallest number of persons eligible for the Affordable Units, as stated in Section 3.B of the Agreement. ii.The current “Maximum Eligible Income” shall be the most current State Income Limit for Alameda County, Moderate Income (80% to 120% of AMI) category, as published by the State of California Department of Housing and Community Development, for the Smallest Household Size. iii.The “Maximum Allowable Monthly Housing Expenses” is calculated by multiplying the Maximum Eligible Income by 35 percent and dividing by 12. iv.The “Actual Monthly Housing Expenses” are calculated by adding the following costs associated with a particular Affordable Unit and dividing by 12: (i) any loan fees, escrow fees and other closing costs (amortized over 360 months) and/or private mortgage insurance associated therewith; (ii) property taxes and assessments; (iii) fire, casualty insurance and flood insurance, if required; (iv) a reasonable allowance for utilities as set forth in the Guidelines, not including telephones, and (v) homeowners association fees, but less the amount of such homeowners association fees allocated for any costs attributable to (iii) or (iv) above. v.The “Maximum Monthly Mortgage Payment Amount” is calculated by subtracting the Actual Monthly Housing Expenses from the Maximum Allowable Monthly Housing Expenses. vi.The “Maximum Mortgage Amount” is established by determining the amount of mortgage that a lender would loan, based upon the Maximum Monthly Mortgage Payment Amount and based upon the down payment found to be the lowest that lenders are willing to accept in a survey of lenders as described below, provided that the down payment is a commercially reasonable minimum amount. BAAHA may use commercially reasonable data or survey and take the average of at least three local lenders who regularly make home loans at a typical housing expense ratio to first-time buyers in the price range of the Affordable