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Pleasanton Comprehensive Fee Update and Nexus Study November 2024 <br /> Table 28 Prototype Development Costs (per unit) <br /> Single Family Single Family Multifamily Multifamily <br /> Detached Townhome Condo Podium <br /> Land $1,061,360 $290,340 $145,170 $84,091 <br /> Direct Construction Costs $630,000 $472,500 $574,875 $351,750 <br /> Indirect Costs' $301,981 $192,222 $180,525 $131,042 <br /> Developer Profit Threshold2 $239,201 $114,607 $108,068 <br /> Total Development Cost Per Unit $2,232,542 $1,069,670 $1,008,638 $566,883 <br /> (1)Includes Development Impact fees,as well as costs for architecture and engineering,entitlement and fees, <br /> (2)Assumes a 12 percent profit margin for ownership products. <br /> Affordable Housing Values <br /> Based on the maximum household income at each income level, which as defined <br /> in Pleasanton is based on the Alameda County Area Median Income, EPS <br /> calculated the maximum spending toward housing costs affordable at each income <br /> level. Consistent with the City's published inclusionary program guidelines, the <br /> analysis assumes that rental households spend 30 percent of their gross annual <br /> income on total housing costs and for-sale households spending 35 percent of <br /> gross annual income. For rental units, housing costs include rent and utilities. For <br /> for-sale units, housing costs include mortgage and interest payments, insurance, <br /> property taxes, and Homeowners Association (HOA) fees. <br /> To calculate the maximum affordable sale price for these for-sale units, EPS <br /> estimated other housing costs based on professional assumptions as well as <br /> assumptions given in the City's inclusionary program guidelines and subtracted <br /> them from 35 percent of gross annual income to obtain the maximum income <br /> available for a mortgage payment. This mortgage payment was converted into an <br /> affordable home sale price assuming a 5 percent down payment10 and a 30-year <br /> mortgage with a fixed interest rate of 7 percent. <br /> Table 29 indicates the maximum annual incomes for Alameda County households <br /> associated with each income category for the associated household size, as well <br /> as the affordable rents and sale prices associated with each category. <br /> 10 While The City's affordable housing guidelines allow for down payments as low as 3 <br /> percent, 5 percent is commonly used when estimating affordable values due to the <br /> availability of assistance programs. <br /> 48 <br />