RES 93130 - Laserfiche WebLink

KAUFMAN AND BROAD - SOUTH BAY, INC. CALIFORNIA REFLECTIONS AFFORDABLE HOUSING PROGRAM Kaufman and Broad - South Bay, Inc. hereby proposes the following affordable housing program for its proposed California Reflections project to be located at Stanley Boulevard in Pleasanton: 1. 16 of the 108' units in the project will be designated for sale only to "moderate Income" households (i.e., those households earning 120% or less of the median income for the Oakland PISA as annually determined by HUD), The "moderate income" units will be 16 of the projects's 1074 square foot model. 2. "Moderate income" buyers will be offered advantageous 30 vear first mortgage financing of 90%, with annual Interest at a rate of 6% for the first year, 1% TOr tne second year, and 8% for the third year and all subsequent years, The attached schedules indicate that, assuming a maximum of 35% of household gross income is allocable to housing costs (mortgage, taxes, insurance, association dues, etc.), 4-perSon households with gross incomes of between approximately 106% and 120% of the Alameda County median could qualify to buy one of the 16 units, (See the results for the year 1995 in Table 2, entitled "Affordability Index," That year's results are critical to determining which "moderate income" households can actually qualify to purchase the $219,000 units due to the fact that in 1996, the annual mortgage interest rate rises for the first time to its ultimate level of 8%, Based on the assumption that household incomes will rise each year and that post-1996 housing expenses will remain relatively level, housing expenses as a percentage of household income will peak in 1995,~ It is also highly likely that the buyer of the 1,074 square foot unit will be a 4-person household rather than a 5-person household. Therefore, utilizing the 1995 results to determine