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15 <br />ATTACHMENT 3 -- LONGTERM HOUSING AFFORDABILITY POLICY <br />Purpose: This policy establishes the acceptable strategies for ensuring long-term <br />affordability in all affordable housing programs supported by County financial resources. <br />Target Population: <br />Homeownership programs are targeted to families with incomes at or below 80% of the HUD <br />published area median income. <br />Rental housing programs are targeted to families with incomes at or below 60% of the HUD <br />published area median income. <br />Definitions <br />Affordable Housing - is defined as (1)owner-occupied housing which can be purchased for no <br />more than 2.5 times to 3.0 times the total annual family income, or (2) rental housing for which <br />the occupant pays no more than 30% of gross income for all housing costs including utilities. <br />First-time homebuyer/Qualified buyer - A first-time homebuyer for the purposes of this <br />program is any low income household that has not owned a home within the past three (3) years <br />including households living in manufactured housing not permanently affixed to a foundation, or <br />owner-occupants of homes not feasible for renovation. <br />I. Impact Fee Reimbursement Program (existing policy last revised March 4, 1998.) <br />A. Owner-Occupied Housing <br />Any organization requesting impact fee reimbursement must certify in writing, <br />that, for owner occupied housing, it will remain affordable to the anticipated beneficiary <br />or beneficiaries for a period of a minimum of ninety-nine (99) years or longer depending <br />upon the funding source. This requirement will be secured by a Declaration of <br />Restrictive Covenants. <br />B. Rental Housing <br />An organization requesting impact fee reimbursement for rental housing must <br />certify that the property will remain affordable for ninety-nine (99) years. The rental <br />housing certification must be secured by a Declaration of Restrictive Covenant requiring <br />repayment to Orange County of the impact fee if the rental housing does not remain <br />affordable during the period of affordability, which covenant will be further secured by a <br />note and deed of trust. Evidence must be provided that agency and/or program guidelines <br />are in place to assure affordability compliance. <br />