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15 <br /> Attachment 4 <br /> Input from Third Group of Affordable Housing Providers <br /> ATTACHMENT-- LONG-TERM HOUSING AFFORDABILITY POLICY <br /> Purpose: This policy establishes the acceptable strategies for ensuring long- <br /> term 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 <br /> HUD published area median income. [Given the high cost of housing in the county, and <br /> relatively low AMIs, arguably locally funded homeownership programs should be allowed to <br /> target a slightly higher AMI range, perhaps up to 100% AMI. I do agree that prioritizing lower <br /> incomes is important.1 <br /> Rental housing programs are targeted to families with incomes at or below 60% of the <br /> HUD published area median income. <br /> Definitions <br /> Affordable Housing -is defined as (1)owner-occupied housing which can be purchased for <br /> no more than 2.5 times to 3.0 times the total annual family income [This seems limiting and <br /> alsol[su] not very responsive to changes in programs and market conditions. E.q., a <br /> Habitat home comes with a 0% mortgage so can be priced higher than 3x income and <br /> still very affordable, while other programs' affordability varies with interest rates over <br /> time. I'd suggest using a 30% gross income standard like with rental or similar <br /> approachl, or(2)rental housing forwhich the occupant pays no more than 30%of gross <br /> income forall housing costs including utilities [CASA finds this "definition" problematic. We <br /> are not able in all circumstances to customize every rent to 30% of the person's income, <br /> in particular because incomes fluctuate. For example, LIHTC projects have set rents, <br /> and this language seems to either a) disqualify certain very low-income tenants who, by <br /> renting the unit, would be paying more than 30% of their income, which is not ideal but <br /> we want people to have the choice to be slightly cost-burdened as opposed to being <br /> homeless or living in unsafe housing or b) provide a way for any tenant who pays more <br /> than 30% to claim CASA is violating this policy. Neither are outcomes that we want. The <br /> 30% rule has always been a rule of thumb — not a hard and fast policy. I recommend <br /> including some softer language here (maybe replace "no more than 30%" with <br /> "approximately 30% or less")- <br /> First-time homebuyer/Qualified buyer - A first-time homebuyer for the purposes of <br /> this program is any low income household that has not owned a home within the past three <br /> (3) years including households living in manufactured housing not permanently affixed to a <br /> foundation,or 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 <br />