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4 <br />only those who are in need of affordable housing will qualify. The <br />amendment has been revised to include definitions of "Family <br />Income" and "Net Assets" (page 1.0 ). The definitions are based <br />on eligibilty requirements and definitions used by HUD. <br />2. Can we be sure that the housing units will be constructed? <br />Yes. Article 7.14.4.3 specifies provisions which will be included <br />in the contract between the owner /developer and Orange County when <br />a density bonus is granted, and the developer plans to construct <br />affordable units on the bonus (or reserved) lots. Article 7.14.4.4 <br />specifies contract provision when duplex or multi- family rental <br />units are proposed. <br />In both instances, the contract will specify a timetable within <br />which the units will be constructed. Failure to comply with the <br />timetable would constitute a breach of the contract, as well as a <br />violation of the provision of the Special Use Permit. Violation of <br />the Special Use Permit could result in its revocation. <br />The concept is similar to the requirement for a Phasing Plan for <br />multi -phase subdivisions. As with other Ordinance requirements, <br />amendment to the timetable could be requested. <br />It is also required that once constructed, the unit be occupied <br />only by qualifying households. The contract would be in effect for <br />15 years after the unit was first occupied. <br />3. Now is an "affordable" sales price determined? <br />The U.S. Department of Housing and Community Development uses a <br />model to determine housing affordability. A sample run of the <br />model, prepared for Orange County on January 4, 1990, is attached <br />(page �1 *> ) <br />The sample run was used to determine what income <br />purchase a home of average sales price in Orange <br />average sales price was known ($143,577). The is <br />that home was calculated by the model ($58,387). <br />County would be using the model to calculate the <br />a specified income level. <br />was needed to <br />County. The <br />acome needed to buy <br />Similarly, Orange <br />sales price, given <br />Factors used in the model include the interest rate, amount of <br />downpayment, mortgage payments, insurance, taxes, utilities, <br />maintenance, and acceptable % of income to be spent on housing. The <br />attached sample run includes a listing of each parameter used in <br />the model, and how it is derived. These assumptions (under "Notes" <br />in attached sample run on page 13 ) could be specified by HCD if <br />there was disagreement with figures used by HUD. <br />