HomeMy WebLinkAbout1993-39 Establish Affordable Housing LevelsRESOLUTION NO. 93- ~'~
A RESOLUTION ESTABLISHING AFFORDABLE HOUSING INCOME
LEVELS AND RENTAL AND PURCHASED COST LEVELS AND
REPEALING RESOLUTION 91-32
RECITALS:
A. The City of Ashland desires to provide affordable housing for its citizens;
and
B. The Land Use Ordinance has been amended to provide density bonuses for
providing affordable housing; and
C. The Land Use Ordinance requires the City Council to adopt a resolution to
establish affordability standards to implement the affordable housing density bonuses.
The Mayor and City Council of the City of Ashland, Oregon resolve as follows:
1. RENTAL HOUSING. Units designated for affordable rental housing in
developments which have qualified for density bonuses under the City's Land Use
Ordinance (LUO) shall be rented to individuals or families whose annual income does
not exceed 80% of the median income for families in the Medford-Ashland
Metropolitan Statistical Area (MSA). This figure shall be known as the "qualifying family
income" and shall be determined by the City's Department of Community Development
in May of each year from the annual family incomes published by the U.S. Department
of Housing and Urban Development (HUD).
The rent charged for such affordable rental housing shall not exceed 23% of the
qualifying monthly income (qualifying family income divided by twelve) as provided in
the following formulas:
Studio Apartment
I Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
23% of the average of I & 2 person qualifying monthly incomes
23% of the average of 2 & 3 person qualifying monthly incomes
23% of the average of 3,4, & 5 person qualifying monthly incomes
23% of the average of 4,5,6, & 7 person qualifying monthly incomes
23% of the average of 5,6,7, & 8 person qualifying monthly incomes
The City's Department of Community Development shall maintain a table of
maximum rent levels permitted under these formulas and shall annually update the
table in May of each year.
The owner of the affordable rental housing shall sign a 20-year agreement with
the City of Ashland that guarantees these rent levels will not be exceeded and that the
owner will rent only to families meeting the income limits. The agreement shall bind
subsequent owners who purchase the rental housing during the 20-year period. The
PAGE 1-RESOLUTION (p:pla~ming\afford2.Res)
agreement shall also require the owner to rent to HUD Section 8 qualified applicants
and agree to accept rent vouchers for all of the affordable units where applicable.
2. PURCHASED HOUSING. Units designated for affordable housing available for
purchase in developments which have qualified for density bonuses under LUO, shall
2.1. Only be sold to individuals or families whose:
2.1.1. Annual income does not exceed 130% of the median income for
families in the MSA.
2.1.2. Net assets, excluding pension plans and IRA's and excluding the
down payment (to a maximum of 20 percent of the purchase price) and closing
costs, do not exceed $20,000 for a family or $130,000 if one family member is
65 years or older.
2.2. Have a purchase price not exceeding the following amounts:
Type of Unit
Purchase Price
{revised annually)
Studio $75,985
I Bedroom $86,718
2 Bedroom $97,665
3 Bedroom $108,396
4 Bedroom $117,028
The purchase price shall be annually revised in May of each year by the
City's Department of Community Development. The annual revision shall be
calculated by multiplying the current purchase price by the annual percentage
change in median family income as published by HUD for the MSA.
2.3. Be assured to remain affordable as follows:
2.3.1. FARMER'S HOME ADMINISTRATION (FmHA) - For housing
financed by the FmHA, affordability will be assured by the recapture provisions
required by FmHA which requires sellers' to repay FmHA for all the subsidies
accrued during the period that they resided in the housing.
In addition, FmHA financed housing shall be subject to a covenant that
for the first five years after the initial purchase, resale can only be to individuals
from the same income category as the original purchasers.
2.3.2. ALL OTHER DEVELOPMENTS - For all other developments
obtaining density bonuses for the provision of affordable housing, affordability
will be assured by requiring that the purchasers of the affordable housing units
PAGE 2-RESOLUTION (p:planning\arford2.Res)
agree to the City of Ashland Affordable Housing Resale Restriction
Agreement prior to the issuance of building permits for the units.
3. REPEAL OF RESOLUTION 91-32. Resolution 91-32 is repealed.
The foregoing resolution was READ and DULY Ax~OPTEDat,~,~at he re ular
meeting of the Ashland City Council on the /'¢~'-day of
,1993.
SIGNED and APPROVED this
__ day of
,1993.
Mayor
Approved as to form:
Paul Nolte
City Attorney
PAGE 3-RESOLUTION (p:planning\afford2.Rcs)
City of Ashland
Affordable Housing
Income and Rental Cost Levels
October 19, 1993
Qualifying Incomes for RENTAL HOUSING (as of May 5, 1993)
Family Size
Annual
Income Level (80% of median income)
1 $19,700
2 $22,550
3 $25,350
4 $28,150
5 $30,400
6 $32,650
7 $34,900
8 $37,150
RENTS for affordable units shall not exceed the following:
Apartment Type
Maximum
Rent Level
Studio
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
$405/month
$459/month
$536/month
$604/month
$647/month