HomeMy WebLinkAbout2005-46 Affordability Calculations
RESOLUTION NO. 2005-46
A RESOLUTION AMENDING RESOLUTION 1993-39 TO INCLUDE
HOMEOWNER ASSOCIATION OR MAINTENANCE FEES IN ANY
AFFORDABILlTY CALCULATIONS
Recitals:
A. In 1993, the City of Ashland passed resolution no. 1993-39, establishing
affordable housing income levels and rental and purchased cost levels.
B. Resolution 1993-39 did not contain provisions to include any homeowner
association or maintenance fees in the affordability calculations.
C. The City desires that any said fees or assessments be included in the
affordability calculations
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Resolution No. 1993-39 shall be amended to read 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 Elach year
from the annual family incomes published by the U.S. Department of Housin!g and
Urban Development (HUD).
The rent charged for such affordable rental housing, including any home-owners
association or maintenance fees, shall not exceed 23% of the qualifying monthly
income (qualifying family income divided by twelve) as provided in the following
formulas:
Studio Apartment
1 Bedroom
2 Bedroom,
3 Bedroom
incomes
4 Bedroom
incomes
23% of the average of 1 & 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
23% of the average of 5,6,7, & 8 person qualifying monthly
The City's Department of Community Development shall maintain a tablt3 of
maximum rent levels permitted under these formulas and shall annually update the
table in May of each year.
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The owner of the affordable rental housing shall sign a 20-year agreeme!nt 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
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 availab!le 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
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)
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.
2.2.1 The purchaser of a unit designated for affordable housing shall not be assessed
any home-owners association or maintenance fees in addition to the maximum
purchase price.
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.
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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 in which the
planning action approval includes the provision of affordable housing, afford ability will
be assured by requiring that the purchasers of the affordable housing units agree to the
City of Ashland Affordable Housing Resale Restriction Agreement prior to the issuance
of building permits for the units.
SECTION 2. This resolution takes effect upon signing by the Mayor.
This resolution was read by title only in accordance with Ashland Municigal Code
92. .090 duly PASSED and ADOPTED this ~ day of ..2::t:~ ' 2005.
~
Barbara Christensen, City Recorder
SIGNED and APPROVED this L day of ~, 2005.
Reviewed as to form:
\~......
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t.~ L'-t. ~~
Micheal M. Reeder, Assistant City Attorney
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