(A) Additions, renovations, or replacement. Permit allocation does not apply to additions or renovations to an existing residential building. Replacement of a residential building on a lot where one has existed within the past five years from the date of application is also exempt from permit allocation.
(B) Affordable housing units. For purposes of this system, housing units to provide dwellings for either low income or lower income employees in the workforce are not included in the allocation specified in this section and are in addition to the number of annual permits regulated by this section.
(1) These units are intended to provide affordable housing ownership opportunities for persons whose incomes are either (a) less than 80% of the area median family income (AMI) or (b) range between 80% and 120% of the area median family income (AMI) for the Charleston/North Charleston metropolitan statistical area.
(2) The monthly mortgage payments for the owner of the dwelling unit shall not exceed 28% of 80% of the gross median family monthly income as reflected in the sale price using the Fannie Mae Foundation Mortgage Calculator (or comparable methodology), assuming a 10% down payment and a specified interest rate. The specified interest rate shall be determined by selecting the lowest 30-year fixed mortgage rate reported by area lending institutions at the time when the updated U.S. Department of Housing and Urban Development income limits become available.
(3) Based upon the FY 2018 income limits established by the U.S. Census Bureau, the U.S. Department of Housing and Urban Development (HUD), and the Fannie Mae Foundation, the maximum sales price of $212,795 for low income families or ranging between $212,795 and $315,313 for an owner-occupied dwelling unit is used to determine the provision of low income or lower income workforce housing. The maximum sale price shall be updated yearly, commencing in 2020, as the current U.S. Department of Housing and Urban Development income limits become available.
(4) Applying similar federal requirements in Title 26 US Code §42 to qualify for low-income housing credits, the dwelling unit must remain at the affordable workforce housing price for ten years. Resale of affordable workforce dwelling units shall be limited by deed restriction to the original sales price, adjusted for inflation, and to a purchaser eligible, as described in this article, for a period of not less than ten years after issuance of the certificate of occupancy. Funding sources and other factors may require a longer term of afford ability. The increase permitted for inflation shall be based upon the increase in the Consumer Price Index (CPI)
(5) Affidavits will be required that set forth the sale prices of the units and verify that the units are, in fact, available to workforce housing purchasers, and will initially be owned and occupied by persons qualified per the provisions of this section.
(Ord. 18097, passed 1-8-19)