Because all or part of any particular development project may be exempt from development impact fees for affordable housing, the following sets forth the administrative standards for determining what constitutes affordable housing and the procedures for exemption from one or more development impact fees.
(A) Median family income. Affordable housing is based upon 80% of the median family income for residents living within the Town of Mount Pleasant. Median family income shall be determined once a year utilizing the following procedure:
(1) The most recently available figures from the US Census Bureau American Community Survey will serve as the base year for this evaluation;
(2) Each subsequent year will be adjusted once annually thereafter during January of the calendar year based upon the previous year's published Consumer Price Index (CPI) increase for the U.S. Southeast Region, until the next U.S. Census Bureau data set is published and this procedure is replicated.
(B) Maximum expenditure. The maximum expenditure for housing costs shall correspond to the Fannie Mae Foundation Mortgage Calculator multiplier of 30% of gross family income as used in the Housing Affordability Analysis in Support of a Development Impact Fee Study in Mount Pleasant. Affordable housing based upon 80% of median family income is:
(1) Multifamily rental dwelling units of which the gross monthly rent cost does not exceed 30% of 80% of the gross median family monthly income.
(2) Fee simple ownership dwelling units of which the cost of homeownership for the dwelling unit do not exceed 30% of 80% of the gross median family monthly income as reflected in the sales price using the Fannie Mae Foundation Mortgage Calculator (or comparable methodology) assuming a 20% 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 as of the first week of January for any given year and shall remain so for the balance of the year.
(C) Procedures for exemption from development impact fees.
(1) A developer seeking exemption from one or more development impact fees for the construction of affordable multifamily rental dwelling units must identify the alternate source of funds for the impact fee and, unless the alternate source is from town resources, post a financial guarantee suitable to the town prior to the issuance of a building permit. The amount of the financial guarantee shall reflect the amount of development impact fees due for all affordable housing units as if they were not affordable housing units. No certificate of occupancy for any of the units may be issued until the impact fees for the affordable housing units have been paid by the alternate source or from the proceeds of the financial guarantee.
(2) If the alternate source of funds for impact fees is from town resources, prior to issuance of the certificate of occupancy by the town, the developer shall record an agreement approved by the town restricting the monthly rental cost of each affordable housing unit for a period of ten years. Upon delivery of the recorded rent control agreement, the certificate of occupancy shall be issued.
(3) A developer seeking exemption from one or more development impact fees for construction of a fee simple ownership dwelling unit shall identify the alternate source of funds for the impact fees and, unless the alternate source is from town resources, post a financial guarantee suitable to the town prior to the issuance of a building permit. The amount of the financial guarantee shall reflect the amount of development impact fees due for all affordable housing units as if they were not affordable housing units. No certificate of occupancy may be issued for the affordable housing dwellings until the impact fees have been paid by the alternate source or from the proceeds of the financial guarantee.
(4) If the alternate source of funds for impact fees is from town resources, prior to the issuance of a certificate of occupancy by the town, the developer shall file with the town a closing statement for the dwelling unit indicating an arm's length sales price no greater than that allowed for affordable housing at the time of final sale and a recorded covenant, approved by the town, restricting the sales price of the dwelling, for a period of ten years, to the original sales price, adjusted annually for inflation.
(Ord. 17009, passed 4-3-17; Am. Ord. 18068, passed 10-9-18)