Affordable dwelling and sleeping units required shall be provided under the following standards. For the purposes of this section, a household shall consist of every person who lives or intends to live in the unit, regardless of age, dependency status, or relationship. The imputed household size for determining unit affordability and occupancy requirements of this section shall be equal to 1.5 people per each bedroom in the unit, except for studios, efficiencies, and sleeping units for which the imputed household size is 1 person.
(a) Affordable rental units shall:
(.1) Have total monthly costs (including rent and utility costs) that do not exceed thirty percent (30%) of gross monthly income for households earning up to forty percent (40%) of the Area Median Income (AMI), adjusted for household size, as reported by the U.S. Department of Housing and Urban Development (HUD) for the Philadelphia Metropolitan Statistical Area;
(.2) Be occupied by households earning up to forty percent (40%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of the household's initial occupancy of the unit; and
(.3) At no time be occupied by households earning greater than eighty percent (80%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area; provided that, in the event the income of a tenant is found by the Department of Planning and Development to exceed the maximum income provided for by this subsection (.3), a rental unit shall nonetheless be deemed in compliance with this subsection (.3), until the first expiration of a lease occurring after the tenant's income first exceeded the maximum permitted by this subsection (.3). In such event, the owner or their property manager may raise rent on the existing household's unit at the owner or their property manager’s discretion, taking into account any applicable laws, rules, or policies regarding rent increases, provided that the owner or their property manager must make the next available unit of comparable size available to a new income-qualified household.
(b) Affordable owner-occupied units shall:
(.1) Have a maximum sale and resale price, during the term of affordability, calculated on the basis of a down payment of no more than five percent (5%) of the purchase price, a fixed rate 30 year mortgage, consistent with the average monthly rate published from time to time by Freddie Mac, and total monthly costs (including mortgage principal and interest, property taxes, property insurance, and condominium or homeowner association fees) that do not exceed thirty percent (30%) of gross monthly income for households earning up to sixty percent (60%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area;
(.2) Be sold to one or more members of a household with household earnings up to sixty percent (60%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of sale; and
(.3) Be the principal residence of at least one person who owned the unit during the period of affordability.
(d) Applicants shall be encouraged to partner with community development corporations and other community-based organizations in developing and executing plans for marketing units and evaluating the qualifications of potential occupants.
(e) Compliance check, remedies, and regulations of § 14-702(7)(d) through (g) shall apply.