A. Prices: The rent and sales prices of affordable units shall be based upon the size of the unit. Units that are the minimum allowed size shall be priced at the low end of the allowed range, and units that exceed the minimum allowed size may be allowed to be priced in the middle or upper end of the allowed range. The allowed price ranges shall be set as follows:
1. Dorm units, SRO, and studio units shall be priced for extremely low income households, adjusted for household size.
a. Dorm units and single room occupancy (SRO) units shall have an assumed household size of 0.75 persons per one hundred fifty (150) square feet, and studio units shall have an assumed household size of one person.
2. One bedroom units shall be priced for very low income households, adjusted for household size. One bedroom units shall have an assumed household size of two (2) persons.
3. Two (2) bedroom units shall be priced for low income households, and have an assumed household size of three (3) persons.
4. Three (3) bedroom or more units and larger shall be priced for low income households, and shall have an assumed household size of four (4) persons.
5. The allowable price shall be calculated based upon the monthly income (as defined by federal standards) of qualifying households.
a. For Sale Units: The allowable sales price shall be calculated so that the sum of the monthly mortgage payment, plus mortgage insurance, property taxes, and HOA dues does not exceed thirty percent (30%) of a household's gross monthly income, and based upon the following assumptions:
(1) An available fixed rate thirty (30) year mortgage, consistent with the first time homebuyer rate offered by the Utah Housing Corporation, plus fifty (50) basis points. A lower rate may be used in calculating affordable prices if the developer can guarantee the availability of a fixed rate, thirty (30) year mortgage at this lower rate for all of the inclusionary units.
(2) A down payment of no more than five percent (5%) of the purchase price.
(3) A calculation of property taxes, and
(4) A calculation of homeowners' insurance and/or homeowners' association fees.
(A) Homeowners' association (HOA) fees shall be no more than the HOA fee for market rate units and shall be the lesser of the actual HOA fee or an annual amount equal to one percent (1%) of the allowable price as adjusted annually based upon the permitted increases in the allowable price as set forth in the deed restrictions. This limitation of HOA fees shall be set forth in the recorded deed restrictions.
b. For Rent Units: The allowable rental price shall be calculated so that the monthly rent, plus utilities, does not exceed thirty percent (30%) of a household's gross monthly income. (Ord. 783, 10-10-2012)