The method for the sale of affordable units is shown below. The Planning, Public Works and Environmental Services Director shall review these assumptions and procedures annually and make revisions as necessary:
(a) Units Appraised at Fair Market Value. At the time that the unit will be marketed and made available for sale, the fair market value of the unit will be determined. This determination will be made by a qualified appraiser who will be selected by the Planning, Public Works and Environmental Services Director and paid for by the developer.
(b) Calculation of Affordable Maximum First Mortgage. The sale of affordable units will be implemented by a "silent second" mortgage program by the County by recordation of a note and deed of trust, or other designated document in the County’s favor. After the fair market value of the unit has been determined, the developer will calculate the affordable maximum first mortgage amount for a qualified income purchaser of the unit, which shall be approved by the Planning Director. The following procedure will be used for determining the affordable maximum first mortgage amount:
(1) Determine the family size appropriate for the unit. For purposes of this calculation, "adjusted for family size appropriate to the unit" means adjusted for a household of one (1) person in the case of a studio unit; two (2) persons in the case of a one (1) bedroom unit; three (3) persons in the case of a two (2) bedroom unit; four (4) persons in the case of a three (3) bedroom unit; five (5) persons in the case of a four (4) bedroom unit; and six (6) persons in the case of a five (5) bedroom unit.
(2) Determine the household income available for the affordable maximum first mortgage calculation for a low-income household based on the appropriate household size using the current HUD Area Median Income figures for Yolo County. The calculation of available household income should be based on the Area Median Income for the appropriate household size.
(3) Calculate the amount of income available for housing costs by multiplying the income figure by thirty (30) percent. For the purposes of determining the affordable purchase price, the cost of utilities, property taxes, insurance, primary mortgage, insurance, maintenance, and repair costs, and like expenses are not required to be included in the calculation. Homeowner's association dues may be included in the calculation of affordable purchase price if the Planning, Public Works and Environmental Services Director determines that such costs would place a substantial burden on the low-income homeowners' ability to purchase a home and make monthly mortgage payments.
(Ord. 1451, eff. January 1, 2015)