West Orange Fourth Round HEFSP_adopted 111025_Appendices

c. Maximum Rents and Sales Prices. 1. In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC utilizing the most recently published regional weighted average of the uncapped Section 8 income limits published by HUD and by the Superior Court. The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than sixty (60%) percent of median income, and the average rent for restricted rental units shall be affordable to households earning no more than fifty two (52%) percent of median income. The developers and/or municipal sponsors of restricted rental units shall establish at least one (1) rent for each bedroom type for both low-income and moderate-income units, provided that at least thirteen (13%) percent of all low- and moderate-income rental units shall be affordable to very low-income households, earning thirty (30%) percent or less of the regional median household income, with such very low-income units counted toward the low-income housing requirement. The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than seventy (70%) percent of median income, and each affordable development must achieve an affordability average of fifty five (55%) percent for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three different sales prices for each bedroom type, and low-income ownership units must be available for at least two (2) different sales prices for each bedroom type. In determining the initial sales prices and rent levels for compliance with the affordability average requirements for restricted units other than assisted living facilities and age-restricted developments, the following standards shall be used: (a) A studio unit shall be affordable to a one (1)-person household; (b) A one (1)-bedroom unit shall be affordable to a one and one-half (1 %)-person household; (c) A two (2)-bedroom unit shall be affordable to a three (3)-person household; (d) A three-(3) bedroom unit shall be affordable to a four and one-half (4 %)-person household; and (e) A four (4)-bedroom unit shall be affordable to a six (6)-person household. In

rson household; (d) A three-(3) bedroom unit shall be affordable to a four and one-half (4 %)-person household; and (e) A four (4)-bedroom unit shall be affordable to a six (6)-person household. In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units in assisted living facilities and age-restricted developments, the following standards shall be used: (a) Astudio shall be affordable to a one (1)-person household; (b) A one (1)-bedroom unit shall be affordable to a one and one-half (1 %)-person household; and, (c) A two (2)-bedroom unit shall be affordable to a two (2)-person household or to two (2) one (1)-person households. The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying cost of the unit, including principal and interest (based on a mortgage loan equal to ninety-five (95%) percent of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees do not exceed twenty-eight (28%) percent of the eligible monthly income of the appropriate size household as determined under 4844-7802-2092, v.2