Sales price is based on a 30-year mortgage at 7.5% with 5% down, rent is based on 70% of median income for JTCHA owned rentals and HUD calculated Fair Market Rents for privately owned Employee Housing Rentals.
7.A. The status quo.
7.B. Includes 7.A, except for Employee Housing units, calculate max rents based on 30% of the household income at the low end of each category.
7.C. Includes 7.A, except allow for multi-unit developments to have an additional increase in initial sales price if certain criteria are met.
7.D. Includes 7.A, except base the mortgage interest rate on the 20-year average and recalculate each year.
7.E. Includes 7.A, except for sales price calculation use 8% instead of 5% toward HOA dues, taxes, and insurance and 22% toward mortgage.
7.F. Includes 7.A, except for JTCHA-owned rentals use the midrange for each income Category (Cat 1 = 70% AMI; Cat 2 = 90% AMI; Cat 3 = 110% AMI)
7.G. Some combination of B, C, D, E, plus F.
Base the rental rates for JTCHA owned units and Employee housing units on 30% of the low end of the category. Base maximum sales prices using 30% of a household’s income toward housing (22% toward principle and interest, 8% toward HOA dues, taxes and insurance). Use a 30-year mortgage with 5% down, 20 year rolling average interest rate, and income at middle of the income range. (Alternative 7.B, 7.D, 7.E, and 7.F)