The terms used in this chapter shall have the meanings set forth below:
“Affordable sales price”
means the maximum sales price to be paid by a low income household for an inclusionary unit, to be determined as follows:
A.
Determine the “annual income for a lower income household” as follows:
1.
Determine the average number of bedrooms per unit in the proposed residential development.
2.
Round up the number of bedrooms from subsection (A)(1) of this defintion to the next whole number to determine the applicable house-hold size.
3.
Determine the area median income, as defined in this section, for a household of the size determined in subsection (A)(2) of this definition.
4.
Multiply the area median income determined in subsection (A)(3) of this definition by 0.80 to determine the “annual income for a lower income household.”
B.
Determine the “monthly household allowance available for a mortgage payment” as follows:
1.
Multiply the “annual income for a lower income household” determined in subsection (A)(4) of this definition by 0.35 to determine the “annual housing allowance.”
2.
Divide the “annual housing allowance” by 12 to determine the “monthly housing allowance.”
3.
Multiply the “monthly housing allowance” by 0.80 to determine the “monthly house-hold allowance available for a mortgage payment.”
C.
Determine the “maximum mortgage” that can be financed as follows:
1.
Find the “prevailing interest rate,” which shall be the historical daily required net yield for the prior month for a 30-year fully amortized fixedrate single-family home mortgage, as identified by Fannie Mae;
2.
Determine the “maximum mortgage” that can be financed at the “prevailing interest rate” determined in subsection (C)(1) of this definition based on the “monthly household allowance available for a mortgage payment” determined in subsection (B)(3) of this definition.
D.
Determine the “affordable sales price” by dividing the “maximum mortgage” determined in subsection (C)(2) of this definition by 0.80.
“Applicant”
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks city approvals for all or part of a residential development.
“Area median income”
means the median household income, provided in Section 50093(c) of the California Health and Safety Code, as amended, that is applicable to Riverside County and adjusted for family size as published and annually updated by the United States Department of Housing and Urban Development.
“CMC”
means the Calimesa Municipal Code.
“Household”
means one person living alone or two or more persons sharing a residency whose income is considered for housing payments.
“Inclusionary housing plan”
means the applicant’s proposal for compliance with this chapter for a particular residential development.
“Inclusionary unit”
means a dwelling unit that will be offered for sale to low-income households, at an affordable sales price, in compliance with this chapter.
“Low-income household”
means a household whose income does not exceed 80 percent of area median income.
“Market-rate unit”
means a dwelling unit in a residential development that is not an inclusionary unit.
“Residential development”
means any of the following: (A) a subdivision resulting in the creation of 20 or more residential lots or residential units; (B) the new construction of a project consisting of 20 or more for-sale dwelling units, whether in a multifamily development or a development of single-family homes; or (C) the conversion of 20 or more rental units to condominium ownership.
“Unit size”
means all of the usable floor area within the perimeter walls of a dwelling unit, exclusive of open porches, decks, balconies, garages, basements, cellars that extend no more than two feet above finished grade, and attics that do not exceed a floor-to-ceiling height of five feet.
(Ord. 304 § 2, 2011; Ord. 320 § 3, 2012)