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Affordable Housing

Housing is considered affordable when it costs its occupants no more than 30% of income, including the cost of utilities. For the purposes of 8-30g, median income is defined as the lesser of Connecticut's state median income or the property's Area Median Income, as determined by HUD

Hamden Affordable Housing Regulations

652.3.1  Purpose

All multi-family housing developments containing 5 or more dwelling units shall set aside a minimum of 20% of the dwelling units as Affordable Housing Units as provided for in Section 8-30g of the Connecticut General Statutes, as amended..  The Affordable Housing Units shall be conveyed by deeds containing covenants or restrictions requiring that Affordable Housing Units be sold or rented at, or below, prices that will preserve these units as housing for occupants whose annual income is less than or equal to 80% of the medical income for the New Haven area.  The cost of such housing shall not exceed 30% of the annual income of the occupant(s).  These restrictions shall be in place for a period of at least forty years after the initial occupation of the unit.  Median income shall be defined as provided for in Section 8-30g (a)(7) of the Connecticut General Statutes, as amended.

652.3.2  Maximum Sale Price of Affordable Housing Units

The maximum price for all affordable units that are sold or resold, for the period of affordability restrictions, to a household earning of 80% of the median income or less, shall be determined as   follows:

Step 1

Determine area median income and the statewide median as published by the U.S. Department of Housing and Urban Development for the Town of Hamden, and use the lower of these figures.

Step 2

Adjust median income identified in Step 1 by a family size by assuming that 1.5 persons will occupy each bedroom of an affordable unit, except in the case of a studio or zero-bedroom unit in which case 1.0 person shall be assumed.  Family size adjustment shall be made based upon the following percentages

The family size adjustment that involves a half person (such as 4.5 persons) shall be calculated by taking the midpoint between the relevant figures above and below the half.  For example, the adjustment for a 4.5 person household is 104%.

Step 3

Calculate 80% of Step 2.

Step 4

Calculate 30% of Step 3.  This number represents the portion of household income to be used for housing costs.

Step 5

Divide Step 4 by 12 months to determine the maximum monthly housing payment.

Step 6

Determine, by reasonable estimate, monthly housing expenses, including real property taxes for the Town of Hamden; real property insurance; any common-interest ownership or similar fee required of all unit purchasers or owners; and heat and utility costs, excluding television, telecommunications, and information technology services.

Step 7

Subtract Step 6 from Step 5 to determine the amount of available for mortgage principal and interest.

Step 8

Using the amount resulting from Step 7, apply a 30 year mortgage term and interest rate that is commercially reasonable and available to households likely to apply to purchase such units, in order to determine the financeable amount.

Step 9

Calculate down payment.  The maximum allowable down payment used in calculating the maximum sale or resale price of affordable unit shall be lesser of 20% of the total sale price or 20% of the Connecticut Housing Finance Authority (CHFFA) maximum sales price limit for a comparably sized unit in the area, as published by the CHFA.

Step 10

Add Steps 8 and 9 to determine the maximum sale or resale price.

652.3.3  Maximum Cost of Affordable Rental Units

The maximum monthly rent for all affordable units, during the period of affordability restrictions to a household earning 80% of the median income or less, shall be determined as follows:

Step 1

Determine area median income and the statewide median as published by the U.S. Department of Housing and Urban Development for the Town of Hamden, and use the lower of these figures.

Step 2

Adjust median income identified in Step 1 by family size by assuming that 1.5 persons will occupy each bedroom of an affordable unit, except in the case of a studio or zero bedroom unit, in which 1.0 person shall be assumed

The family size adjustment that involves a half person (such as 4.5 persons) shall be calculated by taking the midpoint between the relevant figures above and below the half.  For example, the adjustment for a 4.5 person household is 104%.

Step 3

Calculate 80% of Step 2.

Step 4

Calculate 30% of Step 3.  This number represents that portion of household income to be used for housing costs.

Step 5

Divide Step 4 by 12 months to determine the maximum monthly housing payment.

Step 6

Determine the fair market rent for a unit with the same number of bedrooms in Hamden as published by the U.S. Department of Housing and Urban Development.

Step 7 

Multiply the U.S. Department of Housing and Urban Development fair market rent as determined in Step 6 by 120%.

Step 8

The maximum monthly housing payment for occupants of the subject rental unit shall be the lower of the results of calculations in Steps 5 and 7.

Step 9

Determine, by reasonable estimate, monthly expenses for heat and utility costs for which the tenant is directly responsible, excluding television, telecommunications, and information technology services, but including any other periodic fee for which the tenant is directly responsible, such as common charges in the case of a common-interest ownership community.

Step 10

Deduct the estimate of tenant-paid utilities and fees determined  in Step 9 from the maximum monthly housing payment in Step 8.  The result is the maximum amount that the developer/owner may charge for his rental unit as the monthly contract rent.

652.3.4  Requirements for Affordable Units

  1. Affordable units shall be comparable to market-rate units in size, quality, finishes and amenities.
  2. Affordable units shall be evenly distributed throughout the development in such a manner that a least 20% of the dwelling units within each multifamily building or cluster of units shall be affordable units.
  3. The project shall be phased such that a minimum of 20% of the units for which building permits and certifications of zoning compliance have been cumulatively issued shall be affordable units.

652.3.5  Affordability Plan

All applications for multi-family developments that contain 5 or more units shall submit an Affordability Plan that includes the following:

  1. All elements set forth in section 8-30g (b)(a) of the Connecticut General Statutes
  2. The designation of the person or entity who will be qualified and responsible for administration of the affordability plan including the following:

i.   Ensuring that households applying for affordable units qualify within applicable maximum income limits:

ii.  Assuring the accuracy of sale or resale prices or rents, and providing documentation where necessary to buyers, sellers, lessors, lessees, and financing institutions:

iii. Maintaining minimum percentages in a set-aside development.

iv.  Reporting compliance to the Town Planner and the Town Attorney: and

v.   Executing the affirmative fair-housing marketing plan.

c.       An affirmative fair housing marketing plan that conforms to the requirements of Sections 8-30g-7(a)(2) and 8-37ee-1 of the Regulations of Connecticut State Agencies.

d.      The maximum sale price, resale price or rent for the affordable units, as determined in accordance with the requirements of 652.1 and 652.3.

e.       A description of the projected sequence in which affordable units shall be built and offered for occupancy.

Such description shall consist of a narrative and schematic plan describing the construction sequence of the proposed site development and the location of the affordable and market-ate units with each phase of the sequence.