Item 10 - Fiscal Year 2023-24 Homeownership Initiatives

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EXHIBIT 1 months of demolition; 6) construction costs; 7) project audit costs; and, 8) affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding: 1) project reserve accounts for replacement or operating reserves, and operating subsidies; 2) payment of impact fees; 3) land banking; 4) emergency repair or weatherization programs; 5) commercial properties; 6) temporary shelters; or 7) project -based rental assistance. Qualification as Affordable Homeownership Housing N 92.254) HUD considers Affordable Homeownership Housing as housing that is for acquisition by a family that meets the following affordability requirements: • The housing must be single-family housing. • The housing must be considered modest housing with maximum purchase prices (inclusive of all subordinate loans) limited to the following: 2023 Maximum HOME Purchase Prices 1-Unit 2-Unit 3-Unit 4-Unit New Construction* $765,000 $979,000 $1,185,000 $1,468,000 Existing Homes* $765,000 $979,000 $1,185,000 $1,468,0000 *In 2023, the maximum HOME purchase prices for New Construction and Existing Homes are the same. Eliaible Homebuvers and Affordable Sales Prices The housing must be acquired by a homebuyer whose family qualifies as a low-income family, and the housing must be the principal residence of the family throughout the period described below. In determining the income eligibility of the family, the City will include the income of all persons living in the housing. The homebuyer must receive housing counseling. Each home must be sold at an affordable sales price, which will be less than the maximum HOME purchase prices described above. The affordable sales price must be based on the income limits published by HUD, and incorporate applicable housing expenses such as utilities, HOA fees, insurance, and property taxes. If there is no ratified sales contract with an eligible homebuyer for the housing within 9 months of the date of completion of construction or rehabilitation, the housing must be rented to an eligible tenant in accordance with § 92.252. Periods of Affordability and Recapture Provisions The HOME -assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described more fully below: fninq the HOME Period of Afforda HOME Assistance per Unit or Buyer I Length of the Affordability Period City of Santa Ana Community Development Agency Request for Proposals for Affordable Homeownership Opportunities Page 17