HomeMy WebLinkAboutMINUTES - 07251989 - 1.6 (2) TO: BOARD OF SUPERVISORS ++
FROM: Harvey E. Bragdon �l�
Director of Community Development Costa
DATE: July 7 , 1989 Count
SUBJECT: Updating Sales Price Limits and Income Limits for 1982, 1983 , 1985,
1987 , 1988 and 1989 Home Mortgage Finance Programs
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1 . Effective September 1, 1989, amend program documents based on
Spear Street Advisors' determination of average area purchase
prices for Oakland PMSA (Alameda County and Contra Costa
County) for all 1988 sales of single family attached and
detached units as follows:
A) Amend Section 6 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1982 Contra Costa County Home Mortgage Finance
Program as follows:
Section 6 . Average Area Purchase Price. For purposes of the
Program, the Average Area Purchase Price is $201,919 for
residences which have not been previously occupied; and $186,
175 for residences which have been previously occupied until
one year from the date of the Spear Street Advisors
determination of the 1988 Average Area Purchase Price for
Oakland PMSA. Thereafter, the average area purchase price
shall be the amount specified by the United States Department
of Treasury as the "safe harbor" for residences which have not
been previously occupied and the amount specified by the
United State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
B) Amend Section 7 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1983 Contra Costa County Home Mortgage Finance
Program as follows: 1/
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OFIBOAP COMMITTEE
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APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON 5 I APPROVED AS RECOMMENDED OTHER
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I HEREBY CERTIFY THAT THIS IS A
_ UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED JUL 2 5 1989 .
County Administrator PHIL BATCHELOR, CLERK OF
Auditor-Controller THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
BY , DEPUTY
Section 7 . Average Area Purchase Price. For purposes of the
Program, the Average Area Purchase Price is $.201,919 for
residences which have not been previously occupied and
$186,175 for residences which have been previously occupied.
Residences subject to Home Improvement Loans do not have to
satisfy Average Area Purchase Price Requirements until one
year from the date of the Spear Street Advisors determination
of the 1988 Average Area Purchase Price for Oakland PMSA.
Thereafter, the average area purchase price shall be the
amount specified by the United States Department of Treasury
as the "safe harbor" for residences which have not been
previously occupied and the amount specified by the United
State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
C) Amend Section 6 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1985 Contra Costa County Home Mortgage Finance
Program as follows:
Section 6. Average Area Purchase Price. For purposes of the
Program, the Average Area Purchase Price is $201, 919 for
residences which have not been previously occupied and
$186, 175 for residences which have been previously occupied
until one year from the date of the Spear Street Advisors
determination of the 1988 Average Area Purchase Price for
Oakland PMSA. Thereafter, the average area purchase price
shall be the amount specified by the United States Department
of Treasury as the "safe harbor" for residences which have not
been previously occupied and the amount specified by the
United State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
D) Amend Section 4 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1987 Contra Costa County Home Mortgage Finance
Program as follows:
Section 4. Average Area Purchase Price. For purposes of the
program, the Average Area Purchase Price is $201,919 for
residences which have not been previously occupied and
$186,175 for residences which have been previously occupied
until one year from the date of the Spear Street Advisors
determination of the 1988 Average Area Purchase Price for
Oakland PMSA. Thereafter, the average area purchase price
shall be the amount specified by the United States Department
of Treasury as the "safe harbor" for residences which have not
been previously occupied and the amount specified by the
United State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
E) Amend Section 4 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1988 Contra Costa County Home Mortgage Finance
Program as follows:
Section 4. Average Area Purchase Price. For purposes of the
program, the Average Area Purchase Price is $201,919 for
residences which have not been previously occupied and
$186,175 for residences which have been previously occupied
until one year from the date of the Spear Street Advisors
determination of the 1988 Average Area Purchase Price for
Oakland PMSA. Thereafter, the average area purchase price
shall be the amount specified by the United States Department
of Treasury as the "safe harbor" for residences which have not
been previously occupied and the amount specified by the
United State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
F) Amend Section 4 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1989 Contra Costa County Home Mortgage Finance
Program as follows:
Section 4. Average Area Purchase Price. For purposes of the
program, the Average Area Purchase Price is $201, 919 for
residences which have not been previously occupied and
$186, 175 for residences which have been previously occupied
until one year from the date of the Spear Street Advisors
determination of the 1989 Average Area Purchase Price for
Oakland PMSA. Thereafter, the average area purchase price
shall be the amount specified by the United States Department
of Treasury as the "safe harbor" for residences which have not
been previously occupied and the amount specified by the
United State Department of Treasury as the "safe harbor" for
residences which have been previously occupied.
2. Effective August 15, 1989, amend program documents based on
Spear Street Advisors' determination of 1989 median household
income for Contra Costa County as follows:
A) Amend Section 5 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1982 Contra Costa County Home Mortgage
Program as follows:
Section 5. Median Household Income. For purposes of the
Program, Median Household Income is the countywide median
household income which is $50, 400.
B) Amend Section 6 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1983 Contra Costa County Home Mortgage
Program as follows:
Section 6 . Median Household Income. For purposes of the
Program, Median Household Income is the countywide median
household income which is $50,400 .
C) Amend Section 5 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1985 Contra Costa County Home Mortgage
Program as follows:
Section 5. Median Household Income. For purposes of the
Program, Median Household Income is the countywide median
household income which is $50 ,400.
D) Amend Section 3 of the Rules and Regulations Establishing
.Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1987 Contra Costa County Home Mortgage
Program as follows:
Section 3 . Median Household Income. For purposes of the
Program, Median Household Income is the countywide median
household income which is $50,400.
E) Amend Section 3 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1988 Contra Costa County Home Mortgage
Program as follows:
Section 3 . Federal Law Household Income (Very Low Income
Families) : State Law Median Household Income. For
purposes of the Program, Federal Law Household Income
(Very Low Income Families) shall be the median gross
income for very low income families for the Oakland PMSA
as set forth in Revised Income Limits for Lower Income
and Very Low Income Families under the United States
Housing Act of 1937 without adjustment for family size.
Federal Law Household Income (Very Low Income Families)
is $22,500.
For the purposes of the Program, State Law Median Income
is the countywide median household income which is
$50,400 .
F) Amend Section 3 of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages
pursuant to the 1989 Contra Costa County Home Mortgage
. Program as follows:
Section 3 . Federal Law Household Income (Very Low Income
Families) : State Law Median Household Income. For
purposes of the Program, Federal Law Household Income
(Very Low Income Families) shall be the median gross
income for very low income families for the Oakland PMSA
as set forth in Revised Income Limits for Lower Income
and Very Low Income Families under the United States
Housing Act of 1937 without adjustment for family size.
Federal Law Household Income (Very Low Income Families)
is $22, 500.
For the purposes of the Program, State Law Median Income
is the countywide median household income which is
$50, 400.
FISCAL IMPACT
None
BACKGROUND
On July 5, 1989, Spear Street Advisors Inc. issued a study of the
1988 Average Area Purchase Prices for Oakland PMSA (Alameda County
and Contra Costa County) . The County should amend its program
documents to reflect this change.
On February 6, 1989, the U.S. Department of Housing and Urban
Development. (HUD) issued 1989 Income Limits for Lower and Very Low
Income Families under the Housing Act of 1937 . On June 27 , 1989,
Spear Street Advisors Inc. released a 1989 median household income
figure for Contra Costa County of $50,400. The County should amend
its program documents to reflect these changes.
Effective August 15, 1989, the maximum purchase prices for homes
and household incomes for buyers under the Contra Costa Home
Mortgage Finance Programs will be as follows:
PURCHASE PRICES
**********NEW HOMES**********
Average
Area Purchase Price Purchase Price
Purchase Maximum (a) Maximum (b)
Program Price (Non-Target Area) (Target Area)
1982 $201,919 $181,700 $181,700
1983 $201,919 $222,100 $242, 300
1985 $201,919 $222,100 $242,300
1987 $201,919 $222, 100 $242,300
1988 $201,919 $181,700 $181,700
1989 $201,919 $181,700 $222,100
**********EXISTING HOMES**********
Average
Area Purchase Price Purchase Price
Purchase Maximum (a) Maximum (b)
Program Price (Non-Target Area) (Target Area)
1982 $186,175 $167 , 500 $167 , 500
1983 $186,175 $204,700 $223, 400
1985 $186,175 $204,700 $223, 400
1987 $186,175 $204,700 $223 ,400
1988 $186,175 $167,500 $167 ,500
1989 $186,175 $167,500 $204,700
INCOME LIMITS (1982-87 Programs)
**********NEW HOMES**********
Median Supplemental Entitlement
Program Income Income Limits (c) Income Limits (d)
1982 $50, 400 $60, 480 $75,600
1983 $50 , 400 $60,480 $75,600
1985 $50,400 $60,480 $75,600
1987 $50,400 $60, 480 $75,600
**********EXISTING HOMES**********
Median Supplemental Entitlement
Program Income Income Limits ( e) Income Limits (f)
1982 $50, 400 $60, 480 $75,600
1983 $50, 400 $60,480 $75,600
1985 $50,400 $60, 480 $75,600
1987 $50,400 $60, 480 $75,600
INCOME LIMITS - 1988 PROGRAM ONLY
HUD Very
Low Income State Law Income
Income Maximum (g) Median Income Maximum (h)
New Home $22, 500 $51,750 n/a n/a
Existing
Home n/a n/a $50, 400 $50, 400
INCOME LIMITS - 1989 PROGRAM ONLY
Non-Target Target
Area Limits Area Limits
New Home
1 & 2 person household $45,000(i) $54,000( j )
3+ person household $51,750(k) $60, 480( 1)
Existing Home
1 & 2 person household $45, 000(m) $50, 400(n)
3+ person household $50, 400(o) $50f400(p)
NOTES
a) 1982, 1988 & 1989 maximums = 90% of Average Area Purchase
Price; 1983-1987 maximums = 110% of Average Area Purchase
Price
b) 1982 & 1988 maximums = 90% of Average Area Purchase Price;
1983-1987 maximums = 120% of Average Area Purchase Price;
1989 maximum = 110% of Average Area Purchase Price
c) Limit = 120% of median income
d) Limit = 150% of median income
e) Limit = 100% of Median; 1/2 of loans in 1982 & 1983 required
for mortgagors with incomes < 80% of median ( $40,320) . 1/2 of
loans in 1984-1987 required for mortgagors with incomes < 90%
of median ( $45,360)
f) Limit = 120% of median; 1/2 of loans in 1982 required for
mortgagors with incomes < 100% of median ( $50, 400) ; 1/2 of
loans in 1983-87 required for mortgagors with incomes < 110%
of median ( $55 ,440)
g) Limit = 230% of HUD Very Low Income , figure
h) 500 of existing mortgage funds carry limit = 90% of State Law
Median Income ($45 , 360 ) ; remainder of funds carry limit = 100%
of State Law Median Income
i) Calculated as "very low income" limit of $22,500 multiplied by
2. 0.
j ) Calculated as "very low income" limit .of $22, 500 multiplied by
2. 4.
k) Calculated as "very low income" limit of $22,500 multiplied by
2. 3 .
1) Calculated federal limit of $63,000 ("very low income limit"
of $22, 500 multiplied by 2. 8) is superseded by State of
California Limit ( 1200 of median income of $50, 400 as adopted
by the County .based on most recent Spear Street Advisors '
estimate) .
m) Calculated as "very low income" limit of $22,500 multiplied by
2. 0; 1/2 of proceeds reserved for mortgagors with incomes of
$40,320 or less.
n) Calculated federal limit of $54, 000 ( "very low income" limit
of $27.,500 multiplied by 2 . 4) is superseded by•State of
California limit ( 1000 of median income as adopted by the
County based on most recent Spear Street Advisors' estimate) ;
1/2 of proceeds must be for mortgagors with incomes of $40 , 320
or less.
o) Calculated federal limit of $51,750 ( "very low income" limit
of $22 , 500 multiplied by 2. 3 ) is superseded by State of
California limit ( 100% of median income as adopted by County
based on most recent Spear Street Advisors' estimate) ; 1/2 of
proceeds reserved for mortgagors with incomes of $40,320 or
less ( 800 of median income of less) .
P) Calculated federal limit of $63 ,000 ( "very low income" limit
of $22, 500 multiplied by 2 . 8) is superseded by State of
California limit ( 100% of median income as adopted by County
based on most recent Spear Street Advisors' estimate) ; 1/2 of
proceeds reserved for mortgagors with incomes of $40,320 or
less ( 80% of median income or less) .
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