What are the eligible uses of HOME funding
for housing development?
· Development hard costs including construction, energy-related
requirements, disabled accessibility, demolition, site improvements.
Development impact fees that are charged for all projects within
a jurisdiction.
Can HOME funds be used to pay predevelopment
expenses?
No. Sonoma County HOME funds cannot pay predevelopment costs or costs
of project administration.
Can HOME funds be used to rehabilitate
existing housing units?
No. Sonoma County HOME funds cannot pay for costs to rehabilitate existing
housing units. CDBG funds may be used to pay these costs.
What are the eligible uses of CDBG funding
for housing development?
Acquisition of property.
Construction of on- and off-site improvements to publicly-owned land
to enable the property to be used for housing development. (Land may
transfer to private ownership after improvements are completed).
Site clearance and demolition.
Relocation assistance for permanently and temporarily relocated households.
Rehabilitation of existing residential structures.
What are the current income and rent limits for housing
assisted with HOME and CDBG funding?
Click here for a document that explains current
rent and income limits
for this program.
*Maximum rents will be reduced by a utility
allowance, established by HUD, for all tennant paid utilities.
What is the allowed sales price of housing
assisted with CDBG and HOME funding?
For homes reserved for sale to low and very-low income buyers, the Commission
uses a formula to establish the affordable sales prices. The formula,
which limits monthly housing costs to approximately 30% of the maximum
monthly income for the size of household assumed to reside in a particular
unit (i.e., the number of bedrooms plus one), assumes a 10% down payment
and considers the monthly mortgage payment(s), private mortgage insurance,
property taxes, home owner’s insurance, and, if applicable, homeowner’s
association dues.
What is a density bonus program and
what density bonus programs does the County offer?
Through density bonus programs, developers are allowed to build at densities
up to 100% greather than those for which the land is zoned, in exchange
for guarantees that the housing will be rented or sold to eligible households
at affordable prices. Sonoma County operates the Density
Bonus and
Type
A and C Housing Opportunity Areas
programs to assist private developers to build rental and for-sale housing
that is affordable to low and moderate income households.
Does the Community Development Commission
approve my application for a density bonus?
No. The Sonoma County Permit and Resource Management Department (PRMD)
approves applications for density bonuses. After the application is approved,
the Community Development Commission administers the affordability restrictions
for all units to be regulated per the PRMD approval.
What is the allowed sales price of density
bonus “for-sale” housing?
For homes reserved for sale to very low-, low-, and moderate-income buyers,
the Commission uses a formula to establish the affordable sales prices.
The formula, which limits monthly housing costs to approximately 30% of
the maximum monthly income for the size of household assumed to reside
in a particular unit (i.e., the number of bedrooms plus one), assumes
a 10% down payment and considers the monthly mortgage payment(s), private
mortgage insurance, property taxes, home owner’s insurance, and,
if applicable, homeowner’s association dues.
What are the current income and rent limits for density
bonus rental housing? For very low-income units: Monthly rent may not exceed one twelfth
(1/12) of 30% of 50% of the annual
median income, adjusted for the assumed household size (the number
of bedrooms in the unit plus 1). For low-income units: Monthly rent may not exceed one twelfth
(1/12) of 30% of 60% of the annual
median income, adjusted for the assumed household size (the number
of bedrooms in the unit plus 1).
In both cases, these rents will be reduced by a
utility allowance for estimated tenant-paid utilities.
How are the rents or sales prices for
density bonus projects regulated?
Developers of density bonus projects enter into an Affordable Housing
Agreement with the Community Development Commission, which establishes
the levels at which affordable units may be sold or rented and the time
period during which the affordable units must remain affordable. Commission
staff monitors buyer incomes and purchase prices as units are sold and
monitors rental units at least annually.
Is there a rental monitoring fee for
the work performed by the Community Development Commission on density
bonus projects?
Yes. Developers of density bonus rental units pay a monitoring fee of
$75.00 per unit per year. That fee is adjusted from time to time to offset
increases in administrative costs.
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