Title
Resolution Defining Moderate Income for Nussbaum Affordable Housing Partnership and Bond Funded Programs
Body
Department: Neighborhood Development
Council District: Any
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Barbara Harris, 373-2509
Contact 2 and Phone: Cynthia Blue, 433-7376
PURPOSE:
Workforce housing is a major component of the recently approved 2016 Housing Bond package. City Council is requested to approve the use of a definition of moderate income based on the federal Mortgage Revenue Bond Program (26 U.S. Code Sec 143) to create a moderate income limit for the Nussbaum Affordable Housing Partnership and bond funded housing programs.
BACKGROUND:
State law allows cities to borrow money and issue bonds for the purpose of paying capital costs related to housing subject to the income limits outlined in N.C.G.S. 159-48(d)(7), which states "Providing housing projects for the benefit of persons of low income, or moderate income, or low and moderate income." The calculation of moderate income is based on "insufficient household income" or "eligibility for other federal assistance based on a moderate or low and moderate income basis."
The North Carolina Housing Finance Agency [NCHFA] operates home ownership programs to assist low and moderate income homebuyers under the income definitions outlined in the federal Mortgage Revenue Bond Program (26 U.S. Code Sec 143). In order to be consistent with NCHFA's statewide housing programs and to provide flexibility within our workforce development housing programs to serve moderate income households, staff recommends the adoption of a Mortgage Revenue Bond based definition of moderate income as 120% of the HUD-defined area median income for a household of 1 or 2 persons and 140% of the HUD-defined area median income for households of 3 or more persons. These limits will update annually with HUD published changes to the area median income. City Council approval will be sought for ap...
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