[HISTORY: Adopted by the Board of Selectmen as amended through 10-22-2007. Subsequent
amendments noted where applicable.]
The purpose of these regulations is to implement a program designed
to provide affordable housing in the Town of Killingworth pursuant
to the provisions of Connecticut General Statutes §§ 8-2g,
8-30g and 8-39a and Killingworth Zoning Regulations, Article VII.
As used in this regulations, the following terms shall have
the meanings indicated:
An amount of money to be allocated for housing, determined
by the formula set forth below, that in addition to taxes and insurance,
may not exceed 30% of the gross income of a person or family that
receives 80% of the Middletown - Middlesex County area median income.
Housing developed pursuant to the special provisions of Connecticut
General Statutes §§ 8-2g, 8-30g and 8-39a and Killingworth
Zoning Regulations, Article VII.
The legal entity designated by the legislative body of the
Town of Killingworth to implement the affordable housing regulations,
or in the event that no such body has been designated, or has not
taken office or is unavailable for any reason, the Board of Selectmen
or its designee.
That which, at the time of the execution of a contract of
sale or a lease agreement, does not exceed 80% of the median family
income of the Middletown - Middlesex County Metropolitan Statistical
Area as established by the U.S. Department of Housing and Urban Development
on an annual basis.
The Agency shall control and review the income of purchasers
or renters as well as sales prices and rents allowable for the affordable
housing units, for a period of no less than 30 years after the date
of completion of such units.
The Agency shall review all sales of affordable housing to determine
the sales price conforms to that established by the Housing Agency
and the property is sold to qualified purchasers.
Each year the Housing Agency shall determine the allowable cost
of the affordable housing units. Said cost shall be determined annually
by the affordable housing formula to the median area income as determined
by HUD. The allowable price upon resale shall be determined in conformity
with the guidelines set forth below.
A.
The Housing Agency shall review all sales and rentals of affordable
housing, for a period of not less than 30 years from the date of completion
of the unit, to determine that the sales price or rent does not exceed
affordability as determined by these regulations.
B.
The Housing Agency shall review all deeds and rental contracts for
affordable housing to determine that no interest in such property
is transferred except in accordance with the enabling statute and
these regulations.
A.
The Housing Agency shall determine the amount of income a family
may have in order to qualify for affordable housing as set forth in
Connecticut General Statutes § 8-2g and Article VII of the
Killingworth Zoning Regulations. Said income shall be 80% of the area
median income as certified by HUD, and shall be adjusted annually
when new HUD figures are available.
B.
The Housing Agency shall oversee the sale or rental of any units
of affordable housing constructed pursuant to Connecticut General
Statutes § 8-2g and Article VII of Killingworth Zoning Regulations
to insure that such sale or rental is made to persons and families
that satisfy such income criteria.
A.
The Housing Agency shall use the same factors and methods of calculating
used by HUD in determining median household income for eligibility
for HUD administered programs to determine whether an applicant for
an Affordable Housing Unit meets the definition of "eligible household."
B.
Applications for affordable housing shall be submitted to the Housing
Agency for review. Upon approval by the Agency, the application shall
be date stamped and a copy provided to the applicant. In the event
that more than one approved purchaser offers to purchase an affordable
housing unit, the vendor shall accept the offer of the purchaser with
the earliest date stamp. In the event that the vendor of affordable
housing does not follow these guidelines, and a contract is made with
a purchaser that is either not approved by the Agency or is not the
first approved purchaser, such contract for sale may be voided by
the Agency.
The Agency shall determine the sales or the rental price for
an affordable housing unit by following the formula set forth below.
It is intended that the resulting price will enable the purchaser
or renter to live in the unit with a total expenditure for all housing
costs, including insurance and taxes, of no more than 30% of his gross
income, as intended by the statute and regulations.
A.
Formula to determine sale price for affordable housing, to be determined
annually when the year's median income figures are available
from HUD.
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HUD Middletown - Middlesex County area median income = X; (X
x .80) /12 x .30 = amount available for housing = H. H (-taxes) (-hazard
insurance) = amount available for mortgage payment, or A.
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B.
Current thirty-year fixed mortgage rate as determined by:
(1)
Use mortgage tables to determine mortgage amount that will result
in monthly payment of A; that will equal M or "allowable mortgage."
(2)
Price is the highest allowable "affordable price." That number has
been determined as:
|
$320,966 for Killingworth in 2007 using Middletown - Middlesex
County area
| |
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$254,918 for Killingworth in 2007 using New Haven County area
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(3)
To reach this number, we have assumed monthly municipal taxes of
$400, hazard insurance costs of $65, and an 80% mortgage. We note
that the area median income will probably increase in 2011.
The Authority recognizes that the shift of Killingworth from
the New Haven to Middletown - Middlesex County statistical areas for
computation of income may cause a hardship on current Killingworth
property owners. Therefore, during the following adjustment period,
the figure used for determining median income for determination of
cost and for determination of income for all purposes of these regulations
shall be calculated as follows for the years 2007 through 2010:
A.
The figure used shall be determined by using the New Haven County
median income adjusted as follows:
(1)
In 2007, said figure shall be increased by 25% over the New Haven
County median income.
(2)
In 2008, said figure shall be increased by 50% over the New Haven
County median income.
(3)
In 2009, said figure shall be increased by 75% over the New Haven
County median income.
(4)
In 2010, said figure shall be increased by 100% over the New Haven
County median income.
B.
In no event in any such year shall the median income figure used
exceed the Middletown - Middlesex County figure for that year. In
2011, and all ensuing years, the Middletown - Middlesex County area
income figure shall be used.
A.
Resale restrictions, rent increases. In the case of affordable housing units, the title of said properties shall be restricted so that, in the event of any resale by the owner or any successor, the resale price shall not exceed the then-maximum sales price as defined hereinabove, excepting adjustments in accordance with Subsection B below. Rent increases for units that are rented shall be allowed only to the extent that the new rent does not exceed the then-current maximum rental for the unit determined in accordance with these regulations, with allowable adjustments in accordance with Subsection B below.
B.
Adjustment to allowable sales price for improvements. In the event
that an owner of an affordable housing unit makes capital expenditures
to improve the unit, said owner may recoup his investment in accordance
with the following formula:
(1)
He will be allowed the cost of the improvements; however it shall
not exceed 1% of the unit's total value per year; or
(2)
In the case of adding a bedroom or a bathroom, the owner may add
100% of the documented cost of the improvement to the sales price,
so long as it is deemed reasonable by the agency.
Any person or entity that is aggrieved by a decision of the
Director of the Agency under these regulations may appeal such ruling
to the Killingworth Housing Partnership within 10 working days of
the date the decision was mailed by the Director. The Agency shall
review the complaint, review the decision of the Director and render
a final decision within 10 days of such Agency meeting. The decision
of said Agency shall be considered final.
