(a) 
Kaua'i Median Household Income and HUD Low Income Limits. HUD provides the County with the Kaua'i median household income amount each year. In addition, HUD provides income limits, by household size, for extremely low income households that earn 30% of the median household income, very low income households that earn 50% of the median household income, households that earn 60% of the median household income, and low income households that earn 80% of the median household income.
(b) 
Workforce Housing Income Limits. The Housing Agency interpolates income limits for income groups above HUD's low income groups utilizing the Kaua'i median household income and HUD's methodology to calculate limits by household size. The Housing Agency rounds each income limit upwards to the nearest $50. Within 30 days from the date that HUD issues the Kaua'i median household income for the year, the Housing Agency will make available that year's workforce housing income limits by household size from a household of one to a household of eight.
(Ord. No. 860, November 20, 2007)
(a) 
For-Sale Affordability Criteria. The Housing Agency calculates for-sale dwelling unit price limits by household size and by income group by formula including the following factors:
(1) 
Thirty percent of gross income is available for housing cost.
(2) 
The estimated amounts for real property tax and home owners insurance consistent with industry standards.
(3) 
If sale is a condominium or requires association or maintenance fees, the estimated cost for association or maintenance fees consistent with industry standards.
(4) 
A fully amortized 30 year fixed interest rate mortgage loan.
(5) 
A loan interest rate consistent with prevailing mortgage interest rates for conventional owner-occupant first mortgage loans rounded upwards to the nearest quarter percent (0.25%).
(6) 
A down payment amount equal to 5% of the sale price.
(7) 
Sales prices are rounded to the nearest $100.
(b) 
Workforce For-Sale Housing Price Limits. Within 30 days from the date that HUD issues the Kaua'i median household income for the year, the Housing Agency will have available that year's workforce for-sale housing price limits. The workforce for-sale housing price limits will include the prices for the applicable HUD low income groups and the affordable and gap-group income groups by household size from a household of one to a household of eight. The Housing Agency may revise the workforce for-sale housing price limits throughout the year as the prevailing first mortgage interest rates change.
(Ord. No. 860, November 20, 2007)
(a) 
The Housing Agency calculates rental rate limits by household size and by income group by methodology utilized to administer HUD's rent subsidy program as follows:
(1) 
Thirty percent of gross income is available for housing cost.
(2) 
Reduce the amount available for housing cost by subtracting the applicable utility allowance, prepared annually by the Housing Agency.
(3) 
The net amount is the maximum rent allowable.
(4) 
The net rent amounts are not rounded.
(b) 
Workforce Housing Rent Limits. Within 30 days from the date that HUD issues the Kaua'i median household income for the year, the Housing Agency will have available that year's workforce housing rent limits. The workforce housing rent limits will include the rent for the applicable HUD low income groups and the affordable and gap-group income groups by household size from a household of one to a household of eight.
(Ord. No. 860, November 20, 2007)