Cal. Code Regs. Tit. 25, § 6924 - Affordable Housing Costs (Purchasers)

(a) Affordable costs for purchasers of dwelling units means, with respect to lower income households, housing costs, as defined in Section 6920, not exceeding 25 percent of gross income.

(b) Construction costs, mortgage loans, and sales prices will be adequate to make housing available to an income group at affordable housing costs if such construction costs, mortgage loans, and sales prices, with no more than a reasonable downpayment, will result in a monthly housing cost, as defined in Section 6920, which does not average more than the amount computed in Column B or exceed for any one unit the amount computed in Column C:

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Low and very low income calculations apply to county where housing units are or will be located. Next page provides additional information.

(c) To the extent that the implementing statute of a program administered by the department permits modification of this standard on the basis of economic or financial feasibility or other grounds, the department shall make a finding of such necessity when a codified standard is utilized.

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¹/ Explanation of computation divisors:

Divisor of 48 is the product of 12x4. The multiplier 12 represents converting annual income to monthly income. The multiplier 4 represents 25% maximum housing cost. The divisor 48 consolidates two steps:

(1) dividing annual income by 12 for monthly income and

(2) dividing monthly income by 4 (25%) for maximum monthly affordable housing cost. Divisor 96 is product of Divisor 48x2. The multiplier 2 represents two incomes:

(1) low and

(2) very low.

Notes

Cal. Code Regs. Tit. 25, § 6924

1. New subsection (d) filed 6-16-82 as procedural and organizational; effective upon filing (Register 82, No. 25).
2. Editorial correction repealing subsection (c) and relettering subsection (d) to (c) filed 4-27-83 (Register 83, No. 18).
3. Repealer and new section filed 7-5-2016; operative 5-20-2016 pursuant to Health and Safety Code section 50093. Amendment filed without review by OAL pursuant to Health and Safety Code section 50093 (Register 2016, No. 28).

Note: Authority cited: Sections 50052.5 and 50053, Health and Safety Code. Reference: Sections 50052.5 and 50053, Health and Safety Code.

1. New subsection (d) filed 6-16-82 as procedural and organizational; effective upon filing (Register 82, No. 25).
2. Editorial correction repealing subsection (c) and relettering subsection (d) to (c) filed 4-27-83 (Register 83, No. 18).
3. Repealer and new section filed 7-5-2016; operative 5/20/2016 pursuant to Health and Safety Code section 50093. Amendment filed without review by OAL pursuant to Health and Safety Code section 50093 (Register 2016, No. 28).