Income and Rent Program Guidelines
Westchester County 2009 Area Median Income (AMI), Sales & Rent Limits
In determining affordability for a housing development, the housing costs must INCOME LIMITS & calculated for the future residents of the housing. The costs should be affordable to HOUSING the targeted family income groups. Housing costs include rent and any tenant paid COSTS utilities in rental housing and includes the mortgage payment (Principal and Interest) property taxes, homeowners insurance and, in condominiums and cooperatives, any common charges and Home Owners Association (HOA) fees. The U.S. Department of Housing and Urban Development (HUD) bases its income limits for a variety of housing programs on a standard called Area median Income (AMI). HUD estimates the median family income for each metropolitan statistical area . The base AMI is established for an average family of 4 persons. Westchester County’s AMI is represented by 100% AMI for a family of 4 (highlighted in red on chart). The maximum income by family size is then adjusted from the base number by a percentage determined by HUD: # of Persons Adjustment 1 70% 2 80% 3 90% 4 5 6 7 8 100% 108% 116% 124% 132%
Family size percentage It should be noted that in the cases where the AMI for Westchester County is lower in a subsequent year, HUD permits a “hold harmless” policy, where calculations are based on the prior year’s effective AMI and adjusted as described above. Income Limit amounts have been rounded to the nearest $50 except for: the 80% uncapped incomes which are rounded to the nearest $100; and, the 60% Income Limits, which were calculated by in accordance with federally approved guidelines, including the Housing and Economic Recovery Act of 2008 which provides for limits to be applied to Multifamily Tax Subsidy Projects (MTSP). 2009 Maximum Income Guidelines INCOME LIMITS 100% AMI 80% AMI *60% AMI *50% AMI 30% AMI
* MSTP & HOME
1 Person Household $73,700 $59,000 $44,220 $36,850 $22,100
2 Person Household $84,250 $67,400 $50,520 $42,100 $25,300
3 Person 4 Person 5 Person Household Household Household $94,750 $75,800 $56,880 $47,400 $28,450 $105,300 $ 84,200 $ 63,180 $ 52,650 $ 31,600 $113,700 $ 91,000 $ 68,220 $ 56,850 $ 34,150
6 Person Household $122,150 $ 97,700 $ 73,260 $ 61,050 $ 36,650
Effective Date Median Income Limits, March 19, 2009 & HOME Income Limits, April 27, 2009
WESTCHESTER COUNTY DEPARTMENT OF PLANNING Gerard E. Mulligan, AICP, Commissioner
Housing Westchester County uses the AMI Standard to set eligibility requirements for its Costs funding programs for both rental and ownership housing. In addition, affordability is broadly defined as a household paying no more than 30% of the monthly gross income towards their housing costs. Based on the AMI for Westchester County, the following table calculates 30% of each income group’s total monthly gross income— the maximum that should be dedicated towards housing costs. Please note that in practice, affordability is calculated by bedroom size of the unit. The below schedule is intended to provide a quick estimate of affordability for a given household.
Housing Cost Limits Based on 30% of Income 1 Person FAMILY SIZE Household 100% AMI 80% AMI 60% AMI 50% AMI 30% AMI $1,843 $1,475 $1,106 $ 921 $ 553 2 Person Household $2,106 $1,685 $1,263 $1,053 $ 633 3 Person 4 Person 5 Person 6 Person Household Household Household Household $2,369 $1,895 $1,422 $1,185 $ 711 $2,633 $2,105 $1,580 $1,316 $ 790 $2,843 $2,275 $1,706 $1,421 $ 854 $3,054 $2,443 $1,832 $1,526 $ 916
The above Housing Costs calculation are based on family size. To estimate costs by unit size, typically HUD and New York State uses a general rule of 1.5 persons per bedroom to determine rent and sale price limits based on the unit size. Please note, however, that municipalities may have their own occupancy allowance based on square footage of each bedroom. In some cases, the size of a bedroom may only accommodate 1 person and the rent must be proportioned accordingly. It is best to verify the municipality’s occupancy allowance before finalizing rents or sale prices. Westchester County has adopted the standard of 1.5 persons per bedroom in its underwriting for new housing development.
SALE PRICE For homeownership developments, underwriting is based on the projected LIMITS mortgage for which a family with a maximum income at 80% AMI can qualify, plus housing costs. To assure that a broad range of families can both afford to purchase the unit, and qualify for a mortgage, Westchester County encourages developers to set sales prices to be affordable to a family at 70% AMI. Housing costs to be included in the calculation for the sales price include the expected principal and interest on the mortgage loan, property taxes, homeowners insurance (PITI); and any common charges, homeowners’ association fees and/or maintenance fees.
RENT LIMIT HUD publishes HOME Rent Limits for each metropolitan statistical area based on affordability for households with incomes at or below 60% AMI or 50% AMI. There are two levels of rents: the High HOME Rent for units targeted to 60% AMI units; and the Low HOME Rent for units targeted to 50% AMI units. To assure that a broad range of families can afford to rent any unit, the County encourages that rents be set to be affordable to families with incomes below the maximum income limits. Westchester County has adopted the HOME rent limits for its funding programs. The rent levels are to include all housing costs associated with the tenant’s rent for the apartment. If there are any tenant paid utilities, an amount based on a utility allowance is deducted from the maximum rent to arrive at the Net Rent that may be charged the tenant. The utility allowance used by Westchester County is approved by both HUD and New York State. Please note that the Housing and Economic Recovery Act of 2008 requires that income and rent limits be calculated separately for Multifamily Tax Subsidy Projects (MTSP) funded under Section 42 of the Internal Revenue Code. These rent calculations will be published by NYS Division of Housing and Community Renewal. To check for these limits, go to www.nysdhcr.gov. HOME Program 2009 Rent Limits Unit Size Efficiency High HOME Low HOME $1,100 $ 921 1-Bedroom $1,180 $ 986 2-Bedroom 3-Bedroom 4-Bedroom 5-Bedroom $1,418 $1,185 $1,630 $1,368 $1,799 $1,526 $1,966 $1,685
Effective Date April 27, 2009 CACLULATING To calculate the maximum Net Rent, the rent that may be charged to the tenant on NET RENT a lease for any unit, start with the rent limit in the above chart for the unit size, and deduct any tenant paid utilities based on the chart on the back of this page. For example, to set the rent for a 2 bedroom unit in a low rise apartment building for a household with an income at or below 60% AMI (the High HOME rent), where the tenant will also pay for these utilities, Natural Gas for Heating, Cooking, and Hot Water as well as for Electricity, follow the below process: High Home Rent for a 2-Bedroom Unit: Utility Allowance: Natural Gas Heat: Natural Gas Cooking: Natural Gas Hot Water: Electricity Total Utility Allowance: Maximum Net Rent charged to Tenant $87 $10 $12 $28 $1,418
$ 137 $1,281
It should be noted that rents should be set to be affordable to a wide range of families, not just those with incomes at the maximum income limits allowed. Contact Persons interested in locating affordable housing should call or e-mail for more Information information: 914-995-2413 or tka1@westchestergov.com Interested municipalities, non-profit and for-profit developers should call or e-mail Deborah DeLong at 914-995-6494 or ddd2@westchestergov.com
Utility The following table is the Utility Allowance Schedule used to calculate tenants’ Allowance utility costs. Circle and add the tenant paid utilities for each apartment size to Schedule determine the total utility allowance for that unit size:
TENANT PAID UTILITIES: HEAT Apt. Bldg Natural Gas Bottle Gas Oil Electric 2-3 Story Bldg Natural Gas Bottle Gas Oil Electric Row House Natural Gas Bottle Gas Oil Electric Single Family Detached Natural Gas Bottle Gas Oil Electric COOKING Natural Gas Electric Bottle Gas ELECTRICITY Air Conditioning HOT WATER Natural Gas Electric Bottle Gas Oil $7 $21 $13 $12 $9 $27 $18 $16 $12 $35 $22 $20 $14 $41 $27 $23 $17 $48 $31 $27 $19 $55 $35 $31 $7 $7 $13 $15 $5 $9 $8 $17 $20 $5 $10 $11 $19 $28 $5 $11 $14 $21 $33 $5 $12 $19 $23 $38 $5 $13 $20 $25 $41 $5 $63 $94 $85 $107 $81 $127 $116 $140 $94 $152 $140 $166 $115 $193 $176 $207 $128 $218 $199 $232 $147 $254 $233 $268 $51 $71 $65 $84 $63 $94 $85 $107 $81 $129 $116 $142 $97 $158 $145 $172 $115 $193 $176 $207 $132 $225 $207 $240 $57 $81 $75 $94 $69 $104 $96 $117 $87 $142 $129 $156 $105 $175 $160 $189 $123 $208 $189 $222 $136 $235 $212 $248 $48 $65 $59 $79 $57 $81 $75 $94 $66 $102 $93 $115 $81 $127 $116 $140 $100 $162 $147 $176 $113 $187 $171 $202 Studio 1 2 3 4 5
If appliances are provided by Tenant: Range Refrigerator TRASH COLLECTION TOTAL ALLOWANCE $ $3 $4 $10 $ $3 $4 $10 $ $3 $4 $10 $ $3 $5 $10 $ $3 $6 $10 $ $3 $6 $10
Effective Date
January 1, 2009