TAX INCREMENT FUNDING REQUIREMENTS 


Rental Housing 


1. 
Tax Increment (TI) Restricted Units are made affordable by such regulation to 
persons and households that qualify as moderate-income, low-income or very 
low-income. 
2. 
Affordability requirements: Owner shall assure that the TI Restricted Units shall 
be rented at or below the following rates to households whose incomes are at or 
below the respective income limits for the rental rate: 
a. 
Moderate-Income TI Restricted Units shall be rented for amounts that do 
not exceed payments of thirty percent (30%) of one hundred and ten 
percent (110%) the Sacramento Metropolitan Statistical Area median 
income (“Median Income”), as determined annually by the federal 
Department of Housing and Urban Development, as adjusted for family 
size appropriate to the size and number of bedrooms in the respective TI 
Restricted Unit. 
b. 
Low-Income TI Restricted Units shall be rented for amounts that do not 
exceed payments of thirty percent (30%) of sixty percent (60%) the 
Median Income as adjusted for family size appropriate to the size and 
number of bedrooms in the respective TI Restricted Unit. 
c. 
Very Low-Income TI Restricted Units shall be rented for amounts that do 
not exceed payments of thirty percent (30%) of fifty percent (50%) the 
Median Income as adjusted for family size appropriate to the size and 
number of bedrooms in the respective TI Restricted Unit. 
3. 
Owner shall be responsible to determine the affordable amounts for the TI 
Restricted Units. Agency shall provide all information necessary for Owner to 
compute such affordable rents and will assist Owner in determining such 
amounts. 
4. 
Term. TI Restricted Rental Units shall be restricted for a term of fifty-five (55) 
years, unless a longer term is specified. 
Ownership Housing 

The calculation of the maximum allowable sales price is based on the following factors: 
1) Area median income (published annually by the Department of Housing & Urban 
Development) adjusted for family size; and 2) Current market interest rates. For 
homeownership projects the house payment may not exceed 35 percent of 110 percent 
of area median income adjusted for family size for tax increment assisted units. House 
payment typically includes: principal and interest payment on mortgage loan, mortgage 
insurance, property insurance, and flood insurance (if in flood zone), real estate taxes, 
special assessments, homeownership association (HOA) fees (if applicable) and an 
allowance for maintenance and utilities. Affordability restrictions for owner-occupied 
housing apply for 45 years.