Affordable Housing benchmark raised to $180,000
On 2/21/18, the Board of Directors approved a request from the Affordable Housing Committee to increase the affordable housing benchmark to $180,000 (from $150,000).
To determine the new benchmark, the committee looked at how much home the typical central Ohio family could purchase if they make 80% of the area median income.
Below are the parameters used (see additional reference detail on PDF) in determining the new benchmark:
- Typical Family Size: 2.55 people (rounded to 3)
- Area Median Income: 53,550 (3-person household)
- Loan Type: FHA
- Rate: 4.03
- Qualifying Front Ratio: 31%
Backing into the calculation, it was determined this ‘typical’ family could qualify for 178,000.
Although rates, taxes, and incomes are constantly changing, the proposal is to round this off to 180,000.
This new $180,000 benchmark would serve as the 2018 threshold for the CAHR designation and for our committee’s focus. The committee also proposed revisiting the amount annually at the first meeting of the year and recommending adjustment if inputs change the target amount by more than $5,000.
The committee is seeking approval of the benchmark increase ($180,000) for this year and
optionally provide approval for annual adjustment or guidance for annual resubmission.