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Pleasanton Comprehensive Fee Update and Nexus Study November 2024 <br /> <br />48 <br /> <br />Table 28 Prototype Development Costs (per unit) <br /> <br />Affordable Housing Values <br />Based on the maximum household income at each income level, which as defined <br />in Pleasanton is based on the Alameda County Area Median Income, EPS <br />calculated the maximum spending toward housing costs affordable at each income <br />level. Consistent with the City’s published inclusionary program guidelines, the <br />analysis assumes that rental households spend 30 percent of their gross annual <br />income on total housing costs and for-sale households spending 35 percent of <br />gross annual income. For rental units, housing costs include rent and utilities. For <br />for-sale units, housing costs include mortgage and interest payments, insurance, <br />property taxes, and Homeowners Association (HOA) fees. <br />To calculate the maximum affordable sale price for these for-sale units, EPS <br />estimated other housing costs based on professional assumptions as well as <br />assumptions given in the City’s inclusionary program guidelines and subtracted <br />them from 35 percent of gross annual income to obtain the maximum income <br />available for a mortgage payment. This mortgage payment was converted into an <br />affordable home sale price assuming a 5 percent down payment10 and a 30-year <br />mortgage with a fixed interest rate of 7 percent. <br />Table 29 indicates the maximum annual incomes for Alameda County households <br />associated with each income category for the associated household size, as well <br />as the affordable rents and sale prices associated with each category. <br /> <br />10 While The City’s affordable housing guidelines allow for down payments as low as 3 <br />percent, 5 percent is commonly used when estimating affordable values due to the <br />availability of assistance programs. <br />Page 109 of 893