The following definitions shall apply to homeownership affordable housing, where homeownership is as defined in this Section:

Appreciated price

The “appreciated price” for any homeownership affordable housing unit is the product of the sale or resale price of such homeownership affordable housing unit on the previous sale date and the appreciation index applicable at resale as specified in the guidelines.

Appreciation cap

The “appreciation cap” is the resale price at which the combined cost of monthly fees, mortgage payments, utilities and property taxes to be paid by the homeowner would be equal to 30 percent of:

(a)        125 percent of the income index for a homeownership affordable housing unit that was restricted to occupancy by low income households at sale; or

(b)        175 percent of the income index for a homeownership affordable housing unit that was restricted to occupancy by moderate income households at sale; or

(c)        200 percent of the income index for a homeownership affordable housing unit that was restricted to occupancy by middle income households at sale.

For MIH sites, the multiple of the income index for homeownership affordable housing units occupied by qualifying households shall be as specified in the guidelines.

Appreciation index

The “appreciation index” is 100 until August 1, 2010. On or after August 1, 2010, the appreciation index shall be a number greater than 100, representing the cumulative increase in resale price of a homeownership affordable housing unit permitted pursuant to the annual rates of increase established by HPD.

HPD shall set the annual rate of increase at the same rate as the percentage change in the Consumer Price Index for all urban consumers, as defined by the U.S. Bureau of Labor Statistics, for the 12 months ended on June 30 of that year, plus one percent per year, but the annual rate of increase shall be no less than one percent per year. HPD shall adjust the Consumer Price Index component of the appreciation index on August 1 of each calendar year, commencing on August 1, 2010, based on the percentage change in the Consumer Price Index for the 12 months ended on June 30 of that calendar year. For a fraction of a year, the components of the appreciation index shall be set as specified in the guidelines. HPD may adjust the methodology for calculating the appreciation index not more than once every two years in accordance with the guidelines.

Commencement date

The “commencement date” is the date upon which sales for a percentage of homeownership affordable housing units in a generating site or MIH site set forth in the guidelines have been completed, except that, where one or more homeownership affordable housing units in preservation affordable housing or substantial rehabilitation affordable housing were occupied by grandfathered tenants on the regulatory agreement date, the commencement date is the regulatory agreement date.

Condominium association

A “condominium association” is an organization of condominium homeowners, with a form of governance specified in the guidelines, that manages the common areas and capital elements of a generating site or MIH site.

Cooperative corporation

A “cooperative corporation” is any corporation organized exclusively for the purpose of providing housing accommodations to shareholders who are persons or families entitled, by reason of ownership of shares in such corporation, to residential occupancy.

Down payment

The “down payment” is a payment that is not secured by any form of debt, made on or before the sale date by the eligible buyer approved by the administering agent to purchase a homeownership affordable housing unit.

Eligible buyer

An “eligible buyer” is a household that qualifies to buy a specific homeownership affordable housing unit. Such a household shall:

(a)        except in the case of succession :

(1)        be, at the time of application for an initial sale, a low income household, moderate income household, middle income household or qualifying household for which, at the initial price, the combined cost of monthly fees, mortgage payments, utilities and property taxes that would be paid for a homeownership affordable housing unit is not more than 35 percent and not less than 25 percent of such household's income. However, for a household that resided on a generating site or MIH site on the date of submission of an affordable housing plan, HPD may waive the requirement that housing costs be not less than 25 percent of such household’s income;

(2)        be, at the time of application for a resale, in the case of an affordable housing unit initially limited to sale to a low income household, moderate income household, middle income household or qualifying household, any household for which, at the maximum resale price, the combined cost of monthly fees, mortgage payments, utilities and property taxes that would be paid for a homeownership affordable housing unit is not more than 35 percent and not less than 25 percent of such household's income;

(3)        have cash or equivalent assets that are at least equal to the required down payment for such affordable housing unit. However, HPD may waive this requirement for a household that resided on a generating site or MIH site on the date of submission of an affordable housing plan to HPD; and

(4)        meet such additional eligibility requirements as may be specified in the guidelines.

(b)        in the case of succession :

(1)        be, at the time of application, a household for which, at the maximum resale price, the combined cost of monthly fees, imputed mortgage payments, utilities and property taxes for the subject homeownership affordable housing unit is not less than 25 percent of such household's income; and

(2)        meet such additional eligibility requirements as may be specified in the guidelines.

A grandfathered tenant is not an eligible buyer unless such grandfathered tenant has been certified by the administering agent to have an annual income at or below the low income limit, moderate income limit or middle income limit, as applicable to such homeownership affordable housing unit or, for MIH sites, meets such qualifications for eligibility specified in the guidelines.

Family member

“Family member” shall have the meaning set forth in the guidelines.

Homeowner

A “homeowner” is a person or persons who:

(a)        owns a condominium homeownership affordable housing unit and occupies such condominium homeownership affordable housing unit in accordance with owner occupancy requirements set forth in the guidelines; or

(b)        owns shares in a cooperative corporation, holds a proprietary lease for an homeownership affordable housing unit owned by such cooperative corporation and occupies such homeownership affordable housing unit in accordance with owner occupancy requirements set forth in the guidelines.

Homeownership

“Homeownership” is a form of tenure for housing, including dwelling units occupied by either the owner as a separate condominium, a shareholder in a cooperative corporation pursuant to the terms of a proprietary lease, a grandfathered tenant or an authorized sublettor pursuant to the guidelines.

Imputed mortgage payment

An “imputed mortgage payment” is the maximum mortgage payment at prevailing interest rates for a qualifying mortgage that could be paid to purchase a homeownership affordable housing unit at the maximum resale price, calculated in accordance with the guidelines.

Initial price

The “initial price” is the price at which a homeownership affordable housing unit may be offered for sale for the first time, pursuant to a regulatory agreement.

Maximum resale price

The “maximum resale price” for a homeownership affordable housing unit is the lesser of the appreciated price or the appreciation cap for such homeownership affordable housing unit.

Monthly fees

The “monthly fees” are any payments charged to a homeowner by a cooperative corporation or condominium association to provide for the reimbursement of the applicable homeownership affordable housing unit’s share of the expenses of such cooperative corporation or condominium association, as permitted by the regulatory agreement.

Mortgage

A “mortgage” is a mortgage loan, or a loan to purchase shares in a cooperative corporation, that has been approved by the administering agent and that has a fixed rate of interest, a term of at least 30 years at every sale and resale, a value not exceeding 90 percent of the sale price of such homeownership affordable housing unit at the time of the initial sale or 90 percent of the maximum resale price of such homeownership affordable housing unit at any time after the initial sale, and that is otherwise in compliance with the guidelines.

Mortgage payment

The “mortgage payment” is any monthly repayment of principal and interest on a mortgage.

Resale

A “resale” is any transfer of title to a condominium homeownership affordable housing unit after the first sale or any transfer of ownership of the shares in a cooperative corporation which are appurtenant to a homeownership affordable housing unit after the first sale.

Sale

A “sale” is the first transfer of title to a condominium homeownership affordable housing unit or the first transfer of ownership of the shares in a cooperative corporation which are appurtenant to an homeownership affordable housing unit on or after the regulatory agreement date.

Sale date

A “sale date” is the date of the sale or resale of any homeownership affordable housing unit. However, for homeownership affordable housing units in preservation affordable housing or substantial rehabilitation affordable housing occupied by grandfathered tenants on the regulatory agreement date, the initial sale date shall be the regulatory agreement date.  

Succession

“Succession” is a resale from a homeowner to a family member of such homeowner.