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<br />Attachment 1 <br /> <br />2021 Affordable Housing Rates <br /> <br />Rental housing <br />Rents include tenant-paid utilities. We have not separated tenant-paid utilities from the rent value because <br />we want to consider all housing costs to determine affordability, rather than just rent alone. <br /> <br /># Bedrooms 30% AMI 50% AMI 60% AMI 80% AMI <br />Efficiency $550 $918 $1,101 $1,468 <br />1 Bedroom $590 $984 $1,180 $1,574 <br />2 Bedrooms $708 $1,181 $1,417 $1,889 <br />3 Bedrooms $817 $1,363 $1,635 $2,180 <br />4 Bedroom $912 $1,521 $1,825 $2,433 <br />2021 Rental Housing <br /> <br />Ownership housing <br />For owner-occupied housing, the income limit includes principal, interest, property taxes and home <br />insurance. <br /> <br />Assumptions include: <br /> Fixed-interest, 30-year home loan <br /> Interest rate of 3.000%* <br /> A 29% housing debt-to-household income ratio <br /> A 3.5% down payment <br /> A property tax rate of 1.25% of the property sales price <br /> Mortgage insurance at 0.85% of unpaid principal <br /> $100/month for hazard insurance <br />Household Income Level Affordable Home Price <br />80% AMI ($79,900) $316,000 <br />60% AMI ($62,940) $245,300 <br />50% AMI ($52,450) $201,500 <br />30% AMI ($31,450) $113,900 <br />2021 Home Ownership <br /> <br />Applying an interest rate of 3.000% on a 30-year fixed-rate home loan for 2021 and other standard <br />mortgage assumptions listed above to the 80% of AMI amount for a family of four ($79,900), yields an <br />affordable purchase price of $316,000. With ongoing increases in HUD income limits and the recent <br />decline in mortgage interest rates, the affordable purchase price has increased from the 2020 limit of <br />$213,500 and the 2019 limit of $254,500. <br /> <br />*This is the interest rate offered in April 2021 by the Minnesota Housing Finance Agency to first-time <br />homebuyers with no origination fee. In previous years, this number was raised slightly to reflect likely <br />increases in interest rates over the course of the year. This year, in a time of uncertain economic recovery, <br />we have chosen to make no modifications to the interest rate currently offered.