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I <br /> I <br /> I <br /> I <br />I <br />,I <br />I <br />I <br />I- <br />I <br />I <br />I <br />! <br />I <br />I <br />I <br />i <br />I <br />I <br /> <br />3. The approximate amount of savings per housing unit attributabie to reduced <br /> city development standards. <br /> <br />4. Appropriate ranges for pricing limitations, and whether these should be <br /> linked to purchaser income or the housing unit price. <br /> <br />5. Effective ways for the city to monitor developer/builder compliance with <br /> the housing price limits. <br /> <br /> 6. Reasonable mechanisms to increase the housing Price limits over time. <br /> <br /> One of the greatest challenges during negotiations was defining mutually <br /> agreeable housing priee'categories. The city and developer agreed limiting <br /> unit prices would be more manageable than setting income limitations for <br /> buyers. The final pricing categories were genera-%ly based on the Metropolitan <br />Council's guidelines for/l~w-, moderate- and modest-cost housing. These <br />~guideltneU were modified~bmewhat to enhance the variety of housing to be <br /> built, and't~ reflect ~inancin~ points normally included in base housing unit <br /> prices. The follow~qg.system.was finall'y agreed upon as a reasonable approach <br /> to providing affordable housing and.~ensuring reasonable developer/builder <br /> profits. It was also agreed that the city would use purchase agreements <br /> submitted in conjunction with building permit applications and final closing <br /> documents to monitor compliance with the housing price limitation system. <br /> <br />Price Category <br /> <br />Low: 1-4 family size <br /> 4+ family size <br /> <br />Moderate: any family size <br /> <br />Modest: any family size <br /> <br />Unlimited: any family size <br /> <br /> Table 3 <br />HOUSING PRICE LiMiTS <br /> <br />Number of Units <br />in the Pro~ect <br /> <br />Minimum of 41 <br /> <br />Minimum of 60 <br /> <br />Maximum of 65 <br />(actual -8) <br /> <br />Maximum of 15 <br /> <br />Maximum Sales Price <br /> <br />$55,000 <br /> 60,000 <br /> <br />$63,000 to 68,000 <br /> in proportion to <br /> financing points <br /> charged over 4, up to <br /> a maximum of 12 points <br /> <br />$71,400 <br /> <br />Unlimited <br /> <br />A major concern of Shannon Park's developer focused on how the housing price <br />limits would be adjusted over time. This issue almost caused negotiations to <br />fail at one point. The developer's main concern was that the city would not be <br />sympathetic to factors outside his control that could increase his production <br />costs. This issue was resolved by a specific contract provision, which allows <br />housing price ceilings to increase based on the developer's demonstration of <br />cost factors supporting price increases. In practice, the hou§ing price <br />limitations are reviewed annually and increased when appropriate. To date, the <br /> <br /> <br />