HomeMy WebLinkAboutHRDC letter re West Edge Development, Affordable housing BUILDING A
BETTER
COMMUNITY
January 28, 2014
of Mayor Jeff Krauss
Bozeman City Commissioners
U
a PO Box 1230
d Bozeman, MT 59771
s
00 Dear Mayor Krauss and City Commissioners:
(�II�II�I�) The Human Resource Development Council wishes to thank the City of Bozeman for their support of our
U West Edge development. We are pleased to report that the project has provided 55 affordable
0
homeownership units. Phase 1 consists of 24 units, 1 of which was sold privately before the HRDC
became involved in the development,with the remaining 23 occupied by renters. At this time, 19 units
have been sold to qualifying households, and 4 units are occupied by renters;as these renters leave,the
units will be sold. Phase 2 consists of 36 units, all of which have been sold to qualifying buyers.
Of the 55 units sold in Phases 1 and 2:
• Median Household income: 57%of Area Median income by household size; approximately
$27,700 in household income
• Average 15S mortgage:$65,210
• Average 15t mortgage payment (Principle, Interest,Taxes, Insurance and HOA dues): $625
• Average 2"d mortgage (deferred, no payment): $36,784
• 44 units were sold to households of 1 person, 7 were sold to households of 2,and 4 were sold to
households of 3 or more.
• Purchasers of 49 units had one or more adults working full-time. Seven units were purchased by
households headed by elderly or disabled members working part-time or not employed.
Now, in support of the City's housing plan,we are completing the third and final phase of our successful
West Edge condominiums with 24 units slated for completion in July 2014. Based on estimated prices
and available financing we project that 16 of these units will be sold to households with incomes less
than approximately$28,000(for a household of 1) and $41,000(for household of 4), representing
incomes of less than 60%of the Area Median Income by household size.The City's Affordable Housing
plan allows for a request of$10,000 per ownership unit to be provided to households earning less than
60%AMI for down-payment assistance to create additional affordability.At this time,we request the
reservation of$160,000 ($10,000 per unit)to be provided in the form of subordinate financing to
eligible households.
As always,we thank the Commis .on for their support of the HRDC and leadership for providing
affordable ho o nership i our community.
p: 406.587.4486
e: hello@thehrdc.org
Sin r I ,
a: 32 South Tracy
Bozeman, Montana 59715
Jeffry
Presi HRDC
BUILDING A BETTER COMMUNITY