A. Annual Income. Household annual income at initial occupancy is 80 percent or less of the median income (determined by HUD), adjusted by family size, of the Bellingham Standard Metropolitan Statistical Area (SMSA); and

B. Housing Expenses. The monthly expenditures by a household, as described in subsection (A) of this section, for housing including mortgage repayment, insurance, taxes and utilities (water and sewer) shall not exceed 38 percent of the gross household income at the time of purchase and the amount for mortgage shall not exceed 30 percent of gross household income. All other variable living expenses associated with the resident’s occupancy shall not be a factor in the calculation of affordability.

C. Counseling. Home buyers must receive housing counseling prior to purchasing an affordable home. Counseling must be through a program that is reviewed and approved by the city, HUD, Washington State Housing Trust Fund or the Washington State Housing Finance Commission. [Ord. 2020-03-005 § 1].