Inclusionary Housing Program

Affordable Ownership Housing
The City of Huntington Beach Inclusionary Housing Program

The City provides for affordable low, median, or moderate income families through a City-wide Inclusionary Housing Program. Homes become available for purchase by eligible buyers when new developments are built or when existing homeowners decide to sell.

The Inclusionary homes have an affordability period up to 60 years from the time a home was built. Any Inclusionary Housing Program home that is sold must be purchased by an eligible buyer and the price of the home must fall within an affordable price limit calculated by the City. Prices are calculated for affordability. This calculation is not driven by property values or other market conditions.

The City records a lien on each affordable home that remains on title for the duration of the affordability period. The lien ensures that the City is able to enforce the Inclusionary Housing Program requirements, including the resale restrictions.

Buying an Affordable Home

From time to time, affordable homes are available for purchase. To be eligible to buy one of these homes, your total household income must be within certain limits. Most homes are restricted to moderate-income buyers; a limited number are restricted to low or median-income buyers. The City examines total gross income (before taxes or deductions) from all sources for all household members, even if not all household members are related or intend to be named on the mortgage or title. Home buyer eligibility is based only on gross household income; net worth is not considered.

If you find an affordable home that you are interested in buying, you or your Realtor should contact the listing Realtor and negotiate a purchase offer. After your offer is accepted, you will be given several forms to complete, and you will be asked to provide copies of recent pay stubs, bank statements, and tax forms; occasionally, additional documentation may be required. This information is necessary to verify your income eligibility. The Community Enhancement Division staff will examine these documents for the sole purpose of determining eligibility.

Maximum Selling Price

At the time of initial sale and for all re-sales during the affordability period, the maximum price for each Inclusionary Housing Program home is calculated by the City. The City’s formula is intended to provide the amount an eligible buyer should be able to pay without spending more than 35% of their gross income toward housing expenses. Prices are calculated for affordability. This calculation is not driven by property values or other market conditions.

When the City calculates a maximum sales price, the price equals the present value of the anticipated amount of the buyer’s income available for mortgage payments over 30 years at the current interest rate, plus a 10% assumed down payment. A sample calculation using this formula is provided along with an explanation of the variables used in the formula.

When determining housing expenses the following factors are included: Homeowners’ Association Dues related to the specific housing development; utilities are determined by bedroom count (see below); property insurance is assumed by periodically survey of local insurance companies to determine the typical annual cost of insuring a home for its replacement value; maintenance is a nominal cost that homeowners will be expected to incur for maintaining their property over a one-year period; and the property tax rate applied determines the annual property tax costs will be 1.08% of the purchase price of an affordable home.

2023 INCOME LIMITS

Pricing Example
Moderate Income Limit for a Family of Four (Three Bedroom Home)	$153,350
35% of Income	$53,673
Less Annual Housing Expenses:
HOA Dues	-4,200
Utilities Expenses	-4,356
Property Insurance	-900
Maintenance	-600
Property Taxes	-6,525
Annual Income Available for Mortgage Payments	$37,091
Interest Rate	5.51%
Present Value of Income Available for Mortgage Payments over 30-Year Term	$543,779
Plus 10% Down Payment	$60,420
Maximum Sales Price	$604,199

*The pricing example provided is intended for explanatory purposes only and is not necessarily reflective of current pricing calculations.

See More Sales Price Examples

The buyer’s anticipated income available for mortgage payments equals the income limit (either low, median, or moderate, depending on the home being priced) for a household size equal to the number of bedrooms in the home plus one (a three bedroom home would use the income limit of a family of four). This amount is then decreased by 35% for anticipated home ownership costs, including homeowner association dues, utility expenses, property insurance, maintenance expenses, and property taxes. The income remaining is the amount a homeowner would be expected to be able to pay on their mortgage.

The interest rate used will be the lowest Fannie Mae 30-year, fixed yld-90day mortgage rate, as published in the finanicals.com for the three months immediately proceeding the proposed home purchase.

Interest rate used to calculate Sale Price: 6.06% (Effective September 1, 2023)
Published lowest interest rate of preceding three months.
- June 6.06%
- July 6.13%
- Aug 6.40%
Please Note: Interest rates used to calculate maximum sale prices may have a significant effect on the maximum sale price outcome. When interest rates are lower, the maximum sales price will increase in price. When interest rates are higher, the maximum sales price lowers in price.

Owning and Selling an "Affordable" Home

The Neighborhood Enhancement Division monitors the various affordable housing communities to ensure compliance with program requirements. These requirements include the following:

Homes must be owner-occupied.
Homes may not be rented.
Home mortgage refinances and second liens must be approved by the City.
Home re-sales must be approved by the City.

Affordable homes are covenanted by the City for up to 60 years. These covenants enable the City to enforce the various program requirements.

If you are interested in selling your Inclusionary Housing home:

Review the Inclusionary Housing Program Homebuyer Application. This packet includes material for the buyer you select. It is your responsibility to find an eligible buyer and to direct the buyer to the City for approval.

Submit a Request for Maximum Affordable Sales Price to the City's Neighborhood Enhancement Division. Your maximum sales price will be calculated, and you may request that your property be added to the list of homes for sale displayed on the City’s website.

When the buyer’s eligibility is confirmed by the City and your negotiated sales price is found to be within the affordable limit, your sale will be approved.

Many people ask if affordable homes can build equity. As with any home, building equity depends on various factors, such as the status of the real estate market. Unlike unrestricted homes, equity growth in affordable homes is not solely market driven and may be limited due to program restrictions.

Developments

There are several housing developments in Huntington Beach that have affordable housing covenants:

Name	Built	Units	Income Eligible	Location	Photo
Ash Street Condominiums	2002	6 Units	Median	Ash St.
Brisas Del Mar	1993	44 Units	Low & Moderate	Delaware St. & Utica Ave.
Cape Ann	1999	146 Units	Moderate	Breezy Lane & Sea Gate Drive
Greystone Keys	1998	23 Affordable 150 Total	Moderate	Promenade Parkway & Sea Gate
Pacific Park Villas	1996	25 Units	Moderate	Joyful Lane & Happy Drive
Pacific Shores	2011	21 Affordable 123 Total	Low & Median	Newland & Atlanta
The Promenade	1999	80 Units	Moderate	Main Street & Promenade Parkway
The Tides	2004	12 Affordable 77 Total	Moderate	Goldenwest & Summit Drive
Tuscany	2007	5 Affordable 28 Total	Moderate	Gothard & Garfield
Villas at Seacliff	2008	4 Affordable 19 Total	Moderate	Gothard & Garfield
Regatta - Gothard	2023	3 Affordable 21 Total	Moderate	Gothard & Crystal
Regatta - Holly	2023	5 Affordable 32 Total	Moderate	Holly & Beachbreak

Forms and Brochures

Want more information about the Inclusionary Housing Program?

Interested in buying an Inclusionary Housing Program home?

Get the Inclusionary Housing Program Home Buyer Application

Form for current homeowners

Service Fees for Inclusionary Housing Program

Effective August 8, 2022, the Neighborhood Enhancement Division charges the following fees for housing program services:

Service Fees
Loan Payoff Demand	$148
Subordination Agreement	$265
Reconveyance	$85
Sales Price Determination	One free per year $50 for each additional request

Payment will be required at the time of application. Checks should be made payable to the "City of Huntington Beach".

Documents may be delivered or mailed to the Huntington Beach City Hall, Community Enhancement Division, 2000 Main Street, 5th Floor, Huntington Beach, CA 92648.