(1) rental housing occupied or to be occupied by households whose gross income when adjusted for size is at or below 50 percent of the area median at occupancy and rises after occupancy to no greater than 80 percent of the area median as annually adjusted by the U.S. Department of Housing and Urban Development and whose housing expense (rent and utility cost) is no greater than 30 percent of the target population household’s gross income; and

(2) owner-occupied housing which is purchased and can be financed under standard underwriting practices by first-time home buyer households whose income when adjusted for size is at or below 80 percent of the area median as annually adjusted by the U.S. Department of Housing and Urban Development, who make a three percent down payment and whose housing expense is no greater than 30 percent of the household’s gross income. Housing expense for owners includes house purchase loan principal and interest (except for deferred interest loans), real property taxes, homeowner’s insurance and, if applicable, homeowner association costs. (Added by Amended Ord. 02-064, Dec. 9, 2002, Eff date Feb. 1, 2003).