AFFORDABLE HOUSING PRODUCTION PROGRAM

(Section 9.56 of the Municipal Code)

This program applies to all new multifamily housing projects of 2 or more units for which an application was determined complete on/after May 25, 2006

Condominium Projects in Multifamily Zones

• 2 or 3-unit projects may pay Affordable Housing Fee

• 4 to 15-unit projects must provide onsite or offsite units

  • 20% of the units onsite (see table)

  • if offsite, 25% more units that would have been required onsite

• 16-unit or greater projects must provide onsite or offsite units

  • 25% of the units onsite (see table)

  • if offsite, 25% more units that would have been required onsite

• Required Affordable Condominium Units are for Moderate Income Households (100% of area median income) if sold, and Low Income Households (60% of area median income) if rented

• Affordable Housing Unit Development Cost applies when a developer provides onsite or offsite affordable units, but pays a fee for any fractional unit of less than 0.75; (click here for information on the fractional unit fee)

• Affordable Sales Price Guidelines (see formula criteria)

  • current area median income is $79,300[2009]

  • cost Guidelines say moderate income sales price must be based on no less than 33% of median income and no more than 38% of median income

  • 33% of $79,300 = $26,169;  38% of $79,300 = $30,134

  • 2-bedroom adjustment factor is 0.95

  • $26,169 x 0.95 = $24,860/ 12 = $2,071 (rounded) (i.e., 33%)

  • $30,134 x 0.95 = $28,627 / 12 = $2,386 (rounded)  (i.e., 38%)

  • $2,071 per month equals minimum total monthly housing cost, which includes mortgage payment, HOA fees, property taxes, property insurance, and mortgage insurance

  • $2,386 per month equals maximum total monthly housing cost, which includes mortgage payment, HOA fees, property taxes, property insurance, and mortgage insurance

  • Click Here for affordable condo sales price worksheet

   

• Click Here for Worksheet regarding affordable housing requirements and density bonus incentives

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Apartment Projects in All Zones

Developer Options for Satisfying Program

• Provide affordable units on-site

• Provide affordable units off-site

• Pay the Affordable Housing Fee

• Provide land to City or nonprofit for affordable housing

On-Site Option

• 10% of the units for Very Low Income households (e.g., 2-bedroom rent at $942 {using 2009 rent limits})

• 20% of the units for Low Income households (e.g., 2-bedroom rent at $1,130 {using 2009 rent limits})

• If project in non-residential zone, 100% of the units for Moderate Income households (e.g., 2-bedroom rent at $1,883 {using 2009 rent limits})

• See 2009 Income/Rent Limits for details

• Units have minimum size requirements, and must be 2-bedroom units unless at least 95% of project is 1-bedroom and/or single units

• Providing units on-site will automatically qualify the project for a density bonus (discuss with City Planning for details)

• Affordable Housing Unit Development Cost was increased by City Council on September 8, 2009;  this cost applies when a developer provides onsite or offsite affordable units, but pays a fee for any fractional unit of less than 0.75;

• More details on the On-Site option

Off-Site Option

• same as on-site option immediately above

• More details on the Off-Site option

Fee Payment Option

• $27.14 / square foot for apartments (effective 11/9/09; updated annually)

• $31.69 / square foot for condominiums (effective 11/9/09; updated annually)

• These fees and are applicable to projects whose applications were deemed complete after December 9, 2005

• More details on the Fee Payment option

Land Option

• More details on the Land option

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Other Information and References

• Reports on Implementation of this Program

• For additional information, please call Jim Kemper at 310.458.8702 or City Planning at 310.458.8341