Changes to the BMR Program Requirements
In late 2017, City Council initiated a two phase process to make updates to the City’s Below Market Rate Program Requirements. This process was completed in June of 2019. Highlights of the major changes are detailed below.
Phase II Major Changes:
Increase in Ownership Percentage Requirement: Ownership projects other than row homes and townhomes, shall include 15% of the total number of ownership units affordable to moderate income households, to a minimum of two income levels.
Rowhouses and Townhouses: Must meet a 25% on-site requirement with 15% affordable to a weighted average of 100% AMI and 10% affordable to a weighted average of 135%.
Weighted Averages: For both rental and ownership projects, income requirements for BMR units are based on weighted averages as follows:
Rental units: Affordable units must be provided to low and moderate income households (50%-120% AMI). Units must be provided to a minimum of two income levels for a weighted average of 65% of AMI.
Other than rowhouses or townhouses: affordable units must be provided for households with incomes between 80-120% AMI, at a minimum of two income levels for a weighted average of 100% AMI.
Rowhouses and townhouses: Must meet a 25% on-site requirement with 15% affordable to households with incomes between 80% and 120% AMI for a weighted average of 100% AMI and 10% affordable to households between 120 % and 150% AMI with a weighted average of 135%. In both cases, the units must be eligible to at least two income levels within the range.
Increase in in-lieu fee rates: In lieu fee amount has been increased and shall be greater than the value of developing the units on-site.
Annual Verification of Eligibility: The city will verify the income of each household annually, to confirm continued eligibility of the program requirements. In the event that a household income moves above the allowed amount, the household has up to one year to vacate the unit. More information can be found in the BMR guidelines.
Phase I Major Changes:
Increase in Rental Percentage requirement: All rental residential developments subject to BMR program requirements shall provide 15% of their total number of units or pay an in-lieu fee
Alternative Mitigations: developers of market rate development projects may submit a request to meet their affordable housing obligations through other means.