AgdaPkt 2018-05-21 Joint SA PFA - Laserfiche WebLink

Browse Search

Supplemental Information on Inclusionary Housing Requirements What types of incomes qualify as very low, low or moderate? These incomes are adjusted every year. For 2017, the San Mateo County area median income (AMI) was $115,300 for a family a four. One person Family of four Very Low (50% AMI) $46,100 $65,800 Low (80% AMI) $73,750 $105,350 Moderate $96,850 $138,350 How much does it cost to build an affordable unit? There are many factors that affect the cost of an affordable unit. Cost of construction, land value, level of affordability, and unit size can all impact the cost. In general, $400,000/unit is a good rule of thumb in 2018. This number will change from year to year and project to project. What do other cities require? There is a range, below is a summary of nearby cities. Minimum Project Size Ownership Rental San Carlos 7 units 10% moderate + 5% low = 15% Impact Fee (developer may choose to build) San Mateo 11 units 15% moderate or 10% low 15% low or 10% very low Menlo Park 10 units 10% at very low, low, or moderate. For 20 or more units, 15% shall be VLI, low and moderate. 110% of baseline. Santa Clara 10 units 15% mix of moderate, low, and very low income. Average income of purchasers/renters shall not exceed 100% area median income. Sunnyvale 8 units for ownership 12.5% to “lower to moderate.” Silent – removed due to Palmer Decision. Why can’t we require more affordable units, such as 25% or 30%? The primary reason is effectiveness. If a requirement is too costly, the project may not “pencil,” resulting in reduced construction of new housing, including affordable units. For example, a 15% requirement for a 100 unit project will result in 15 affordable units. While a 30% requirement 6.A. - Page 29 7.A. - Page 47