65B - HOUSING OPPTY REPORT - Laserfiche WebLink

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EXHIBIT 4 levels. Projects that create for -sale units must provide units at an affordable sales price to households earning up to 110% of AMI. Projects that provide new rental units must satisfy the 15% obligation with the following breakdown: • 9% of the total dwelling units at an affordable rent for moderate income households earning up to 80% of AMI • 6% made affordable to very low-income households earning up to 50% of AMI. hicentives: The program offers developers incentives to provide housing on-site such as: an increase in project density that would otherwise not be allowed; reduction in parking requirements; reduction in minimum setback requirements; the ability to provide an alternative unit type as compared to the market rate units; the ability to provide alternative, but functionally equivalent, amenities than market rate units; and additional assistance from the city for such things as selling and renting affordable units to qualified households. Alternatives: The program allows for the alternatives listed below. Off-site: Developers may provide affordable units off-site if at least 20% of the total units in the residential development are affordable. For -sale affordable units must be available to households earning no more than 110% of AMI. Rental projects must also satisfy the 20% obligation, but by providing 12% of the total dwelling units in the project affordable to lower-income households earning up to 60% of AMI, and 8% for very low-income households earning up to 50% of AMI. In -Lieu Fee: Developers may pay a fee instead of constructing the affordable units within the project. The current fees are $167,207 per inclusionary home and $125,000 per inclusionary unit through June 30, 2019. These rates reflect the average city subsidy per unit, which is then applied to the 20% requirement for the proportion of affordable units within the residential development. Other alternatives include: • Dedication of land instead of constructing inclusionary units • Purchase or transfer of affordable housing credits between developers • The acquisition and rehabilitation of existing market rate units for conversion to affordable units • Allowing developers to provide affordable units that are restricted by an agreement between the developer and the United States Department of Housing and Urban Development • Allowing a developer to propose a combination of options outlined above. Impact: Since San Jose's inclusionary program has only recently begun to fully operate, there is no information currently available on how many affordable units have been created attributed to the city's inclusionary housing program. Housing Impact Fee Program San Jose also established a Housing Impact Fee Program in 2014 and started collecting fees in 2016. The affordable housing impact fee applies to new small residential rental development (with M•