Rezoning project with at least 10 units typically trigger the City’s Affordable Requirements Ordinance or ARO which requires that ten percent of developed units either be designated as on-site affordable housing units or provide an in-lieu fee (typically $125,000) per unit that is contributed to the City’s Affordable Housing Opportunity Fund.

“Affordable housing” means (1) with respect to rental housing, housing that is affordable to households earning up to sixty percent (60%) of the area median income, and (2) with respect to owner-occupied housing, housing that is affordable to households earning up to one hundred percent (100%) of the area median income. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, “affordable housing” for that project means:

 (i)   with respect to rental housing, one-half of the housing units required to be affordable are affordable to households earning up to sixty percent (60%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to fifty percent (50%) of the area median income; and

 (ii)   with respect to owner-occupied housing, one-half of the housing units required to be affordable are affordable to households earning up to one hundred (100%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to eighty percent (80%) of the area median income.

The table below shows the 2017 Income Maximums pertinent to rental units.

Household Size 50% Area Median Income 60% Area Median Income
1 person $27,650 $33,180
2 persons $31,600 $37,920
3 persons $35,550 $42,680
4 persons $39,500 $47,400
5 persons $42,700 $51,240
6 persons $45,850 $55,020
7 persons $49,000 $58,800
8 persons $52,150 $62,580

The maximum rent ranges based on number of units in the building, the number of bedrooms in the unit and what utilities are paid for by tenant vs. landlord. Here are the ranges based on this (latest figures are from 2016).

Number of Bedrooms 50% of Area Median Income 60% of Area Median Income
0 $575 to $665 $719 to $809
1 $601 to $712 $755 to 866
2 $722 to $855 $907 to $1,040
3 $833 to $988 $1,045 to $1,200
4 $925 to $1,102 $1,163 to $1,340
5 $1017 to $1,216 $1,279 to $1,478