The City has posted two alternative drafts [alternative one, alternative two] for an affordable housing policy, to be discussed at a joint public hearing of the Mayor and Council and the Planning Commission on October 3, 2006. The primary difference between them is that the second alternative does not apply in the CBD zone except to require payments into an affordable housing fund.
Essential elements of the drafts are:
- The rule kicks in when the development size is twenty dwellings or more.
- Developments with an approved SDP at the time the ordinance goes into effect are exempt.
- For for-sale developments,
- 7.5% of units must be affordable to households at the 70% of median income level (MPDUs)
- 7.5% of units must be affordable to households at the 90% of median income level (Workforce Housing)
- If the community fees are too high to be affordable, the developer can pay into an affordable housing fund instead of building the units.
- For rental developments,
- 15% of units must be affordable to households at the 60% of median income level (MPDUs)
- The MPDU status of those units must be maintained for 30 years
- If the development is converted to condominiums, the for-sale rules (7.5%/7.5%) apply.
- Affordable units have to look the same as the market-rate units and have to be dispersed throughout the development.
- There are waiver provisions for “undue economic hardship” and “The absence of a reasonable relationship or nexus between a proposed project and the provisions of this Article,” whatever that means.
The draft ordinance does not address the resale of affordable non-rental units and thus there is nothing, about e.g. equity sharing between the City and the home buyer. This aspect was a major focus of discussion the last time the council talked about affordable housing on August 14 [agenda, video], so I’m somewhat surprised that this isn’t even mentioned.
Personally, I would like to see more focus on dispersing affordable housing throughout the City. The second alternative, which excludes CBD, is a start, but I would prefer that the exception be triggered if a specific percentage of nearby dwelling units already meet affordable housing requirements, For example if at least 50% of the dwelling units within a half-mile radius are already affordable, then a development could opt out by paying into the affordable housing fund.
Incentives in the other direction would also be good to see — if, for example less than 5% of the units within a half mile are affordable, perhaps the affordable percentage should be raised, possibly to 12.5% and 12.5% from 7.5% and 7.5%. And in the middle ground, perhaps developers could opt out of the affordable-units requirement by purchasing units in existing developments and reselling them as MPDUs.












