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HomeMy WebLinkAboutAgenda 07 Bourne Affordability Responses Memorandum: To: Gary Bourne, Jennifer Desautell, Marla Keene From: Gregory Rabideau AIA Subject: Affordable requirements Date: April 12, 2024 Project Conformity with Article 18 Affordable Housing Standards 1. For purposes of Article 18, this project is proposed to be a Rental Project. 10.018C.1 requires not less than 15% of the units comply with the following: Income Limits Income limits by household size are published annually by the State and Federal Government. These limits must be revisited annually to assure ongoing compliance with the LDRs. The applicant will report annually. FY23 Income Limit Area Persons in Household $ 63,600 $ 67,900 Burlington-South Burlington, VT Metropolitan Statistical Area (MSA) 2 $72,700 3 $81,800 4 $90,850 Allowable Rents at 80% of AMI per household size. (comment 7) Affordable Market Studio 1 Person $ 63,600.00 X 30% / 12 = $ 1,590.00 none One Bedroom 1.5 persons $ 67,900.00 x 30% / 12= $ 1,697.50 ( $1995.00) Two Bedroom 3 Persons $ 81,800.00 x 30% / 12 = $ 2,045.00 ( $ 2,662.00) Three Bedroom 4 persons $ 90,850.00 X 30% / 12 = $ 2,271.25 ($ 3,280.00) Low (80%) Income Limits Rent 1 1.5 Unit Size Requirements: (comment 6) Under 18.018 (2) (B) (iv), the applicant must demonstrate that the inclusionary units are not less than 90% of the area of market rate units. Architectural Drawing A010 entitled “Code Review and Project Information,” has two tables labelled “Unit Count Breakdown and Schedule of Units. The table shows a typical inclusionary unit to have 906 square feet of area. That compares to the largest market rate unit of 996 square feet. This meets the requirement. Inclusionary units have only one bathroom, as allowed by the LDRs. Long Term Management Plan: (comment 8) The applicant is an existing property developer with numerous real estate assets in Massachusetts and Vermont. The applicant will own and operate the facility. The LDRs regulate rent increases at 18.d.5.b “Rent Changes. Provisions to ensure the affordability of Inclusionary Rental units shall require that annual rent changes do not exceed the percentage change in the median household income within the Burlington-South Burlington MSA, when the change is an increase; and that annual rent changes match the percentage change in the median household income within the Burlington-South Burlington MSA, when the changes is a decrease. An exception to the limit on increases or required decreases is permitted to the extent that further increases or delayed decreases, are made necessary by documented hardship or other unusual conditions. Such exceptions may not take effect until approved in writing by the City Manager or his/her designee;” Sublets will be prohibited by lease restrictions. Legal Documents: (comment 9) This is not a for sale project. As such, there will be no Condominium Declarations, By- laws, and or Deed restrictions. Article 18 D.6 requires owners of inclusionary rental units to prepare an annual report to the City Affordable Housing Coordinator “Reporting Requirements. Annually, the owner of a project that includes inclusionary rental units shall prepare and submit a report to the City Manager that lists the gross rents charged for inclusionary units and household incomes at move-in based on documentation provided by tenant for owner’s completion of form provided by the City, to certify that Inclusionary Rental Unit rent maximums and household income maximums have been maintained as required.” In a rental project, the permit to construct and its attendant conditions, findings of fact and conclusions are sufficient to secure the City’s interest in maintaining housing affordability. An applicant found to be in non-compliance with any condition of a valid permit faces enforcement action, including this provision. In my professional opinion, additional documents are not required.