Quote:
Originally Posted by eric cantona
I'm curious if anyone knows how rents are calculated for "affordable" housing, and "workforce" housing, and others. If they're committing to offering what amounts to subsidized housing, is the subsidy the delta between 80% income and 100% income? or, maybe simpler, will the rents equal 80% of the market rate units? where does the $1,000/mo figure come from?
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Affordability is generally based on 30% of a person's/family's income at 30%, 50%, 60%, 65%, 80% etc. Project-based vouchers are targeted at 30% AMI. HUD's low HOME rent is targeted at 50% AMI, which is usually the required targeting upon initial occupancy. Federal low-income housing tax credit projects are targeted at 60% AMI unless they have OAHTCs, then they have deeper targeting of 50% AMI. If Tax Credits and HOME are layered together, then the lowest rent/deeper targeting wins. HUD's High HOME rent is 30% of 65% AMI. A person in a HUD-subsidized property will be charged the High HOME rent even if their income reaches 80% AMI. After that, rent will be charged at 30% of their income if they are in a subsidized unit and the unit can't "float" somewhere else.
HUD's definition of "fair market rent" for Portland is currently $1053/mo for a 1 bedroom. An affordable rent for someone at 50% AMI is $700/mo for a 1 bedroom.
Supportive housing is usually the project-based housing (voucher tied to a project, not housing choice), and not really considered "workforce". Workforce is basically the working poor, not seniors, the homeless or mentally disabled. However, usually workforce housing will have a 8 vouchers to help support a project's operating budget since they can charge higher rents.
Portland's inclusionary zoning only targets 80% AMI. They can either pay a fee to not have to target that low, or the other units would have to subsidize the "loss" on those other units from an underwriting perspective.
PM me if this is confusing. God knows it was for me when I started in this industry.