HomeMy WebLinkAboutG.4 - Rental Proposal Attachment AAttachment A: Proposal submitted by Greg Stratton on August 23rd, 2019
Affordable Homes for Rent: To meet the needs of families with qualifying incomes at or below 80% of
the current AMI. Rent amounts will be calculated using 30% of the 70% AMI qualifying income. For a 3-
bedroom/4-person household. Maximum rental rates are as follows:
70% AMI Income for a 3-bedroom/4-person household = $63,210
Allowable Rent @ 30% of income = $1,580/mo
The rent amounts will be adjusted annually to account for fluctuations in the Area Median Income. The
rents will be restricted to qualified buyer incomes for a period of 1-year from the date that a 1-year
lease is signed by the landlord and tenant. That contract may be extended for up to five consecutive 1-
year periods with leases renewed annually on the anniversary date. At the end of the 5-year period the
landlord and lease may mutually negotiate additional extensions.
The applicant will request a rental assistance contribution from the City of Bozeman Affordable Housing
program annually to assist with reducing the monthly rent charged to the renter. This will apply to
families with qualifying incomes at or below 80% AMI. The rental reduction subsidy is calculated as
follows:
In the case of a 3-bedroom/4-person household
Market Rate Rent for 3 bed/4 person household (Set by City) $ 1,800/mo
Allowable Rent @ 30% of income $ 1,580/mo
Amount of Subsidy $ 220/mo
Annual Subsidy $ 2,640/mo
5 Year Subsidy $13,200
In this case the annual $2,640 payment assistance will reduce the allowable rents by $220.00 per month
for the 1-year period following Certificate of Occupancy.
The rent amounts will be adjusted annually to account for fluctuations in the Area Median Income.
Renters will be approved by the City of Bozeman Affordable Housing Director based on income history
over the previous 3 year period. Incomes will be re-evaluated annually on the anniversary or contract
renewal date. The renter will then be able to live in the home for the 1-year restricted rental period. At
the end of each 1-year period the renters income will be re-evaluated to determine eligibility for the
next year.
Marketing Plan:
Rental units will be made available to qualified renters as they are requested by the City of Bozeman.
Employer Contribution:
We can include an employer contribution option or requirement.
We can also limit the number of available homes based on budget restrictions.