HomeMy WebLinkAboutKyla Tengdin Condo Presentation 070820US Affordable Condo
Projects
CAHAB Meeting 7.8.20
New HUD rules make affordable condos
feasible (Oct. 2019)
●Single-unit mortgage approvals make it easier for individual condos to be eligible for
FHA-insured financing
●More FHA loans per project by easing restrictions on commercial space, creating
more eligibility for those loans by mixed-use projects
●Only 35% required to be owner-occupied (previously 50%)
●Certifications extended from two years to three years, and only new information must
be added for recertification
●FHA will now insure 75 percent of mortgages in an individual condo project
https://homeownershipmatters.realtor/issues/new-condo-rules-could-create-more-affordable-housing/
Santa Monica, California
2 or 3-unit projects: may pay the Affordable Housing Fee instead of dedicating an onsite or
offsite unit as affordable housing.
4 to 15-unit projects: must provide onsite or offsite units:
(Developers of condo projects can pay an Affordable Housing Fee based on the Affordable
Housing Unit Development Cost if the number of required units is less than 0.75)
●20% of the units onsite as moderate-income ownership housing (see table)
●20% of the units onsite as low-income rental housing
●10% of the units onsite as very low-income rental housing
●5% of the units onsite as extremely low-income rental housing
●if offsite, 25% more units than would have been required onsite
Santa Monica, California (Continued)
16+ unit projects: must provide onsite or offsite units
●25% of the units onsite as moderate-income ownership housing (see table)
●25% of the units onsite as low-income rental housing
●15% of the units onsite as very low-income rental housing
●10% of the units onsite as extremely low-income rental housing
●if offsite, 25% more units than would have been required onsite
Park City, Utah Housing Assessment and Plan
●Public-Private partnerships are key
a.Land and construction costs are too high to provide affordable prices without
subsidies
b.Current and future housing development agreements are projected to produce
400 units. To achieve the goal of 800 affordable units by 2026, the remaining
units will be developed directly by the City, or in partnership with other entities.
c.In 2016, Park City committed $19 million in Lower Park Ave RDA bond funds and
$5 million in resort community tax revenue to launch a multi-year development
pipeline. These funds subsidize land costs and up to 20% of construction costs
for affordable units, and eighty percent revolves back to fund future affordable
housing projects.
https://www.parkcity.org/Home/ShowDocument?id=64943
Berkeley, California
●The City's Inclusionary Housing Ordinance for new ownership/condominium projects
requires that 20% of the total units be reserved for purchase by low-income
households.
●Qualified buyers are selected by a lottery managed by the developer
Bloom Berkeley
●40-unit development
includes 6 affordable 1 and
3 bedroom condos
●Preference given for
Berkeley residents and
workers
Next Steps
Reach out directly to cities successfully including condos in their affordable housing plans
for more detail