HomeMy WebLinkAboutCondo Cash in Lieu and other alternativesCondo Cash in Lieu and other alternatives
Cash payment in lieu of constructing Community Housing Units
Formula for computing the Cash in Lieu amount = the average of the median sales
price of condos in Bozeman for the past two fiscal years less the average price of the 10 lowest priced condos advertised on the Bozeman MLS in the last 6 months of the previous fiscal
year.
EXAMPLE: If average sales price was $320,000 and the average income and the average of the 10 lowest prices is $227,000 then the Cash in lieu amount is $93,000.00.
Long Term
Affordable Rental
Developer or builder retains title to dwelling unit but must rent or lease it at an affordable rate based on the following table. At the end of the required rental
or lease term the developer or builder may increase the rent to market rate as long as the rent increases at no more than 10% per year or may sell the unit with 5% of the sale price
being returned to the Community Housing Fund. If the unit is sold before the end of the required number of years that the dwelling unit was to be held at affordable rent then the percentage
of the sale price of the unit shown below must be returned to the Community Housing Fund.
Type of Unit
Number of Years
Rent Allowed
Early Sale Percentage
Studio
25 Years
30%
of $20,000 Annual Wage
25%
One Bedroom
20 Years
30% of $30,000 annual wage
20%
Two or more Bedrooms
15 Years
30% of $40,000 annual wage
15%
Cash equivalents – Land,
infrastructure or other items of value equal to the cash in lieu amounts described in item 1 above and not otherwise required by the Bozeman Municipal Code, may be accepted in lieu
of providing housing units upon approval by the Director of Community Development.