Rules for building affordable homes in new projects

(a) The affordable housing requirements set forth in Table 29-1.4 of this subsection apply to all projects subject to this chapter pursuant to § 29-1.3 . The requirements must be met by satisfying one or a combination of the options in this section subject to the director’s approval. If a combination of options is used, the declarant shall designate the proportionate share of the affordable housing requirement that each option will fulfill, and the sum of the proportionate shares must equal or exceed one. Fulfillment of the requirement may account for varying unit sizes, lower income ranges, rounding, or other factors, subject to the director’s approval, as established in rules adopted pursuant to § 29-1.11 . Affordable for-sale dwelling units must be owner occupied. TABLE 29-1.4 AFFORDABLE HOUSING REQUIREMENT PROVISIONS, AS A PERCENTAGE OF THE TOTAL NUMBER OF DWELLING UNITS IN THE PRINCIPAL PROJECT Principal Project Location For Sale 1 or For Rental 2 On-Site Production 3 Off-Site Production 3 Conveyance of Land TABLE 29-1.4 AFFORDABLE HOUSING REQUIREMENT PROVISIONS, AS A PERCENTAGE OF THE TOTAL NUMBER OF DWELLING UNITS IN THE PRINCIPAL PROJECT Principal Project Location For Sale 1 or For Rental 2 On-Site Production 3 Off-Site Production 3 Conveyance of Land The following requirements take effect on April 3, 2018. IPD-T projects, PD-T projects, or TOD special district projects seeking bonus height or density, or both 4 For Sale 30 percent 5 30 percent 8,5 Conveyance of land 12 35 percent 9,5 20 percent 6 20 percent 8,6 25 percent 9,6 10 percent 7 10 percent 8,7 15 percent 9,7 For Rental 15 percent All areas, excluding IPD-T projects, PD-T projects, or TOD special district projects seeking bonus height or density, or both For Sale 15 percent 5 15 percent 10,5 Conveyance of land 12 20 percent 11,5 10 percent 6 10 percent 10,6 15 percent 11,6 5 percent 7 5 percent 10,7 10 percent 11,7 For Rental 5 percent (1) For-sale affordable dwelling units must be sold to households earning 120 percent and below of the AMI. At least one-half of those units must be sold to households earning 100 percent and below of the AMI. (2)For-rental affordable dwelling units must be rented to households earning 80 percent and below of the AMI. (3)Any on-site or off-site affordable dwelling unit provided through substantial rehabilitation will count as one unit. (4) The affordable housing requirements for IPD-T projects, PD-T projects, or TOD special district projects seeking bonus height or density, or both, are base affordable housing requirements. If affordable dwelling units are being provided as a community benefit to justify increased height or density, or both, the affordable dwelling units being provided as a community benefit must be in addition to the base affordable housing requirements for IPD-T, PD-T, or TOD special district projects. (5) For-sale affordable dwelling units must remain affordable for not less than five years after the date when the unit is initially sold to a qualified buyer. (6) For-sale affordable dwelling units must remain affordable for not less than 10 years after the date when the unit is initially sold to a qualified buyer. (7) For-sale affordable dwelling units must remain affordable for not less than 30 years after the date when the unit is initially sold to a qualified buyer. (8) Applies to off-site production of affordable housing that is located within the same rail transit station area as the principal project. (9) Applies to off-site production of affordable housing that is located outside of rail transit station area in which the principal project is located. (10) Applies to off-site production of affordable housing that is located within the same rail transit station area as the principal project; or, if the principal project is not located in a rail transit station area, the off-site production of affordable housing that is located within the same development plan area as the principal project. (11) Applies to off-site production of affordable housing that is located outside of rail transit station area in which the principal project is located; or, if the principal project is not located in a rail transit station area, the off-site production of affordable housing that is located outside of the development plan area in which the principal project is located. (12) The appraised value of the real property conveyed must, at a minimum, be equal to an amount that will be established and may be periodically adjusted by rules adopted by the director pursuant to Section 29-1.11 . (b) On-site production. Affordable dwelling units, for-rental or for-sale, are constructed on the same project site as the principal project. The required number of affordable dwelling units constructed on-site is specified in Table 29-1.4 . Affordable units and market-rate units in the same multifamily dwelling must share common entrances. (c) Off-site production. Affordable dwelling units, for-rental or for-sale, are constructed off-site from the project site on which the principal project is located. The required number of affordable dwelling units constructed off-site is specified in Table 29-1.4 . (1) Off-site production of for-rental dwelling units to satisfy the affordable housing requirement for principal projects located within a rail transit station area must be satisfied within the same rail transit station area in which the principal project is located; provided that upon a showing of good cause, and subject to terms and conditions approved by the director, the director shall have the discretion to allow the satisfaction of off-site production in other areas of the city. (2) Off-site production of for-rental dwelling units to satisfy the affordable housing requirement for principal projects located outside of any rail transit station area must be satisfied within the same development plan area in which the principal project is located; provided that upon a showing of good cause, and subject to terms and conditions approved by the director, the director shall have the discretion to allow the satisfaction of off-site production in other areas of the city. (3) Off-site production of for-sale dwelling units to satisfy the affordable housing requirement for principal projects located within a rail transit station area may be satisfied within or outside of the same rail transit station area in which the principal project is located, in accordance with the required percentage amounts in Table 29-1.4 . (4) Off-site production of for-sale dwelling units to satisfy the affordable housing requirement for principal projects located outside of any rail transit station area may be satisfied within or outside of the same development plan area in which the principal project is located, in accordance with the required percentage amounts in Table 29-1.4 . (d) Conveyance of land. The provision of on-site or off-site units are the preferred options for the affordable housing requirements established by this section, and the conveyance of land is only allowed if no suitable on-site or off-site location is available, or if the developer’s financing arrangements preclude the developer’s participation in off-site projects. Under the foregoing circumstances, the director may approve the conveyance of improved land in fee simple to the city or a third party. Such land may be located on-site or off-site of the project site at a location approved by the director, must be zoned and suitable for the construction of affordable dwelling units, and must be improved with all necessary off-site infrastructure completed to city standards to the property boundary line. The appraised value of the real property conveyed must, at a minimum, be equal to an amount that will be established and may be periodically adjusted by rules adopted by the director pursuant to § 29-1.11 ; provided that effective January 1 of each year, the director shall adjust the amount by a factor equal to the most recently published Consumer Price Index for All Urban Consumers (CPI-U), with the base year established as of April 3, 2018. The city may refuse to accept any real property if it requires the payment by the city for any market value in excess of the foregoing specified amount. The director, with the advice and consent of the director of housing and land management, shall determine whether to accept and approve such land to satisfy the affordable housing requirement.