Council adopts UDO changes setting AMI thresholds for affordability tiers and PUD qualifying standards

The Bloomington Common Council voted Jan. 14 to adopt Ordinance 2026‑02, amending Title 20 of the Unified Development Ordinance (UDO) to align affordable‑housing incentive thresholds and PUD qualifying standards with a council directive from a prior resolution.

Assistant Director of Planning and Transportation Jackie Scanlon told the council the ordinance implements three changes directed by Council resolution: (1) include an AMI requirement within tier 1 and tier 2 using whole percentages (tier 1 to include units priced below 90% AMI; tier 2 to include units below 70% AMI), (2) revise qualifying standards so residential units proposed in a planned unit development must meet the tier 1 permanently income‑limited percentage, and (3) remove an unused workforce‑housing definition in the code. "Tier 1 to include at least some of the units priced below 90% of area median income," Scanlon said while walking through the UDO text changes.

Scanlon said the change responds to planning and HND staff input about local AMI distributions and is intended to better target incentives to households the program intends to help. The ordinance was the subject of prior Plan Commission hearings and the commission forwarded the petition with a positive recommendation; council adopted the ordinance by roll call, 8‑0.

The amendments change code cross‑references governing PUDs and tie minimum permanently income‑limited unit requirements to tier 1 thresholds instead of prior, different numeric references. Staff noted the change clarifies expectations for developers and ensures consistency across UDO sections.