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Council asks planning commission to rework affordability tiers to reach lower AMI households
Summary
By resolution the council directed planning staff to draft UDO text amendments so workforce-housing incentives require some units at lower AMI thresholds (e.g., Tier 1 to include units at ≤90% AMI and Tier 2 to include units at ≤70% AMI). Staff and HAND will calibrate percentages and payment-in-lieu rates during the planning process.
The Common Council voted 9–0 to send a directive to the planning commission to prepare a UDO text amendment that modifies affordable-housing incentive eligibility so that incentives better target workforce households and lower AMI tiers.
Sponsor Council Member Stosberg said current incentive language allows developers to price the affordable set-aside at or near the top of the allowable AMI range (for example, 120% AMI), which often fails to reach lower-income workers. The resolution asks planning staff and the HAND (Housing and Neighborhood Development) department to propose a tiered structure where Tier 1 and Tier 2 incentives require some units at lower AMI thresholds (draft language suggested Tier 1 include units at or below 90% AMI and Tier 2 at or below 70% AMI), while leaving percentage targets to staff to refine.
Anna Killian Hansen (HAND) told council that compliance-monitoring and the present UDO language have allowed advertised rents to sit at the ceiling of the allowed AMI band; specifying minimum percentages and AMI targets and recording affordability covenants would improve alignment with intended beneficiaries. Staff noted payment-in-lieu (PIL) options remain available but suggested the city may revisit PIL rates at the start of the calendar year to better calibrate incentives.
Council members emphasized they want incentives structured so developers remain willing to participate while producing deeper affordability; staff will return proposed percentages and PIL figures for further council review through the normal planning commission drafting process.
