Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Project Rfp topic
No spam. Unsubscribe anytime.
Proposal to convert a small share of units to market rate draws mixed reaction
Summary
Members discussed an RFP change that would convert 22 of 172 planned units to market rate (12 at 120% AMI, 10 at 150% AMI) to subsidize deeper affordability; members weighed tradeoffs, waterfall provisions and impacts on lower-AMIs.
Committee member (speaker 4) brought forward a proposal discussed in the project's RFP negotiations to convert a small share of higher‑AMI for‑sale units to market rate to make the remaining restricted units more affordable. "It would be 22 units to market rate. So 12 units that are at a 120% AMI and 10 that were designated for 150," the committee member said, citing a 172‑unit project total. Members debated whether the change would meaningfully increase lower‑AMI units or just alter AMI percentages of the remaining restricted units.
Several authority members favored starting at lower AMI thresholds to avoid waterfall provisions that shift unsold units upward in AMI over time. The Chair and others said that, because prices have fallen recently, there may be less incentive for a buyer at 150% AMI to accept a deed restriction; members suggested keeping some 120% AMI units and potentially lowering AMI bands on remaining units rather than simply converting more units to market rate.
Staff were charged to request more detailed financial and AMI impact modeling from the developer and to return with exact tradeoffs if the authority considers altering the RFP or the unit mix.
