Most dramatically, a six-person household can now earn nearly $200,000 and still qualify for a three-bedroom below-market unit.
Income eligibility stretches at the top
Since the original marketing last year, the income eligibility has stretched, not the bottom but rather the top. Below are the 2016/2018 income limits, by household size, for two-bedroom units, which have an upper limit of 165% of AMI.
- 2 people: $111,909 - $119,625/$137,775
- 3 people: $111,909 - $134,640/$154,935
- 4 people: $111,909 - $149,490/$172,095
- 3 people: $129,258 - $134,640/$154,935
- 4 people: $129,258 - $149,490/$172,095
- 5 people: $129,258 - $161,535/$185,955
- 6 people: $129,258 - $173,415/$199,650
A bigger range of income burden
I guess there's a logic to keeping the same income floor--they don't want to raise the burden on households--but it does lead to some skewed results, with some households potentially paying well more or less than the targeted 30% of income in rent.
For example, a four-person household paying $3,206/month for a two-bedroom is paying $38,472 a year. That could represent 34.4% of their income, if they meet the minimum income level of $111,909. Or it could represent 22.4% of their income, if they reach the current maximum income level of $172,095.
Previously, with the maximum income level of $149,490, they would have been paying 25.7% of their income.
There's a pretty big range now. Note that the $111,909 income floor represents 123.5% of 2016 AMI for a four-person household, but just 107.3% of 2018 AMI for a four-person household.
Affordable housing is then calculated as a percentage of AMI.
When the MOU was signed, up to 50% was low-income, 60-100% of AMI was moderate-income, and 100-160% of AMI was middle-income.
Those categories have changed, with low-income in the project going up to 60% of AMI, and middle-income up to 165% of AMI.
That said, the city now considers up to 80% of AMI to be low-income, as shown in the chart.
Looking at the advertisements
Here's the current advertisement for open marketing--beyond the lottery--for 38 Sixth:
Here's the original advertisement for the 38 Sixth lottery, from January 2017: