Laserfiche WebLink
Nexus-Based Affordable Housing Fee Analysis for Rental Housing <br /> Draft Report 02/26/18 <br /> Affordability Gap Results <br /> Table 2 shows the estimated subsidies for construction of affordable for-sale units for low and <br /> moderate-income households. As shown, a unit for a household at 60 percent of AMI is expected <br /> to require a subsidy of roughly $254,000, and units for higher-income households require lower <br /> subsidies. Table 3 shows the subsidies for construction of for-rent apartments for households at <br /> various income levels. For any equivalent income level (e.g., 60 percent of AMI), a comparison <br /> of Tables 2 and 3 indicates the affordability gap for low-income rental units is estimated to be <br /> less than if the same unit were offered for-sale. This is generally due to slightly higher <br /> development costs for for-sale units, including the need for immediate rather than longer-term <br /> profit returns. <br /> These affordability gaps then were used to calculate the justified nexus-based fees by multiplying <br /> this required subsidy by the number of units required to house workers providing goods and <br /> services to new market-rate housing development. This methodology is discussed in more detail <br /> in the following section. <br /> Economic&Planning Systems, Inc. 11 P:\151000s\351111PleasaMonFee\Report\Affordable_Rooslrg\151111report02261Prental.door <br />