Home > Incentive Programs > Downtown Residential Bonus Program

PROGRAM OVERVIEW

• The Downtown Residential Bonus Program (SMC 23.49.015) allows additional residential gross floor area and height in developments on sites zoned DOC-1, DOC-2, DMC 240, and DMC 340 in exchange for a specified minimum amount of affordable housing.
• The developer can provide affordable housing units in or adjacent to the new residential tower or make a financial contribution averaging approximately $18.94 per square foot of bonus residential floor area to a City fund for affordable housing.
• The affordable housing units are intended to serve modest-wage workers in Downtown.
• Set-aside rental units must be affordable to households with incomes up to 80% of median income and set-aside for-sale units must be affordable to households with incomes up to 100% of median income.

CONTACT FOR MORE INFORMATION

• Laura Hewitt Walker, Seattle Office of Housing, (206) 684-0429

CURRENT RENT, SALES PRICE, AND HOUSEHOLD INCOME LIMITS

• Rents (including the estimated cost of basic utilities for which the tenant is responsible) may not exceed the following:

Basic utilities include water/sewer/garbage/etc. and energy sources for heat (including water heating), air conditioning, and major appliances. The amounts shown in the above table assume that basic utility costs are included in monthly rents. If that is not the case, subtract the cost of those basic utilities to be paid for directly by the tenant. Developers/property managers may estimate basic utility costs that are not included in rent based on one of the following:

• Current industry/market/building systems information; or
• Seattle Housing Authority table, which is periodically updated, showing typical tenant utility costs by building and unit type (go to http://www.seattlehousing.org/Housing/downloads.html and scroll down to Utility Allowance Schedules.)

• Maximum sales prices: Contact Mark Ellerbrook at (206) 684-3340 for current affordable sales prices by unit size.
  
  
• Annual household income, at initial occupancy for renters and at a date no more than 180 days before the closing of the purchase of a unit, may not exceed the following:

• Example project to illustrate certain program guidelines:

Project description: New 39-story residential tower in DMC 240’/290’-400’ zone. All units are rental apartments averaging 700 square feet; half are studios and half are 1-bedrooms.

Bonus calculation: DPD staff calculate that net residential floor area sought as bonus development = 105,360 s.f. and the Code specifies that 11% of net rentable floor area (11,590 s.f.) would need to be provided as low-income housing under the performance option.

Affordable workforce housing to be provided:

• Affordable units may be smaller in size than market-rate units. If units average 600 s.f., 20 affordable units would need to be included in the building (11,590 s.f. / 600 s.f. = 19.3 and rounded up to the nearest whole unit).
  
  
• Generally, the type of affordable units provided must be similar (proportional) to those in the entire building, so in this example half (10 units) would be studio apartments and half (10 units) would be 1-bedroom apartments.
  
  
• Maximum annual household income at the time of initial occupancy is 80% of median and depends on actual household size. In 2008, that amount is $45,600 for a 1-person household and $52,100 for a 2-person household. 2007 maximum monthly rent is $1,140 for studio units and $1,221 for 1-bedroom units. Those rent levels assume that rent includes basic utilities (see under Rent Limits above for more information on utilities). Maximum rents would need to be lower if the amount due monthly does not include all basic utilities.

Annual reporting: Assuming the housing development begins operation on March 15, 2009, the first annual report is due on June 30, 2011.

CODE REFERENCES

• SMC 23.49.015: Bonus residential floor area for voluntary agreements for low-income housing and moderate-income housing
• SMC 23.49.008: Structure height
• SMC 23.49.020: Demonstration of LEED Silver rating

BONUS FUNDING APPLICATION

• Cash payments by developers of residential towers are made available to affordable housing developers through the Office of Housing’s Multifamily and Single-Family Notices of Funding Availability (NOFAs).
• Questions regarding the Multifamily NOFA process may be directed to Debbie Thiele at (206) 615-0995.
• Questions regarding the Homeownership NOFA process may be directed to Mark Ellerbrook at (206) 684-3340.