QUESTION
Council Member Hanks Asks Alex Rodney About AMI Adjustments in Housing Projects Over Time
1:14:30
·
109 sec
In this discussion, a council member seeks clarification on how Area Median Income (AMI) adjustments impact qualifying income levels for housing projects as they transition from construction to tenant occupancy, spanning over years. The conversation sheds light on the mechanisms that adjust maximum qualifying income according to AMI changes at the time of leasing, ensuring tenants do not exceed 35% of their income on rent. The council member emphasizes the need for transparency in project presentations regarding these shifts to support community understanding and backing.
Speaker 1
1:14:30
I have one quick question.
1:14:31
So if if a project is locked in at a certain AMI, and I believe that that's an average of that could be up to 3.
1:14:42
Different different levels.
1:14:43
So in in this project, it's 30, 60, 80, those 30, 50, and 80.
1:14:51
Mhmm.
1:14:53
By the time the project is is built, which is always like a 2 year gap, what happens to incomes and levels that have shifted?
Speaker 22
1:15:06
Great.
1:15:07
Thank you for that question.
1:15:08
So the maximum qualifying income will shift to the year of when the the the project is marketing or leasing up.
1:15:20
So let's say we're Maybe I can go through a specific example.
1:15:27
So a project begins construction today, and it's ready for tenants to move in in 2 years.
1:15:35
The maximum qualifying income for a 30% AMI unit will be 30% of 2026 AMI, the minimum qualifying income will remain the same.
1:15:49
Because that is set so that no tenant pays more than 35% of their income on rent, and rents have not changed even though the income limits have increased with AMIs.
Speaker 1
1:16:01
Right.
1:16:01
So I I I say that to say that there are many folks who want to support work these projects, and they are looking at where they are right now.
1:16:09
And then when the project is is done, it's shifting.
1:16:12
So we just wanna, like, keep an eye on that or at least incorporate that in our presentations.
1:16:19
But thank you.