To be affordable, federal officials say rent and utilities shouldn’t exceed 30% of income. For a single person at 60% of the region’s median income, that’s $ 867 per month; and $ 1,238 per month for a family of four. For homeowners, affordable housing targets people living at 80% -100% of the region’s median income.
Community Development Resources, which plans to hire staff to focus on affordable housing, will also be better able to take advantage of federal affordable housing credits, which are one of the few resources available to developers, said Hansen.
In addition to tax credits, which are awarded on a competitive basis, land trusts and tax increase funding are other ways to help developers, he said.
The city has already stepped up efforts to help developers use federal housing tax credits for low-income people. In the past decade, only six or seven projects have used them, said Dan Marvin, director of urban development.
This year, three are in the works, some at an early stage: Gatehouse Row, a 98 unit apartment complex at the western end of Wyuka Cemetery, Union at Middle Creek, a 192 unit apartment complex near Southwest 27th Street and West B Street, and the rehabilitation of the Veterans Administration Hospital into affordable housing.
The city has been working on affordable housing for years through programs such as Community Development Block grants and a city housing rehabilitation program, Hjermstad said.