BURLINGTON
“INCLUSIONARY ZONING” (IZ) SEGMENT OF “AFFORDABLE HOUSING”:
DEFINITIONS, “RENTAL CAPS” (MAXIMUM RENTS), INCOME LIMITS, AND
EXAMPLES
Here
are three arbitrarily selected examples of households and maximum
rents (rent cap) which would be offered by a landlord for an
inclusionary unit of housing. There is cap on how low the rent can
be set, and presumably landlords would be somewhat flexible in terms
of moving rents lower than the cap rental rate towards the objective
of no more than 30% of income by a household for rent (including all
utilities). The three households are: (1) a two person household
near the income maximum who would pay less than 30% of income under
the rent cap, actually 25%; (2) a single individual making $15 an
hour who would pay almost 40% of income; and (3) a single parent or
couple with one child who occupying a 2 bedroom apartment and in this
case paying at the rent cap 37% of income for housing.
Maximum
Incomes to Qualify for “Affordable” Inclusionary Zoning (IZ)
Units
1
Person: $58,800 2 Person $67,200 3 Person $75,600 4 Person
$84,000 ….8 Person $110,900
Three
different households
(1)
Couple with income $50,000 (needs 1 bedroom apartment)
(2)
Single person with $31,200 income ($15 an hour) (applies to studio or
1 bedroom apartment)
(3)
Single parent or couple with one child $40,000 income (needs 2
bedroom apartment)
Eligible
in terms of household income at 100% Burlington median income or
less?
(1)
Yes ; (2) Yes; (3) Yes
Cap
on rent (rent maximum)
For
1 bedroom
For 2 bedroom, this analysis assumes 3 persons ($75,600 income) with calculation of rent cap: (Income estimate using 3 person income x 0.65 times 0.3) or ($75,000 x 0.65 x 0.3) or $14,625 yearly or $1,229 monthly. The 2 bedroom rent cap applies in case
Percent of income paid for rental at rent cap
- Couple with $50,000 income $1,024 a month rent 24.6% of income
- Single
person with $31,200 income
(3)
Single parent or couple with one child
$40,000
income, $1,219 a month rent 36.9% of income
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