Attachment 4: List of Recommended Policy Updates to BMR Rental Housing Program Administrative Procedures and Guidelines
November 20, 2023
The following four policy items will be added to the Below Market Rate Rental Housing Program Administrative Procedures and Guidelines , as appropriate, depending on Council Direction. Recommended new text is underlined and in red. Deleted text shows strike-through lines.
1. Occupancy Standards: revise section 7.14.1 as follows:
7.14.1 Minimum and Maximum Household Size Requirements
For existing BMR units as of the effective date of these BMR Guidelines, the minimum and maximum household size for occupancy of various size units varies based on the requirements of the applicable a ffordable housing restrictions for each property. If occupancy standards are not addressed in the affordability restriction, the following general occupancy standards of a minimum of one person per bedroom for a studio and one bedroom, two people for a two- bedroom, four people for a three- bedroom, six people for a four bedroom, and eight people for a five- bedroom unit per Title 25, Section 8305 and a maximum occupancy, based on accepted industry standards , of two people per bedroom, plus one person per unit, shall apply.
For BMR properties completed after the effective date of these BMR Guidelines, the following general occupancy standards of a minimum of one person per bedroom for a studio and one bedroom, two people for a two- bedroom, four people for a three- bedroom, six people for a four bedroom, and eight people for a five-bedroom unit per Title 25, Section 8305, and a maximum occupancy, based on accepted industry standards, of two people per bedroom, plus one person per unit, shall apply and shall be stated in the affordability agreement for the property.
Note that if the tenant has a live- in aide, the live -in aide counts in determining the household size for occupancy standards, but the aid is not counted in the household for income purposes, nor is the aide’s income counted in the household income.
Foster City General BMR Occupancy Standards
Unit Size Minimum Occupancy
Maximum Occupancy
Studio 1 person 2 people
One-Bedroom 1 person 3 people
One-Bedroom
Plus Den
1 person 3 people
Two-Bedroom 2 people 5 people
Three-Bedroom 4 people 7 people
Four-Bedroom 6 people 9 people
Five-Bedroom 8 people 11 people
Attachment 4: List of Recommended Policy Updates to BMR Rental Housing Program Administrative Procedures and Guidelines
November 20, 2023
2. Anti-Displacement Strategy: revise subsection 8.4.1 in Section 8, Determining Rent, as follows:
8.4.1, Anti-displacement Strategy
For existing BMR properties, the City strongly recommends that BMR and Workforce Property Managers limit annual rent increases to no more than the lower of the Maximum Chargeable Rent or the current rental rate multiplied by one (1) plus the annual Consumer Price Index (CPI) Summary percentage, converted to decimal configuration, before seasonal adjustment, for all items for the prior 12 months for April each year prior to the month of issue of income limit s (see https://www.bls.gov/news.release/cpi.toc.htm), or 5%, whichever is lower, unless otherwise limited by statute at the local, state, or federal level or as required by the financing entity or bond program for a property. The annual CPI Index amount, which shall stay in place for 12 months, shall be provided annually by the City to all BMR and Workforce housing Property Managers. For example, the April 2023 Index Amount is
4.3%. Therefore, the City recommends a rental rate increase of no more than 4.3%, or the current rental rate x 1.043 for 2023 provided the new rate is below the maximum chargeable rent.
For BMR properties completed after the effective date of these BMR Guidelines, the City’s policy is to limit annual rent increases as stated in this Section. The restriction shall be stated in the affordability agreement for the property.
3. Workforce Housing Rent Adjustments : add a new subsection to Section 8, Determining Rent, as follows:
8.5 Workforce Housing Rent Adjustments
The Director of Community Development may adjust rents for vacant units at city - owned workforce housing properties (including workforce and BMR units) by up to 10% on an as needed basis due to current market conditions.
4. BMR Compliance and Monitoring Fees : add new subsections to Section 10, Program Monitoring and Administration and Section 13, Non-Compliance and Enforcement, as follows:
10.14 Monitoring Fees
The Community Development Department establishes annual monitoring fees for new BMR housing developments. Fees shall be a reasonable cost recovery on a per unit basis for the term of affordability, with reasonable periodic increase. Fees are included in the City’s master fee schedule.
13.3.1 BMR Compliance Fees
The Community Development Department establishes compliance fees in the event of non- compliant BMR property owners and managers. All revenues for BMR Attachment 4: List of Recommended Policy Updates to BMR Rental Housing Program Administrative Procedures and Guidelines
November 20, 2023
compliance and monitoring fees are allocated to Affordable Housing Fund. Fees are included in the City’s master fee schedule.