HOUSING DEPARTMENT
APPROV AL OF A MULTIFAMILY HOUSING
INCENTIVE PROGRAM RESIDENTIAL TAX
AND FEE WAIVER FOR THE AQUINO AT
498 WEST SAN CARLOS STREET
May 13, 2025 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director
• City Council approved MHIP on December 10, 2024.
• Reduction of the Inclusionary Housing Ordinance in-lieu fee to $0 for approved multifamily housing developments that include at least 5% of units on-site at up to 100% area median income, for developments listed in the MHIP memorandum, which was previously granted only for high-rises located in the downtown area.
• Phase I expires December 31, 2025
50% reduction in the Building and Structure Construction Tax (B&S) and the Commercial- Residential-Mobile Home-Park Building Tax (CRMP)
• Phase II starts January 1, 2026
25% reduction in the B&S Tax
Multifamily Housing Incentive Program (MHIP)
Slide 2
• Developed by Urban Catalyst
• 8-story high-rise located at
498 West San Carlos Street
• 278 market-rate rental units
• Current rents meet 110% area
median income levels
• 14 restricted affordable units
at 100% area median income
Slide 3
The Aquino at 498 West San Carlos Street
Slide 4
Proposed Tax and Fee Waiver
Inclusionary Housing In-Lieu Fee $3,440,920.24
50% Reduction of CRMP & B&S
Construction Taxes on the residential
portion of the building
$630,352.50
Total Fee Waiver and Reduction $4,071,272.74
Slide 5
MHIP Progress
Development Number of Units
905 North Capitol Avenue 328
498 West San Carlos Street 264
Total 623
HOUSING DEPARTMENT
APPROV AL OF A MULTIFAMILY HOUSING
INCENTIVE PROGRAM RESIDENTIAL TAX
AND FEE WAIVER FOR THE AQUINO AT
498 WEST SAN CARLOS STREET
May 13, 2025 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director