1 3
7 7
0 CITY OF SAN MATEO
RESOLUTION NO. (2026)
ESTABLISHING THE 2026 MAXIMUM RENTAL RATES AND SALES PRICES FOR THE BELOW MARKET RATE
HOUSING PROGRAM, AND ESTABLISHING COMMUNITY PRIORITY FOR LARGER BMR UNITS
WHEREAS, the Below Market Rate Housing Program (BMR Program) was established in 1992, and is reviewed by the Council annually to establish maximum rental rates and sales prices for affordable housing; and
WHEREAS, a revision to the BMR Program, effective in January 2010, included flexibility in how an applicant can satisfy the City’s BMR requirement, based on total bedroom count and adopted community priorities for the number of bedrooms in each unit; and
WHEREAS, the City annually revises the rental rates and sales prices for the BMR Program based on median income data provided by the United States Department of Housing & Urban Development (HUD) and the California Department of Housing & Community Development (HCD); and
WHEREAS, staff has reviewed the rental rates and sales prices for the BMR Program and recommends that the City Council adopt the rates set forth in Exhibit A attached to this Resolution; and WHEREAS, there is a shortage of units consisting of three or more bedrooms in the City’s BMR inventory;
WHEREAS, establishing a Community Priority for units consisting of three or more bedrooms, will allow an applicant to provide fewer BMR units in exchange for units with three or more bedrooms, as long as all other BMR program requirements are followed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. The establishment of the 2026 maximum rental rates and sales prices for affordable housing and establishment of a Community Priority is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5)).
2. The 2026 maximum rental rates, including utilities, and sales prices for BMR units are established at the rates set forth in Exhibit A.
3. The establishment of a Community Priority need for units containing three bedrooms or more is approved. An applicant may propose a different bedroom mix in the BMR units, as long as the applicant provides BMR units with three or more bedrooms, such that the total bedroom count is equal to or higher than what would otherwise be required pursuant to the BMR Guidelines, the total number of BMR units is 10 percent or more of the project, and all other BMR program provisions are followed. Exhibit B sets out the methodology to calculate the equivalency. 1 3
7 7
0 EXHIBIT A
MAXIMUM RENT AND MAXIMUM SALES PRICES FOR BELOW MARKET RATE UNITS Maximum Rents for City BMR Units – Effective July 20, 2026 UNIT TYPE VERY LOW INCOME LOW INCOME
Studio $1,424 $1,697
1BR $1,614 $1,944
2BR $1,821 $2,190
3BR $2,026 $2,436
4BR $2,190 $2,628
Maximum Sales Prices for City BMR Units – Effective July 20, 2026
VERY LOW INCOME
STUDIO $211,000
1 BEDROOM $225,000
2 BEDROOM $258,000
3 BEDROOM $292,000
4 BEDROOM $328,000
LOW INCOME
STUDIO $335,000
1 BEDROOM $366,000
2 BEDROOM $418,000
3 BEDROOM $469,000
4 BEDROOM $519,000
MODERATE INCOME - CONDO OR TOWNHOME
STUDIO $521,000
1 BEDROOM $579,000
2 BEDROOM $657,000
3 BEDROOM $735,000
4 BEDROOM $806,000
MODERATE INCOME – SINGLE-FAMILY DETACHED
1 BEDROOM $779,000
2 BEDROOM $882,000
3 BEDROOM $986,000
4 BEDROOM $1,077,000
1 3
7 7
0 EXHIBIT B
BELOW MARKET RATE ALTERNATIVE
FOR VARIATION OF THE BEDROOM COUNT IN BMR UNITS
Based on City Council approval of a Community Priority, an applicant may propose a different bedroom mix in the BMR units, as long as the applicant provides BMR units with three or more bedrooms such that the total bedroom count is equal to or higher than what would otherwise be required pursuant to the BMR Guidelines, the total number of BMR units is 10% or more for the project, and all other BMR Program provisions are followed.
When the Community Priority is for larger units with 3 or more bedrooms, the following methodology is used to calculate the required number of BMR units:
Calculate the pro rata number of Market Rate units by bedroom type by multiplying .15 times the number of units for each bedroom size to establish the baseline.
Calculate the total number of bedrooms in the baseline BMR units. Use .75/unit for studio units.
Applicant may propose a different mix of bedrooms if it increases the number of units with 3 or more bedrooms, provides an equivalent bedroom count the same or greater than the baseline, and provides a total BMR unit count of at least 10% of the project size.