Are You Developing Affordable Housing?
In addition to providing expedited plan review and project management deferring and exempting fees for qualified housing development is one way we are reaching our affordable housing goals.
| All development-related fees (including impact fees, sewer connection fees, plan review fees, etc): Deferred to Certificate of Occupancy (2 year max) | Building permit and plan review fees: Exempted | |
Rentals: Home Ownership: 120% AMI or below. |  | |
Rentals: Home Ownership: | | |
The Housing Investment Program uses a flexible approach to invest in housing developments that serve a public good by providing affordable housing opportunities to income-qualified households. The program achieves housing affordability goals by supporting the construction and preservation of affordable homes and meeting market opportunities as budget, staff capacity, and leveraged fund sources allow.
Affordable Housing Permit Fee Case Study
102 units, 97 affordable at 60% AMI, mixed-use, 5-story building construction Valuation: $22,650,000
| Fee | Cost | Incentive |
|---|---|---|
| Plancheck Fee | $76,300 | Exempted |
| Building Permit Fee | $117,500 | Exempted |
| Other Fees (Fire, Streetlights, PW) | $28,200 | Deferred |
| Impact Fees (Park, Police, Fire) | $274,200 | Deferred |
| Sewer Connection Fee | $203,575 | Deferred |
| Total Fees (exempt + deferred) | $699,775 | |
| Total Fees Exempted | $193,800 | |
| Total Fees Deferred to Occupancy | $505,975 |
Affordable Housing Permit Fee Case Study
6 units, 3 affordable at 60% AMI, mixed-use, 6-plex patio townhomes construction valuation: $1,100,000
| Fee | Cost | Incentive |
|---|---|---|
| Plancheck Fee | $3,950 | Exempted |
| Building Permit Fee | $5,360 | Exempted |
| Other Fees (Fire, Streetlights, PW) | $1,250 | Deferred |
| Impact Fees (Park, Police, Fire) | $23,900 | Deferred |
| Sewer Connection Fee | $11,400 | Deferred |
| Total Fees (exempt + deferred) | $45,860 | |
| Total Fees Exempted | $9,310 | |
| Total Fees Deferred to Occupancy | $36,550 |
FAQs
1. What fee incentives are available for affordable housing development in Boise?
a. All development-related fees can either be deferred or exempted based on the level of affordability.
2. How long can fees be deferred?
a. Fees can be deferred for the length of construction, up to (2) two years. The deferred fees are required to be paid prior to the issuance of the certificate of occupancy.
3. Can my fees be exempted?
a. Only building permit fees are eligible for an exemption if the project includes at least 50% of units affordable to households making no more than 60% of AMI (Area Median Income) for rental or 100% of AMI for home ownership.
4. Who is eligible to receive fee incentives for affordable housing projects?
a. Any developer or landowner that applies for a building permit to construct new affordable housing units that are for rent or sale in the City of Boise.
5. Are there any caps or limits on the fee incentives a developer can receive?
a. No.
6. How does the city determine the eligibility of a project for fee incentives?
a. Eligibility is based upon the rent charged for each dwelling unit or pricing for homeownership dwelling units. Affordable housing projects that include at least 25% of units affordable to households making no more than 80% of AMI (Area Median Income) for rental or 120% of AMI for homeownership can receive development-related fee deferrals.
7. What is the application process for securing fee incentives?
a. If your project meets the affordable housing limits to qualify for fee incentives, contact the City's affordable housing project manager to initiate the process - Joe Bruce (208) 608-7093, email: jbruce@cityofboise.org
8. Is there a specific timeline for developers to apply for fee incentives in relation to their project timeline?
a. No, the fee incentives are available year-round to any and all affordable housing projects that meet the eligibility requirements.
9. Can fee incentives be combined with other financial incentives offered by the city or external programs?
a. Yes. These fee incentives are meant to aid affordable housing projects and additional funding sources (i.e. government subsidies, tax credits, grants, loans, and other financing tools) are usually required to meet the total development costs.
10. What reporting or documentation is required from developers to maintain eligibility for fee incentives?
a. The affordable housing project must include a deed restriction requiring an affordability period of at least 20 years from the date of Certificate of Occupancy.
11. How do fee incentives contribute to the overall affordability of housing units in a development?
a. These fee incentives typically account for 2-3% of the total development cost.
12. Are fee incentives available for both rental and homeownership affordable housing projects?
a. Yes.
13. Is there flexibility in how developers can use the fee incentives within their project budget?
a. The deferred and/or exempted fees are associated with the projects building permit application and are applied to the cost/credit of the building permit upon issuance.
14. What measures are in place to ensure accountability and transparency in the administration of fee incentives?
a. Ongoing monitoring by the Housing and Community Development Department on an annual basis along with a recorded deed restriction for the affordability requirements are required to fulfill the eligibility for these incentives for a period of at least 20 years.
15. How can developers get support or clarification on questions related to fee incentives?
a. Contact the City's affordable housing project manager for clarification or questions - Joe Bruce (208) 608-7093, email: jbruce@cityofboise.org
16. What support or resources does the city provide during the development process?
a. Projects that are eligible for these fee incentives also received acceptance into Boise's Project Management Program and an expedited permit application.
Affordability & Sustainability Incentives in the Modern Zoning Code
| Incentive | Applicable Zone | Affordability | Sustainability | Incentive Offered |
| 1* | R-1A, R-1B, R-1C | One of three- or two of four-units deed-restricted affordable at 80% AMI (rental)120% AMI (ownership) | All-electric or geothermal, consume15% less energy or meet green building code, consume 15%less water | Up to four units (any combination of permitted housing types) |
| 2 | R-1B, R-1C (addition allocation and site criteria apply) | One (5-8 units) or two (9-12 units) units deed-restricted affordable at 80% AMI (rental) or 120% AMI (ownership) | N/A | If no affordability, 3-4 units. If affordability, 5-12 units and 50%parking reduction |
| 3* | R-2, R-3 if parcel is located entirely within ¼ mile of property zoned MX-3, MX-4,or MX-5 | 25% of units deed-restricted affordable at60% AMI. At least 25% of affordable units must contain two or more bedrooms | Same as triplex/fourplex AND dedicate on-site storage space for recycling equal or greater to space provided for trash | If R-2, R-3, or MX-3, 50% parking reduction If MX-4, may exceed height limit and no minimum off-street parking required |
| 4* | MX-3 | 25% of units deed-restricted affordable at 60% AMI. At least 25% of affordable units must contain two or more bedrooms | Same as triplex/fourplex AND dedicate on-site storage space for recycling equal or greater to space provided for trash | If R-2, R-3, or MX-3, 50% parking reduction If MX-4, may exceed height limit and no minimum off-street parking required |
| 5* | MX-4 | 25% of units deed-restricted affordable at 60% AMI. At least 25% of affordable units must contain two or more bedrooms | Same as triplex/fourplex AND dedicate on-site storage space for recycling equal or greater to space provided for trash | If R-2, R-3, or MX-3, 50% parking reduction If MX-4, may exceed height limit and no minimum off-street parking required |
| 6 | R-1A, R-1B, R-1C, R-2, R-3,MX-1, MX-2, MX-3 if existing primary building reused and not increased or reduced by more than 10% | N/A | N/A | If Residential zone, 50% parking reduction and not subject to density limits If MX zone, no additional parking required than what is on-site |
*For incentives with both affordability/sustainability requirements, applicants may choose to do affordability OR sustainability to earn the incentive unless otherwise specified.
Questions? Contact Joe Bruce, PDS Project Manager,
jbruce@cityofboise.org | 208-608-7093 | TTY (800) 377-3529
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