The proposed Montgomery project is a mix of income-qualified and market-rate units. Because the City used federal CDBG funds to buy the property from LCC, at least 51% of the units must be offered at Housing and Urban Development (HUD) income and rent levels for 80% Area Median Income (AMI) households. HUD identifies income levels for different household sizes and the proposed rents are based on these income levels. The rents for the income-qualified units below are based on 80% AMI incomes for 1- and 2-person households. For example, the 2020 income limit for an 80% AMI 1-person household is $39,200. For that person to not be cost-burdened, they must pay no more than 1/3 of their income on rent and utilities, which is $980 per month. The income-qualified rents below reflect the 2020 federal HUD income limits, minus an allowance for utility costs.
The proposal shows estimated rents for the market-rate units. These rents will ultimately be what renters in the market are willing to pay. The rents presented in the proposal are consistent with current rents for comparable properties in and near the downtown, also shown in the table below.
Proposed Units and Rents
Current Rents In and Near Downtown*
# of Units
# of units
*Source: Apartments.com, April 2021