(a) Affordability.
A floor area, height, or dwelling unit density bonus, as applicable, may be earned by providing affordable housing at the levels of affordability set out in this § 14-702(7)(a). For the purposes of § 14-702(7), a household shall consist of every person who lives or intends to live in the unit, regardless of age, dependency status, or relationship. The imputed household size for determining unit affordability and occupancy requirements of § 14-702(7) shall be equal to 1.5 people per each bedroom in the unit, except for studios and efficiencies, for which the imputed household size is 1 person. 620.1
(.1) Moderate Income.
(.a) Moderate Income rental units shall:
(i) Have total monthly costs (including rent and utility costs) that do not exceed thirty percent (30%) of gross monthly income for households earning up to sixty percent (60%) of the Area Median Income (AMI), adjusted for household size, as reported by the U.S. Department of Housing and Urban Development (HUD) for the Philadelphia Metropolitan Statistical Area;
(ii) Be occupied by households earning up to sixty percent (60%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of the household's initial occupancy of the unit; and
(iii) At no time be occupied by households earning greater than one hundred twenty percent (120%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area; provided that, in the event the income of a tenant is found by the Department of Planning and Development to exceed the maximum income provided for by this subsection (iii), a rental unit shall nonetheless be deemed in compliance with this subsection (iii) until the first expiration of a lease occurring after the tenant's income first exceeded the maximum permitted by this subsection (iii). In such event, the owner or their property manager may raise rent on the existing household's unit at the owner or their property manager's discretion, taking into account any applicable laws, rules, or policies regarding rent increases, provided that the owner or their property manager must make the next available unit of comparable size available to a new income-qualified household. 620.2
(.b) Moderate Income owner-occupied units shall:
(i) Have a maximum sale and resale price, during the term of affordability, calculated on the basis of a down payment of no more than five percent (5%) of the purchase price, a fixed rate 30 year mortgage, consistent with the average monthly rate published from time to time by Freddie Mac, and total monthly costs (including mortgage principal and interest, property taxes, property insurance, and condominium or homeowner association fees) that do not exceed thirty percent (30%) of gross monthly income for households earning up to eighty percent (80%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area;
(ii) Be sold to one or more members of a household with household earnings up to eighty percent (80%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of sale; and
(iii) Be the principal residence of at least one person who owned the unit during the period of affordability.
(.2) Low Income.
(.a) Low Income rental units shall:
(i) Have total monthly costs (including rent and utility costs) that do not exceed thirty percent (30%) of gross monthly income for households earning up to fifty percent (50%) of the Area Median Income (AMI), adjusted for household size, as, as reported by HUD for the Philadelphia Metropolitan Statistical Area;
(ii) Be occupied by households earning up to fifty percent (50%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of the household's initial occupancy of the unit; and
(iii) At no time be occupied by households earning greater than one hundred percent (100%) of the Area Median Income (AMI), adjusted by household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area; provided that, in the event the income of a tenant is found by the Department of Planning and Development to first exceed the maximum income provided for by this subsection (iii), a rental unit shall nonetheless be deemed in compliance with this subsection (iii) until the first expiration of a lease occurring after the tenant's income exceeded the maximum permitted by this subsection (iii). In such event, the owner or their property manager may raise rent on the existing household's unit at the owner or their property manager's discretion, taking into account any applicable laws, rules, or policies regarding rent increases, provided that the owner or their property manager must make the next available unit of comparable size available to a new income-qualified household. 620.3
(.b) Low Income owner-occupied units shall:
(i) Have a maximum sale and resale price, during the term of affordability, calculated on the basis of a down payment of no more than five percent (5%) of the purchase price, a fixed rate 30 year mortgage, consistent with the average monthly rate published from time to time by Freddie Mac, and total monthly costs (including mortgage principal and interest, property taxes, property insurance, and condominium or homeowner association fees) that do not exceed thirty percent (30%) of gross monthly income for households earning up to seventy percent (70%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area.
(ii) Be sold to one or more members of a household with household earnings up to seventy percent (70%) of the AMI, adjusted for household size, as reported by HUD for the Philadelphia Metropolitan Statistical Area at the time of sale; and
(iii) Be the principal residence of at least one person who owned the unit during the period of affordability.
(b) Criteria.
A floor area, height, or dwelling unit density bonus, as applicable, may be earned for developments where at least fifty percent (50%) of the gross floor area will be in residential use (i) by providing affordable housing, provided that the project meets the standards set forth in subsections (.1) through (.5), below; or (ii) if the owner of the property enters into a payment-in-lieu agreement that meets the standards set forth in subsection (.6), below, provided that no development with fewer than ten dwelling units may earn these bonuses by entering into any such payment in-lieu agreement. For any development where less than fifty percent (50%) of gross floor area will be in residential use, these bonuses may be earned, as applicable, if the owner of the property enters into a payment-in-lieu agreement that meets the standards set forth in subsection (.6), below. The bonuses provided for in this subsection (7) ("Mixed Income Housing") are not available to any development that does not meet all applicable standards of this Zoning Code that require the inclusion of one or more non-residential uses on the lot. 621
(.2) Affordable units shall be affordable, as defined in § 14-702(7)(a)(.1) or § 14-702(7)(a)(.2), for a term of not less than 50 years with future sales, affordability, compliance, and certain legal remedies within such period governed by a recorded instrument or instruments in favor of the City, in substance satisfactory to the Department of Planning and Development and in form satisfactory to the Law Department, committing to satisfy all requirements of this subsection (b).
(.3) Affordable units shall be constructed, completed, ready for occupancy, and marketed at the same time as market-rate units and reasonably dispersed on the same site as the development such that no single building or floor therein will have a disproportionate percentage of affordable units; provided, that, the Department of Planning and Development may permit some or all of such affordable units to be provided and maintained off-site, upon a showing of exceptional circumstances and a substantial public benefit deriving from the proposed off-site development and such other requirements and penalties for non-compliance as provided for by regulations of the Department of Planning and Development.
(.4) Affordable units shall be of comparable quality, in terms of the size, design, exterior appearance, energy efficiency, and overall construction, as the market-rate units within the development, except that the Department of Planning and Development may authorize, on a case by case basis, variation in lot size, number of stories, or whether units are attached or detached, upon good cause shown. For rental units, this requirement shall apply to any maintenance or renovations performed during the life of the affordability commitment. Where the quality of market rate units, in terms of the size, design, exterior appearance, energy efficiency, and overall construction varies from unit to unit, the quality of affordable units shall vary substantially to the same degree. Affordable units may have interior finishes and features that are functionally equivalent to those of any market-rate unit within the development, so long as those finishes and features are durable, of good and new quality, and consistent with any further standards which the Department of Planning and Development may establish.
(.5) For owner-occupied units, the owner and all subsequent owners during the affordability period provided for in subsection (.3), above, shall give the Department of Planning and Development a right of first refusal to purchase each affordable unit, with 90 days' notice of any sale; and shall give the Department of Planning and Development notice of any foreclosure of an affordable unit within seven days of receipt of a foreclosure notice.
(.6) The applicable bonus shall be available to a property if the owner enters into a binding agreement with the Department of Planning and Development pursuant to which the owner has tendered to the City, prior to the issuance of a building permit, a payment in lieu of providing affordable housing; and the Department of Planning and Development has agreed, for any development where at least fifty percent (50%) of the gross floor area will be in residential use, to use such money for the purposes set forth in Section 21-1605 ("Trust Fund Assets Held in the Non-Recording Fee Sub-Fund"), and, for any development where less than fifty percent (50%) of the gross floor area will be in residential use, for the purposes set forth in Section 21-1603 ("Creation, Distribution and Use of the Trust Fund's Assets"). The payment shall be calculated as follows: 622
(.a) For properties located in an RM-2, RM-3, RM-4, RMX-1, RMX-2, RMX-3, IRMX, CMX-3, CMX-4, or CMX-5 zoning district earning a floor area or height bonus, except for properties that meet the conditions of (.b) or (.c), below: by multiplying the maximum total gross floor area allowed (measured in sq. ft. and not including any floor area earned through bonuses other than this mixed income housing bonus), by eleven dollars and thirty cents ($11.30), if the owner is seeking the moderate-income bonus, and by fourteen dollars and sixty cents ($14.60), if the owner is seeking the low-income bonus.
(.b) For properties located in an RM-2, RM-3, RM-4, RMX-1, RMX-2, RMX-3, IRMX, CMX-3, CMX-4, or CMX-5 zoning district earning a height bonus that are entirely or partially located within a Special Flood Hazard Area, the lesser of the amount reached by:
(i) Multiplying the total gross floor area of all structures on the lot (measured in sq. ft.), by eleven dollars and thirty cents ($11.30), if the owner is seeking the moderate-income bonus, and by fourteen dollars and sixty cents ($14.60), if the owner is seeking the low-income bonus.
(ii) Multiplying the maximum total gross floor area allowed (measured in sq. ft. and not including any floor area earned through bonuses other than this mixed income housing bonus), by eleven dollars and thirty cents ($11.30), if the owner is seeking the moderate-income bonus, and by fourteen dollars and sixty cents ($14.60), if the owner is seeking the low-income bonus.
(.c) For properties earning a floor area bonus pursuant to a development that is reviewed in accordance with the provisions of § 14-507(12) (Optional Special Standards, Review, and Exemptions): by multiplying the maximum additional gross floor area that would be earned through this bonus (measured in sq. ft.), by twenty-five dollars ($25), if the owner is seeking the moderate-income bonus, and by thirty dollars ($30), if the owner is seeking the low-income bonus.
(.d) For properties located in an RM-1, CMX-1, CMX-2, or CMX-2.5 zoning district, the total number of residential dwelling units allowed (not including any dwelling units earned through bonuses other than this mixed income housing bonus), multiplied by thirteen thousand six hundred dollars ($13,600), if the owner is seeking the moderate-income bonus, and by seventeen thousand seven hundred dollars ($17,700), if the owner is seeking the low-income bonus.
(.1) The additional gross floor area or building height earned for compliance with subsection (a), above, is as set forth in the tables, below. A property may take advantage of a height bonus, a gross floor area bonus, and a dwelling unit density bonus, either alone or in combination, if so provided by the tables in subsection (.3), below. A property may not take advantage of any one of these bonuses multiple times and may not earn bonuses under both the low-income and moderate-income standards.
(.2) Dwelling Unit Density Bonuses in this § 14-702 shall be calculated without including any other dwelling unit bonuses earned. Whenever the calculation of permitted number of dwelling units, following the application of a bonus described in this § 14-702, results in a fraction of a dwelling unit, then the number of permitted dwelling units shall be rounded down to the nearest whole number. If any other dwelling unit density bonuses are earned, the total number of dwelling units permitted shall be determined by adding all such bonuses to the number of units that would otherwise be permitted under this Code, including this Mixed Income Housing Bonus. 622.2
(.3) Mixed Income Housing Bonus Tables. 622.3
Additional Gross Floor Area, as Percent of Lot Area
| |||||||||||
RM-2
|
RM-3, RMX-1 | RM-4
|
RMX-2
|
IRMX
|
RMX-3
|
CMX-3 (within /TOD only) |
CMX-4
|
CMX-5
| |||
Mixed Income Housing (§ 14-702(7)) | Moderate Income | 25% | 50% | 100% | 75% | 150% | 150% | 150% | 200% | 150% | 300% |
Low Income | 50% | 75% | 175% | 125% | 250% | 250% | 250% | 300% | 250% | 400% | |
Additional Building Height
| ||||
/CDO
|
/ECO
|
RM-1, CMX-1, CMX-2 | ||
Mixed Income Housing (§ 14-702(7)) | Moderate Income |
48 ft. | 48 ft. | 7 ft. |
Low Income |
60 ft. | 60 ft. | 7 ft. | |
Housing Unit Density Bonuses (RM-1, CMX-1, CMX-2, or CMX-2.5 only) | ||
Mixed Income Housing (§ 14-702(7)) | Moderate Income |
25% increase in units permitted |
Low Income |
50% increase in units permitted | |
(d) Compliance Check.
(.1) No zoning permit shall be issued pursuant to section § 14-303(6) for any project, or any portion thereof, that has been awarded bonus floor area, building height, or dwelling units pursuant to this § 14-702(7) unless the Department of Planning and Development certifies to the Department of Licenses and Inspections that the applicant has acknowledged, in form satisfactory to the Department of Planning and Development, an understanding of the requirements of this § 14-702(7). 622.4
(.2) No building permit shall be issued pursuant to Section A-301 of Title 4 for any project, or any portion thereof, that has been awarded bonus floor area, building height, or dwelling units pursuant to this § 14-702(7) unless the Department of Planning and Development has certified to the Department of Licenses and Inspections that the applicant has made all required payments pursuant to an agreement provided for by subsection (b)(.6) or is in compliance with all of the following: 622.5
(.a) The applicant has demonstrated that the applicant is capable of and prepared to actively market the affordable units to eligible tenants and eligible purchasers;
(.b) The applicant has filed an Affordable Building Plan, signed by both the applicant and the design professional responsible for the development, which specifies, to the satisfaction of the Department of Planning and Development, the quality, quantity, placement, design, and phasing of the development and of each affordable unit, and which acknowledges that the applicant is subject to penalties in the event that the development fails to conform with such Plan or any approved modifications of such Plan. Any deviation from an approved Affordable Building Plan must comply with the requirements of this Chapter and must be approved by the Department of Planning and Development; and
(.c) The property is in compliance with all requirements of this § 14-702(7), including but not limited to the recordation of an instrument pursuant to subsection (b), as well as any additional requirements that the Department of Planning and Development shall impose in order to secure and monitor the applicant's satisfaction of all obligations imposed by this Chapter.
(.3) No certificate of occupancy shall be issued pursuant to Section A-701 of Title 4 for any dwelling units included in a development, and no occupancy of such units shall be permitted, unless certificates of occupancy have also been issued for all affordable units required by this § 14-702(7) or there has been compliance with any agreement provided for by § 14-702(7)(b)(.6); provided that the Department of Planning and Development may waive this requirement upon a showing of exceptional circumstances with respect to permitted off-site affordable units only and only upon agreement by the applicant to further conditions and penalties for non-compliance, all as provided for in regulations of the Department of Planning and Development.
(e) Remedies.
(.1) Failure to comply with any provision of a recorded instrument required by this § 14-702(7) shall, in addition to any other remedies available by law, be grounds for:
(.a) Revocation of any building permit, certificate of occupancy or rental license and the prohibition of renewal of any such permits, certificates, or licenses.
(.b) A fine of five hundred dollars ($500) per day of noncompliance.
(.2) The Department of Planning and Development shall have the right to inspect such documents as may be necessary to determine continued compliance, including but not limited to financial records of any tenants or owners to confirm that they are eligible tenants or eligible purchasers.
(f) Reporting.
The Department of Planning and Development shall publish annually a Mixed Income Housing Program Report, which shall include: quantity, size, and location of affordable units; tendered payments in lieu of providing affordable units and how such payments were spent; and household size and income of eligible tenants and eligible purchasers who have either applied for or have occupied affordable units.
(g) Regulations.
The Department of Planning and Development shall have the authority to promulgate regulations to clarify, implement or administer any provision of this § 14-702(7).
The terms and conditions of this § 14-702(7) (Mixed Income Housing) shall not apply to Residential Housing Projects within the /MIN, Mixed Income Neighborhoods Overlay District, as defined in § 14-533(2), except as otherwise provided by section § 14-533 (Mixed Income Neighborhoods Overlay District).
Notes
| 620 | Amended, Bill No. 120774-A (approved January 14, 2013); amended, Bill No. 130274 (approved June 25, 2013); amended, Bill No. 140519-AAA (approved October 27, 2015); amended, Bill No. 150505 (approved December 1, 2015); amended, Bill No. 161003-A (approved May 8, 2017); amended, Bill No. 170162 (approved July 11, 2017); amended, Bill No. 170498 (approved August 1, 2017); amended, Bill No. 170678-AAA (approved October 17, 2018). |
| 620.1 | Amended, Bill No. 200628 (approved March 29, 2021). |
| 620.2 | Amended, Bill No. 210633-A (approved January 18, 2022), effective July 18, 2022. |
| 620.3 | Amended, Bill No. 210633-A (approved January 18, 2022), effective July 18, 2022. |
| 621 | Amended, Bill No. 190443 (approved July 24, 2019). See note 297 for sunset provision. Amended, Bill No. 190859 (approved December 31, 2019); amended, Bill No. 200628 (approved March 29, 2021); amended, Bill No. 210075 (approved March 29, 2021); amended, Bill No. 210474-AA (approved October 6, 2021). |
| 621.1 | Amended, Bill No. 200628 (approved March 29, 2021). |
| 622 | |
| 622.1 | Amended, Bill No. 210075 (approved March 29, 2021). |
| 622.2 | Amended, Bill No. 210474-AA (approved October 6, 2021) |
| 622.3 | Amended, Bill No. 210474-AA (approved October 6, 2021) |
| 622.4 | Amended, Bill No. 210075 (approved March 29, 2021). |
| 622.5 | Amended, Bill No. 210075 (approved March 29, 2021). |
| 622.6 | Added, Bill No. 200602 (approved January 27, 2021). Enrolled bill numbered this as (g); renumbered by Code editor. |
| 622.7 | Added, Bill No. 210633-A (approved January 18, 2022), effective July 18, 2022. |