April 2016
April 21, 2016
Area Median Income and Affordable Housing
The calculations of rent ceilings for affordable housing are based on the Average Median Income (AMI), a figure calculated by the U.S. Department of Housing and Urban Development. AMI varies by metro area, and it is updated every year. In 2016, the AMI for DC decreased, making the household income ceiling for qualifying for affordable housing slightly lower. When DMPED redevelops a DC-owned property for residential use, the law requires that at least some of those units must be affordable. DMPED frequently negotiates more affordable units than the statutory requirement. Most developments require at least 30% of the new units to be affordable, depending on the size of the development and its proximity to public transit. For rental developments:- A quarter of the affordable units must be made such that very low-income households pay no more than 30% of their total household income for rent;
- Three quarters of the affordable units must be made such that low-income households pay no more than 30% of their total household income for rent.
- Half of the affordable units must be made that low-income households will pay no more than 30% of their total household income for housing costs;
- Half of the affordable units must be made that moderate-income households (those making at most 80% of AMI – $86,880 for a family of four) will pay no more than 30% of their total household income for housing costs.