Below-market rate homes landing on Millbrae’s market

The organization, which aims to support opportunities for Bay Area residents to own affordable homes, sees ensuring fair sale and management of below-market rate homes as one way to achieve that goal.

“It plays a role in providing affordable ownership opportunities in the city of Millbrae. This is a real important statement, [that the] city has a high priority,” Zhovreboff said.

Inclusionary zoning ordinances, which require developers to retain a certain percentage of affordable units in new developments, have become commonplace across California as local jurisdictions struggle to mitigate a growing housing crisis.

In Millbrae, all new projects, both for-sale and rental, must set aside 15% of their units for affordable housing, Community Development Director Andrew Mogensen said.

“They have to either set aside a specific percentage of those properties to be affordable or they have to pay a fee to the city, which the city applies to their housing budgets,” Zhovreboff said of the process.

BAAHA will take applications for the new, deed-restricted condos — a two-bedroom condo is set at a maximum price of $650,000 and a one-bedroom is set at $498,000 — up until Nov. 22.

In Millbrae, applicants can’t exceed 120% of the area median income to be considered for the homes and also cannot have an extremely high net worth. Once the organization vets applicants, they will go into a lottery system, with preference given to first-time homeowners and those who live or work in Millbrae.

In other cities, requirements for developers are even stricter, mandating property designated for low-income households, obtaining 80% or less of the area median income, Zhovreboff said.

Another element of BAAHA’s contract with Millbrae, as well as other surrounding cities, is to make sure properties like the Park Broadway condos remain affordable even if the current owners choose to sell. They can also only be passed on to family members who also meet the below-market rate criteria.

“For example, if someone wants to try to sell it, we have to help them determine how much the home can be sold for and the whole process they have to go through to sell the home,” Zhovreboff said. “Properties that fall within that ordinance — they are permanently affordable.”

It’s a bonus to the residents of Millbrae and a way to offer people more affordable homes, Mogensen said.

“We’re happy to see these opportunities come on the market for people,” he said.

holly@smdailyjournal.com

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