Below Market Rate (BMR) Housing Programs

State law requires the City to implement its Housing Element and to adopt programs it relies on to meet its obligations within certain timeframes. Accordingly, the City manages Below Market Rate Housing programs as well as an Affordable Housing Overlay for zoning program. Recent legislation has strengthened consequences for jurisdictions which fail to implement their Housing Elements, including taking away eligibility for grants and other funding for affordable housing, as well as penalties in the form of mandatory streamlined approvals for affordable housing projects.

Foster City BMR (Inclusionary) Housing Programs

Inclusionary housing policies and programs require a certain percentage of Below Market Rate (BMR) units to be included in new or rehabilitated housing developments. Foster City has had an inclusionary housing policy in the Housing Element since 2001 (and before then, for projects within the now-eliminated Community Development Agency project areas). State law allows cities to impose inclusionary requirements by ordinance. The City’s Municipal Code, Chapter 17.90, Below Market Rate Inclusionary Housing Program, governs the City’s below market Rate (BMR) housing programs. See Foster City Municipal Code (codepublishing.com) for more information.

The City has five BMR Housing Programs

Below Market Rate Inclusionary Program
Below Market Rate 100% affordable senior program
City-Owned Workforce Housing
City-Owned Rental Properties
Owner-Occupied BMR Single-Family Homes

If you have questions about an individual program, see the Affordable Housing Page or contact the City’s Housing Coordinator.

If you are a residential developer and want to learn more about the requirements for your Affordable Housing Plan as part of your development proposal, please contact planning@fostercity.org to schedule an appointment.

Preferences

The City of Foster City includes preferences in priority order for Below Market Rate programs. City of Foster City Resolution No. 2020-24 outlines the preferences for the Below Market Rate Inclusionary and 100% affordable senior properties. See supporting documents below. The preferences for the City's workforce housing property at 501 Pilgrim Drive are included in the Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants, dated June 17, 2020. The Agreement is listed below in Supporting Documents. The preferences for the City-owned homes (Existing Unit Purchase Program) are included in Resolution 2023-3, which is included in Supporting Documents, below. For information on preferences for the owner-occupied BMR units, please contact the Housing Coordinator.

Income Limits, Rent Limits, and Utility Allowances for Below-Market-Rate Housing Programs

The City of Foster City uses income limits issued by the California Department of Housing and Community Development (HCD). Current income limits can be found here: State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development. Rents are generally calculated according to the California Health and Safety Code, Section 50053. Law section (ca.gov) and include a utility allowance. The utility allowance schedule is issued by the County of San Mateo each year and can be found here. Please contact the property manager for the BMR property or the city's Housing Coordinator for current rents for each property.

HCD Income Limits 2024, in US Dollars, Issued May 9, 2024

Median for a Family of Four in San Mateo County: $186,600

Income Level	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Acutely Low	19,600	22,400	25,200	28,000	30,250	32,500	34,700	36,950
Extremely Low	41,150	47,000	52,900	58,750	63,450	68,150	72,850	77,550
Very Low	68,550	78,350	88,150	97,900	105,750	113,600	121,400	129,250
Low	109,700	125,350	141,000	156,650	169,200	181,750	194,250	206,800
Median	130,600	149,300	167,950	186,600	201,550	216,450	231,400	246,300
Moderate	156,750	179,100	201,500	223,900	241,800	259,700	277,650	295,550

BMR Rent Limits, 2024

Maximum Chargeable Rents, effective July 1, 2024

	Studio/Junior One-Bedroom	One-Bedroom	One-Bedroom Plus Den	Two-Bedroom	Three-Bedroom	Five-Bedroom
The Plaza	Not offered	Very Low: $1,691 Low: $2,083 Moderate: $3,838	Not offered	Very Low: $1,849 Low: $2,290 Moderate: $4,264	Very Low: $2,015 Low: $2,505 Moderate: $4,699	Not offered
100 Grand	Not offered	Very Low: $1,858 Low: $2,250 Moderate: $4,005	Not offered	Very Low: $2,071 Low: $2,512 Moderate: $4,486	Very Low: $2,269 Low: $2,759 Moderate: $4,953	Not offered
The Triton	Very Low: $1,461 Low: $1,804 Moderate: $3,339	Very Low: $1,647 Low: $2,039 Moderate: $3,794	Not offered	Very Low: $1,794 Low: $2,235 Moderate: $4,209	Very Low: $1,934 Low: $2,424 Moderate: $4,618	Not offered
The Pilgrim	Not offered	Very Low: $1,728 Low: $2,903 Moderate: $3,875 Workforce: $4,622	Very low: not offered Low: not offered Moderate: not offered Workforce: $4,925	Very Low: $1,907 Low: $3,229 Moderate: $4,322 Workforce: $5,162	Not offered	Not offered
Miramar	Not offered	Very Low: $1,862 Low: not offered Moderate: $3,866	Not offered	Very Low: $2,067 Low: not offered Moderate: $4,317	Not offered	Not offered
Marlin Cove	Not offered	Very Low: $1,636 Low: Not offered Moderate: $3,783	Not offered	Very Low: $1,746 Low: not offered Moderate: $4,161	Not offered	Not offered
Metro Center Senior Apts.	Not offered	Very Low: $1,441 Low: $1,722 Moderate: $2,204	Not offered	Very Low: $1,712 Low: $1,912 Moderate: $2,628	Not offered	Not offered
Alma Point Senior Apts.	Not offered	Very Low: $1,869 Low: Not offered Moderate: $3,083	Not offered	Not offered	Not offered	Not offered
City-Owned Homes and Duplexes				See Note	See Note	See Note

Please note that units may be rented for less than the maximum rental rate. These maximum rental rates are in effect until July 1, 2025. Please contact individual properties for current rental rates.

Rent for city-owned homes and duplexes is calculated as 30% of household income, which is less than a reasonable allowance for utilities.

Occupancy Standards for BMR Units

Occupancy Requirements: Minimum and Maximum Number of Persons Per Household

	Studio/Junior One-Bedroom	One-Bedroom	One-Bedroom Plus Den	Two-Bedroom	Three-Bedroom	Five-Bedroom
The Plaza		Minimum: 1 Maximum: 2		Minimum: 3* Maximum: 4	Minimum: 5* Maximum: 6
100 Grand		Minimum: 1 Maximum: 2		Minimum: 3* Maximum: 4	Minimum: 5* Maximum: 6
The Triton	Minimum: 1 Maximum: 2	Minimum: 1 Maximum: 2		Minimum: 3* Maximum: 4	Minimum: 5* Maximum: 6
The Pilgrim		Minimum: 1 Maximum: 3	Minimum: 1 Maximum: 4	Minimum: 2 Maximum: 5	Not offered
Miramar		Minimum: 1 Maximum: 3		Minimum: 2 Maximum: 5	Minimum: 3 Maximum: 7
Marlin Cove		Minimum: 1 Maximum: 2		Minimum: 3* Maximum: 4
Metro Center Senior Apts.		Minimum: 1 Maximum: 2		Minimum: 2 Maximum: 4
Alma Point Senior Apts.		Minimum: 1 Maximum: 3		Not offered
City-Owned Homes and Duplexes				Minimum: 3* Maximum: 4	Minimum: 5* Maximum: 6	Minimum: 7* Maximum: 8

Occupancy requirements follow City Standards as described in the City’s BMR Procedures and Guidelines unless specified in the property’s regulatory agreement(s).

*There is an exception for reasonable accommodation of a disability, or in the case of a household with a child under the age of 18, or with approval of the City.

BMR Administrative Procedures and Guidelines

The City issued revised Administrative Procedures and Guidelines for rental and ownership BMR programs on January 17, 2024. See supporting documents below. The City's Municipal Code, Chapter 17.90, Below Market Rate Inclusionary Housing Program, governs the BMR program.

Flyers

See supporting documents below for flyers on various programs for seniors, those looking for housing, those with disabilities, and more.

Affordable Housing Overlay (AHO)

The Housing Element includes three programs related to the AHO: the establishment of the AHO Combining District, the application of the AHO to specific sites, and the adoption of Design Guidelines. These programs were included in the Housing Element following review by the California Department of Housing and Community Development ( HCD), during which HCD indicated it would not certify the Housing Element without additional housing sites and/or the AHO. Given the changes to State Density Bonus Law, staff is proposing some adjustments in the City’s initial concepts for the AHO presented in the Housing Element. Staff’s proposal is to simplify the proposed AHO (since the developer will also be able to access all the incentives contained in Density Bonus Law) to require more BMR units at the very low- (including extremely low-) and low-income levels accompanied by a reduction in the overall inclusionary percentage from 20% to 15%. The AHO would not allow an increase in density beyond what is allowed by Density Bonus Law but would give the developer the option to provide more BMR units at the lower income levels in exchange for a reduced overall inclusionary requirement. This will enable the City to obtain more of the extremely low-, very low- and low-income units than would be achieved with only density bonus and/or inclusionary provisions. The lower income levels are the most difficult to provide.

The sites proposed for application of the AHO Combining District are:

1. Beach Cove Apartments, 605-1021 Catamaran Street, APNs 094-320-040 & 094-330-010

2. Franciscan Apartments, 888 Foster City Boulevard, APN 094-091-020

3. Sand Cove Apartments, 707-939 Shell Boulevard, APN 094-470-160

4. Shadow Cove Apartments, 1019-1087 Foster City Boulevard, APN 094-312-780

5. The Lagoons Apartments, 611-899 Bounty Drive, APN 094-472-010

6. Lantern Cove Apartments, 244 Rock Harbor Lane, APNs 097-160-110 & 120

7. Schooner Bay Apartments, Timberhead Lane, Halyard Lane, Stanchion Lane, Masthead Lane, Quadrant Lane, Cutwater Lane, Jibstay Lane, Bobstay Lane, Windlass Lane, Pinrail Lane, APNs 097-140-070 & 080; 097-150-020, 030, 050, 110, & 120

You can sign up here to be on the mailing list to receive notices regarding the consideration and review of the AHO and Multi-Family Objective Design Standards.