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. Utility allowances vary depending on the property and unit size and account for certain utilities paid for by tenants. Please contact the property manager for the BMR property or the city's Housing Coordinator for rent limits for each property or for more information on utility allowances.

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.