Financial Feasibility Analysis
STRATEGIES
ASSOCIATES INC
TARGET THE ‘MISSING MIDDLE’ IN CURRENT DEVELOPMENT TRENDS
¢ Recent development has focused on 100% affordable housing and
100% market rate housing
* No development has targeted the ‘missing middle’ incomes
¢ The analysis reveals that delivering to this group is financially
challenging and there are no Federal programs to help
¢ Targeting the IZ policy to this cohort creates a stronger continuum
¢ 80% of AMI is recommended target
¢ $55,950 for 1-person HH
¢ $92,700 for 6+ person HH
VARY INCLUSIONARY % BASED ON THE SIZE OF THE DEVELOPMENT
¢ The analysis shows that larger developments have greater capacity to
accommodate inclusionary units
¢ Smaller projects experience greater financial impact due to having fewer
market rate units to compensate for the income-controlled units
¢ Recommended thresholds
¢ Under 10 units = 0% inclusionary
* 10-25 units = 10% inclusionary
¢ 26-100 units = 15% inclusionary
* 101+ units = 20% inclusionary
