Lincoln40 is a proposed off-campus student-housing complex with 130 rental units that result in 708 beds, with the majority of units being four-bedroom/four-bathroom units.
The project will come before the Social Services Commission on Monday, where a new affordable housing plan will be presented to the commission.
Originally the applicant had proposed to pay affordable housing in-lieu fees as the vehicle to meet the city’s affordable housing requirements for the project proposal. However, as staff notes, the applicant recently changed the proposal to pay in-lieu fee to reflect the “public sentiment expressed by city leaders, citizens and students that additional on-site affordable housing is greatly needed in Davis and preferable to developer in-lieu fees.”
The plan now calls for a privately-run, fully integrated affordable housing program onsite that would be managed by the ownership of Lincoln40.
“Lincoln40 will include 71 fully integrated, rent restricted beds that shall remain affordable in perpetuity,” the developer writes. “We propose that 80% or 57 beds of these affordable beds will be at rents meeting the very low income requirements (30% of 50% of Area Median Income (AMI) for a one-bedroom occupant), and 20% or 14 beds at rents meeting 30% of 60% of AMI.”
The program is intended to provide “below-market rental alternatives by way of design and product offering, as well as an on-site affordable program that will directly serve disadvantaged, full-
The program will be privately managed and is “designed to make financial decisions easier for college students who may not otherwise be able to afford the burdensome and increasing costs of rental housing and higher education.”
Each student applicant to “LincolnLift” will be “chosen based on need based on the qualification parameters established.”
According to the applicant, “LincolnLift seeks to mitigate the disadvantages faced by low-income full-time students due to economic barriers. Recent research focusing on socioeconomic diversity in higher education shows that high-achieving, low-income students are severely underrepresented at the nation’s selective post-secondary institutions.
“In fact, students from families in the bottom economic quartile comprise only three percent (3%) of enrollment at those institutions, while those from the upper economic quartile comprise seventy-two percent (72%).”
The applicant proposes that “LincolnLift and its affordability requirements will be addressed in Lincoln40’s Development Agreement and written into the restrictive covenants of Lincoln40. The covenants will run in perpetuity from the date of first occupancy.”
Further: “Subject to the conditions set forth in the Development Agreement between the Developer and the City, a predetermined number of beds integrated among any of Lincoln40’s double-bed rooms will be allocated to the LincolnLift program. There will be no distinction made between the LincolnLift beds and the market rate beds. Participants in the LincolnLift program will enjoy the same amenities and living experience as all other residents in the project. Lincoln40’s management staff will administer both eligibility and suitability of residents and matches.”
Further, the administration will involve:
- Giving priority to continuing residents over new residents so long as they continue to qualify.
- Priority of tenant applications will be based on demonstrated need, except when qualifying tenant applicants outnumber available beds, a waitlist will be implemented that takes the order in which applications are received.
- In the event the LincolnLift program is undersubscribed in any year, Lincoln40 will pay the City of Davis’ Housing Fund an amount equivalent to the sum of the annual discount for each bed that is not occupied by an eligible student.
- Lincoln40 management will provide an annual report to the City of Davis on the program.
The program is set up to provide housing for full-time students and full-time student households whose income cannot exceed 80 percent of the area median income (AMI). The applicant states that “financially dependent full-time students and financially independent full-time students will be eligible for the LincolnLift program.”
The residents must meet the following criteria:
1) Financially Dependent Full-time Students. Full-time students claimed as an income tax dependent by any individual for the tax year preceding application to the program may qualify for LincolnLift by demonstrating that the household income of the parent or other legally supporting person when combined with the full-time student’s income does not exceed eighty percent (80%) of area median income for Yolo County. a. Verifying Parent or Other Legally Supporting Person’s Low Income Status. The full-time student must verify his or her parent’s or other supporting person’s income by means of documentation such as tax returns, W-2s, pay stubs, bank statements, etc. Income includes all sources of income including wages, investment income, etc.
2) Financially Independent Full-time Students. Full-time students who have not been claimed as an income tax dependent by any individual for the tax year immediately preceding application to the program may qualify by verifying financial independence and by demonstrating that the full-time student’s income does not exceed eighty percent (80%) of area median income.
- Verifying Financially Independent Status. Financially independent full-time students must be able to demonstrate that they are not claimed as a dependent on anyone else’s tax return and show financial self-sufficient status by means of verifying documentation such as tax returns and W-2s as well as a budget showing how he or she is able to be supported by the funds claimed.
- Verifying Full-time Student’s Low Income Status. The full-time student must document his or her income by means of verifying documentation such as tax returns, W-2s, FAFSA documentation, bank statements, etc. Student income includes wages from employment, commercial loans, financial aid, savings, or other loans obtained with the student’s own credit. Loans or gifts from relatives, associates, or friends may not be included as student income.
Affordable Rate Determination: According to the applicant, the per bed rent of “LincolnLift’s operation will equal either: a) 30% of 60% of Yolo County area median income for a single person household; or, b) 30% of 50% of Yolo County area median (considered very Low-income) income for a single person household.
“Rental rates for each participant will be assessed based (on) amount of income verified at time of application. This rental rate includes all utilities, but increases from utility overutilization will be passed through to tenants in the LincolnLift program in the same way as they are in the Lincoln40 apartment complex to encourage sustainable living.”
The applicant concludes: “Lincoln40 subscribes to the Principles of One Community as prescribed by ASUCD and the City of Davis. As such, we are committed to attracting a diverse and respectful community of residents from all socioeconomic backgrounds. LincolnLift represents the spirit of this commitment and our values as a company.”
—David M. Greenwald reporting