Below Market Rate Housing Program Audit

At a glance

Based on auto-generated captions; names and numbers may be misheard.

What: the City Auditor's audit of the Below Market Rate (BMR) ownership housing program, which the City contracts Alta Housing to administer (247 active ownership units; roughly 300 BMR rental units are also tracked).
Where it stands: on 2026-10-13 the Policy and Services Committee voted 3-0 to accept the staff recommendation on the audit. Management agreed with the recommendations and has begun some of them.
Next: build HOA-cost reporting into the next Alta contract and consider a broader policy discussion on HOA costs, likely in 2027.

Preserve existing units: homeowner association dues, special assessments and major repairs can erode affordability as units age; the City has little consolidated information. Recommended better visibility and options to help address HOA costs.
Administration is generally consistent and no fraud, waste, abuse or conflict of interest was found, but performance measures (vacancy and turnover, wait list, demand, compliance, portfolio risk) and complaint tracking should be formalized; the Alta contract has no outcome-based expectations.
Participant support is in line with peers; recommended a light-touch referral process to legal aid, emergency rental assistance, tenant protections and similar services.

The Human Relations Commission chair said the commission voted unanimously to ask the City Council for new policies, possibly subsidies, on rising HOA fees; none have been authorized in 20 years.
Councilmember Reckdahl asked who acts on the HOA finding (the City), about units aging out (varies by development; the City holds a first right of refusal on some) and why none were produced in the 2010s (staff to look into it).
Vice Mayor Stone wants a policy discussion on HOA costs beyond BMR units; the City Attorney noted state law heavily regulates common interest developments.
Chair Lythcott-Haims asked what the BMR need is and why a recent 100% affordable project is not fully occupied. The planning director said the City has about 2,300 affordable units (about 9% of housing stock) and staff cited about 840 affordable units in the pipeline.

About 35 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting	Minutes
2026-10-13 - Policy & Services Committee Special Meeting	35

2026-10-13 - Policy & Services Committee Special Meeting - Auditor presented three findings; one commission chair and one other speaker commented; committee questions on HOA costs and overall BMR need; accepted 3-0.
2026-11-16 - 2026-11-16 - City Council: audit follow-up on the consent calendar (Item 7).