Background:
Staff is recommending the approval of a rent concession initiative for potential tenants in the District’s staff housing building. Under this proposal, eligible tenants will receive the equivalent of two months' rent as a concession. This support may be applied in one of two ways: either as two months of free rent at the beginning of the lease or spread evenly over the term of the lease, based on tenant preference.
The rent concessions will begin on April 4, 2025, and will be offered to 40 leases. This initiative is designed to provide financial relief, incentivize lease signings, and promote long-term occupancy and housing stability for District staff.
Importantly, these rent concessions do not create additional debt or financial strain for the project, as the units would otherwise remain vacant without this incentive. Offering rent concessions is a common strategy used in the early phases of lease-up to increase occupancy and stabilize rental communities.
This approach supports the District’s long-term goals of providing affordable workforce housing while maintaining the financial sustainability of the housing project.
Fiscal Implication:
None
Recommended Action:
The board is requested to authorize staff to implement the rent concession program as described.