Don Gulden, owner of 8701 Crown LLC, is one step closer to building a 15-unit apartment building at 1520 N.W. 87th St. using the city's multi-family tax exemption program, which requires some of the units to be affordable to those earning 80 percent of area median income in exchange for a property tax break.

The council's Housing and Economic Development Committee had approved the proposal on May 6 in part because they said a project that provides more affordable rents in the Crown Hill neighborhood utilizing the city's program has never been proposed.

The full Seattle City Council passed the item 9-0 today.

Under the city's multi-family tax exemption program, or "Homes Within Reach," developers can get a break on property taxes in exchange for building at least 20 percent of the units in a development to be affordable to those earning at or below 80 percent of median for studio and 1-bedroom units (roughly $47,200 for an individual and rent cannot exceed $1,180), or 90 percent of median for 2-bedroom and larger units ($53,100 for an individual and rent cannot exceed $1,328).

Under the city's program, the units must remain at those rental rates for 12 years.

Of the 15 Crown Hill units there would be five one-bedrooms with a den, two two-bedroom units, and the rest would be studios. Of those, three would be available as "affordable units."

Gulden said the units would range from 620 to 1,200 square feet and be rented at between $950 and $1,180 per month. Most of the other units not qualified under the tax exemption program will rent at below market rate for new construction, he said.

Gulden, who owns an apartment building in Queen Anne and another in Ballard, said average rents in the neighborhood for a one-bedroom run about $800 a month for older construction.

Originally, Gulden had been approved to build 11 units, but decided to apply for the city's tax exemption program and tack on an additional four units.

Council member Jan Drago, vice-chair of the housing committee, said the project goes beyond the program goals by providing additional affordable housing than is required. She also said it meets the program goals of greater geographical distribution.

The "Homes Within Reach" program was expanded in 2006 to include additional "target areas" in the city, 39 total, and expand the coverage of communities already eligible.

The development proposal could go to the full council for a vote next week. If it's approved, Gulden said he expects to have the project completed in under a year. The existing building would be demolished.