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7.A. - Page 2 <br /> The reports describe and quantify how the development of offices, commercial space, <br /> and homes creates a need for housing of all income levels, particularly for very low, low <br /> and moderate income residents. Maximum impact fee levels based on the true cost of <br /> the affordable housing need were cited. The reports state that the maximum fees, if <br /> charged to developers, would make all development economically unfeasible. The <br /> reports suggest lower impact fee rates that take into account General Plan policies and <br /> nearby cities' fee levels. The reports recommend specific fees for most development <br /> types except for apartments and condominiums, where a range of feasible options was <br /> given. Staff concurs with the reports' recommended fee levels and further specifies the <br /> amount as shown in Figure 1 . <br /> FIGURE 1: STAFF RECOMMENDATIONS ON FEE AMOUNTS AND APPLICABLE PROJECT SIZE <br /> UNIT TYPE FEE/SQ. FT. MINIMUM PROJECT SIZE <br /> Condos and Apartments $20 <br /> Single Family $25 5 or More Net New <br /> Townhome, Duplex and $25 Units for Residential <br /> Triplex Developments Projects <br /> Office $20 More than 5,000 <br /> Hotel $5 square feet of Net New <br /> Retail and Restaurant $5 Construction for <br /> Commercial Projects <br /> This fee would be used to provide affordable housing in partnership with nonprofits and <br /> other housing developers. Funds can be used for land purchase, construction costs, or <br /> renovation and retention of existing apartment units for lower income residents. Based <br /> on estimates of recent development projects, the fee program could receive over <br /> $3,000,000 per year if the economy remains strong. <br /> BACKGROUND <br /> Adopted in December 2013, the City's Housing Element <br /> http://www.redwoodcity.org/departments/community-development-department/planning- <br /> housing/planning-services/major-projects-initiatives/housing-element-update describes the <br /> need for affordable housing and the policies and programs to help meet that need. The <br /> Regional Housing Needs Allocation (RHNA), a critical component of the Housing <br /> Element, is a primary consideration when establishing housing policies. This RHNA goal <br /> identifies the amount of housing needed at each affordability level to meet projected <br /> local need. <br /> Regionally, and in Redwood City, recent developments have primarily contained market <br /> rate units and very few affordable units. The reason for this imbalance is a combination <br /> of factors including a very strong region-wide housing market, high land costs, the <br /> dissolution of the redevelopment agencies, cutbacks in federal and state funding for <br /> affordable housing and court cases that restrict the ability of cities to require affordable <br /> housing in every development. In Redwood City, the accompanying loss of nearly <br /> $10,000,000 set aside for affordable housing also has had a significant impact. While <br /> the City is considering a variety of programs to increase affordable housing, one <br />