Laserfiche WebLink
7.A. - Page 32 <br /> BIA Bay Area does not support the adoption of a residential Housing Impact Fee based on the <br /> methodology used by Vernazza to arrive at a maximum mitigation fee. However, BIA recognizes that <br /> Redwood City may follow the trend of other Bay Area cities in adopting such a fee. In this case, BIA <br /> Bay Area strongly suggests that 1)to prevent an escalation of housing impact fees and therefore <br /> higher housing costs throughout the region, 2)to maintain competitiveness for future investment by <br /> the private sector and 3)to incentivize the construction of affordable units by market rate developers, <br /> the following actions should be taken when adopting the fee: <br /> • Adopt a HIF no higher than $17 per sq.ft.to stay in alignment with other nearby cities such <br /> as Sunnyvale ($17), Mountain View ($17), San Jose, ($17), and Fremont($17.50); <br /> • Provide a financially attractive incentive provision in the adopted resolution to <br /> voluntarily construct a percentage of required affordable units in rental developments; <br /> • Allow a sufficient pipeline exemption and phase in implementation of the fee to allow <br /> those projects in the city that are currently in process to complete their entitlement <br /> permitting at current fee levels. <br /> The greater Silicon Valley region's substantial lack of an adequate housing supply, both market rate <br /> and affordable, is a region wide as well as state wide problem and is the most significant factor <br /> contributing to the escalating cost of housing, as noted in the Legislative Analyst Office Report <br /> dated March 17, 2015. Restrictive land use regulations, infrastructure costs, impact fees and rising <br /> labor costs create serious impediments to addressing the affordability crisis the region is facing. <br /> This challenge should be addressed not by relying solely on the tax revenue generated by one industry <br /> -development, but by using a balanced approach -the establishment of a set of broad based, <br /> community-wide fiscal and policy responses that will generate an adequate housing supply and <br /> provide stabile, long term financial resources. <br /> Respectfully submitted, <br /> Patricia E.Sausedo,Government Affairs <br /> BIA Bay Area <br /> Cc: Diana Odell, Redwood City <br /> Paul Campos,Sr.VP Govt.Affairs/General Counsel <br /> BIA Bay Area <br /> Encl: CA LAO Report <br /> Perkins Coie Nexus Analysis& Executive Summary <br /> CA DHS 2007-2014 Regional Housing Need Allocation <br /> Vernazza Wolf Associates Model Nexus Study <br />