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6.4.B. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> December 7, 2015 <br /> SUBJECT <br /> Second Reading of Affordable Housing Impact Fee Ordinance and Adoption of <br /> Associated Resolutions <br /> RECOMMENDATION <br /> (1) Waive Second Reading and (2) Adopt the Ordinance as Directed by Council at their <br /> October 26, 2015 Hearing and (3) Adopt the Housing Impact Fee Resolution and (4) <br /> Adopt a Resolution for Housing Impact Fee Reduction for Area-Standard Wages as <br /> Directed by Council at their October 26, 2015 Hearing. <br /> BACKGROUND <br /> On October 26, 2015, the City Council introduced an ordinance amending the Municipal <br /> Code to create an Affordable Housing Impact Fee. A draft resolution, stating the amount <br /> of the fee and methods of calculation, was also considered. The City Council directed <br /> staff to make the following modifications and return for the second reading. These <br /> changes include: <br /> 1. Create an incentive for projects that pay area standard wages. <br /> 2. Modify inclusionary percentages to encourage on-site development of units. <br /> 3. Clearly exempt nonprofit projects from the fee, including affordable housing. <br /> 4. Change the language of exemption from "churches" to "houses of worship." <br /> Staff also made minor clarifying changes to explain how the inclusionary percentages <br /> relate to the State Density Bonus program and describe that residential amenity and <br /> common spaces are exempt from the fee calculations. The initial deposit requirement in <br /> Exhibit D was updated to reflect a $1,500 deposit requirement, rather than $1 ,000. <br /> ANALYSIS <br /> All of these changes are reflected in the proposed resolutions; the ordinance remains <br /> unchanged. Exhibit A of the Housing Impact Fee Resolution (Attachment 2) is amended <br /> to lower the percentages of required inclusionary units, further encouraging on-site <br /> development of affordable housing. Exhibit A also clarifies that affordable units and <br /> nonprofit developments are exempt from the fee and describes how the fee will be <br /> calculated for projects using the State Density Bonus. Exhibit C of the Resolution <br /> clarifies that non-profit developments and houses of worship are exempt from the fee. <br /> Page 1 of 3 <br />