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8.C. - Page 17 <br /> Commissioner Radcliffe stated that certain developers only do affordable <br /> housing. If the requirement is so large that only those companies can build <br /> at all, then it will limit development. Mr. Aknin stated that there is still a <br /> profit motive, so it wouldn't limit other developers completely. <br /> Commissioner Guerrero stated that she was glad Staff increased from 10%. <br /> She asked how Staff would find the right proportion. She asked about the <br /> revenue measures from the City Council. Mr. Aknin stated the housing <br /> impact fee is $20 per square foot on market-rate residential and commercial <br /> development. This might bring $5-7 million per year. Each affordable unit <br /> takes $250,000 in subsidy. Airbnb units will also provide substantial <br /> revenue. In the downtown area the biggest revenue source are state and <br /> federal tax credits that developers apply for. Non-profit developers in this <br /> area are a little more competitive because of some of the conditions of the <br /> General Plan. <br /> Commissioner Schmidt stated that he thinks Redwood City is often the last <br /> to feel the effects of an economic downturn and the first to come out of it. <br /> He asked for a discussion about doubling the affordable housing <br /> requirement to 30%. He stated that Redwood City is in a good position to <br /> ask for more affordable housing and to get back the 300 units lost because <br /> of redevelopment. <br /> Commissioner Radcliffe stated that she would like to see at least 20%. <br /> Commissioner Hale stated that the 15% number is based on an old <br /> benchmark and conditions that no longer exist. <br /> Chair Bondonno asked if the old guidelines also included moderate income <br /> as part of the eligibility requirements. Mr. Aknin stated that is correct. Up <br /> to 6% of that 15% could be dedicated to moderate. <br /> Chair Bondonno stated that he appreciates that this 15% is classified for <br /> low and very low income. He asked for trying to establish a higher <br /> percentage based on data, and asked if the RHNA allocations are a good <br /> starting point. <br /> Commissioner Hale stated that she doesn't think there needs to be tiers <br /> based on income level. Mr. Aknin stated that depending on how much <br /> financing there is, a development may not work if there's only extremely low <br /> or very low income units. <br /> Commissioner Schmidt stated that through the redevelopment agency, <br /> residential projects did get incentives for affordable housing. He stated that <br /> he is not seeing allowances to the developer for this proposal. Ms. O'Dell <br /> stated that is correct, and this is not a density bonus proposal. She stated <br /> that it establishes two caps, market rate and below market rate. She stated <br /> that with the market-rate developers who are in negotiations currently, they <br /> can have the option of paying the impact fee or producing affordable units <br /> on site, and if they did that, those units would go towards that cap. <br /> Commissioner Schmidt stated that he was hoping for no impact fees and <br /> requiring the units done. Ms. O'Dell stated that lowering the inclusionary <br /> Page 4 of 9 <br />