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the public and private sectors, and 3) to incentivize the construction of affordable units by market rate developers, the following actions should be taken when adopting the fee: • Maintain a viable developer option in -lieu fee by establishing the in -lieu fee no higher than a reasonable subsidy of each affordable unit —approximately $125,000 to $150,000 city subsidy per affordable unit for rental development. This equates to an in - lieu fee of approximately $25 - $35 per square foot. For comparison, the City of Mountain View recently adopted an in -lieu fee of $35 per square foot on rental. $400,000 per unit is completely infeasible, equivalent to nearly $80 per square foot. • Include other significant alternative means of compliance such as a land dedication option, off site build, co -development with nonprofit builders, and a flexible mix of all options; • Install financially attractive incentive provisions to induce developers to voluntarily construct a percentage of required affordable units in rental developments rather than adopting must -build requirements. Include density bonuses, reductions in parking and easing of development standards; • Adopt a sufficient pipeline exemption and phase-in implementation of the inclusionary requirements to allow those projects in the city that are currently in process or which submit applications prior to January 1, 2019 to complete their entitlement permitting at current fee levels. Silicon Valley's substantial lack of an adequate housing supply, market rate as well as below market rate, is a region wide and state-wide problem. In adequate supply is the most significant factor contributing to the escalating cost of housing. If the affordable percentage and in -lieu fees are pushed higher than can be borne by market rate housing, it is likely to have the unintended consequence of actually worsening the City's (and the region's) housing outlook by eliminating market -rate projects that generate the lion's share of BMR fees and units. Since 2011, local governments have permitted 145,000 new housing units while the San Francisco Bay Area region has created 629,000 new jobs. That adds up to 4.3 jobs per housing unit, a ratio far in excess of the 1.5 jobs per housing unit that experts consider a healthy balance. Redwood City can hardly afford the AB 1505 "slow down effect" that many communities are experiencing through adoption of overly burdensome inclusionary policies. San Mateo County communities have dug themselves into a -31.6% hole compared with units needed to keep up with job growth according to Pian Bay Area. We are attaching the BIA Bay Area Monthly Bay Area Jobs -Housing Imbalance report, which measures how the region is performing when it comes to providing adequate jobs and housing based on projections in Plan Bay Area, the San Francisco Bay Area's blueprint for growth. As you will see, almost seven years into the 30 -year planning period, the Bay Area remains deeply in the hole when it comes to housing but has blown way past the jobs projections. BIA encourages the City to conduct more outreach to development stakeholders. BIA is ready to work with the City of Redwood City to revise the Inclusionary Ordinance so that it is best able to work for both Redwood City and the building community. Very truly yours, Dennis Martin BIA I BAY AREA