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27. Oakland The Oakland City Council in May 2016 finalized a new affordable housing impact fee program with initial rates going into effect on Sept. 1, 2016. The rates vary depending on the project location. The city did phase the increases across three years in two of the three fee zones and five years in East Oakland. The fees increased annually starting July 2017 and will ultimately range from $1,000 to $23,000 per unit, depending on type and location. The city in 2001 adopted a fee for office, warehouse, retail and hotel projects. In 2007, Oakland conducted an economic impact analysis on a proposed inclusionary housing ordinance but rejected it after consultants concluded that such a program would make most development financially infeasible. Then in December 2014, the City Council hired Hausrath Economics Group to conduct a new affordable housing nexus study, which was expanded to include transportation arid public facilities. Type Maximum Justified Current Fee' Percentage of Fee Maximum Justified Fee (estimated) (Single-family detached $81,729 per unit or $12,500 per unit or $6.25 per sq. ft. (This 15% $40.85 per sq. ft. applies to Zone 1. Other zones are less expensive.) Townhomes/condos $48,976 per unit or $12,000 per unit or $8 per sq. ft. (This applies 24.5% ($32.65 per sq. ft. to Zone 1. Other zones are less expensive.) Rental multifamily 1$50,804 per unit or $11,500 per unit or $7.67 per sq. ft. (This 23% ,$33.87 per sq. ft. applies to Zone 1. Other zones are less expensive.) Class A Office $35.11 per sq. ft. $5.44 per sq. ft. or provide equivalent number 11% of affordable units according to formula s�ppelled out in the ordinance. !Warehouse/distribution 1$12.85 per sq. ft. Same as above. _ _ _ 42%_ (Retail 1$32.39 per sq. ft. None NA l (Hotel 1$12.91 per sq. ft. None_ _ NA 3127/2018 Residential fees in Zone 1 will increase on July 1, 2018, to $23,000 per unit for single-family, $20,000 per unit for townhomes and $22,000 per unit for multi -family rental units. The fees will not increase in 2019 and or 2020 but will be adjusted annually for inflation starting on July 1, 2021. 28. Palo Alto After a political shake-up put three new members on the City Council, the newly elected majority revamped the previously adopted affordable housing impact fee program in early 2017. The result is a staggering $75 per sq, ft. fee on new single- family market rate housing and a $50 per sq. ft. fee on new condos and townhomes. New rental developers will pay $20 per sq. ft. Commercial developers will pay fees ranging from $20.37 to $35 per sq. ft., depending on use. By early 2018, the council directed staff to return with a plan to increase the city's inclusionary percentages for for -sale and rental housing from 15 percent to 25 percent. Type Maximum Justified Fee Current Fee percentage of Maximum Justified Fee (estimated) Single-family detached $222,000 per unit or $111 per sq. ft. $150,000 per unit or $75 per 67% sq. ft. Condominiums ($113,235 per unit or $74.49 per sq. ft. $75,000 per unit or $50per sq. ft. Townhomes $135,000 per unit or $90.02 per sq. ft. $75,000 per unit or $50 per 55.6% sq. ft. (Multi -family rental $157,350 per unit or $104.90 per sq. ft. $30,000 per unit or $20 per 19% sq. ft. Office/110-$264 per sq. ft. $35 per sq. ft. 13% Retail $264 per sq. ft. 20.37 per sq. ft. 8% Hoteh --- $177 per sq. ft. 120.37 per sq. ft. - -- - 11.5% 4/1112017 19