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Annual and Five-Year Development Impact Fee Report <br />Fiscal Year Ending June 30, 2024 <br />City of Redwood City 36 <br />Affordable Housing Impact Fee <br />The purpose of the Affordable Housing Impact Fee is to (1) enhance the public welfare by <br />imposing an affordable housing impact fee whereby developers of nonresidential <br />development and small residential (5 to 19 units) projects will mitigate the impacts of <br />their projects on the need for affordable housing by contributing to the supply of housing <br />for households with extremely low, very low, low, and moderate incomes; and (2) <br />implement the Housing Element by creating a mechanism to provide benefits to the <br />community from new development in the form of affordable housing, thereby helping to <br />meet the needs of all socioeconomic elements of the community as provided in the <br />Housing Element. <br />The Affordable Housing Impact Fee is set to a level which ensures that future <br />development projects mitigate their impact on the need for affordable housing in <br />Redwood City, and to ensure that any adopted housing impact fees do not exceed the <br />actual affordable housing impacts attributable to the development projects to which the <br />fees relate. This reasonable relationship between the fee and the purposes for which it is <br />charged is reflected in the Residential Impact Fee Nexus Study and Commercial Linkage <br />Fee Nexus Study (together, the “2015 Nexus Study”). To ensure that development <br />projects remain economically feasible, the recommended housing impact fees are lower <br />than the maximum amount needed to fully mitigate the burdens created by new <br />development on the need for affordable housing as determined by the Nexus Study. <br />There is an unexpended balance in the Affordable Housing Impact Fee Account, which is <br />expected to be used to fund the development of new affordable housing and the <br />preservation of existing affordable housing so as not to erode the current supply (e.g., <br />the City’s Affordable Housing Preservation Program). The City funds the development of <br />new affordable housing through the regular release of Notices of Funding Availability <br />(NOFAs). Information about typical NOFA award amounts, the estimated start year, and <br />other funding sources are noted below. <br />6.A. - Page 45 of 55 <br />50