Title:
Title
Reduction of Existing Development Impact Fees for New Affordable Dwelling Units to a Zero-dollar Rate
End
FileID
File ID: 2018-01434
Location
Location: City-wide
Recommendation:
Recommendation
Pass a Resolution reducing certain development impact fee residential rates for new affordable dwelling units to a zero-dollar rate.
Contact: Helen Selph, Associate Planner, (916) 808-7852; Greg Sandlund, Principal Planner, (916) 808-8931, Community Development Department
Body
Presenter: Helen Selph, Associate Planner, (916) 808-7852, Community Development Department
Attachments:
1-Description/Analysis
2-Resolution
3-FAQ
Description/Analysis
Issue Detail: Funding for affordable housing has fallen dramatically since the dissolution of the state's redevelopment agencies in 2012, and as a result, affordable housing production has dropped precipitously.
The City collects development impact fees to finance the design, construction, installation, and acquisition of public infrastructure or to recover the costs of adding capacity in existing public infrastructure. While development impact fees are necessary to support public infrastructure, payment of development impact fees may constitute a barrier for the construction of affordable housing dwelling units.
This resolution would reduce certain development impact fee residential rates to a zero-dollar rate for qualified affordable units. The City plans to keep this reduction in place until a more permanent solution can be found or until the City determines that reduced revenues within individual fee programs are significantly impacting the ability to fund necessary infrastructure. In this case, the incentive rates will be discontinued in those fee programs.
Policy Considerations: The proposed reduction in development impact fees is consistent with the City's goals and policies as established in the 2035 General Plan. These policies include:
Housing-2.2.5 Review and Reduce Fees for Afforda...
Click here for full text