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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: NOVEMBER 19, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: RESOLUTION ESTABLISHING AN INCLUSIONARY HOUSING
IN-LIEU FEE SCHEDULE FOR THE INCLUSIONARY HOUSING
ORDINANCE
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, following a Public Hearing, by Resolution, adopt an Inclusionary Housing In-Lieu fee schedule for the Inclusionary Housing Ordinance.
DISCUSSION:
On October 8, 2024, the City Council gave first reading to the Inclusionary Housing Ordinance, which establishes a production requirement and an Inclusionary Housing In- Lieu Fee; and on October 29, 2024, the City Council adopted the Inclusionary Housing Ordinance.
The Ordinance reflects direction provided by the City Council for adoption of the program, inclusive of limiting the application of the policy to multifamily rental developments, with 35 rental units or more, and restricting the use of in lieu fees to the production of affordable housing. Keyser Marston Associates, Inc. (KMA) prepared an Inclusionary Housing: In-Lieu Fee Analysis based on the inclusionary housing requirements enacted pursuant to the Inclusionary Housing Ordinance. The in-lieu fee analysis presented in the KMA report is based on the “Affordability Gaps” associated with the proposed Inclusionary Housing requirements. While the study provides an empirical, data driven analysis, the City Council can choose to apply a lower in-lieu fee amount at their discretion
Staff recommends adoption of an in-lieu fee of $10 per square foot of livable area, which is lower than the amount supported by the KMA report. The recommendation seeks to achieve a balance in policy which includes increasing the supply of affordable housing in Anaheim and a desire to ensure market rate housing development remains robust for the foreseeable future.
Adopt a Resolution Establishing an Inclusionary Housing In-Lieu Fee November 19, 2024
The proposed resolution establishing the Inclusionary Housing Fee Schedule was made for public inspection beginning November 7, 2024, at the Office of the City Clerk.
Additionally, a notification regarding the Public Hearing was published in the Anaheim Bulletin on November 7 and November 14, 2024.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development
Attachments:
1. Resolution
2. Keyser Marson Report