AGENDA REPORT
Meeting Date:
Item Number:
To:
From:
Subject:
April 12, 2022
D-10
Honorable Mayor & City Council
Ryan Gohlich, AICP, Director of Community Development
AFFORDABLE HOUSING APPLICATION APPEAL FEE EXEMPTION
Attachments: 1. BHMC §1-4-101, Right to Appeal
RECOMMENDATION
It is recommended that the City Council concur with the interpretation by staff that an appeal of an affordable housing placement application, filed pursuant to Beverly Hills Municipal Code (BHMC) §1-4-101.A (Attachment 1), is exempt from any appeal fee.
INTRODUCTION
The Planning Division currently administers the City’s affordable housing program and oversees the placement of qualified applicants in affordable (deed-restricted) units. These units are often created by utilizing State density bonus law, or as part of another agreement (e.g., a development agreement) to provide deed-restricted affordable units as part of a development project in the City. The units are made available to qualified households at various income levels, through a thorough vetting process set forth in the City’s Affordable Housing Program Guidelines. Ultimately, the City vets eligible applicants and places households in available units based on the occupancy priority set forth in the municipal code. The decision on the approval or denial of an application for placement in an affordable housing unit by the City official is appealable as discussed below.
DISCUSSION
The City’s Affordable Housing Program Guidelines specify the following appeal procedure on a determination letter regarding an applicant’s status as a qualified household:
1) First, an applicant may provide a written appeal, which shall be heard by the Director of Community Development within 10 calendar days; 2) If denied, the applicant may submit a written appeal to the City Manager, upon which the City Manager shall issue a determination within 10 calendar days.
Meeting Date: April 12, 2022
The Guidelines also state that determinations by the City Manager shall be final. The Affordable Housing Guidelines do not establish an appeal fee; therefore, no fee is applicable for either the appeal to the Director of Community Development, or to the City Manager.
Although the Guidelines state that the appeal determination issued by the City Manager is final, the Guidelines conflict with BHMC §1-4-101.A, which provides for an appeal to the City Council of any discretionary decision made by staff. The City’s adopted Schedule of Taxes, Fees & Charges (Fiscal Year 2021-22) sets the appeal of any administrative decision to the Council at a flat rate of $6,170. The Guidelines are in the process of being updated, and this conflict will be addressed in the upcoming update.
Since the initial affordable housing placement application is processed by the City with no filing fee required and at no cost to the applicant, and since the application is for an affordable/income-restricted housing unit, it is recommended that an appeal of a decision to the City Council on such an application also be exempt from any charge or fee (i.e., the $6,170 appeal fee). Should the City Council concur with this interpretation, staff will begin implementing the policy immediately should an applicable situation arise. A resolution amending the comprehensive Schedule of Taxes, Fees & Charges for the Fiscal Year 2022-2023 is also on the April 12, 2022, City Council agenda and this proposed fee exemption is included as an amendment to the Schedule, which would become effective July 1, 2022.
Should the City Council wish to provide alternative direction, staff requests that the Council discuss the item at its April 12, 2022, meeting and establish a policy regarding the applicability of an appeal fee for this application type. If the Council does not concur with the proposed exemption, the notation in the proposed FY22-23 fee schedule under line item “Appeals to City Council, Commission, or Board of any Administrative Decision,” (Reference 1-4.101) will be removed.
FISCAL IMPACT
Affordable housing applications are processed by the City (with the assistance of a consultant) at no cost to the applicant. Should the City Council agree to exempt the appeal fee as outlined in this report, the City would not be collecting the otherwise applicable $6,170 appeal fee per application. It is not expected that an appeal to the level of the City Council would be a regular occurrence, therefore the fiscal impact of this requested policy determination is expected to be insignificant.
Ryan Gohlich, AICP
Director of Community Development
Approved By
City Council Agenda Report
April 12, 2022
Affordable Housing Appeal Fee Exemption
Attachment 1
BHMC §1-4-101, Right to Appeal
1-4-101: RIGHT TO APPEAL:
A. Where a right of appeal to council exists under this code, and a procedure is not otherwise specifically set forth in this code, an appeal may be taken to the council, in accordance with the procedures set forth in this article, from any act, ruling, or determination of any commission, board, or official or from the denial, suspension, or revocation of any permit or license.
B. No right of appeal to the council from any administrative decision made by an official of the city pursuant to any of the provisions of this code shall exist when such decision is ministerial and thus does not involve the exercise of administrative discretion or personal judgment exercised pursuant to any of the provisions of this code.
C. No appeal pursuant to the provisions of this article may be taken from any administrative decision made by an official of the city, unless the decision to appeal has been first taken up with the official rendering the decision. (1962 Code § 1-6.101)