April 27, 2020
To: Rachel Horst, Patrick Heisinger, Victor Ramirez
From: Nora Lake-Brown
Subject: Inclusionary Housing In Lieu Fee Update
DRA was retained by the City of East Palo to prepare an analysis estimating the in lieu fee associated with potential new requirements under the City’s Inclusionary Housing Ordinance to help inform the City Council’s consideration of the proposed changes. DRA estimates in lieu fees for both rental and owner housing using an analysis of prototypical housing developments appropriate for East Palo Alto, as summarized in the City of East Palo Alto Inclusionary Housing In Lieu Fee Analysis report dated September 19, 2019. This memorandum summarizes DRA’s update of the in lieu fee estimates based on data available through the date of this memo.
The gap calculations are based on the City’s intended use of any in-lieu fees raised.
For the for-sale units, the in-lieu fee is calculated as the difference between affordable prices by income level and the median sales price of single-family detached or condominium units over the past 36 months1. This approximates the gap needed to assist a homebuyer at a target income level to purchase a market-rate home at an affordable housing costs, which is how the City is most likely to use in lieu fees for owner housing. For the rental units, the in lieu fee is calculated from the financing gap required to build affordable rental units using 4% Low Income Housing Tax Credits (LIHTC or tax credits) assuming a blended affordability of 25% of the affordable units at 35% AMI, 50% of affordable units at 50% of AMI, and the remaining 25% of affordable units at 60% AMI. The City anticipates using in lieu fees to assist housing developers in developing affordable rental units as part of a new 4% tax credit-financed projects.
The calculated 2020 In Lieu Fees are summarized on the next page. The tables in Attachment A to this memo detail the updated calculations. 1 Calculated as the weighted average median price for 2017 to 2019 from the San Mateo County Association of Realtors.
Rachel Horst, et al.
April 27, 2020
Ownership Housing In Lieu Fee Calculation
City of East Palo Alto
April, 2020
Condominium Type
Affordable Purchase Price for 100% AMI Household $477,000 Market Sales Price
(SMC Association of Realtors 3-Yr Average)
$671,000
Gap for In-Lieu Fee (100% AMI) $194,000 per Unit
$227 per Gross SF
Sources: San Mateo County Association of Realtors, David Rosen & Associates Renter Housing In-Lieu Fees per Affordable Unit and per Square Foot City of East Palo Alto
April, 2020
Apartments,
Structured Parking
Tax Credit Equity Per Unit
Permanent Mortgage Financing Per Unit
Total Sources Per Unit
$233,000
$182,400
$250,000
Development Cost Per Unit $665,000
Gap for In-Lieu Fee (Blended AMI) 2 $250,000
$263 per Gross SF
Source: David Rosen & Associates
2 Fee represents a blended affordability assuming 25% of the affordable units at 35% AMI, 50% of affordable units at 50% of AMI, and the remaining 25% of affordable units at 60% AMI.
East Palo Alto
Affordability Gap and In Lieu Fee Tables
4/27/20
Attachment A
List of Tables
Table
Number Table Title Table Subheading
Page
No.
Table A-1 Summary of Indicated In Lieu Fees Per Affordable Unit and per Affordable Gross Square Foot by Housing Prototype
A-1
Table A-2 Development Prototypes A-2
Table A-3 Development Cost Assumptions and Budgets A-3
Table A-4 Affordable Sales Price Calculations by Income Level Owner Housing A-4 Table A-5 Median Home Prices 2017 to 2019 A-5
Table A-6 Owner Gap and In Lieu Fee Calculation Condominium A-6 Table A-7 Utility Allowances Rental Housing A-7
Table A-8 Affordable Rent Calculations by Income Level Rental Housing A-8 Table A-9 Rental Net Operating Income and Supportable Mortgage Apartments with Structured Parking
A-9
Table A-10 Rental Gap and In Lieu Fee With 4% Tax Credits Apartments with Structured Parking
A-10
Table A-1
Summary of Indicated In Lieu Fees Per Affordable Unit and per Affordable Gross Square Foot by Housing P East Palo Alto Affordability Gap and In Lieu Fee Analysis Condominiums
Apts. w/ Struct.
Pkg
Tenure Owner Rental
Total Residential Units 175 175
Affordable Residential Units 35 35
Site Area (SF) 108,900 108,900
Residential Net SF 149,500 132,900
Total Net SF 149,500 132,900
Building Efficiency Ratio 80% 80%
Residential Gross SF 186,875 166,125
Approximate Building Stories 4 Stories 4 Stories
100% AMI
Per Affordable Housing Unit $193,964 N/A
Per Affordable Housing Gross Square Foot (GSF) $227.12 N/A Blended Affordability (1) $
Per Affordable Housing Unit N/A $250,063
Per Affordable Housing Gross Square Foot (GSF) N/A $263.42 (1) Assumes the following percentage distribution of affordable rental units by % of AMI:
25% of affordable units at 35% AMI; 50% of affordable units at 50% AMI and 25% of affordable units at 60% AMI. Hard costs in renter gap calculation assume payment of prevailing wages. Assumes leverage from 4% Low Income Housing Tax Credits.
Source: DRA.
Owner Rental
Affordability Gap and In Lieu Fee, Owner Housing
Affordability Gap and In Lieu Fee, Renter Housing
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
1 Table A-2
Development Prototypes
East Palo Alto Affordability Gap and In Lieu Fee Analysis
Condominiums Apts. w/ Struct. Pkg
Total Housing Unit Count 175 Units 175 Units
Tenure Owner Rental
Existing Zoning
Permitted FAR
Total Site Area (Acre) 2.50 Acres 2.50 Acres
Total Site Area (SF) 108,900 108,900
Density (Units Per Acre) 70 70
Construction Type Podium Podium
Parking Type Structured/UG Structured/UG
Approximate Building Stories 4 Stories 4 Stories
Total Gross Building SF (Excl. Pkg.) 186,875 166,125
FAR Based on Gross SF 1.7 1.5
Net Residential Square Feet 149,500 SF 132,900 SF
Net SF Retail/Community Facility 0 SF 0 SF
Net SF Common Space 0 SF 0 SF
Total Net Building SF 149,500 SF 132,900 SF
Building Efficiency Ratio (%) 80% 80%
Unit Bedroom Count Distribution
Studio/Loft 0% 0%
One Bedroom 23% 40%
Two Bedroom 77% 50%
Three Bedroom 0% 10%
Four Bedroom 0% 0%
Total 100% 100%
Units by BR Count
Studio/Loft 0 0
One Bedroom 40 70
Two Bedroom 135 88
Three Bedroom 0 17
Four Bedroom 0 0
Total Residential Units 175 175
Unit Size (Net SF)
Studio/Loft
One Bedroom 700 SF 650 SF
Two Bedroom 900 SF 800 SF
Three Bedroom 1,100 SF 1,000 SF
Four Bedroom
Average Unit Size 854 SF 759 SF
Parking Ratio (Spaces/Unit)
Studio/Loft 1.00 0.00
One Bedroom 1.00 1.00
Two Bedroom 1.50 1.50
Three Bedroom 2.00 2.00
Four Bedroom 2.00 2.00
Average Spaces/Unit 1.39 1.35
Structured/Underground Parking Spaces 243 Spaces 236 Spaces Tuck-Under Parking Spaces 0 Spaces 0 Spaces
Surface Parking Spaces 0 Spaces 0 Spaces
Total Parking Spaces Provided 243 Spaces 236 Spaces
Gross SF/Parking Space (Incl. Circulation) 300 SF 300 SF Total Gross Parking SF 72,900 SF 70,800 SF
Parking SF Underground/Structured 72,900 SF 70,800 SF
Parking SF Tuck Under 0 SF 0 SF
Parking SF Surface 0 SF 0 SF
Source: DRA.
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
2 Table A-3
Development Cost Assumptions and Budgets
East Palo Alto Affordability Gap and In Lieu Fee Analysis 2019
Condominiums Apts. w/ Struct. Pkg
Tenure Owner Rental
Construction Type Podium Podium
Total Residential Units 175 175
Average Unit Size (Net SF) 854 759
Residential Net SF 149,500 132,900
Total Net Building SF 149,500 132,900
Total Gross SF Building Area (Excluding Parking) 186,875 166,125 Total Gross SF Building Area (Including Subt. Parking) 259,775 236,925 Structured/Underground Parking Spaces 243 236
Underground Parking Area (SF) 72,900 70,800
Total Parking Spaces 243 236
Total Parking SF 72,900 70,800
Site Area (SF) 108,900 108,900
Approximate Building Stories 4 4
FAR (Based on Gross SF) 1.37 1.22
Buildable Square Feet 149,500 132,900
ASSUMPTIONS
Development Cost Assumptions
Land Price Per Hsg. Unit $43,560 $93,343
Per Site SF $70 $150
Bldg. Hard Construction Cost Per Net SF (1)
Bldg. Hard Construction Cost (1) Per Net SF $350 $550
Pkg. Costs Incl. In Hard Costs 1=No, 0=Yes 0 0
Underground Parking Construction Per SF Parking Area $0 $0 Hard Cost Contingency % of Hard Costs 0.0% 0.0%
Soft Costs (Incl. Dev. Impact Fees) % of Hard Costs + Cont. 30% 30% Owner Housing Sales Costs % of Gross Sales 5% 5%
Loan to Cost Ratio % of TDC 65% 65%
Equity as a % of TDC 35% 35%
Loan to Value Ratio % of Capitaliz. Value 75% 75%
Debt Coverage Ratio 1.25 1.25
Interest Rate 5.5% 5.5%
Amortization Term Years 30.0 30.0
Capitalization Rate (2)
Return on Cost % of TDC, Incl. Land 12.0% 12.0%
Construction and Sales/Stabilization Period (Months) 36 Months 24 Months
DEVELOPMENT BUDGET
Low Scenario
Land Acquisition $7,623,000 $16,335,000
Construction Hard Costs $52,325,000 $73,095,000
Soft Costs $15,697,500 $21,928,500
___________ ___________
Total Development Costs, Including Land $75,645,500 $111,358,500 TDC Per Gross SF $405 $670
TDC Per Housing Unit $432,260 $636,334
TDC per Net SF Residential Area $506 $838
Total Development Costs, Excluding Land $68,022,500 $95,023,500 TDC per Gross SF $364 $572
TDC Per Housing Unit $388,700 $542,991
TDC per Net SF Residential Area $455 $715
(1) Hard construction costs include parking construction. For renter prototypes, estimated hard costs assume payment of prevailing wages. (2) Based on CBRE "U.S. Cap Rate Survey, Advance Review, H1 2019", July 2019. For San Jose, multifamily infill cap rates are 4.00% to 4.25% for the first half of 2019.
Source: DRA
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
3 Table A-4
Affordable Sales Price Calculations by Income Level
Owner Housing
East Palo Alto Affordability Gap and In Lieu Fee Analysis
Assumptions
2019 Median Income, San Mateo County $143,100
Affordable Mortgage Principal and Interest as a % of Income 30% No. of Bedrooms 1 Bedroom 2 Bedroom 3 Bedroom
Household Size 2.0 Persons 3.0 Persons 4 Persons
Household Size Income Adjust. Factor 80% 90% 100%
Owner Utility Allowance (1) $151 $189 $234
Monthly HOA Fee: Market-Rate Units $200
Monthly Property Insurance $100
Property Tax Rate (2) 1.20%
Mortgage Interest Rate (3) 3.50%
Term (Years) 30
Downpayment (% of Sales Price) 5.00%
Per Unit Affordable Sales Price by Unit Bedroom Count
1 Bedroom 2 Bedroom 3 Bedroom
100% AMI
Annual Gross Income $114,480 $128,790 $143,100
Affordable Monthly Housing Expense $2,862 $3,220 $3,578 Less: Monthly Utility Allowance ($151) ($189) ($234)
Less: HOA/Maintenance Expense ($200) ($200) ($200)
Less: Property Insurance ($100) ($100) ($100)
________ ________ ________
Available for Principal, Interest, Taxes $2,411 $2,731 $3,044 Less: Property Taxes (4) 1.20% $565 $640 $714
Supportable Mortgage $536,918 $608,180 $677,884
Assumed Assessed Value at Sale 95.00% $565,176 $640,189 $713,562 Available for Mortg. Principal and Interest $1,846 $2,091 $2,330 Supportable Mortgage $411,056 $465,613 $518,977
Plus: Downpayment @ 5.00% $21,635 $24,505 $27,315
Affordable Sales Price (Rounded) $432,700 $490,100 $546,300 (1) Assumes electric heating, cooking, water heating, other electric, water and trash collection. (2) Estimated to include property taxes and assessments. (3) Source: Freddie Mac Primary Mortgage Market Survey (PMMS) average weekly rate for March 26, 2020 for a 30-year, fixed (4) Property taxes estimated by multiplying the affordable sales price by the property tax rates.
Source: DRA
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
4 Table A-5
Median Home Prices
City of East Palo Alto
2017 to 2019
Year Median Price # of Sales
Single-Family
2017 $839,000 123
2018 $980,000 112
2019 $965,000 91
Weighted Average
Total
$922,613
326
Condominium
2017 $672,000 15
2018 $750,000 4
2019 $637,500 10
Weighted Average/
Total
$670,862
29 Source: San Mateo County Association of Realtors; DRA.
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
5 Table A-6
Owner Gap and In Lieu Fee Calculation
Condominium
City of East Palo Alto Affordability Gap Analysis
Income Level No. of BR Unit SF
Maximum
Monthly
Housing
Cost (1)
Affordable
Sales Price
Per Unit (1)
3-Year Trailing
Ave. SingleFamily Median
Home Price (2)
Gap Per
Affordable
Unit
Gap Per
Affordable
Unit SF
% of Total
Units by Unit
Bedroom
Count (3)
70% of AMI 1 700 $2,436 $356,200 $670,862 $314,662 $449.52 23% 80% of AMI 1 700 $2,784 $418,700 $670,862 $252,162 $360.23 23% 90% of AMI 1 700 $3,132 $481,100 $670,862 $189,762 $271.09 23% 100% of AMI 1 700 $2,862 $432,700 $670,862 $238,162 $340.23 23% 120% of AMI 1 700 $3,434 $535,300 $670,862 $135,562 $193.66 23% 70% of AMI 2 900 $2,741 $404,200 $670,862 $266,662 $296.29 77% 80% of AMI 2 900 $3,132 $474,300 $670,862 $196,562 $218.40 77% 90% of AMI 2 900 $3,524 $544,700 $670,862 $126,162 $140.18 77% 100% of AMI 2 900 $3,220 $490,100 $670,862 $180,762 $200.85 77% 120% of AMI 2 900 $3,864 $605,700 $670,862 $65,162 $72.40 77% 70% of AMI
Weighted
Average (1) 854 $2,671 $393,160 $670,862 $277,702 $325.18 100% 80% of AMI
Weighted
Average (1) 854 $3,052 $461,512 $670,862 $209,350 $245.14 100% 90% of AMI
Weighted
Average (1) 854 $3,434 $530,072 $670,862 $140,790 $164.86 100% 100% of AMI
Weighted
Average (1) 854 $3,138 $476,898 $670,862 $193,964 $227.12 100% 120% of AMI
Weighted
Average (1) 854 $3,765 $589,508 $670,862 $81,354 $95.26 100% (1) From Table A-5
(2) Weighted average median condominium sales price for East Palo Alto for 2016, 2017 and 2018. (3) Percent of units by bedroom count for the owner Prototype #1.
Source: DRA.
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
6 Table A-7
Utility Allowances
East Palo Alto Affordability Gap and In Lieu Fee Analysis
No. of Bedrooms Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Heating
Natural Gas
Electric $14 $17 $21 $26 $31
Cooking
Natural Gas
Electric $6 $7 $10 $13 $16
Water Heating
Natural Gas
Electric $14 $16 $21 $25 $30
Other Electric $18 $22 $32 $45 $58 _____ _____ _____ _____ _____ Assumed Tenant-Paid Utilities, All Electric (1) $52 $62 $84 $109 $135 (1) Assumes electric cooking, heating, water heating, and other electric.
Source: Housing Authority of the County of San Mateo, effective 11/1/2019.
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
7 Table A-8
Affordable Rent Calculations by Income Level
Rental Housing
East Palo Alto Affordability Gap and In Lieu Fee Analysis Assumptions
2020 Median Income, San Mateo County $143,100
2020 Adjusted Median Income for Calculating Rents (1) $174,000 Affordable Housing Expense As a % of Income (2) 30%
No. of Bedrooms Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Household Size 1.0 Persons 1.5 Persons 3.0 Persons 4.5 Persons 6.0 Persons Household Size Income Adjust. Factor 70% 75% 90% 104% 116% Renter Utility Allowance (3) $52 $62 $84 $109 $135
Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
Per Unit Supportable Mortgage By Income Level
35% of MFI
Annual Income Limit $42,630 $45,675 $54,810 $63,336 $70,644 Affordable Monthly Housing Expense $1,066 $1,142 $1,370 $1,583 $1,766 Less: Monthly Utility Allowance ($52) ($62) ($84) ($109) ($135) Affordable Monthly Rent $1,014 $1,080 $1,286 $1,474 $1,631 50% of Median
Annual Income Limit $60,900 $65,250 $78,300 $90,480 $100,920 Affordable Monthly Housing Expense $1,523 $1,631 $1,958 $2,262 $2,523 Less: Monthly Utility Allowance ($52) ($62) ($84) ($109) ($135) Affordable Monthly Rent $1,471 $1,569 $1,874 $2,153 $2,388 60% of Median
Annual Income Limit $73,080 $78,300 $93,960 $108,576 $121,104 Affordable Monthly Housing Expense $1,827 $1,958 $2,349 $2,714 $3,028 Less: Monthly Utility Allowance ($52) ($62) ($84) ($109) ($135) Affordable Monthly Rent $1,775 $1,896 $2,265 $2,605 $2,893 Summary of Affordable Rents Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 35% of Median $1,014 $1,080 $1,286 $1,474 $1,631
40% of Median $1,166 $1,243 $1,482 $1,701 $1,883
50% of Median $1,471 $1,569 $1,874 $2,153 $2,388
70% of Median $1,775 $1,896 $2,265 $2,605 $2,893
80% of Median $2,384 $2,548 $3,048 $3,510 $3,902
130% of Median $3,907 $4,179 $5,006 $5,772 $6,425
(1) Since the Bay Area is a high housing cost area, income limits for households at 80% of AMI are adjusted upwards from the straight AMI calculations; the effective median income equals $161,400 for a household of four at 100% AMI. (2) Assumes 30% of gross income for rent plus utilities. (3) Assumes tenants pay for electric cooking, heating, water heating and other electric. Based on utility allowances from the Housing Authority of San Mateo County, effective 11/1/2018.
Source: HUD; Housing Authority of San Mateo County; DRA.
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
8 Table A-9
Rental Net Operating Income and Supportable Mortgage
Prototype 4
Apts. w/ Struct. Pkg
East Palo Alto Affordability Gap and In Lieu Fee Analysis No Tax Credits
4% Tax Credits,
Tax Exempt
Bonds No Tax Credits
4% Tax Credits, Tax
Exempt Bonds
Number of Units by Income Level % Units by Income and Unit BR Count 35% AMI 35% AMI 35% AMI
One Bedroom 18 18 25% 25%
Two Bedroom 22 22 25% 25%
Three Bedroom 4 4 25% 25%
40% AMI 40% AMI 40% AMI
One Bedroom 0 0 0% 0%
Two Bedroom 0 0 0% 0%
Three Bedroom 0 0 0% 0%
50% AMI 50% AMI 50% AMI
One Bedroom 35 35 50% 50%
Two Bedroom 43 43 50% 50%
Three Bedroom 9 9 50% 50%
60% AMI 60% AMI 60% AMI
One Bedroom 18 18 25% 25%
Two Bedroom 22 22 25% 25%
Three Bedroom 4 4 25% 25%
Monthly Gross Rents Monthly Rent by Income and BR Count 35% AMI 35% AMI Tax Credit Rents
One Bedroom $19,440 $19,440 One Bedroom $1,080
Two Bedroom $28,292 $28,292 Two Bedroom $1,286
Three Bedroom $5,896 $5,896 Three Bedroom $1,474
50% AMI 50% AMI
One Bedroom $54,915 $54,915 One Bedroom $1,569
Two Bedroom $80,582 $80,582 Two Bedroom $1,874
Three Bedroom $19,377 $19,377 Three Bedroom $2,153
60% AMI 60% AMI
One Bedroom $34,128 $34,128 One Bedroom $1,896
Two Bedroom $49,830 $49,830 Two Bedroom $2,265
Three Bedroom $10,420 $10,420 Three Bedroom $2,605
Annual Gross Rents $3,640,872 $3,640,872
Less: Vacancy ($182,044) ($182,044)
Less: Operating Costs ($1,050,000) ($1,050,000) Total Units: 175 Less: Replacement Reservses ($43,750) ($43,750)
Net Operating Income $2,365,078 $2,365,078 One Bedroom 40% Annual Debt Service $2,056,590 $2,056,590 Two Bedroom 50% Permanent Mortgage Amount $28,585,163 $31,925,408 Three Bedroom 10% Vacancy Rate 5.00% 5.00%
Annual Operating Cost Per Unit $6,000 $6,000
Annual Replace. Reserve/Unit (1) $250 $250
Mortgage Interest Rate 6.00% 5.00%
Debt Coverage Ratio 1.15 1.15
Term (Years) 30 30
Source: DRA
Projections Assumptions
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
9 Table A-10
Rental Gap and In Lieu Fee With 4% Tax Credits
Prototype 4
Apts. w/ Struct. Pkg
East Palo Alto Affordability Gap and In Lieu Fee Analysis No Tax Credits
4% Tax Credits,
Tax Exempt Bonds
SOURCES AND USES
Total Units 175
PERMANENT SOURCES OF FUNDS Acres 2.50
Federal Tax Credit Equity (1) $0 $40,803,684 Unit/Acre 70.00 Permanent Mortgage $28,585,163 $31,925,408 Gross Bldg SF 166,125 Deferred Developer Fee (2) $0 $0
Gap Financing Required $97,026,862 $43,761,056
____________ ____________
TOTAL SOURCES $125,612,025 $116,490,147
Permanent Gap Financing/Unit $554,439 $250,063
Permanent Gap Financing/SF $584.06 $263.42
PERMANENT USES OF FUNDS
Land Acquisition Costs $16,335,000 $16,335,000
Direct Construction Costs $73,095,000 $73,095,000
Soft Costs $21,928,500 $22,033,500
Capitalized Operating Reserve (3) $0 $776,647
Developer Fee/Profit (4) $14,253,525 $4,250,000
____________ ____________
TOTAL COST $125,612,025 $116,490,147
Total Cost Per Unit $717,783 $665,658
Assumptions and Calculations
Tax Credit Basis
Land Acquisition Costs N/A $0 0%
Direct Construction Costs N/A $73,095,000 100%
Soft Costs N/A $9,915,075 45%
Developer Overhead and Profit N/A $4,250,000 100%
____________ ____________
Total Tax Credit Basis N/A $87,260,075 87%
Basis Boost (%) (5) N/A 130%
Total Tax Credit Basis N/A $113,438,098
Tax Credit Rate (Per CTCAC) (6) N/A 3.27%
Annual Tax Credits (7) N/A $3,709,426
Tax Credit Pricing N/A $1.10
Maximum Federal Tax Credit Equity $40,803,684
N/A = not applicable.
(1) Equals annual tax credits multiplied by tax credit pricing multiplied by 10 years. (2) DRA did not estimate the deferred developer fees that could be used to reduce or close the gap. (3) Under California Tax Credit Allocation Committee (CTCAC), minimum reserve pf 3 months operations plus debt service.
(4) For no tax credit scenario, assumes 15% of hard plus soft costs. For 4% tax credits, equals 15% of eligible basis to a maximum of $2.5 M plus $10,000 per unit per CTCAC Regulations. (5) Projects located in a Qualified Census Tract (QCT) or Difficult to Develop Area (DDA) are eligible for a 30% basis boost. East Palo Alto zip code 94303 is a DDA. (6) 2019 tax credit factors from CTCAC.
(7) Equals total tax credit basis multiplied by tax credit rate.
Source: DRA
Assumptions
4% Tax Credits
% of Cost in Basis (Exluding Land)
East Palo Alto Gap and In Lieu Fee Analysis
April 27, 2020
10