COMMERCIAL
LIN KAGE AN D
IN CLUSION ARY
FEE STUDIES
Town of Fairfax Town Council
June 7, 2023
Purpose
• To promote affordable housing
• Regional effort
• Corte Madera
• Fairfax
• Larkspur
• San Anselmo
• San Rafael
• Sausalito
• Unincorporated County
• Implement affordable housing tools
• Inclusionary Zoning
• Commercial Linkage Fees
Process
• Consultants hired to conduct studies
• Strategic Economics
• Vernazza Wolfe Associates
• Assembly Bill 602 funding
• Stakeholder Meetings
Benefits
• Increased supply of affordable housing available to lowerincome and moderate-income households. • Greater opportunity for low-income renters and
homeowners
• Decrease economic and racial segregation
• Create healthier, mixed-income communities.
Policies
• Housing Element Compliance
• Inclusionary Housing
• Commercial Linkage Fees
Inclusionary Housing
Existing On-site Set-Asides for Housing
Inclusionary Housing
Developer Forum
• Preference for transparency, consistency in policy about affordable rent/sales price levels
• Preference for clear income and rent targets in policy rather than ranges where final income and rent targets subject to discretionary review • “Simple is better”
• Rental policy: preference for three broad project size groups with more stringent requirements for larger projects • (<10 units, 11-29 units, 30+ units )
• For-sale policy: preference for shift to in-lieu fee focus and higher AMI targets • Preference to shift to in-lieu fee focus to fund 100% affordable rental projects • Would accept on-site inclusionary requirement with higher AMIs than existing policies • Challenges in administering BMR for-sale units related to qualifying buyers, identifying HOA costs, very low turnover • Other feedback
• Positive response to new San Rafael policy
• Interest in ensuring policy lines up with state density bonus (aligning rent targets, allowing developers to provide deeper affordability)
Proposed Commercial Linkage Fees
• Uniform Policy Elements
• Office - $10 SF
• Retail/Restaurant - $8 up to 2500 SF, $10 for 2501+ SF • Hotel - $5 SF
• Other – Calculate allowable fees using Excel-based calculator created by project consultants. MAXIMUM COMMERCIAL LINKAGE FEE CALCULATOR Enter Sq. Ft. of Gross Building Area: Maximum Commercial Linkage Fee:
$5,146,478
50,000 $102.93 per sq. ft.
Job Title
Number of
Jobs
Annual Wage per
Job
Average Annual
Household Income Income Category
Executive 10 $200,000 $320,000Above 120% AMI
Assistant 5 $50,000 $80,000Low Income (51-80% AMI)
Manager 7 $75,000 $120,000Moderate Income (81-120% AMI) Administrative Support 10 $35,000 $56,000Very Low Income (31-50% AMI) Next Steps
• The study and policy adoption deadline has been extended by HCD. The new date for submitting reimbursements is
September 30, 2023.
• To meet this, the County requests all jurisdictions to adopt Inclusionary and Commercial Linkage Fee studies and
policies no later than June 30, 2023.
• Staff is asking Council’s direction to prepare the Inclusionary Housing and Commercial Linkage Fees Ordinance
Recommendation
• Conduct a public hearing to consider the affordable housing in-lieu fee and commercial linkage fee studies
• Move to adopt the draft Resolution approving the studies • Direct Staff to return to Council with an Inclusionary Affordable Housing Ordinance, Program, and related impact fees
Questions?