Cleaver & Clark Commons Project Update and Development Impact Fee Deferral Request GROVERBEACH.ORG
Megan Martin, Community Development Director
Cleaver & Clark Commons
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Background
December 13, 2021 – City Council approved DA 21-49 for a 53-unit affordable housing project at 1206 West Grand Avenue.
Project applicants – People’s Self-Help Housing (PSHH) and Housing Authority of San Luis Obispo (HASLO) Following approval, new design team provided minor modifications to the design resulting in minor architectural changes to the exterior of the building and the preservation of the 100-year-old Coast live oak tree.
New design is consistent with the approved project, and although approved prior to the City’s adoption of the Objective Design Standards, all modifications as proposed meet the new standards.
Cleaver & Clark Commons
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Minor Architectural Modifications
Cleaver & Clark Commons
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Coast Live Oak Preservation
Funding for Cleaver & Clark Commons
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PSHH, HASLO Funding Sources
February 2023, PSHH and HASLO were awarded approximately $10 million through the California Multifamily Super NOFA.
Currently seeking funding through California Tax Credit Allocation Committee.
Funds will support overall fees associated with permitting and construction, and site-based residential services.
A portion of the City permitting costs are associated with Development Impact Fees (DIF), approximately $444,434.72
Development Impact Fee Deferral
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What is a DIF?
Imposed as a condition of approval on all development projects for which a building permit is issued.
Fund the expansion of infrastructure to support new housing, including services such as schools, parks, and transportation infrastructure.
When are DIFs typically collected?
DIFs are typically collected by the City prior to the issuance of a building permit.
The City is statutorily required (Government Code Section 66007) to defer DIFs for residential development to the Final Inspection or issuance of Certificate of Occupancy.
Cleaver & Clark Deferral Request
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PSHH & HASLO requested DIF deferral to issuance of Certificate of Occupancy.
Deferral and full payment of the DIFs will occur through execution of an agreement between the City, PSHH, and HASLO.
The Building Permit will be conditioned to require the execution of the DIF agreement consistent with Government Code Section 66007.
PSHH and HASLO continue to identify funding for the project to ensure it is 100% affordable, coordinate with City staff to ensure compliance with approved project, and make progress on toward obtaining permits and construction of the project.
Deferral of fees will not affect the public health, safety or general welfare of the community.
Deferral will have no long-term fiscal impact because capital costs for public facilities will be fully paid prior to issuance of Certificate of Occupancy.
Recommendation
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Direct the Community Development Director to execute an agreement with PSHH and HASLO, to defer the DIFs of $444,434.72 to the issuance of the Certificate of Occupancy or Final Inspection, whichever occurs first, and condition any issuance of building permits to require the execution of the DIF agreement consistent with Government Code Section 66007.
Cleaver & Clark Deferral Request
GROVERBEACH.ORG
Questions or Comments?