Development Services Department
Housing Division
777 B Street
Hayward, CA 94541-5007
T: 510.583.4454 | F: 510.583.3650 | www.hayward-ca.gov
Interoffice Memorandum
DATE: June 3, 2024
TO: Nicole Gonzales, Director of Finance
THROUGH: Christina Morales, Deputy Director of Development Services FROM: Sara Buizer, Director of Development Services
SUBJECT: FY 25 Master Fee Schedule Update
The
Housing Division under the Development Services Department i s t a s k e d w i t h s e r v i c i n g residential and rental housing development loans and administer ing the resale restrictions related t o t h e C i t y ’ s B e l o w M a r k e t R a t e ( B M R ) h o u s i n g p o r t f o l i o a s w e l l as the administration and compliance of the Affordable Hou sing Ordinance (AHO), Residenti al Rent Stabilization and Tenant Protection Ordinance (RRSO) and Tenant Relocation Assistance Or dinance (TRAO), including the collection of fees related to each ordinance.
Although the Affordable Housing In-Lieu Fee is administered by the Housing Division, the fee is listed under the Planning Division to consolidate all fees related to development for a streamlined user experience. The following item is a requested update to the Master Fee Schedule.
DEVELOPMENT SERVICES DEPARTMENT
B. PLANNING
Item 40 – Af
fordable Housing In‐Lieu Fee
T h i s f e e i s i n c r e a s e d 0 . 2 % b a s e d o n t h e J a n u a r y 2 0 2 4 C C I % c h a nge in the attached E NR report a
nd is authorized by Resolution 17-167, as amended by Resolution 23-074.
Attached:
Aff
ordable Housing In-Lieu Fee Update Excel Workbook
ENR Report
Resolution 17-167
Resolution 23-074
Cc: Sara Buizer, Director of Development Services
Christina Morales, Deputy Director of Development Services Jeremy Lochirco, Planning Manager
Tera Maroney, Management Analyst
ATTACHMENT V
1 Doris Tang
From: Christina Morales
Sent: Monday, June 3, 2024 6:27 PM
To: Doris Tang
Subject: RE: E-Approval Requested - FY 25 Master Fee Update Memo and Supporting Documents
Hi Doris,
Reviewed and approved. Thanks
Christina Morales | Deputy Director of Development Services Phone: 510.583.4243| Email: [email protected]
From: Doris Tang <[email protected]>
Sent: Monday, June 3, 2024 6:23 PM
To: Christina Morales <[email protected]> Subject: E-Approval Requested - FY 25 Master Fee Update Memo and Supporting Documents
Hi Christina,
Requesting review and approval prior to routing to Finance. Please review and approve by replying to this email.
Attached:
24-0603_FY25 Master Fee Update Memo - HOUSING DIVISION.docx
City Cost Index - San Francisco - As of February 2024_Engineering News-Record.pdf
RES 17-167.pdf
RES 23-074.pdf
Thanks,
Doris Tang
Management Analyst | City of Hayward | Ofϐice of the City Manager | Housing Division | T: (510) 583-4228 | E:
[email protected]
40 Affordable Housing In‐Lieu Fee
1 Residential Development Projects ‐ Ten Units or More a High-Density Condominiums (35 units per acre or more) 19.39$ S quare Foot of Habitable Space* b Lower Density Ownership Housing (Less than 35 units per acre) 26.05$ S quare Foot of Habitable Space* c All other Dwelling Unit Types 23.51$ S quare Foot of Habitable Space* 2 Residential Development Projects ‐ Two to Nine Units Number of Units in the Project Percentage of Calculated Fee 2 50%
3 67%
4 75%
5 80%
6 83%
7 86%
8 88%
9 89%
3 Fractional Units
4 Applications for Residential Development Projects of Two or More Units Deemed Complete as of December 20, 2017 a Projects receiving all discretionary approvals by February 1, 2018: Affordable housing impact fees in effect on December 20, 2017. b Projects not receiving all discretionary approvals by February 1, 2018, provided that all discretionary approvals and building permit(s) are obtained within two (2) years of December 20, 2017: 50% of the affordable housing in-lieu fee calculated under either Section 3.1 or Section 3.2 of Resolution No. 17-167, as applicable, depending on the size of the project.
Projects of two to nine units shall pay the following percentage of the fee calculated pursuant to Section 40.1 above:
*NOTE: Affordable housing in-lieu fees shall be paid either prior to issuance of a building permit or prior to approval of a final inspection or issuance of an occupancy permit. Fees paid at occupancy shall be increased by 10 percent (10%).
Habitable Space" means floor area within a Dwelling Unit designed, used, or intended to be used exclusively for living and sleeping purposes and exclusive of vent shafts, eaves, overhangs, atriums, covered entries and courts and any portion of a structure above ground used for parking, parking aisles, loading areas, or accessory uses.
If an applicant provides on-site Affordable Units under Chapter 10, Article 17 of the Hayward Municipal Code and elects to pay affordable housing in-lieu fees for a fractional unit, the fractional in-lieu fee payment shall be calculated as follows:
Fractional Unit/Total Affordable Unit Requirement x Per Square Foot Fee x Total Habitable Square Footage in the Project Engineering News-Record
City Cost Index - San Francisco - As of February 2024
The building and construction cost indexes for ENR's individual cities use the same components Pnmolaoal and weighting as those for the 20-city national indexes. The city indexes use local prices for portland cement and 2 X 4 lumber and the national average price for structural steel. The city's BCI uses local union wages, plus fringes, for carpenters, bricklayers and iron workers. The city's CCI uses the same union wages for laborers.
To find more recent cost index data, go to this webpage (link below) and click on the link for the year you need, and then navigate to the week you need. Keep in mind that the city cost index figures are always published in the second weekly issue of the month.
htm://www.enr.com/economics/current costs
Go back to view all Ci!Y. Indexes.
ENR COST INDEXES IN SAN FRANCISCO (1978-2024)
YEAR MONTH BCI %CHG CCI %CH G
2024 February 10843.54 +7.1 15527.50 +0.7
2024 January 10777.24 +5.6 15525.00 +0.2
2023 December 10767.24 +11.2 15515.00 +3.6
2023 November 10778.49 +9.8 15526.28 +2.7
2023 October 10725.60 +8.9 15473.38 +2.2
2023 September 10741.92 +9.7 15489.70 +2.7
2023 August 10657.16 +9.2 15404.94 +2.4
2023 July 10621.95 +2.7 15369.76 -1.7
2023 June 10619.45 +5.5 15367.26 +0.1
YEAR MONTH BCI %CHG CCI %CHG
2023 May 10847.53 +8.1 15595.35 +1.8
2023 April 10026.39 +2.2 15319.85 +1.4
2023 March 10068.82 +2.4 15362.28 +1.6
2023 February 10125.94 +11.2 15419.90 +7.1
--
2023 January 10205.32 +13.3 15498.78 +8.4
2022 December 9684.48 +8.4 14977.94 +5.3
2022 November 9819.99 +7.6 15113.51 +4.8
2022 October 9847.88 +7.5 15141.40 +4.8
2022 September 9789.74 +18.1 15083.26 +11.0
2022 August 9757.65 +14.5 15051.17 +8.9
2022 July 10346.61 +22.2 15640.10 +13.6
2022 June 10062.91 +23.2 15356.33 +14.1
2022 May 10033.57 +23.4 15326.99 +14.2
2022 April 9810.39 +24.8 15103.81 +14.8
2022 March 9833.42 +25.4 15126.84 +15.1
2022 February 9102.28 +16.5 14396.70 +9.8
2022 January 9007.82 +15.4 14301.24 +9.2
2021 December 8934.82 +13.5 14228.24 +8.0
--
2021 November 9127.62 +15.9 14421.03 +9.5
2021 October 9158.49 +16.3% 14451.91 +9.8%
2021 September 8290.40 +7.5 13583.81 +4.4
2021 August 8524.32 +11.8 13817.73 +6.9
2021 July 8468.17 +11.2 13762.01 +6.6
2021 June 8165.26 +5.6 13459.10 +3.4
YEAR MONTH BCI %CHG CCI %CHG
2021 May 8131.51 +8.1 13425.35 +4.7
2021 April 7863.57 +4.5 13157.41 +2.7
2021 March 7843.32 +4.3 13137.16 +2.5
2021 Feb 7816.32 +4.0 13110.16 +2.4
2021 Jan 7804.07 +3.9 13097.91 +2.3
2020 Dec 7874.92 +5.3 13168.76 +3.2
2020 Nov 7877.92 6.0% 13171.76 3.5%
2020 Oct 7874.17 +7.3 13168.01 +5.1
2020 Sept 7711.82 +6.0 13005.66 +5.2
2020 Aug 7626.76 +4.8 12920.60 +4.5
2020 July 7614.09 +4.9 12907.92 +4.5
2020 June 7728.87 +6.4 13022.70 +5.4
2020 May 7525.33 +3.9 12819.17 +3.9
2020 April 7522.83 +5.7 12816.67 +4.9
2020 March 7516.83 +8.1 12810.67 +6.3
2020 Feb 7513.83 +6.8 12807.67 +5.6
2020 Jan 7512.33 +7.0 12806.17 +5.7
2019 Dec 7479.68 +6.5 12764.52 +5.4
2019 Nov 7429.65 +5.9 12723.43 +5.1
2019 Oct 7341.15 +4.7 12524.93 +3.4
2019 Sept 7271.94 +3.7 12365.71 +2.2
2019 Aug 7274.44 +4.2 12368.21 +2.4
2019 July 7260.69 +4.2 12354.46 +2.5
YEAR MONTH BCI %CHG CCI %CH G
2019 June 7260.69 +4.9 12354.46 +2.8
2019 May 7239.64 +4.6 12333.48 +2.7
2019 April 7228.39 +4.4 12322.23 +2.6
2019 Mar 6954.89 +0.5 12048.19 +0.3
2019 Feb 7038.07 +1.7 12131.37 +1.0
2019 Jan 7021.57 +1.4 12114.87 +0.8
2018 Dec 7022.07 +1.5 12115.37 +0.8
2018 Nov 7016.57 +1.4 12109.87 +0.8
2018 Oct 7014.08 +1.3 12107.38 +0.8
2018 Sept 7010.58 +0.9 12103.88 +0.6
2018 Aug 6981.42 +0.5 12074.72 +0.3
2018 July 6966.67 +2.5 12050.97 +2.8
2018 June 6921.42 +1.9 12014.72 +2.5
2018 May 6921.42 +2.4 12014.72 +2.8
2018 Apr 6921.42 +2.3 12014.72 +2.7
2018 Mar 6921.42 +3.6 12014.72 +3.5
2018 Feb 6921.42 +3.6 12014.72 +3.5
2018 Jan 6921.42 +3.6 12014.72 +3.5
2017 Dec 6921.42 +3.6 12014.72 +3.5
2017 Nov 6921.42 +4.1 12014.72 +3.8
2017 Oct 6921.42 +4.1 12014.72 +3.8
2017 Sept 6945.92 +4.5 12037.27 +4.0
2017 Aug 6943.98 +4.8 12037.27 +4.2
2017 Jul 6796.47 2.6 11725.52 1.5
YEAR MONTH BCI %CHG CCI %CH G
2017 Jun 6793.10 +2.6 11722.15 +1.5
2017 May 6761.99 +2.1 11691.03 +1.2
2017 Apr 6767.41 +2.1 11696.47 +1.2
2017 Mar 6680.37 +0.8 11609.44 +0.5
2017 Feb 6680.37 +4.2 11609.44 +3.9
--
2017 Jan 6680.37 +4.6 11609.44 +4.1
2016 Dec 6680.37 +4.6 11609.44 +4.1
2016 Nov 6650.28 +4.2 11579.33 +3.8
2016 Oct 6649.28 +4.0 11578.33 +3.8
2016 Sep 6647.28 +3.9 11576.33 +3.7
2016 Aug 6625.60 +3.70 11554.65 +3.60
2016 Jul 6626.10 +3.70 11555.15 +3.60
2016 Jun 6619.35 +3.60 11548.40 +3.50
2016 May 6621.35 +3.40 11550.40 +3.40
2016 Apr 6630.10 +3.50 11559.15 +3.50
2016 Mar 6628.85 +3.50 11557.90 +3.50
2016 Feb 6408.87 -0.10 11174.79 0.00
--
2016 Jan 6387.49 -0.30 11153.41 -0.20
2015 Dec 6389.49 +2.30 11155.41 +2.20
2015 Nov 6390.46 +2.20 11154.06 +2.10
2015 Oct 6390.80 +2.40 11169.31 +2.40
2015 Sep 6395.22 +2.60 11158.82 +2.40
2015 Aug 6391.47 +2.60 11155.07 +2.40
YEAR MONTH BCI %CHG CCI %C HG
2015 Jul 6391.47 0.00 11155.07 0.00
2015 Jun 6391.47 -0.22 11155.07 -0.1 3
2015 May 6405.72 0.00 11169.32 0.00
2015 Apr 6398.97 +2.8 11162.57 +2.5
2015 Mar 6405.72 +2.9 11169.32 +2.6
2015 Feb 6414.1 3 11177.7 2.6
2015 Jan 6409.56 2.9 11173.16 2.5
2014 Dec 6248.05 3.1 10915.84 5
2014 Nov 6252.05 3.1 10919.84 5
2014 Oct 6240.05 3.1 10907.84 5
2014 Sep 6230.55 3 10898.34 4.9
2014 Aug 6229.80 3.0 10897.59 4.9
2014 Jul 6229.80 3.0 10897.59 4.9
2014 Jun 6231.80 3.1 10899.59 4.9
2014 May 6228.05 3.1 10895.84 4.9
2014 Apr 6227.05 3.3 10894.84 5.0
2014 Mar 6224.05 3.3 10891.84 5.1
2014 Feb 6226.80 3.3 10894.59 5.1
2014 Jan 6228.55 3.5 10896.34 5.2
2013 Dec 6231.05 3.6 10898.84 5.3
2013 Nov 6233.30 3.5 10901.09 5.2
2013 Oct 6241.30 3.6 10909.09 5.2
2013 Sep 6047.27 0.4 10389.59 0.2
2013 Aug 6046.02 0.4 10388.34 0.2
YEAR MONTH BCI %CHG CCI %CH G
2013 Jul 6048.77 0.2 10391.09 0.1
2013 Jun 6046.52 0.1 10388.84 0.0
2013 May 6040.77 -0.1 10383.09 0.0
2013 Apr 6031.02 0.0 10373.34 0.0
2013 Mar 6025.77 0.0 10368.09 0.0
2013 Feb 6026.77 1.3 10369.09 1.6
2013 Jan 6018.52 l 1.1 10360.84 1.5
2012 Dec 6012.77 1.1 10355.09 1.5
2012 Nov 6024.02 I 1.3 10366.34 1.6
2012 Oct 6025.02 1.4 10367.34 1.7
2012 Sep 6022.02 1.4 10364.34 1.7
2012 Aug 6024.21 1.5 10366.54 1.7
2012 Jul 6039.21 2.0 10381.54 2.0
2012 Jun 6043.21 2.2 10385.54 2.2
2012 May 6043.71 2.3 10386.04 2.2
2012 May 6043.71 2.3 10386.04 2.2
2012 Apr 6028.96 2.1 10371.29 2.1
2012 Mar 6027.21 2.2 10369.54 2.2
2012 Feb 5952.27 1.0 10207.79 0.6
2012 Feb 5952.27 1.0 10207.79 0.6
2012 Jan 5952.27 1.6 10207.79 0.9
2011 Dec 5949.27 1.4 10204.79 0.8
2011 Nov 5948.77 1.4 10204.29 0.8
YEAR MONTH BCI %CHG CCI %CH G
2011 Oct 5943.77 1.4 10199.29 0.8
2011 Sep 5937.27 6.4 10192.79 3.1
2011 Aug 5936.02 6.0 10191.54 2.8
2011 Jul 5923.27 5.8 10178.79 2.7
2011 Jun 5911.77 5.7 10167.29 2.7
2011 May 5906.02 5.9 10161.54 2.8
2011 Apr 5905.02 7.9 10160.54 4.4
2011 Mar 5895.52 7.8 10151.04 4.4
2011 Feb 5892.52 7.9 10148.04 4.4
2011 Jan 5860.77 7.3 10116.29 4.1
2010 Dec 5864.77 7.3 10120.29 4.1
2010 Nov 5868.02 7.5 10123.54 4.2
2010 Oct 5859.52 7.3 10115.04 4.1
2010 Sep 5579.61 2.1 9888.54 1.7
2010 Aug 5600.74 2.5 9909.67 1.9
2010 Jul 5600.24 2.5 9909.17 1.9
2010 Jun 5593.74 2.1 9902.67 1.7
2010 May 5576.99 1.6 9885.92 1.4
2010 Apr 5471.56 -0.5 9730.17 -0.3
2010 Mar 5469.56 -0.5 9728.17 -0.3
2010 Feb 5463.56 -0.6 9722.17 -0.3
2010 Jan 5461.81 -0.9 9720.42 -0.5
2009 Dec 5463.56 -1.1 9722.17 -0.6
2009 Nov 5460.81 -2.1 9719.42 -1.2
YEAR MONTH BCI %CHG CCI %C HG
2009 Oct 5460.56 -2.4 9719.17 -1.4
2009 Sep 5465.31 1.7 9723.92 4.1
2009 Aug 5466.06 2.7 9724.67 4.7
2009 Jul 5464.31 2.8 9722.92 4.7
2009 Jun 5477.06 4.4 9735.67 5.6
2009 May 5489.81 5.5 9748.42 6.3
2009 Apr 5497.31 6.1 9755.92 6.6
2009 Mar 5499.06 6.2 9757.67 6.6
2009 Feb 5496.56 6.5 9755.17 6.8
2009 Jan 5510.81 6.8 9769.42 7
2008 Dec 5523.06 7.1 9781.67 7.1
2008 Nov 5576.06 8.1 9834.67 7.7
2008 Oct 5594.81 9.8 9853.42 8.5
2008 Sep 5372.35 5.4 9344.67 2.9
2008 Aug 5320.6 6.7 9292.92 2.4
2008 Jul 5313.85 6.6 9286.17 2.4
2008 Jun 5244.1 5.3 9216.42 1.7
2008 May 5202.1 3.4 9174.42 0.6
2008 Apr 5182.85 3.3 9155.17 0.6
2008 Mar 5177.85 3.2 9150.17 0.5
2008 Feb 5161.24 2.9 9133.56 0.4
2008 Jan 5161.24 2.9 9133.56 0.4
2007 Dec 5159.49 2.7 9131.81 0.3
YEAR MONTH BCI %CHG CCI %CH G
2007 Nov 5156.99 2.3 9129.31 0.1
2007 Oct 5096.9 1.6 9079.42 -0.2
2007 Sep 5095.9 5.8 9078.42 7.2
2007 Aug 4988.64 3.8 9071.91 7.3
2007 Jul 4986 .64 3.8 9069.91 7.2
2007 Jun 4980 .14 4 9063.41 7.4
2007 May 5033.45 5 9116.72 8
2007 Apr 5019.45 4.7 9102.72 7.8
2007 Mar 5019.41 4.7 9102.68 7.8
2007 Feb 5016.91 4.5 9100.18 7.7
--
2007 Jan 5017.41 4.2 9100.68 7.5
2006 Dec 5025.39 4.5 9108.66 7.6
2006 Nov 5040.37 5.4 9123.64 8.2
2006 Oct 5015.62 5.5 9098.89 8.3
2006 Sep 4815 .14 1.8 8466.48 1
2006 Aug 4812 .89 5.7 8464.23 2.5
2006 Jul 4805 .89 5.3 8457.23 2.3
2006 Jun 4789 .39 4.7 8440.73 1.9
2006 May 4794.36 5.3 8445.69 2.2
2006 Apr 4796 .11 5.3 8447.44 2.3
2006 Mar 4793 .11 6 8444.44 2.6
2006 Feb 4799 .11 6.1 8450.44 2.7
2006 Jan 4817 .11 6.5 8468.45 2.9
2005 Dec 4811.11 6.4 8462.45 2.8
--
YEAR MONTH BCI %CHG CCI %CH G
2005 Nov 4783 .86 6.3 8435.2 2.8
2005 Oct 4752.26 5.9 8403.59 2.6
2005 Sep 4731.12 5.4 8382.45 2.3
2005 Aug 4552.32 4.7 8259.2 1.2
2005 Jul 4564.32 5.3 8271.2 1.5
2005 Jun 4575.43 5.6 8282.31 1.7
2005 May 4553 .53 6 8260.41 1.9
2005 Apr 4553 .51 6.7 8260.39 2.3
2005 Mar 4520 .24 7 8227.12 2.4
2005 Feb 4522 .24 8.2 8229.12 5.4
2005 Jan 4522 .74 10 8229.62 5.7
2004 Dec 4521.51 9.9 8228.39 5.6
2003 Dec 4113.11 0.5 17788.8 1.9
2002 Dec 4093.21 1.7 7644.46 3.3
2001 Dec 4025.65 -0.5 7399.07 -0.7
2000 Dec 4044 .2 3.7 7447.99 9.3
1999 Dec 3898.57 -0.7 6816.7 -0.4
1998 Dec 3927.46 3.1 6845.59 1.7
--
1997 Dec 3809.11 4.8 6731.08 1.5
1996 Dec 3634.25 2 6629.61 1.1
--
1995 Dec 3561.6 1.2 6558.16 0.4
1994 Dec 3519.17 2.7 6530.35 0.8
1993 Dec 3428.04 3.9 6477.95 2.9
YEAR MONTH BCI %CHG
1992 Dec 3298.09 3.2
1991 Dec 3270.9 0.8
1990 Dec 3245.04 4
1989 Dec 3119.95 1.4
1988 Dec 3076.27 I 1.1
--
1987 Dec 3044.27 2.8
1986 Dec 2961.47 5
--
1985 Dec 2819.5 2.3
1984 Dec 2756.35 -2.5
1983 Dec 2826.13 0.9
1982 Dec 2799 .96 9.4
1981 Dec 2558.49 6.8
1980 Dec 2395 .21 10.2
1979 Dec 2172 .96 12
1978 Dec 1940.78 9.7
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CCI %C HG
6294.84 1.2
6222.06 2.8
6055.61 2.1
5932.57 3.5
5734.48 0
5732.37 4.1
5508.43 9
5055.04 0.1
5049.13 -1.4
5122.74 2.6
4993 .3 8.7
4592.45 5
4371.96 14.9
3806.14 11.5
3412.2 8.3
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CITY OF HAYWARD
CITY ATTORNEY' S OFFICE
MEMORANDUM
DATE: May 15, 2018
TO: Miriam Lens, City Clerk
FROM: Michael Lawson, City Attorney
Joseph Brick, Assistant City Attorney
SUBJECT: Resolution No. 17- 167
Pleasebe advised that my office made a few minor corrections to City Council Resolution No. 17-167, adoptedby the City Council on November 7, 2017. The corrections are necessary to conform the resolution to the motion asamendedduring the November 7, 2017 hearing. The Action Minutes of the November 7, 2017 meeting as well as the November 28, 2017 staff report relating to the adoption of Ordinance Amending Chapter 10, Article 17 correctly reflect the amended motion. However, it appears that the amendments were not reflected in Resolution No. 17-167. Specifically, Section 3, Number 4 did not include the correct deemed completion date, inflationary index, or the correct criteria for qualification for a half in -lieu fee. Resolution No. 17- 167 has now been corrected to reflect the motion made.
This memorandum should be appended to the corrected Resolution No. 17- 167, and corrected Resolution No. 17- 167 should replace the current iteration of Resolution No. 17- 167.
The correctionsdescribedaboveare administrative in nature and do not require further action by the City Council.
Respectfully submitted,
Michael S. Lawson, City Attorney
HAYWARD CITY COUNCIL
RESOLUTION NO. 17- 167
Introduced by Council Member Mendall
RESOLUTION RESCINDING RESOLUTION 16- 189 AND ESTABLISHING AFFORDABLE
HOUSING IN - LIEU FEES
WHEREAS, to assure that future housing development in the City of Hayward ( the City") contributes to the production of residential units in the City that are affordable to very low, low- and moderate -income households and mitigates its impact on the need for affordable housing in the City, the City Council has considered and introduced on this same date an ordinance to amend the Affordable Housing Ordinance ( Chapter 10, Article 17 of the City' s Municipal Code) ( the " Affordable Housing Ordinance"); and WHEREAS, the Affordable Housing Ordinance authorizes the imposition of Affordable Housing In -Lieu Fees on for -sale and rental residential developments to provide funds equal to the cost of providing affordable housing on-site and to mitigate the impact of market -rate housing development on the need for affordable housing, where applicants elect to pay Affordable Housing In -Lieu Fees rather than provide affordable units on- or off- site; and
WHEREAS, to ensure that the Affordable Housing In -Lieu Fees adopted by this Resolution do not exceed the cost of providing affordable housing on-site or the actual affordable housing impacts attributable to the development projects on which the fee is imposed, the City Council has received and considered a report from Keyser Marston Associates dated October 31, 2017 and entitled " Summary, Context Materials, and Recommendations: City of Hayward Affordable Housing Ordinance Update," which includes, among other information, an affordability gap analysis, a residential nexus analysis, a financial feasibility analysis, and an on-site compliance cost analysis ( the " KMA Study"); and
WHEREAS, the KMA Study demonstrates that, to fully mitigate the burdens created by residential development on the need for extremely low, very low, low, median, and moderate -income housing, an affordable housing impact fee of $28.90 to $44.90 per square foot of new market rate residential development would be needed, and that the cost of on- site compliance is equivalent to approximately $ 18 to $ 22 per square foot of new market rate residential development; and
WHEREAS, the City Council now desires to rescind the Affordable Housing Impact Fees previously adopted under Resolution 16- 189 and to adopt Affordable Housing In -Lieu Fees for residential developments as authorized by the Affordable Housing Ordinance; and WHEREAS, the KMA Study found that the Affordable Housing In -Lieu Fees imposed by this Resolution are economically feasible and will not pose a constraint on the construction of housing in the City; and
WHEREAS, notice of the hearing on the proposed fee was published twice in the manner set forth in Government Code Section 6062a as required by Government Code Sections 66004 and 66018; and
WHEREAS, the City Council has reviewed the information contained in this Resolution and the accompanying staff report and attachments thereto at a meeting held on November 7, 2017.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HAYWARD THAT:
Section 1. The City Council finds as follows:
A. The foregoing recitals are true and correct and incorporated into this Resolution by this reference.
B. The purpose of the Affordable Housing In -Lieu Fee is to provide funds to the City to develop and construct affordable housing as would otherwise be provided on-site and to mitigate the burdens created by new residential and nonresidential development projects on the need for extremely low, very low, low, and moderate -income housing. An applicant for a residential development project may elect to provide affordable units on- site, to pay the Affordable Housing In -Lieu Fee, to provide affordable units off- site, or to provide affordable housing through other means.
C. In compliance with the Affordable Housing Ordinance, all affordable housing impact fees collected shall be deposited into the City' s Affordable Housing Trust Fund to be used solely to increase and preserve the supply of housing affordable to households of extremely low, very low, low, median, and moderate incomes ( including reasonable administrative costs).
D. There is a need in the City for housing affordable to households of extremely low, very low, low, and moderate incomes.
E. The KMA Study sets forth cost estimates that are reasonable for constructing affordable housing, and the fees expected to be generated by new development will not exceed these costs.
F. Based on the KMA Study, the proposed Affordable Housing In -Lieu Feesare economically feasible and will not pose a constraint on housing production.
G. Adoption of this Resolution is exempt from the California Environmental Quality Act because the adoption of this Resolution is not a project, in that it is a government funding mechanism which does not involve any commitment to any specific project. ( CEQA Guidelines Section 15378( b) ( 4).)
Section 2. The City Council hereby rescinds and removes the Affordable Housing Impact Fee established by Resolution No. 16-189.
Section 3. The City Council hereby adopts the following Affordable Housing In -Lieu Fees:
1. Residential Development Projects - Ten Units or More a. High - Density Condominiums
35 units per acre or more)
b. All Other Dwelling Unit Types
Notes:
15. 00/ Square Foot of Habitable Space*
18. 18/ Square Foot of Habitable Space*
Affordable housing in -lieu fees shall be paid either prior to issuance of a building permit or prior to approval of a final inspection or issuance of an occupancy permit. Fees paid at occupancy shall be increased by 10 percent to $ 16.50/ sq. ft. of habitable space for high density condominiums and to 20/ sq. ft. of habitable space for all other dwelling unit types.
Habitable Space" means floor area within a dwelling unit designed, used, or intended to be used exclusively for living and sleeping purposes and exclusive of vent shafts, eaves, overhangs, atriums, covered entries and courts and any portion of a structure above ground used for parking, parking aisles, loading areas, or accessory uses.
2. Residential Development Projects - Two to Nine Units Projects of two to nine units shall pay the following percentage of the fee calculated pursuant to Section 1 above:
Number of Units in Project
2 3
4 5
6 7
8 9
Percentage of Calculated Fee
50%
67%
75%
80%
83%
86%
88%
89%
3. Fractional Units. If an applicant provides on- site Affordable Units under Chapter 10, Article 17 of the Hayward Municipal Code and elects to pay Affordable Housing In -Lieu Fees for a fractional unit, the fractional in -lieu fee payment shall be calculated as follows:
Fractional Unit/ Total Affordable Unit Requirement x Per Square Foot Fee x Total Habitable Square Footage in the Project
Example: 42 -unit townhouse project totaling 85,000 habitable sq. ft. has on-site requirement of 10%, or 4.2 units. Developer elects to provide 4 affordable units and pay an in -lieu fee for the fractional unit. The payment is calculated as follows:
0.2/ 4.2 x $18.18 x 85,000 sq. ft. = $ 73, 586
4. Applications for Residential Development Projects of Two or More Units Deemed Complete as of December 20, 2017
a. Projects receiving all discretionary approvals by February 1, 2018:
Affordable Housing Impact Fees in effect on December 20, 2017. b. Projects not receiving all discretionary approvals by February 1, 2018, provided that all discretionary approvals and building permit( s) are obtained within two ( 2) years of December 20, 2017: 50% of the Affordable Housing In - Lieu Fee calculated under either Section 1 or Section 2 above, as applicable depending on the size of the project.
Section 4. The City Council may review and amend the Affordable Housing In -Lieu Fee from time to time. Beginning January 1, 2019, for any annual period during which the City Council does not review the affordable housing impact fee, fee amounts shall be adjusted once by the City Manager or designee based on the percentage change in the Engineering New Record( ENR) Construction Cost Index applicable to the San Francisco Area.
Section S. An Affordable Housing In -Lieu Fee as shown in Section 3 shall be paid by all developments subject to the fee.
Section 6. This Resolution shall go into full force and effect on Februarry 1, 2018.
Section 7. Any judicial action or proceeding to attack, review, set aside, void or annul this Resolution shall be brought within the 90 -day time period as established by Code of Civil Procedure Section 1094. 6.
IN COUNCIL, HAYWARD, CALIFORNIA November 7 2017
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS: Zermeno, MArquez, Mendall, Peixoto, Lamnin, Salinas MAYOR: Halliday
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ATTEST: C
PROVED AS 0 FOR
City Attorney of the City of Hayward
City Clerk of the City of Hayward