TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik Soliván
SUBJECT: See Below DATE: June 13, 2025
Approved
Date:
6/13/25
SUPPLEMENTAL
SUBJECT: Approval of a Multifamily Housing Incentive Program Residential Tax and Fee Waiver for the Santana Row Lot 12 Development at 358 Hatton Street
REASON FOR SUPPLEMENTAL
This supplemental memorandum provides clarity on the Affordable Housing Impact Fee Refund and the Inclusionary Housing Ordinance Fee waiver.
ANALYSIS
Federal Realty, the developer of the Santana Row Lot 12 development (Development), paid $3,435,672 in Affordable Housing Impact Fees to the Housing Department under the program requirements in place at the time of the original approval of the Development’s planning permit. Subsequent to the approval, the Affordable Housing Impact Fee program sunsetted in 2018 with a transition period to the current Inclusionary Housing Ordinance Program through January 31, 2020.
If proposed as a new development today, the Development would be subject to the Inclusionary Housing Ordinance requirements, and the fee would be $3,945,114 as shown in Table 2 of the original City Council memorandum dated May 15, 2025. By providing 13 restricted affordable units (5% of the total 258 units), the Development qualifies under the City’s Multifamily Housing Incentive Program for a waiver of the Inclusionary Housing Ordinance fees. As a result of the waiver, Federal Realty is entitled to a refund of the $3,435,672 in previously paid Affordable Housing Impact Fee, and the total proposed Multifamily Housing Incentive Program tax and fee waiver for the Development is $4,477,896, as shown in the Revised Table 3 provided below.
COUNCIL AGENDA: 6/17/25
FILE: 25-726
ITEM: 8.9
HONORABLE MAYOR AND CITY COUNCIL
June 13, 2025
Subject: Approval of a Multifamily Housing Incentive Program Residential Tax and Fee Waiver for the Santana Row Lot 12 Development at 358 Hatton Street
Revised Table 3 – Proposed Multifamily Housing Incentive Program Tax and Fee Waiver
IHO In-Lieu Fee Waiver $3,945,114
50% Reduction of B&S and CRMP Construction Taxes on
Developments’ Residential Portion $532,782
Total Tax Reduction and Fee Waiver $4,477,896
/s/
Erik L. Soliván
Housing Director
For questions, please contact Banu San, Deputy Director, Housing Department, at [email protected].