CITY OF SAN RAMON
POLICY COMMITTEE
REVISED AGENDA
WE PROVIDE EFFICIENT DELIVERY OF QUALITY
PUBLIC SERVICES THAT ARE ESSENTIAL TO THOSE
WHO LIVE AND WORK IN SAN RAMON.
Mark Armstrong, Chair • Marisol Rubio, Vice Chair
City Hall - Training Room, First Floor
7000 Bollinger Canyon Road
Regular Meeting - 4:00 PM
September 25, 2024
Agenda Questions: Please call the City Manager's Office at (925) 973-2530
1. CALL TO ORDER / ROLL CALL
2. PUBLIC COMMENT
Members of the public are encouraged to address the Policy Committee on any non-agenda item relating to the business of the Committee. Comments should not exceed three (3) minutes. No Committee action can be taken at this meeting on issues raised during public comment. Written comments submitted prior to the start of the meeting were provided to the Committee for their consideration. Written public comments will not be read aloud during the meeting.
3. APPROVAL OF MINUTES
3.1 Policy Committee - Regular Meeting - May 22, 2024 4:00 PM
4. UNFINISHED BUSINESS
5. NEW BUSINESS
5.1 Consideration of an Amendment to the Affordable Rental Housing Fee Wavier Policy for Certain Rental Projects that Are All Affordable to Household Making 80% of Area Median Income or Lower
Staff Report by: Debbie Chamberlain, Community Development Director Revised 9/24/24 – Attachment A has been added to the item.
6. POLICY COMMITTEE COMMENTS
7. ADJOURNMENT
I hereby certify that the agenda was posted 72 hours before the noted meeting. To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 48 hours in advance of the meeting at 925-973-2539 or [email protected].
Dated: September 19, 2024
Revised: September 24, 2024
2 Policy Committee Meeting – September 25, 2024
ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Committee making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting. Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
a. No profanity or obscenity
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability. d. Respect all people that are present.
At the discretion of the Committee Chair, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Committee unable to continue the meeting;
c. Excessive profanity or slander; Specific threats or “fighting words” that incite violence; or
d. Speech that is outside the subject matter jurisdiction of the Policy Committee or the specific agenda item in which you are speaking.
While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.
MINUTES OF THE
CITY OF SAN RAMON POLICY COMMITTEE
May 22, 2024
1. CALL TO ORDER / ROLL CALL
The meeting was called to order at 4:00 PM by Chair Armstrong.
Attendee Name Title Status Arrived
Mark Armstrong Chair Present
Marisol Rubio Vice Chair Present
Also in attendance: Scott Koll Deputy City Manager, Christina Franco City Clerk, Karen McHenry-Smith Executive Assistant.
2. PUBLIC COMMENT
None
Members of the public are encouraged to address the Policy Committee on any non-agenda item relating to the business of the Committee. Comments should not exceed three (3) minutes. No Committee action can be taken at this meeting on issues raised during Public comment. Written comments submitted prior to the start of the meeting were provided to the Committee for their consideration.
Written public comments will not be read aloud during the meeting.
3. APPROVAL OF MINUTES
3.1 Policy Committee - Regular Meeting - Feb 28, 2024 4:00 PM RESULT: ACCEPTED [UNANIMOUS]
MOVER: Marisol Rubio, Vice Chair
SECONDER: Mark Armstrong, Chair
AYES: Armstrong, Rubio
4. UNFINISHED BUSINESS
None
5. NEW BUSINESS
5.1 Candidate Statement Word Count Limit for the 2024 Municipal Election The staff report was provided by Christina Franco, City Clerk.
The Committee accepted the report, provided feedback to staff and recommended an allowance of 400 words for Candidate Statements for the 2024 Election .
The Committee recommended the item be forwarded to the City Council for review and approval.
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Minutes Acceptance: Minutes of May 22, 2024 4:00 PM (APPROVAL OF MINUTES) 2 Policy Committee Meeting – May 22, 2024
RESULT: REPORT RECEIVED
5.2 Establishing a Voluntary Campaign Expenditure Limitation for the 2024 Municipal Election
Recommendation: Set the Campaign Expenditure Limit for the 2024 Election.
The staff report was provided by Christina Franco, City Clerk.
The Committee accepted the report, provided feedback to staff.
The Committee recommended establishing a voluntary campaign expenditure for the 2024 Election of $1.50 for the Mayor and $2.50 for Councilmember Districts 2 and 4.
The Committee recommended the item be forwarded to the City Council for review and adoption.
RESULT: ACCEPTED
6. POLICY COMMITTEE COMMENTS
None
7. ADJOURNMENT
The meeting was adjourned at 4:34 PM. by Chair Armstrong.
3.1 Packet Pg. 4
Minutes Acceptance: Minutes of May 22, 2024 4:00 PM (APPROVAL OF MINUTES) AGENDA #5.1
POLICY COMMITTEE STAFF REPORT
DATE: September 25, 2024
TO: Policy Committee/City Manager
FROM: Debbie Chamberlain, Community Development Director By: Debbie Chamberlain, Community Development Director
SUBJECT: Consideration of an Amendment to the Affordable Rental Housing Fee Wavier Policy for Certain Rental Projects that Are All Affordable to Household Making 80% of Area Median Income or Lower
RECOMMENDED ACTION
Receive the staff report, discuss and provide direction to staff on amending the Affordable Rental Housing Fee Wavier Policy for projects that provide all low and very low income rental units.
BACKGROUND/DISCUSSION
The General Plan Housing Element Program 10: Affordable Housing Development; and Program 11: Affordable Housing Funding are intended to promote production of affordable housing through financial and regulatory incentives, and promotes funding strategies for the development of affordable housing. Program 12 references the City’s Inclusionary Housing and In-Lieu Fee program. Program 14 of the Housing Element requires the City establish a “specific program for use of housing in-lieu fees-including timelines, milestones, and identification of housing sites-in order to ensure the timely construction of affordable housing units.” On October 26, 2021, the City Council approved Resolution No. 2021-122 adopting the Affordable Housing Trust Fund Policy for the use of these in-lieu housing fees. On October 11, 2022, the City Council adopted Resolution 2022-128 approving the Affordable Rental Housing Fee Wavier Policy as a vehicle to provide a second funding strategy and a tool to support the production of all affordable projects that provide low and very low income rental units.
Affordable Rental Housing Fee Wavier Policy
The City Council adopted Affordable Rental Housing Fee Wavier Policy (“Policy”) applies to 100% all affordable housing projects. Recent changes in State law, allows most all affordable housing projects, under certain criteria, as an “use by right” meaning that the City may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval for the affordable housing projects that meet the criteria. In other words, the City has no discretion to deny any such project. Staff can only enforce the objective
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AGENDA #5.1
criteria in its building and zoning codes.
The City recently processed the Deerwood and Omega Workforce Housing Community, the first Use By Right approval under the City’s Processing Procedures for Use By Right Policy. Eden Housing has filed an application for an all affordable project at the Bishop Ranch Service Center site. At this time, Eden Housing is proposing to process a SB 330 application. However, other provisions under State housing laws, if agreed to by Eden Housing (e.g., paying prevailing wage) could allow the project to be process as a Use By Right. Staff has recommended, and Eden Housing has agreed, to process a concept review. While the concept review is not a discretionary process and does not result in any approvals, it does provide the City and the public with a presentation on the project and the ability to provide feedback, prior to submittal of formal applications for entitlement under Planning Commission review or under the Use By Right provisions.
Since State law, allows most all affordable housing projects, under certain criteria, as an Use By Right,” the City has no discretion to deny any such project and staff can only enforce the objective criteria in its building and zoning codes. However, the City may require a Concept Review as a criteria to request a fee waiver. Staff is proposing the following amendment to the Policy:
Eligibility and Project Qualifications for Fee Waivers
Development Projects with 100% affordable rental units will qualify for waivers of the fees associated with low and very low-income affordable rental units, consistent with local affordability standards. The following shall be required to be eligible for fee waivers per this policy:
• Submittal of a formal request letter for fee waiver, demonstrating compliance with the Policy objectives and number of Low, Very Low and Extremely Low income rental units that qualify for waivers.
• For Use By Right projects, submittal of a Concept Review application and payment of applicable fees, for presentation to the City Council.
• Fee waivers apply to Low, Very Low and Extremely Low income affordable rental units only.
• Projects may have manager units on site and still qualify under the all affordable provisions and fee waivers because they are required for all affordable developments.
Currently, the State requires 1 manager unit for every development of 16 units or more and 2 manager units for over 161 units, increasing with every additional 80 units over 161 to a maximum of 4 on-site manager units.
• Requires valid City approvals and would also to apply project’s eligible for by right construction with affordable deed restricted rental units consistent with the policy objectives.
• All units shall be below 80% Area Median Income. These specific breakdown of units shall be consistent with State funding guidelines. Where feasible, project should include a
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AGENDA #5.1
mix of Low, Very Low and Extremely Low income units.
• Requires a City-approved Affordable Housing Agreement prior to Building Permit issuance.
• Requires a minimum 55-year Affordability Restriction. • Requires all fee waiver units to be maintained as rental units for the term of affordability. • Fee waivers are to be considered a local funding match by the City for other funding opportunities and applications.
FISCAL ANALYSIS
There are no fiscal impacts to the proposed amendment.
NEXT STEPS
Forward to City Council for consideration
ATTACHMENT
A: Draft Resolution No. 2024-(next in line)
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RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON
AMENDING THE AFFORDABLE RENTAL HOUSING FEE WAVIER POLICY FOR
CERTAIN RENTAL PROJECTS THAT ARE ALL AFFORDABLE TO HOUSEHOLD MAKING 80% OF AREA MEDIAN INCOME OR LOWER
WHEREAS, Program 10 of the Housing Element calls for the Affordable Housing Development and, among other goals, recognizes the need to “Provide financial and regulatory incentives to non-profit housing corporations, private developers, and public agencies to increase the supply of housing affordable to San Ramon’s and lower and moderate income households; and WHEREAS, Program 11 of the Housing Element calls for the Affordable Housing funding sources and, among other goals, commits the City to “pursue various financing strategies for development of affordable housing, including land banking, tax credits, bonds, and mortgage credit certificates” among other strategies; and
WHEREAS, Program 14 of the Housing Element requires the City establish a “specific program for use of housing in-lieu fees-including timelines, milestones, and identification of housing sites-in order to ensure the timely construction of affordable housing units,” and the waiver of fees may be another tool to supplement funding for affordable housing; and WHEREAS, the proposed Affordable Rental Housing Fee Wavier Policy is intended to be a second funding strategy for all affordable projects that provide low, very low, and extremely low income rental units; and
WHEREAS, the production of low, very low, and extremely low income units will help address the City’s Regional Housing Needs Allocation (RHNA) and will help provide rental housing for lower income residents; and
WHEREAS, on September 22, 2022, the Housing Advisory Committee considered the Draft Affordable Rental Housing Fee Wavier Policy and recommended service fee waivers, encouraged diversity in project implementation, and forwarded a recommendation to the City Council Policy Committee; and
WHEREAS, on September 28, 2022 the City Council Policy Committee considered the Draft Affordable Rental Housing Fee Wavier Policy and comments from the Housing Advisory Committee, and forwarded the Policy to the City Council for consideration; and WHEREAS, on October 11, 2022 the City Council adopted the Affordable Rental Housing Fee Wavier Policy; and
WHEREAS, on September 25, 2024 the City Council Policy Committee considered the amendment to the Affordable Rental Housing Fee Wavier Policy, and forwarded the Policy to the City Council for consideration; and
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy) NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council, does hereby adopt this Resolution amending the Affordable Rental Housing Fee Wavier Policy PASSED, APPROVED AND ADOPTED on this 8th day of October, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
David E. Hudson, Mayor
ATTEST:
Christina Franco, City Clerk
Exhibit 1: Draft Amended Affordable Rental Housing Fee Wavier Policy, dated October 8, 2024
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy) Exhibit 1
DRAFT
Affordable Rental Housing Fee Waiver Policy
Amended by the City Council - October 8, 2024
The purpose of the Affordable Rental Housing Fee Waiver Policy is to provide guidance on fee waivers for Low, Very Low and Extremely Low units in rental projects that are all affordable.
Currently residential rental projects are required to provide low and very low income units associated with the City’s Inclusionary Housing standards. Low Income is consider 80% or less of Area Median Income (AMI), Very Low Income is consider 50% or less of AMI and Extremely Low Income is considered 30% or less AMI. The requirements helps the production of low and very low income units to address the City’s Regional Housing Needs Allocation (RHNA) and provide housing for lower income residents. While the inclusionary standards go a long way in meeting RHNA needs, it is generally recognized that there is a need for additional tools, such as fiscal incentives, to support increased production, particularly for low and very low income units.
The City has discretion to waive certain City Impact and Service Fees that can assist in the production and fiscal viability of all affordable housing projects with Low, Very Low and Extremely Low income units. In addition to the fee waivers serving as a fiscal incentive for affordable units, the monetary value of these waivers can also serve as the City’s local match for additional affordable housing grant funding. The Policy includes guidance on:
• Local Funding Match Provisions
• Eligibility and Project Qualifications for Fee Waivers • Fee Waivers for the Construction of Low and Very Low Affordable Rental Units
1. Impact Fee Waivers
2. City Service Fee Waivers
• Calculation of Fee Waivers
• Reimbursement of Fee Waivers
Local Funding Match Provisions
Local match is important for many project to qualify for various affordable housing funding and grants. Local match can be structure in several way from fee waivers to subsidies and loans. The City has an existing policy for the use of the Affordable Housing Trust Fund which is intended to support the implementation of housing programs and production of affordable units. In the past, these fees have been used for local match to support grant and other affordable housing funding applications. The value of the potential fee waivers associated with this policy is that they would also be considered a local match to support projects with affordable housing units and potentially aid in satisfying RHNA numbers, particularly low and very ow income units.
5.1.a
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy) Eligibility and Project Qualifications for Fee Waivers
Development Projects with 100% affordable rental units will qualify for waivers of the fees associated with low and very low-income affordable rental units, consistent with local affordability standards. The following shall be required to be eligible for fee waivers per this policy:
• Submittal of a formal request letter for fee waiver, demonstrating compliance with the Policy objectives and number of Low, Very Low and Extremely Low income rental units that qualify for waivers.
• For Use By Right projects, submittal of a Concept Review application and payment of applicable fees, for presentation to the City Council.
• Fee waivers apply to Low, Very Low and Extremely Low income affordable rental units only.
• Projects may have manager units on site and still qualify under the all affordable provisions and fee waivers because they are required for all affordable developments. Currently, the State requires 1 manager unit for every development of 16 units or more and 2 manager units for over 161 units, increasing with every additional 80 units over 161 to a maximum of 4 on-site manager units.
• Requires valid City approvals and would also apply to projects eligible for by right construction with affordable deed restricted rental units consistent with the policy objectives.
• All units shall be below 80% Area Median Income. These specific breakdown of units shall be consistent with State funding guidelines. Where feasible, project should include a mix of Low, Very Low and Extremely Low income units.
• Requires a City approved Affordable Housing Agreement prior to Building Permit issuance.
• Requires a minimum 55-year Affordability Restriction. • Requires all fee waivers units to be maintained as rental units for the term of affordability. • Fee waivers are to be considered a local funding match by the City for other funding opportunities and applications.
5.1.a
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy) Fee Waivers for the Construction of Low and Very Low Affordable Rental Units In an effort to support affordable housing production, the City will waive certain City Impact Fees and City Service fees associated with the construction of Low, Very Low and Extremely Low income affordable units. Projects that are all affordable project are eligible for waivers of impact fees for all low and very low income units; however, certain City Service Fees, which are necessary to offset cost of service, are capped at 25 percent of the total units as outlined below.
1. City Impact Fee Waivers
• City Traffic impact Fee
• School Age Child Care Fee
• Park and Recreation Facility Impact Fee
• Private Sector Art and Beautification Fee
• Open Space Development Impact Fee
• Specific Plan Recovery Fees
• General Plan Recovery Fee
• Zoning Ordinance Recovery Fee
• Tri Valley Transportation Development Fee. (Currently waived for Affordable Units)
2. City Service Fee Waivers
City Service Fee Waivers to up to 25% of total units that qualify as Low, Very Low and Extremely Low income units for all affordable projects. • Building Permit Plan Check Fees
• Building Permit Inspection Fees
• Planning Plan Check Review Fees
• Engineering Plan Check Fees
• Engineering Inspection Fees
Calculation of Fee Waivers
Impact Fees and Service fees are calculated based on various methodologies including total qualified units, valuation, or square footage.
Impact Fee Waver Calculation
• Unit based fee shall be based on the total qualified units meeting the Low, Very Low and Extremely Low income requirements. The fee waiver calculation also include manager units as required and limited by State law
• Valuation based fees shall be calculated based on the Building Division’s Fee estimate or acceptable architect/engineers estimate, and prorated on per square foot basis for habitable space associated with the Low, Very Low and Extremely Low income units. Does not
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy) include parking structures and other non conditioned spaces. • Square footage calculations shall be based on the square footage of the qualified units and related habitable spaces. Does not include parking structures and other non conditioned spaces.
Service Fee Waivers Calculations.
• Service Fee waiver shall be calculated with the same methodology as the Impact Fee calculations with the exception that Services Fees are limited to a maximum of 25% for a qualified a project.
Reimbursement of Fee Waivers
The City Council has the option to reimburse a project’s fee waiver expenses for a specific fund area or the impact as a whole from the Affordable Housing Trust Fund. Reimbursement from Affordable Housing Trust Fund is one way to minimize impacts to General Fund and/or dedicated revenue accounts while also using affordable housing fees as intended. Reimbursement is subject to the availability for funds and the Council’s budget priorities.
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Attachment: A: Draft Resolution No. 2024-(next in line) (4460 : Amendment to the Affordable Rental Housing Fee Wavier Policy)