1 DOWNTOWN RESIDENTIAL
FEE INCENTIVES
DOWNTOWN SUBCOMITTEE
AUGUST 2, 2022
Jen Santos
Deputy Director
Parks Division
Clare Hartman
Director
Planning and Economic
Development
BACKGROUND
2016 TO PRESENT
• Adopted the Santa Rosa Housing Action Plan
• Supported Downtown Housing as a Tier1 Priority
• Created an UP Downtown toolbox
• Adopted a city-wide Resilient City Ordinance
• Adopted Downtown Residential Fee Incentives
• Adopted the Downtown Station Area Specific Plan
• Maintained Housing for All as a Council Goal
• Council Priority
• Permit
Streamlining
• CEQA
Streamlining
• Fees & Incentives
• Opportunity Zone
• Downtown Plan
Update
• City owned assets
• RED & RED
Housing Fund
CURRENT ESTIMATED IMPACT FEES PER UNIT
DOWNTOWN RESIDENTIAL PROJECTS
1 Fee varies by unit mix. Above estimate assumes average unit size of 800 sq. ft. and average fee per unit of $1.50 per sq. ft. 2 Building inspection, plan review, fire permit, technology, advanced planning, micrographics, and state-mandated fees.
Capital Facilities Fee
$5,433
Park Impact Fee
$7,734Water &
Wastewater
Demand Fee
$9,490
Housing Allocation Fee
$1,800
School District Fee
$3,500
All Other
$1,100
T otal Impact Fee per unit:
$29,057
DOWNTOWN RESIDENTIAL FEE
INCENTIVE PACKAGE
On September 25, 2018, the City Council adopts:
• Resolution #1: Capital Facilities Fees
• Resolution #2: Water and Wastewater Impact Fees
• Resolution #3: Park Impact Fees
DOWNTOWN RESIDENTIAL FEE
INCENTIVE CRITERIA
• Located in the Downtown
• Zoned CD-7 or CD-10:
• 4 or more stories total; and 3 must be residential
• CD-5, TV-M, TV-R, R-3-18, or R-3-30 Zoning:
• 3 or more stories total; and 2 must be residential
• Breaking ground before August 31, 2023
• “Breaking ground” is defined as securing a
foundation permit
DOWNTOWN INCENTIVE EXAMPLE
MARKET RATE VS. AFFORDABLE
4 Stories 5 Stories 6 Stories 7 Stories 10 Stories
Residential Floors 3 4 5 6 9
BEFORE INCENTIVES
Fee Per Unit (All Floors) $13,167 $13,167 $13,167 $13,167 $13,167
AFTER INCENTIVES
MARKET RATE
Fee Per Unit $13,167 $13,167 $13,167 $13,167 $13,167
% Units Subject to Fee 100% 75% 60% 50% 33%
Net Fees/ Unit $13,167 $9,875 $7,900 $6,584 $4,389
Fee Incentive/ Unit $0 ($3,292) ($5,267) ($6,584) ($8,778)
AFFORDABLE
Base Fee /SF $4.00 $4.00 $4.00 $4.00 $4.00
Base Fee/ Unit (800 SF/ Unit) $3,200 $3,200 $3,200 $3,200 $3,200 % Units Subject to Fee 100% 75% 60% 50% 33%
Net Fees/ Unit $3,200 $2,400 $1,920 $1,600 $1,067
Fee Incentive/ Unit ($9,967) ($10,767) ($11,247) ($11,567) ($12,100)
WATER AND SEWER IMPACT FEE
INCENTIVE/DEFERRAL
Water and Sewer Impact Fee Deferral Program is eligible for housing projects in the Downtown that are a minimum 3 floors dedicated to housing:
• Option 1: Deferral of water and wastewater demand fees for eligible projects until 75% of the residential units are occupied or for 6-months after final inspection, whichever is sooner.
• Option 2: Finance the water and wastewater fees for 5-years with interest.
Deferral provides an estimate of $1,700 per unit incentive Per Keyser Marston Associates Memo
PARK FEE INCENTIVE CRITERIA
In addition to the Downtown Residential Incentive Fee Program Criteria, the following additional criteria are applicable regarding Park Development Impact (PDI) Fees;
• All residential floors above the third floor are exempt from PDI fees in certain zones (CD-7 and/or CD -10)
• All residential floors above the second floor are exempt from PDI fees in certain zones (CD-5, TV-M, TV-R, R-3-18, and/or R-3-30) • Residential definition requires at least 25% of gross floor area is habitable • PDI reductions/credits for private open space may not be combined with Incentive Program applications
PARK FEE INCENTIVE OPTIONS/STATUS
• All qualifying affordable/inclusionary housing project PDI fees are reduced to $2 per square foot
• All PDI fees collected from qualifying projects within the downtown are to be used within the downtown area
• The utilization of funds within the boundaries for downtown allows for the potential of development agreements
• A method for tracking funds from qualifying projects is in development
STATUS & NEXT STEPS
• Review of Fee Incentive resolutions has been added to the Council work plan for FY22-23
• Continue to monitor use of the fee incentives
• Continue to collect feedback
• Provide updates to the Downtown Subcommittee
12 QUESTIONS?
13