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City of Pleasanton Lower Income Housing Fee Study Proposal September 18, 2012 operating, and the City's desire to avoid imposing infeasible financial burdens that could hinder new development activity. • Project Approach The proposed work effort is designed to develop an affordable housing strategy that is economically viable, is administratively streamlined, provides a mechanism to develop affordable housing throughout infill and new growth areas, and meets changing legal requirements. r EPS's approach to conducting affordable housing studies recognizes that the arovision of below- market-rate housing of various forms is important to the strength and diversity of the economic base, the optimal use of land and transportation resources, and the environmental and social health of the community and region. Changing economic and legal circumstances result in the need to re-evaluate affordable housing fee programs to ensure they continue to meet City policy goals, are legally defensible, and promote the City's economic well-being. EPS's practice is at the forefront of developing a legally defensible, demand-based nexus methodology to establish affordable housing Impact fee programs In keeping with the evolving legal framework and economic conditions. EPS's approach accounts for the interplay between 11 legal developments and the policy and economic environment, while considering the overarching political context on which successful implementation will hinge. The EPS scope of work reflects E careful consideration of the following issues: • Legal Framework. In response to recent legal developments, EPS has established a demand-based nexus methodology that documents the relationship between the I( development of market rate housing and the need for affordable housing production. • Policy Objectives. Within this legal framework, the City must consider ooth the competing and complementary aspects of policy objectives regarding the provision of affordable housing, jobs-housing linkages, and citywide economic development. City policies must not only comport with legal requirements but also should take economic conditions into consideration to ensure the viable execution of key policy objectives. • Economic Conditions. Dynamic economic conditions have implications for both the demand for an affordable housing program and the viability of affordable housing program (l implementation. The provision of a diverse array of housing opportunities is critical to a healthy economic base, but the financial burden of impact fee programs must be calibrated to avoid unnecessary constraints on economic growth. Understanding how these forces interface is essential to establishing a successful affordable housing policy and related fee program that: Il • Meets legal requirements; • Fulfills City affordable housing and economic development policy goals; • Is economically viable and politically feasible; • Promotes creativity in the marketplace; and, • Is administratively easy to implement. 1. Economic&Planning Systems, Inc. 2 r+nnopo•nr.•.moon,:mnswe..unromu,sprxr_evnn.mv