02 - Laserfiche WebLink

City of Pleasanton Lower In:ome Housing Fee Study Proposal September 18, 2012 While the focus of this initial effort will be on the impacts associated with the construction of new ownership housing, it may be that the workers generated by those for-sale homes' occupants can be appropriately and more cost-effectively housed in rental units. As such, the impacts will be attributable to for-sale housing, but the demands may be met through rental housing. EPS will work with City staff to determine appropriate assumptions regarding the tenure of affordable units, as well as project characteristics such as densities, unit sizes, parking types and ratios, etc. Step 3• Compute Impact Fee per Market Rate Unit The third step is to calculate the aggregate subsidy required to produce housing affordable and appropriate for those new worker households and allocate that aggregate subsidy back to the market-rate project driving that demand. EPS will calculate a technically derived amount for the maximum justifiable impact fee, consistent with this nexus logic. The results will include different nexus-based fees for housing units at various price levels because the household spending and job creation associated by such households will vary by their income, as represented by home prices. EPS will also illustrate the equivalent number of units required at different income levels, which may be used as a standard for allowing developers to address their impacts through provision of units on site rather than payment of the impact fee. It is likely that the nexus-based impacts and resulting impact fees or unit requirements will be different than the City's current or past inclusionary housing requirements. EPS will present the results of the nexus analysis in a draft report for City staff review. Upon receipt of comments from City staff and stakeholders, EPS will issue a revised version of the report for initial public workshops and hearings, and will provide a final version for City adoption. Task 2.2: Rental Housing Nexus Impact and Fee Analysis The process of establishing the nexus between market-rate and affordable housing for rental projects is very much the same as it is for ownership projects: EPS will use recent market data to estimate the incomes required to rent market-rate apartments of various sizes (1 bedroom, 2 bedroom, etc.) in Pleasanton, the spending patterns of households with those income levels, C the jobs and worker households created by such spending, the number of below-market-rate units required for such workers, and the subsidy required to provide those units. Then, EPS will convert those subsidy requirements into a maximum fee level for each of several unit sizes or types, as justified by the nexus analysis. The results of the rental housing nexus analysis will be presented in a draft report, which will be revised upon incorporation of comments from City staff and stakeholders, and finalized before City adoption. Task 2.3: Nonresidential Nexus Impact and Fee Analysis EPS will update the City's Lower Income Housing Fee for C/0/I development. The nexus (i.e., linkage) between new nonresidential development and the demand for affordable housing will be derived by preparing employment density and compensation estimates of future employees for several nonresidential land use types (e.g., retail, office, industrial, lodging, etc.). New household formation resulting from new employment will be categorized by income category (moderate, low, very low) to estimate total demand. These calculations include consideration of local trends in household formation (e.g., size and location of household formation). The Economic&Planning Systems, Inc. 6 N:\noposMs j2lna's2b,27HeasamomPU isp,ancI nzmr