AGENDA REPORT - Laserfiche WebLink

Based on the above, the Report identifies the maximum supportable LIHF which is as follows: Maximum Supportable Lower Income Housing Fee Unit/Fee Type Amount Rental Housing Per Unit: Studio Unit $12,639 1 Bedroom Unit $13,508 2 Bedroom Unit $15,694 3 Bedroom Unit $18, 936 Single Family Housing (Per Sq Ft): 1,000 sq ft $15,227 1,500 sq ft $20,291 2,000 sq ft $22,272 2,500 sq ft $23,422 3,000 sq ft $27,187 3,500 sq ft $30,877 4,000 sq ft $34,392 Commercial (Per Sq Ft): Hotels/Motel $23.85 Retail $108.24 Office/Light Industrial/R&D $4.67 Because the overall analysis and findings related to the above maximum supportable fees are detailed in the Report, staff encourages the Council/Commission to review that document for detailed information supporting the above information as it is not discussed in this report. Nevertheless, highlighting a few of the differences between the Report's analysis and the current methodology may be helpful in evaluating the Report's results. The City's current LIHF methodology, in a briefly summarized format, is based on the following principle components: . It identifies the financial gap between monthly rental rates for a market rate rental housing unit and an affordable rental housing unit at 50% and 80% of the AMI and converts that into the amount of financial subsidy needed to fill that per-unit gap over a period of thirty years. . It multiplies the required per-unit financial subsidy by the total number of units required to meet the City's long term affordable housing need to generate the long term subsidy needed to meet projected affordable housing needs. . It makes a determination on the fee required from new projected market rate housing and C/O/I development to equal the required long term subsidy. Page 4 of 12