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Nexus-Based Affordable Housing Fee Analysis for For-Sale Housing <br /> Draft Report 02/26/18 <br /> used to compute the total number of income-qualified households generated by construction of <br /> market-rate units. The number of income-qualified households required to provide goods and <br /> services to new housing units is detailed in Appendix B. <br /> The nexus methodology used herein computes the total number of income-qualified households <br /> generated by market-rate units and calculates the impact fee based on the estimated cost to <br /> subsidize the production of units to meet that affordable housing demand. This methodology <br /> does not suggest that all lower income service workers serving City residents will reside in the <br /> City, but it does assume that new development should mitigate for the new affordable housing <br /> demand it creates, even if some of those lower income households reside outside the City. <br /> Fee Calculation <br /> The affordability gap analysis quantifies the subsidy required to construct affordable housing at <br /> various income levels. Analysis of consumer expenditures that rely on lower wage workers <br /> provides an estimate of the total number of income-qualified households generated by new for- <br /> sale units. Then for each category of market-rate units, the nexus-based fee is calculated by <br /> applying the total number of income-qualified households generated to the affordability gap <br /> computed for each affordable household income level. The analysis provides the maximum <br /> supportable nexus-based fees for new housing development in Pleasanton. <br /> Tables 6 through 11 show the impact fee calculation by home size. The total impact fees <br /> required for a representative project of 100 units is calculated by multiplying the number of <br /> affordable units required per income level by the cost of subsidizing such housing. All income- <br /> qualified households are assumed to be housed in multifamily rental units and the subsidies <br /> needed are calculated as the affordability gaps shown in Table 3. The resulting maximum <br /> impact fee for market-rate units ranges from $28,431 for a 1,000-square foot unit to $75,857 for <br /> a 3,500-square foot unit. <br /> Economic& Planning Systems, Inc. 17 P US1000M151111PkasanlonPeePieporfWHoraaGk Houvng\ISI I IIrepog023618forsak Owx <br />