14 ATTACHMENT 6 - Laserfiche WebLink

BIA BAY AREA BUILDING INDUSTRY ASSOCIATION DATE: Sept.4,2018 TO: Pleasanton Mayor Jerry Thorne, Vice Mayor Arne Olson and Councilmembers Karla Brown,Kathy Narum and Jerry Pentin FROM: BIAIBay Area East Bay Executive Director for Governmental Affairs Lisa Vorderbrueggen RE: Item 9: "Presentation and Discussion on Recommended Capital Facility,Transportation and Affordable Housing Development Impact fees" As a membership organization that represents more than 400 companies dedicated to developing and constructing homes, BIAIBay Area would like to express a number of concerns about your staff's proposed development impact fee increases. Based on the staff report,the three fee increases add$7,300 to the cost of a single-family unit and up to$9,000 for a multi-family and represent hikes of 15 percent to 30 percent, respectively. However,the report appears to significantly understate the proposed increase in the affordable housing impact fee. The city's published fee schedule effective lists the current rate for a single-family unit of 1,500 sq. ft. or larger at$11,939 while the rate for an apartment or condo is$2,959 per unit. These figures are substantially lower than the rates listed as the current fees in Table 12 of the staff report: $27,187 per single-family and$15,694 per multi-family. Comparing the proposed rates with those in the published fee schedule,the combined increases add up to$22,543 per single-family unit and$21,752 per multi-family, or 70 percent and 123 percent, respectively. The reason for the discrepancy is not explained in the staff report. Increasing the cost of building houses by such substantial amounts will drive up the price for the housing that is built and make it even more difficult for families to buy or rent in your community. Consider these statistics: • 90 percent of people who work in Pleasanton live outside the city,according to your nexus study. The presence of the large Hacienda Business Park no doubt contributes to this extraordinarily high percentage but the city's high housing prices must be a major factor,as well. (Pleasanton Development Impact Fee Nexus Study, Page 7)The city's own affordable housing nexus studies base the proposed fee on the premise that 100 percent of service employees needed to serve new housing occupants must live in Pleasanton. Clearly,the affordability problem far exceeds the needs of service workers. The city should strive to reduce costs for all types of housing. In light of this goal,the proposed affordable housing impact fee is too high and will be counter-productive. • For every$1,000 increase in the price of house,another 15,328 California households are priced out of the market,according to the National Association of Home Builders. Developers