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suitable local housing they can afford. The purpose of the fee is to fund the <br /> development and preservation of affordable housing projects in the City. Chapter 17.40 <br /> of the PMC establishes the purpose, applicability, and requirements for use of the fee <br /> (the amount of the fee itself is to be established separately by resolution of the City <br /> Council, and subject to annual adjustment). <br /> The current Affordable Housing Fee rates were adopted on September 18, 2018. Fees <br /> for non-residential uses were determined as part of a Nonresidential Development <br /> Housing Linkage Fee Nexus Study prepared by Economic & Planning Systems, Inc. <br /> (EPS). This study was required by state law (AB1600) to document the methodology by <br /> which the fee was established, and to demonstrate an appropriate nexus (or reasonable <br /> basis) between new non-residential development, and the need for affordable housing <br /> resulting from that new development. <br /> The EPS study set the basis for the Affordable Housing Fee which is adjusted annually <br /> based on the Consumer Price Index. The Public Storage project would be classified as <br /> an industrial use, for which the current Master Fee Schedule establishes a rate of <br /> $13.02 per square-foot for industrial projects, as seen in Figure 1 below. <br /> Figure 1: Current Affordable Housing Fee <br /> (due at the time <br /> B. Affordable Housing Fee building perissue <br /> - Applicable to all new construction and non-residential additions exceeding 200 sq ft <br /> - Subject to an annual inflation adjustment on January t of each year based upon the Consumer Price Index for the San <br /> Francisco(Oakland region. <br /> Residential Single-family detached(over 1.500 sq ft) $45.575.00 <br /> (per dwelling unit) Single-family detached(1,500 sq ft or less) $44,592.00 <br /> Mufti-family(Apartment. Condominium) $44,592.00 <br /> Non-Residential Retail $4.70 <br /> (per square foot) Hotel/Motel 53.24 <br /> Office $7.84 <br /> Industrial $13.02 <br /> The methodology in the EPS Study is based on several data-driven assumptions, <br /> including employment density/generation for various types of uses, to establish the fee. <br /> As seen in Figure 2, below, the study assumes 400 square-feet per employee (or 250 <br /> employees per 100,000 square-feet) for the "office/light industrial/R&D" employment <br /> generation category, into which Public Storage would fall. Said another way, this metric <br /> assumes that for every 400 square-feet of new space in an industrial project, demand <br /> for one new employee would be generated. As shown in the table below, other uses <br /> such as retail, hotels/motels have different (lower) employment densities/generation <br /> rates. <br /> Page 6 of 14 <br />