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Table 1: Lower -Income Housing Fee <br />Residential (per dwelling unit) <br />Current Fee <br />(2022) <br />Single-family <br />detached (over <br />1,500 sq. ft.) <br />Single-family <br />detached <br />(1,500 sq. ft. or <br />less) <br />Multifamily <br />(Apartment or <br />Condominium) <br />$47,762 <br />$46,732 <br />$46,732 <br />Non -Residential (per square foot) <br />Calendar Year <br />2019 (after fee <br />increase) <br />$44,248 <br />$43,293 <br />$43,293 <br />Retail <br />$4.93 <br />$4.56 <br />Hotel/Motel <br />$3.40 <br />$3.15 <br />Office <br />$8.22 <br />$7.61 <br />Industrial <br />$13.64 <br />$12.64 <br />Calendar Year <br />2018 (before fee <br />increase) <br />$27,187 <br />$15,694 <br />$15,694 <br />$3.15 <br />$3.15 <br />$3.15 <br />$3.15 <br />Maximum <br />Fee <br />$44,930 to <br />$75,857 <br />Depending <br />on square <br />footage <br />$24,911 to <br />$46,631 <br />Depending <br />on number <br />of <br />bedrooms <br />$211.08 <br />$49.69 <br />$82.56 <br />$82.56 <br />Since adoption of the 2018 fees, the growing awareness of housing affordability issues, <br />and evident resource gap to help support access to and production of affordable <br />housing, has generated an interest in re-examining the Lower -Income Housing Fee <br />rates for various types of development, to ensure that new development is helping to <br />appropriately mitigate the impacts and demands it creates for new affordable housing. <br />As part of its 2021-2022 Work Plan, the City Council identified an update to the City's <br />Affordable Housing Fees as a "Priority B" project, meaning that the project should either <br />be completed or a significant milestone accomplished by the second year of the work <br />plan (i.e. 2022). <br />Therefore, a first step would be for the City Council to evaluate whether fees should be <br />increased closer to, or at, the maximum levels recommended by the 2018 study; and, <br />potentially consider if the study should be more comprehensively updated. Staff notes <br />that the prior update took approximately three years to complete, although was <br />combined with an update of other City development impact fees, which added time and <br />complexity to the process. <br />While the Work Plan identifies the review of the LIHF as a priority, staff notes that the <br />COVID-19 pandemic has caused significant shifts and disruptions in the economy, <br />particularly for commercial development, affecting both business locational decisions <br />Page 4 of 16 <br />