Laserfiche WebLink
Council's policy decision to set the fee lower than the maximum allowable fee. She stated the <br /> Council considered the cost to develop in Pleasanton compared to other communities. <br /> Commissioner Morgan noted that some communities restricted the ability for projects to pay in- <br /> lieu fees instead of building affordable units and asked if staff was proposing that be at the <br /> Council's discretion. Ms. Clark stated State law required alternative means for compliance for <br /> developers with respect to payment of in-lieu fees, but the existing ordinance provides discretion <br /> as to whether in-lieu is permitted, for any project. Ms. Harryman provided an example of using <br /> in-lieu fees, such as when the on-site affordable housing would be located far from transportation <br /> and amenities. Commissioner Morgan asked if staff was recommending the Council have full <br /> discretion to allow in-lieu fees. Ms. Clark stated the Council could grant alternative compliance <br /> methods including in-lieu fees. <br /> Commissioner Nibert stated he found the in-lieu fees for nonresidential projects to be very low <br /> and questioned whether raising the fees would have an impact in deterring developers away to <br /> other cities with lower fees. Ms. Clark stated it was a policy decision and she discussed the <br /> current fees compared to what could be charged, indicating there was room to increase fees <br /> without handicapping development. Commissioner Nibert requested clarification on where <br /> current lower income housing funds (LIHF) fees were utilized. Ms. Clark confirmed that the <br /> majority was spent to provide loans and other funding to help facilitate affordable housing <br /> projects, and another proportion on programs. Mr. Hernandez discussed recent projects utilizing <br /> LIHF. Commissioner Nibert asked the percentage of funds used towards loans. Ms. Clark stated <br /> staff was unable to conduct a full analysis but information could be brought back to the Planning <br /> Commission. Mr. Hernandez stated around $250,000 per year was utilized which was <br /> significantly less that the fees received. Commissioner Nibert requested the information be <br /> brought back in order to determine if the current process was effective. Ms. Clark suggested the <br /> Commission provide its recommendations on desirable affordable housing programs. <br /> Commissioner Nibert favored consideration of an affordable housing overlay and referenced the <br /> example from Cambridge, Massachusetts. <br /> Commissioner Allen stated her questions related to testing the appropriateness of the current <br /> residential low income housing fee. She stated it appeared that a five-bedroom luxury home <br /> would pay within $1 ,000 of a one-bedroom multifamily unit would be paying. Ms. Clark confirmed <br /> that the difference between smaller and larger units was about $1,000. Commissioner Allen <br /> asked if there was ever a discussion about thinking about that in a different way because <br /> currently single-family luxury homes chose in-lieu fees because it was cheaper than building an <br /> affordable home. Ms. Clark explained how the fee range was set based on the Nexus Study <br /> including demand generated by new residential and non-residential development and the cost <br /> to construct new units. She added that there was room to consider whether the fees were scaled <br /> appropriately. <br /> Commissioner Allen proposed a hypothetical that the average affordable house would be <br /> $800,000 per unit to build, with an inclusionary zoning ordinance (IZO) at 20%, and an in-lieu <br /> fee be at one fifth of $800,000. She questioned whether the Commission should be considering <br /> a break-even fee so a business person would be equal with building a unit and paying an IZO. <br /> Ms. Clark explained the basis for the inclusionary zoning requirement, and the amount of the <br /> low-income housing fee were different and therefore, there was a disjuncture between the two <br /> fees (i.e. the in-lieu fee does not cover 100 % of the cost of constructing an affordable unit). <br /> Planning Commission Minutes Page 3 of 7 February 9, 2022 <br />