_Minutes_February 9, 2022 - Laserfiche WebLink

Commissioner Allen asked if Ms. Clark would agree that the market had changed substantially since the 2018 study. Ms. Clark concurred and that periodic fee studies were recommended for that reason. Commissioner Brown asked if the study ranges could be modified based on the housing values Ms. Clark stated a new nexus study would be required, although the annual escalation was based on the construction cost index and built into the current fee structure. Commissioner Morgan confirmed that the fees could be increased as long as they did not exceed the maximum set by Nexus Study. Commissioner Brown stated the Planning Commission could recommend up to the maximum fees in the Nexus Study. Commissioner Allen stated the Commission had flexibility to increase the fees and also to ask that the Nexus Study be updated. Chair Pace asked for further clarification on the fees charged to luxury homes. Ms. Clark stated there was no gradation for larger homes and the fees were the same, once the home was over 1,500 square feet. Chair Pace asked if a third gradation for a single-family home above 3,000 square feet could be established or if that would require a nexus study. Ms. Clark stated the 2018 Nexus Study had contemplated the number of bedrooms in a unit. Chair Pace then asked if the establishment of fees for retail, hotel, office and industrial were set to be in parity with neighboring jurisdictions. Ms. Clark referenced the agenda report when the fees were established and confirmed that other jurisdictions were considered. Chair Pace asked if a new study would look at surrounding communities. Ms. Clark explained that, if fees were set within the maximums established by the existing study, a new study would not be required, rather just a policy decision by the Council to increase fees to be closer to the maximum. Chair Pace asked the frequency for nexus studies. Ms. Clark stated Nexus Study updates were typically conducted every five to ten years. In response to Commissioner Allen, Ms. Clark clarified that AHOZ stood for Affordable Housing Overlay Zone. Commissioner Nibert asked if the concept of employee housing entitlements for businesses and property owners existed in low income housing fees. Ms. Clark stated the demand for housing was factored into the calculations and she explained the requirements around how the City expended LIHF. THE PUBLIC HEARING WAS OPENED Jocelyn Combs spoke on Item 4 and stated her observation that the current process did not create affordable housing and that resident comments ranged from neutral to supportive of affordable housing; suggested being bold about choices for creating affordable housing with the goal to create housing; indicated the LIHF was too low especially for commercial and industrial; stated the City could have a truly amazing fund and be able to buy land so non-profit developers could build 100% affordable housing; discussed Council's consideration of site selection for affordable housing, the need to meet RHNA numbers; and discussed an article on the City of Fremont's money spent on land and towards housing. Becky Dennis spoke on Item 4 and stated there was no affordable housing problem money could not solve; suggested consideration of raising the fees, that the strategy should focus on work Planning Commission Minutes Page 4 of 7 February 9, 2022 to construct new units. She added that there was room to consider whether the fees were scaled appropriately. Commissioner Allen proposed a hypothetical that the average affordable house would be $800,000 per unit to build, with an inclusionary zoning ordinance (IZO) at 20%, and an in-lieu fee be at one fifth of $800,000. She questioned whether the Commission should be considering a break-even fee so a business person would be equal with building a unit and paying an IZO. Ms. Clark explained the basis for the inclusionary zoning requirement, and the amount of the low-income housing fee were different and therefore, there was a disjuncture between the two fees (i.e. the in-lieu fee does not cover 100 % of the cost of constructing an affordable unit). Planning Commission Minutes Page 3 of 7 February 9, 2022