CC MIN 03152022 - Laserfiche WebLink

In response to Mayor Brown, Interim City Manager Dolan confirmed the 2018 Nexus Study justifies higher LIHF fees. Director Clark clarified a developer would currently pay the same affordable housing fee regardless of the size of a single-family house so long as it is larger than 1,500 square feet. Mayor Brown opened the public hearing. Jocelyn Combs stated that after community support, funding is the most predictable indicator of successful affordable housing projects. She stated the LIHF is critical and encouraged a dramatic increase in LIHF fees with an in-depth review soon. She recommended all LIHF fees go towards building low-income housing and not just 55% of the fees. She encouraged the Council, with each subsection of this discussion, to choose each option that would increase affordable housing. She encouraged directing staff to start discussions with non-profit affordable housing developers now. She noted Pleasanton at present is the only city in Alameda County without any active affordable housing construction. Becky Dennis expressed confusion over the status of the LIHF payments from 10X Genomics. She supported raising LIHF fees, particularly for commercial development because commercial development generates the greatest demand for lower-income housing. She noted when one city raises fees it allows other neighboring cities to also raise their fees and encouraged Pleasanton to show leadership for the Tri-Valley region. She encouraged more non-profit development. She endorsed replacing the IZO with a focus on middle-income non-profit development for City employees. Jeff Schroeder, Senior Vice President of Ponderosa Homes, reported Ponderosa Homes has created more affordable housing in Pleasanton than any other single developer over the last 30 years. He advised when a City provides funds for affordable housing projects it creates a legal need to pay prevailing wages which can increase the cost of development by 30%. He advised the LIHF fees can go towards housing programs like rental assistance for community benefit. He advised the IZO works best for rental housing and noted they have to qualify on an income basis annually. He encouraged the City to consider the missing middle through creativity in affordable by-design for-sale housing. He endorsed making fees based upon the unit size. In response to Mayor Brown, Director Clark clarified that 10X Genomics is subject to impact fees but received credit for demolishing the existing retail development on the site. She advised that 10X Genomics will pay affordable housing fees in Phase 2 of its construction. Mayor Brown closed the public hearing. In response to Mayor Brown, Senior Planner Bonn clarified a comprehensive update to the Nexus Study supporting the LIHF would likely not happen for a few years. She advised the current study took three years to complete and staff is recommending using the current study to evaluate fees and potentially conducting a more comprehensive study midway through the Housing Element. Councilmember Testa endorsed both the Housing Commission's recommendation for the LIHF. She noted it includes the Planning Commission's concept of making the fees proportional to home sizes and advised it also covers directing more of the fees directly back to building affordable housing. She stated she does not prefer in-lieu fees because those fees often do not go towards affordable housing. She noted only 55% of in-lieu fees go towards affordable housing and rarely directly towards construction. She called to change the authorized services accounting for the remaining 45%. Mayor Brown clarified the goal is not to set policy but to determine what they want to discuss in the future in more detail. Councilmember Testa moved to approve the Housing Commission's recommendation for the LIHF. Councilmember Arkin seconded the motion. City Council Minutes Page 11 of 22 March 15, 2022