CC MIN 03152022 - Laserfiche WebLink

Councilmember Arkin called for a future discussion of not having LIHF fees in certain circumstances. Director Clark clarified this would be part of the IZO discussion. Councilmember Arkin agreed with everything in the Housing Commission's LIHF recommendation. She called for a future update on the fee schedule to get closer to the maximum levels. She echoed Councilmember Testa's call to reduce the number of services able to draw into LIHF fees. Councilmember Balch agreed with the Planning Commission to make the fees proportional to house size. He advised there should also be a smaller fee for units designed small specifically for affordability. Councilmember Narum agreed with the Planning Commission and stated the Housing Element should acknowledge the City Council is reevaluating the LIHF. She advised that in-lieu fees are rarely collected on small projects. She cited Lund Ranch as an area where affordable housing did not make sense for being so far from public transportation. She advised the City needs to maintain some flexibility on the LIHF uses, noting the City used LIHF funds to turn 30-year affordable units into perpetuity. In response to Mayor Brown, Councilmember Narum confirmed she is happy to have a policy discussion on permissible LIHF uses another time. Mayor Brown noted the funds are spent in several ways, including Tri-Valley Resources, Education, Activities, Community Participation, and Housing (REACH). She agreed with the varying fees based upon size. She expressed support for this being a future discussion topic. Councilmember Narum stated she could not support the changes in LIHF spending options. Mayor Brown stated they all agreed on the $100,000 down payment assistance grants and those do not build anything. Councilmember Narum commended the City's donation to Goodness Village. Councilmember Testa agreed with these two projects but questioned if the LIHF was the ideal source of funding. She stated the LIHF fees should create brick and mortar buildings. Councilmember Balch clarified the City Council votes on how to use the fund and can vote no to any expenditure from the fund. He advised maintaining existing affordable housing with the LIHF is much cheaper than creating new stock. He called for maintaining the flexibility of use for the LIHF as the staff has recommended. Councilmember Narum and Mayor Brown agreed. Director of Community Development Clark clarified staff is asking about what things should be pursued in the Housing Element. She advised the City Council can always have a future discussion either in a general sense or about a specific project. In response to Councilmember Balch, Councilmember Testa denied a friendly amendment to remove the Housing Commission's recommendation from her motion. She stated they are not making policy tonight but rather just calling for future discussion. Councilmember Balch made a substitute motion to approve staff and the Planning Commission's recommendations. Councilmember Narum seconded the substitute motion. City Council Minutes Page 12 of 22 March 15, 2022