CC MIN 03152022 - Laserfiche WebLink

Senior Planner Bonn reported the LIHF was first established in 1990 and most recently updated in 2018. She advised it applies to new residential development on a per unit basis and new commercial design on a per square foot basis. She noted by policy the City Council charges less than the maximum value set by a 2018 Nexus Study and listed the current fees by category compared to the maximum limits. She advised it was done to help keep Pleasanton competitive for developers. She reported the City has collected about $27 million in LIHF fees over the past 30 years, 45% of which is allocated to programs with 55% earmarked for supporting affordable housing projects. Senior Planner Bonn reported the IZO was adopted in 2000, requiring new multifamily residential projects with 15 or more units to provide 15% affordable units, new single-family residential projects of 15 or more units to provide 20% affordable units, and commercial, office, and industrial developments to either pay LIHF or provide affordable units. She advised the specific mix of affordability levels is left to the City Council's discretion, along with an option to pay an in-lieu fee instead of constructing the affordable units. She noted generally rental housing units have provided affordable units and for-sale developments have paid the in-lieu fee. She advised the IZO requires an Affordable Housing Agreement to formalize the process. Senior Planner Bonn reported the Density Bonus Ordinance was adopted in 2013 but advised State laws have since changed significantly so the ordinance now requires updating. She advised there could also be further study of the concept of an Affordable Housing Overlay Zone (AHOA) making a development eligible for additional concessions if there is a high number of affordable units. Senior Planner Bonn reported there are several policies in the General Plan and Economic Development Strategic Plan acknowledging the need for workforce housing and a goal of increasing the diversity of housing products. She advised common themes regarding workforce housing from City Council discussions are to provide housing in Pleasanton for people who work in the City and also to address the needs of households earning the Area Median Income (AMI) but still cannot afford to live in Pleasanton. She provided two potential definitions of workforce housing for City Council consideration with Option 1 defining it around those earning local wages and Option 2 defining it at those earning over 80% of AMI but unable to afford Pleasanton's market-rate housing. She advised both options have a similar intent. She reported City staff prefers Option 2, the Housing Commission supported Option 1, and the Planning Commission preferred the term workforce housing remain undefined. Senior Planner Bonn stated the small-scale infill concepts of "affordable by design" and the "missing middle" are related to workforce housing. She stated these are units of a smaller size, accessory dwelling units (ADU), Senate Bill (SB) 9 units, and can be on targeted areas for infill. She advised the Planning Commission also showed interest in having scaled impact fees for different sized units. She advised missing middle units are often smaller and offer the appearance of a single-family home, including townhomes, courtyard homes, and duplexes. Senior Planner Bonn reported the California Statewide Communities Development Authority (CSCDA) Program is scheduled to come before the City Council in April. Senior Planner Bonn reported staff recommends consideration of raising LIHF fees, consideration of a more comprehensive LIHF update, and keeping the policy for expenditures flexible. She advised the Planning Commission agreed with this and advised fees should be proportional to the home size. She advised the Housing Commission agreed with the Planning Commission and requested a more strategic direction for LIHF expenditures. Staff recommends making the IZO percentages equal between single-family and multifamily developments and identifying a target income-level split for the affordable units. She advised the Planning Commission recommended making both single-family and multifamily 20% and encouraging developers to build affordable housing rather than pay in-lieu fees. She reported the Housing Commission agreed with the Planning Commission. City Council Minutes Page 9 of 22 March 15, 2022