RES 98140 - Laserfiche WebLink

7. It is the intent of the City Council to adopt a fair and equitable method of securingI some of the necessary revenues to fund the construction of affordable housing, the need for which is generated by new development. i 8. With regard to the methodology for levying me Lower Income Housing Fee, the City Council further finds that: I A. The funds needed to develop a sufficient number of affordable units to meet I the demand generated by new development have been calculated in the Technical Report for the Lower Income Housing Fee ("Technical Report"), dated April 17, 1998, attached to the Staff Report dated October 20, 1998, 'l incorporated herein by this reference. B. Affordable monthly payments for very low- and low-income persons and ! families have been calculated using household income levels determined by the Department of Housing and Urban Development (HUD) for 1998 for the Pleasanton area. The City Council finds that the HUD income levels represent a fair and accurate esti,n.~ate of income levels and affordable monthly payments for persons and families within the City. i C. Market-rate median monthly rents for 1, 2, and 3 bedroom units in the City were established by the City's annum telephone survey of median rents from January 1998. The City Council finds that the results of the survey represent a fair and accurate estimation of monthly rents in the City for the various sizet units. D. The difference between the monthly cost of market-rate units and the affordable monthly payments, was calculated, then weighted for an average monthly subsidy. A net present value of the subsidy for a 30 year period was calculated. The benchmark of 30 years was used based upon the General Plan Housing Element Policy 6, Program 6.3. The City Council finds the methodology used to calculate the net present value of a 30 year affordability subsidy is a fair and reasonable estimate of the cost of providing an affordable unit in the City. E. The Land Use Element of the Pleasanton General Plan specifies the permitted uses of land within the City and places limits on the intensity and density of such uses. The City Council has reviewed the relationship between land uses and densities permitted under the General Plan and the rate and amount of actual development of property within the City. The City Council has identified trends in growth and development which enable the Council to