FULL AGENDA PACKET 2021-07-06 - Laserfiche WebLink

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Housing Ad Hoc Committee Progress Report and Recommendations July 6, 2021 Page 2 As part of their review of the HOO, the Ad Hoc Committee requested to review the in -lieu fee analysis by Keyser Marston Associates (KMA) completed in May 2020 and requested for the study to be updated with current information. The updated study is attached as Exhibit 1. Specifically, KMA has been engaged to prepare an analysis to estimate the in - lieu fee amounts that can be charged for rental residential and ownership housing developments on a financially feasible basis. The results of KMA's analysis can be summarized as follows: Supportable In -Lieu Fee: Housing Opportunity Ordinance Update Rental Residential Development $17.10 to $17.80/Sq. Ft. of Leasable Area Ownership Housing Develo ment $13.00/S . Ft. of Saleable Area Additionally, the Committee requested for available data and statistics relating to housing and housing affordability in the City. Staff engaged a third party housing consultant, MDG Associates. Inc. (MDG), for assistance with collecting and presenting the data. The information collected by MDG is attached as Exhibit 2. General findings from MDG's data shows that: 1) relative to the total housing supply, there is a small amount of affordable housing units (subsidized housing); 2) there is a gap between increasing rents and wages; and 3) zip code 92705 is the most expensive and 92701 is the most affordable based on the current rental rates, with affordability data provided for all zip codes based on unit bedroom size. Following their review of the information, the Ad Hoc Committee discussed three options to amend the HOC. The three options involved a review of. 1) the project threshold/size of a project that would require compliance with the HOO; 2) the trigger for when a project would be required to comply with the HOO; 3) the set -aside requirements for units for sale and for rent, 4) the options to satisfy the HOO requirements; and 5) additional enhancements to achieve the purpose of the HOO. The Committee provided direction for staff to draft their recornmended changes to the HOO for further discussion by the full City Council. Following this deliberative process, the Housing Ad Hoc Committee provided direction to draft amendments to the HOO as described and analyzed in Table 1: Summary of Amendments below. The draft HOO is attached as Exhibit 3 in rcdlinc format with the amendments discussed below. City Council 28 — 2 7/6/2021