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Housing Opportunity Ordinance <br />September 7, 2021 <br />Page 8 <br />2 <br />0 <br />5 <br />1 <br />As shown in the table above, the conservative estimated impact of including a skilled and <br />trained workforce requirement ranges between $19.50 and $37.50 per square foot of hard <br />construction costs. When combined with the HOO per square foot fee at $5 or $15, the <br />two amounts increase hard construction costs between 17 to 27 percent depending on <br />the project’s baseline hard costs. Using the lowest estimates, even reducing the HOO in- <br />lieu fee to $0 will not fully offset the estimated amounts. Given benefits such as living <br />wages, a better quality of life for residents who work on the projects, a stable workforce, <br />and other social and economic benefit information shared by the labor unions, the City <br />Council may want to consider a sliding scale for the in-lieu fee wherein projects with 20 <br />or more units provide an enforceable commitment to use a skilled and trained workforce <br />would pay the current fee of $5 per square foot and projects that do not agree to an <br />enforceable commitment will pay the $15 per square foot or an amount in between as <br />determined appropriate by the City Council. The requirement to incorporate a STW would <br />not apply to projects with less than 20 units as it will be challenging for small projects to <br />meet the additional requirements. <br />Similarly, the City Council can also consider a requirement for projects with an <br />enforceable STW commitment to include a local hire requirement. A development with <br />an enforceable STW commitment will be able to negotiate and rely upon the STW labor <br />organizations to draw from the local labor pool. <br />Next Steps <br />If the City Council desires to move forward with these proposed amendments to the HOO, <br />it is feasible to complete the final drafting of the ordinance and initiate the ordinance <br />adoption process within 30 to 45 days upon receiving final direction. <br />Following approval of the amendments to the HOO, the Housing Ad Hoc Committee will <br />reconvene and continue to discuss the remaining topics below and may return in the <br />future with recommendations for each topic: <br /> <br />a.Rent stabilization/rent control <br />b. Rental protections for tenants <br />c.Just cause eviction policies <br />d. Tenant displacement and protection policies <br /> <br /> <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT