DATE: September 28, 2022
TO: Homelessness-Housing Task Force
FROM: Assistant City Manager
SUBJECT
Title
Affordable Housing Ordinance Feasibility Study Preliminary Findings and Policy Recommendations
End
RECOMMENDATION
Recommendation
That the Homelessness-Housing Task Force (HHTF) reviews and provides comments on the Affordable Housing Ordinance (AHO) Feasibility Study preliminary findings and recommendations.
End
SUMMARY
In early 2020, with the intention of increasing the supply of affordable housing, Council directed staff to evaluate the existing Affordable Housing Ordinance (AHO) as part of the adoption of the “Preserve, Protect, Produce Housing for All” Priority in the Strategic Road Map and the Incentives to Housing Production work plan. On March 3, 2022, the HHTF reviewed the outcomes and performance of the existing AHO and provided direction to staff regarding the goals and target populations to be served by any future revisions to the AHO. In consideration of the goals established by the HHTF and in order to ensure economic feasibility of any proposed changes to the City’s AHO, the City contracted with Strategic Economics Inc to conduct a feasibility study. The purpose of the report is to discuss the preliminary findings and recommendations of the feasibility study
The preliminary findings indicate that there is some capacity for increasing affordable housing requirements for ownership housing project types. However, most rental housing types are infeasible with or without City affordable housing requirements. Preliminary recommendations include:
• For-sale single-family homes and townhomes: Increase inclusionary requirement to 12% of the units targeting moderate income households and maintain current 7.5% of units for high density condominiums.
• Rental housing products: Suspend or reduce affordable housing requirements.
• Small projects. Readily accept in-lieu fee payments for small projects (20 units or less)
Supporting analysis of these finding will be discussed in greater detail at the HHTF meeting.
ATTACHMENTS
Attachment I Staff Report Affordable Housing Ordinance Recommendations
Attachment II Affordable Housing Ordinance Presentation