DATE: March 28, 2023
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Hayward Municipal Code: Introduce an Ordinance Amending Chapter 10, Article 17 of the Hayward Municipal Code Updating the Affordable Housing Ordinance; and Adopt Resolutions Amending Resolution No 17-167 to Increase the Affordable Housing In-lieu Fees for Lower Density Ownership Housing and Amending the FY 2024 Master Fee Schedule and Finding the Action is Exempt from CEQA Review
RECOMMENDATION
End
Recommendation
That the City Council:
1) Holds a public hearing to obtain input on proposed amendments to the Affordable Housing Ordinance and the adoption of Affordable Housing In-Lieu Fees; and
2) Adopts a resolution (Attachment II) finding that enactment of amendments to Chapter 10, Article 17, of the Hayward Municipal Code regarding affordable housing requirements for new housing developments is exempt from the California Environmental Quality Act (CEQA); and
3) Introduces an ordinance (Attachment III) amending Chapter 10, Article 17 of the Hayward Municipal Code updating the Affordable Housing Ordinance; and
4) Adopts a resolution (Attachment IV) amending Resolution No. 17-167 to increase the affordable housing in-lieu fees for lower density ownership housing; and
5) Adopts a resolution (Attachment V) amending Resolution No. 23-066 FY 2024 Master Fee schedule approved on March 21. 2023.
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. To evaluate the AHO, the City contracted with Strategic Economics, Inc to conduct a feasibility study and seek feedback from the Homelessness Housing Task Force (HHTF), the Planning Commission, and stakeholders. On February 21, 2023, Council held a work session to provide feedback on recommendations that resulted from the feasibility study and proposed administrative amendments. The majority of the Council supported the recommendations listed below in addition to supporting the proposed administrative amendments.
On-site affordable housing recommendations:
• For-sale single-family homes and townhomes.
o Increase inclusionary requirement to 12% of the total units setting affordability levels for half of the units at low-income and the other half at moderate income (deepening the affordability targets)
o Maintain current 7.5% of units for high density condominiums.
• Rental. Maintain existing affordable housing requirements for rental property due to infeasibility of developing most rental housing product types.
Affordable housing in-lieu fee recommendations:
• Rental. Maintain existing fee ($21.64 per square foot)
• Ownership.
o Maintain existing fee ($17.85) for high density condominiums (35 dwelling units per acre or greater)
o Increase fee for lower density ownership projects from $21.64 to $26 per square foot.
• Existing Fees will increase 8.4% in the Fiscal Year 2024 Master Fee Schedule consistent Resolution No. 17-167 based on the percentage change in the Engineering News Record Construction Cost Index applicable to the San Francisco Area.
The purpose of this report is to consider adoption of the proposed amendments to the AHO including the addition of a new finding stating Council’s preference for on-site affordable housing to create mixed income communities, and a proposed increase to the affordable housing in-lieu fee.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution CEQA Exemption
Attachment III Proposed Affordable Housing Ordinance
Attachment IV Resolution Modifying In-lieu Fees
Attachment V Resolution Amending FY 24 Master Fee Schedule
Attachment VI Feasibility Study