File #: PH 23-016   
Section: Public Hearing Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 3/28/2023 Final action:
Subject: 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
Attachments: 1. Attachment I Staff Report, 2. Attachment II Resolution CEQA Exemption, 3. Attachment III Proposed Affordable Housing Ordinance, 4. Attachment IV Resolution Modifying In-lieu Fees, 5. Attachment V Resolution Amending FY 24 Master Fee Schedule, 6. Attachment VI Feasibility Study
Related files: CONS 23-186

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