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Home My WebLink AboutItem 15 - DCCSP RHASP Affordable Housing In-Lieu Fee SuspensionTemporary Suspension of Affordable Housing In -Lieu Fee in DCCSP/RHASP City Council March 5, 2024 Summary On December 5, 2023, the City Council directed staff to implement policy recommendations from the DCCSP/RHASP Assessment. Affordable housing in -lieu fee in DCCSP/RHASP identified as barrier to development. Two-part approach in addressing the barriers: CCM 3/5/24 - Suspend the affordable housing in -lieu fee temporarily for 36 months for residential projects in the DCCSP/RHASP areas. At future CC meeting - Direct staff to revisit the Voluntary Workforce Housing Incentive Program by conducting review and feasibility analysis. Affordable Housing Requirement TCC Article 9 Chapter 9B requires affordable housing be provided for residential projects involving a "Residential Allocation Reservation" (RAR). Applicable to DCCSP and RHASP only. Current Code -Developers are required to provide between 12.5%and 15% units as affordable, or a lesser number (5% to 10%) that are affordable to Lower income categories. If choosing the latter, developer must also pay affordable housing in -lieu fee. The amount of in -lieu fee is set by the City Council Resolution (Currently is set at $14,984 per unit). Proposed Action Suspend the affordable housing in -lieu fee temporarily for residential projects that provide either 5 or 10 percent affordable units in the DCCSP/RHASP area for 36 months. Current Code Options 1. 15% affordable (6% VL, 4.5% L, 4.5% M) 2. 12.5% affordable (7.5% VL, 5% M) 3. 5% VL + In -lieu Fee 4. 10% L + In -lieu Fee Proposed Action Options 1. 15% affordable (6% VL, 4.5% L, 4.5% M) 2. 12.5% affordable (7.5% VL, 5% M) 3. 5% VL + No In -lieu Fee (temporarily suspended for 36 months) 4. 10% L + No In -lieu Fee (temporarily suspended for 36 months) Recommendation: Staff recommends that the City Council adopt Resolution No. 24-14: Suspending the affordable housing in -lieu fee temporarily for all residential projects in the DCCSP/RHASP area for 36 months Note: Developers will still ,be required to provide affordable housing on -site. /�N Remembering what connects us. Thank You'. P. War Term 1.1 P re I im inary rest denlial Reduce Plan An9p residential parking ratios from 2.25 park i n g sta n Bards updaM to 1.75 per unit for SP Aroas_ :5-et a I I res id-e nti a I Pairk Ereale adminiatrativia ruie to use 'market' land value &qUal to $2_5 rrllMlon per a for puk tee ralculatlon Near Term 1.2 Fees in DCC S P equal ra based on aiready gists blished lard value for rion- RHAS P rate subdivisian i3rcim-Ects in RHASP. Tempura ri I} r3Ur3pe nd I nirndu0e'Cily Council moffK n to iempararily suspend Near Term 1.3 aftwrd a blu h-Du s i n g i ri-limo lncJuslonar� housing In4mu fps for all SPA pfoJous for fee 18-24 months, Adjusl admInI t -atrvo rules to allow developers to pay �16 beirN4liated xia Near Term 1.4 Expand fee deferral all impmk fees at Certificate of Oucupanc} rather than Dewub''rw-iL Agwmerrwrr anddur at permit -issuance. pr jails Qmdibons or A P P ravaI C-brrlmenos coWiittuctiali Of pLar clett, art El Caf'lift REMI 03nsmiclim to Near Term 1.5 Commence public realm and Maln Street, and oom mence gab y slgnage and carrrmnca Fall 2024 �fnllnwino im roue me nts p 5treebw.ape im pn?verne- g Qn Main Street. mr-pi t do of pipin inQ I n is I Cantinve efforts to streamline permitting. Implement jq Expand d6welopHqr or1-ap-theip W the City webSita for r%lavaril ir& (i.4. Mld-Term 2,1 strvl-cc-s and cdkicatlonal affordable housing requirements, few schedule, density rnOjCFials t)[)nv9) and im pmve development project prore9!� for Clarify. IRavliait vole maryr Conducl. prcigrarn rewi-aw and taasibil iLy analysis to Mid -Term 2.2 workFofce housing optimize rules consistent with the Housing Element, prograrn evolving slate lawe and economic cDnsideratione_ ID key nodes and allow residential only if sufficient Mid -Term 2.3 Mod if yf re to i l and pa Ming gr-ound ?twr retail is provided. Consider relaxing rnrl1U immanm parking r-ules for smaller, vertical mii�ued-use projects, refinef romita in4 ieu olir _ Eliminale lang, discretionary reviewfallacalicn process Mid -Term 2.4 Eli mi riate RAR P rugrn rr) for residentaa Ito provide d-evrclopon with more certain , Mi1-7erm 2.5 Modify height re!&tricGOrr& Increase allowable heights where historic resource rotedion is nut a concern. Rti I a x rasl&ngal prlaaba Relax requirement for private on -rile storage for emery Mid -Term 2.13 storage requirements unit (LB. remove entirely. set as a percentage of unils, or mach na hbonn dtl-as). NvoW an cf Cial schedule or lbriof (pcsk&d on Mld-Term 2.7 Clarify re!�identi l den%ityf website) to specify how skate density bonus is boinus approach delermine-d under tha pie area. Staff to develop educational materlals- Remembering what connects us. Update the EIR for the Sp&clflr, Plan Areas with higher Lang Term , Inc.reaae w5i d$ntial unil cou nta OR implement ad ministra tiYe waiver � � ii3r pruoram for nom liarll residontw projects. Refs ne park i n g strate gias Im plamont !&tratogies t-D MmAnage parkirrg domand a rld Long Teri I a.2 and pursue supply su pply- I rM�r sk�ri �lts M-odify non-residenlial parking aftemati++-es. Riall[ino at -alim irlaliq cartairr parkino starr ands. Corn pate construdion of parklets on El CarninD Rml Main Street. I tom pleWex pipnd p u W l-c Complete gateway sIgnage and streets -ape LDng Term 3.3 realm improvemenm and improvements Dn Win Street, 'pl a-ce-maki rig' initiatives Explore complementary 'place,-m a Bing' program s that engage with Guslnesses, property owners, and the vu li . Exptare -ecore}nnir. Evaluate p0ttrllial for largMing projeclb or pig rtrlarAh irK Long Tomm 14 -IwWaIopment Sim that Carte N private investments. DeVelOp m.rketing ma rkeUinq efforts rn a"rial$ tp highlight i nue:�trnent QppQrbUni1ie!5 gknd fulura rO- L!6 within Lho $ aeif it Man arias_ Impl-armant earm'i ack oplions (i.ig_ waivem, Long Teal 3,5 Implement poliGles 10 aCaGlUratO redavulaprnent -concessions, k s, codeerYforcement measures). f vacant s�f s E xplore public -private partnerships at key sitee, staff outreach & cootdinatlon -efforts.