REPORT TO COUNCIL
SUBJECT
Title
Introduce an Ordinance and Adopt Two Resolutions to Approve Two New Affordable Housing Impact Fees: Housing Impact Fee for Nonresidential Development and Housing Impact Fee for Rental Housing; Find that the Project is Exempt from Environmental Review Pursuant to CEQA Guideline 15378(b)(4)
Report
REPORT IN BRIEF
Recent Council direction to expand the Housing Mitigation Fee and to establish a new fee for rental housing developments requires amendments to the Sunnyvale Municipal Code (SMC). A draft ordinance (Attachment 1) and two resolutions (Attachments 2 and 3) have been prepared to make these changes.
The Housing Impact Fee for Nonresidential Development, set at $15 per net new square foot for all office and industrial projects ($7.50 for the first 25,000 square feet) and $7.50 per square foot for all retail and lodging projects, will apply to all new commercial, industrial, research and development (R&D), retail and lodging projects in any zone, unless otherwise exempted, as outlined in Exhibit C to Attachment 2.
The Housing Impact Fee for Rental Housing, set at $17 per net new habitable square foot, applies to all new rental developments and includes provisions to allow developers several alternatives to paying the fee. Any alternative compliance option, other than providing standard affordable units within the project (the "on-site" option) will require approval by Council. Revenues generated by these fees will be used to subsidize the development of affordable units.
Staff recommends that Council approve Alternative 1: Approve the Draft Ordinance and Fee Resolutions establishing the Housing Impact Fees for Nonresidential Development and Housing Impact Fee for Rental Housing, as provided in Attachments 1, 2, and 3.
Staff held a stakeholder outreach meeting on the draft ordinance and resolutions on May 19 at the Sunnyvale Community Center. Stakeholders asked questions about when the new fees would tak...
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