REPORT TO HOUSING AND HUMAN SERVICES COMMISSION AND PLANNING COMMISSION
SUBJECT
Title
Introduce an Ordinance and Two Resolutions to Approve Two New Affordable Housing Impact Fees: Housing Impact Fee for Nonresidential Development and Housing Impact Fee for Rental Housing
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/R&D 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, 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 and assist in the production, preservation and renovation of units affordable to lower-income households.
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.
BACKGROUND
At the December 9, 2014, City Council meeting, Council heard a presentation and took public testimony concerning a proposed commercial linkage fee, which would expand the exis...
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