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HomeMy WebLinkAboutAgenda Report - October 7, 2020 Public Comment-> November 18,2020 D.Comments bv the Public on Non-Aqenda ltems THE TIME ALLOWED PER NON- AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES. Mike Lusk provided public comment requesting the City consider an affordable housing fee to be paid by developers. Mayor Kuehne requested staff research ways to enhance programs through developer impact fees. Alex Aliferis provided public comment, via email, asking about the costs incurred as a result of the protests. E. Comments bv the Citv Council Members on Non-Aqenda ltems Council Member Mounce reported that she is attending the League of California Cities Conference this week, virtually, and spoke about the experience. She announced that she was selected to serve as a Board Member at large and stated that this is the 12th year that she has served on the Board. Council Member Mounce is the longest serving Board Member and she spoke about the support and historical information she has been able to provide the Board staff Council Member Mounce thanked Public Works Director Swimley for assisting some local residents with an issue they were having with a tree. She asked for an update from Public Works on the paving schedule for the east side. Council Member Mounce stated that she is highly supportive of Mr. Lusk's suggestion to implement developer impact fees to help cover the cost of affordable housing. Council Member Mounce asked the City Manager's office for information regarding the costs associated with the recent protests in the City. Council Member Chandler congratulated Council Member Mounce on her appointment to the Board of the League of California Cities and thanked her for her continued leadership. Mayor Kuehne concurred. F. Comments bv the Citv Manaoer on Non-Aqenda ltems City Manager Schwabauer thanked Council Member Mounce for her efforts to keep the pension crisis facing California front and center. He spoke about the California League of Cities Conference and the pension solutions discussed at the conference, all of which have already been implemented by the City of Lodi thanks to the work done by Deputy City Manager Keys. City Manager Schwabauer spoke about the changes being made to the unmet transit needs process this year. G. Public Hearinqs G-1 Public Hearinq to Consider Adopting Resolution Approving Planninq Commission's Recommendation to Amend the Safetv Element of the Citv of Lodi General Plan to lmplement the Provisions of Senate Bill (SB) 5 and SB 1278 Related to 200-Year Flood Protection (CD) I Ðø lic bmrrwtf LODI CITY COUNCIL Oct. 7,2020 LODI CITY MANAGER BLUE SHEET AGENDA ITEM H-L Oct 7,2020 SUBJECT: OOO,t,ONS TO THE BUILDER IMPACT FEE SCHEDULE FOR AFFORDABLE HOUSING FEE PROGRAM. lnclude this with Agenda ltem H-L tonight. lf H-L is pulled please include as a non agenda item. I have not received any comments or contact on this previous request. Mike Lusk, Lodi LODI CITY COUNCIL July L5, 2020 LODI CITY MANAGER BLUE SHEET FOR NON-AGENDA ITEM JULY L5,2O2O MEETING SUBJECT: ADDITIONS TO THE BUILDER IMPACT FEE SCHEDULE (Since I cannot be here in person to read all of this item please do not para phrase this subject but read all of page one and two down to the Oakland Example.) I am requesting that the City add the new category that I presented to the Council last year and again on Jan L5, 2020 for additions to the Buílder lmpact Mitigation Fund for a Recycled Water Fund in order to Page 1 of 7 pay for new capital improvements and connections, metering and pumping equipment etc. that will be needed to create this new revenue portion of the Water Utility. The Developers are expanding the boundaries of the City and creating the future demand on all types of our water supply. lt should be their burden to pay for the cost of creating the recycled water infrastructure and not the Citizens/Utility rate payers of Lodi. I also am requesting that another category for low income housing be established. This IMF based upon the square footage of each new unit built develops a fund to be used to offset developer costs of low income housing units, rents, remodel older housing units etc. This is in effect in other cities in Calif. Using Oakland, San Jose, Palo Alto, Redwood City, Elk Grove and Rancho Cordova to name a few. They even have a program in the San Jose area where the price of a home, as an example, would be SZZS,000 low income original price and the owner is contracted to retain this same level of value in the event they sell in the future and the original cost keeps rolling over in this program. There are two examples included below, one from Oakland and another from the City of Elk Grove. Deputy City Manager Andrew Keys is familiar with the Elk Grove program as it was in existence during his tenure with that City. I respectfully request action on these issues and an open dialogue for their implementation. Thank You Page 2 o17 Mike Lusk, Lodi Oakland Example: 'll. DESCRIPTION OF DEVELOPMENT IMPACT FEES A. Affordable Housing lmpact Fees Oakland Municipal Code (OMC) Chapter L5.72 (Ordinance No. L3365 C.M.S.) establishes affordable housing impact fees in the City of Oakland to assure that market-rate residential development projects pay their fair share to compensate for the increased demand for affordable housing generated by such development projects within the City of Oakland. Any development project, unless exempt from this chapter, resulting in additional housing units in new or existing buildings must pay to the City the Affordable Housing lmpact Fees, or the applicant may elect to construct on-site or off-site affordable housing units as perm¡tted under OMC Sections L5.72.L00 and 15.72.LL0. These lmpact Fees are further broken down into three lmpact Fee Zones for which fees vary. The Affordable Housing Trust Fund established under OMC Chapter L5.62 receives all Affordable Housing lmpact Fees collected and all interest and investment earnings thereon, shall be used to increase, improve, and preserve the supply of affordable housing in the City, with priority given to housing for very low income households. (Source Oakland annual report)." This IMF based upon the square footage of each new unit built develops a fund to be used to offset developer costs of low income housing units, rents, remodel older housing units etc. This is in effect in other cities in Calif. Using Oakland, San Jose, Palo Alto, Redwood City, Elk Grove and Rancho Cordova to name a few. They even have a Page 3 of 7 program in the San Jose area where the price of a home as an example would be 5275,000 low income original price and the owner is contracted to retaín this same level of value in the eventtheysell in the future and the original cost keeps rolling over in this program. Excerpt from Elk Grove Low lncome Housing Fund Fiscal Year 20L8/Lg Affordable Housing Fee Program Overview An Affordable Housing Fee Program was adopted by the City Council in2002, based on a Housing Nexus Study and Housing lmpact Fee Analysis prepared the same year. The 2002 studies identified the need for affordable housing in the City, and provided maximum fee levels. The fee program was revised in 2004 to make some minor implementation-related amendments and the fee level d¡d not change. Modifications from 2004 to 2012 included only the annual inflation adjustment. A comprehensive update to the fee levels, uses, and codification was approved by the City Council on March 27,2013. As a result of the 2013 Nexus Study, the City consolidated the Affordable Housing Fund and the Very Low lncome Housing Trust Fund and established new maximum fees for residential and non-residential development projects under the Affordable Housing Development lmpact Fee Program. For accounting and reporting purposes, all activities for both programs, including all loans regardless of origination date, were combined in the Affordable Housing Fund (Fund 231). ln FY2018119, the City began the process of updating the affordable housing fee analysis, in order to ensure a nexus still exists and to evaluate maximum fee levels under current economic conditions. That fee analysis is expected to be complete in FY2019120. The Affordable Housing Fund has been used primarily to assist the development of affordable rental housing units for low-income households, which include many working families, seniors, and Page 4 of7 persons w¡th disabilities. The City of Elk Grove's assistance typically comes in the form of "gap" financing, which offers loans with below market interest rates and favorable terms in order to help assure the financial feasibility of such projects. Prior to the update in 2013, the fee was applied only to residential development and included a 3o/o administrative fee that went into a separate account within the Affordable Housing Fund. (A separate fee on non-residential development went into the Very Low lncome Housing Trust Fund.) Currently, the fees are applied to both residential and non-residential development, consistent with the adopted levels for given types of uses, and the 3% administrative fee continues to be charged. Required Findings 1 . The purpose of the affordable housing fee program is to fund a portion of the cost of affordable housing for low-income households, the need for which is generated by new residential and non-residential development in the City. 2. The reasonable relationship between the affordable housing fee and the purpose for which it is charged is demonstrated in the Affordable Housing Nexus Study dated February 27,2013. 3. Since the establishment of the Affordable Housing Fund, about $74 million in loans has been committed to fourteen affordable housing projects. The most recently completed project, the Bow Street Apartments, has 98 units (97 atfordable units) and received temporary certificates of occupancy in 2019. lt is now fully leased. Of the City's $5 million loan to the Bow Street Apartments project, $2 million was drawn in FY 2018119 and the remainder is expected to be drawn in FY 2019120. ln FY 2017118, the City made a loan commitment of $5 million to support the construction of The Gardens at Quail Run, a proposed 96-unit affordable apartment complex. The project's developer during FY 2018119 secured other Page 25 of 96 Page 5 of 7 necessary funding sources and staff currently expects the project to begin construction in early 2020. Loan disbursements are tied to construction and leasing milestones and loan proceeds are anticipated to be disbursed in FY 2020121. Affordable Housing Fee (Fund 231 - page 1 of 2l This citywide development impact fee program funds new development's fair share of housing to serve eligible income groups in the City. Land use July 1,2018 Jan.1 2019 through through December June 30, 2019 30, 201 I Single-Family 94,276 / unit $4,493 / unit Multi-Family $2,565 / unit $2,695 / unit Commercial $0.70 / sq ft $0.74 / sq ft Hotel $2.08 /sq ft $2.18 / sq ft Manufacturing $0.80/ sq ft $0.84 / sq ft Warehouse $0.85 / sq ft $0.90 / sq ft Note: Fees are adjusted every January 1 for inflation. Beginning Balance, July 1, $78,073 ,270 2018 lncome $3,979,716 Fees collected CalHome HAP Loan $O Reimbursement . lnterest earned and change in $646,170 market value Loan repayment interest $172,132 Other Revenues $154,855 Total $4,952,873 Disbursements Amount o/o Fee Funded in FY19 Page 6 of 7 Current year loans issued $O Homebuyer $2,000,000 Assistance Program Loans Professional and $45,572 legal services lmpact Fee $75,488 Administration Aff. Housing Staff $63,978 Salaries and benefits Total Ending Balance, June 30, 2019 Adjustment to Fund Balance, End of Year* Adjusted Fund Balance, End of Year Assigned Fund Balance, End of Year Available Fund Balance as of June 30, 201 I (End of excerpt) 100o/o 100o/o 100o/o 100% $2,1 95,039 $78,073 ,270 84,767,835 $82,841 ,105 $66,018,866 $16,922,239 I would like a response on the subject as outline above. Respectfully Mike Lusk, Lodi PageT of7