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Livermore Affordable Housing Fee
Whitepaper
Livermore Affordable Housing Fee
1
The Livermore Affordable Housing Fee is established in Chapter 3.26 Affordable
Housing Fee of the Livermore Municipal Code.
Affordable Housing Obligation - Condition of Approval for Project Entitlements
The Livermore Development Code requires new residential and commercial
developments to provide affordable housing as follows:1
Residential development. Residential developments must set aside 10% of
dwelling units in the Downtown Specific Plan Area, and 15% of units anywhere
else in the City, for affordable housing. The obligation to provide affordable
housing may be satisfied by the following means:
o building the affordable dwelling units
o providing secondary dwelling units as part of the project
o building the affordable dwelling units somewhere other than the project
site
o dedicating land suitable for the development of affordable housing
o payment of the Affordable Housing Fee established in Chapter 3.26 of the
Livermore Municipal Code.
Commercial development. Commercial developments must pay the Affordable
Housing Fee established in Chapter 3.26 of the Livermore Municipal Code.
Purpose of Affordable Housing Fee
The purpose of the Affordable Housing Fee is to establish a means by which developers
assist in increasing the supply of affordable housing.
Use of Affordable Housing Fees
The Affordable Housing Fees collected from developers are placed in Fund 611 to
finance programs to create affordable housing opportunities, including:
Mortgage subsidies and down payment assistance
Site acquisition
Banking of land for use in the development of affordable housing
Rental subsidies
Construction financing
Issuance of bonds
Providing predevelopment funds
Providing rehabilitation funds to preserve existing affordable housing stock
Other assistance that serves to increase or maintain the supply of affordable
housing in Livermore.
1
Livermore Development Code § 10.06.050 Affordable Housing.
Livermore Affordable Housing Fee
2
Relationship Between the Affordable Housing Fee and Development
Residential development contributes to the need for affordable housing because it
reduces the available supply of residential land in the community and increases the
demand for affordable housing required for persons employed in lower compensation
jobs.
Commercial development contributes to the need for affordable housing because it
generates jobs and generates the need for more housing for its employees, including
persons employed in lower compensation jobs.
Studies evaluating the impact of high-cost low-density residential development on the
supply of affordable housing, and commercial and industrial development on the need
for affordable housing, include:
City of Livermore Housing Impact Fee Study, dated July 8, 1998, prepared by
David M. Griffith & Associates, Ltd.
City of Livermore Study of Inclusionary Housing Program and In-Lieu Fees,
dated February 3, 2000, prepared by DMG-Maximus, Inc.
City of Livermore Inclusionary Housing Ordinance Update: Feasibility Analysis,
dated April 2005, prepared by Bay Area Economics
Residential Nexus Analysis, dated April 2013, prepared by Keyser Marston
Associates
Financial Feasibility Analysis, dated November 2013, prepared by Seifel
Associates.
Refunds
Affordable Housing Fees may be refunded when:
A building permit or zoning use permit expires without an extension
The development for which the fee was paid is not constructed
The Affordable Housing Fees have not been committed.
Accounting Requirements
The City must comply with the Mitigation Fee Act accounting requirements, including:
Avoiding comingling the Affordable Housing Fee with any other accounts, except
for temporary investments
Expending the fees solely for the purposes for which the fees were collected
Providing regular reports on the Affordable Housing Fees in Fund 611.
Exhibits:
1. Livermore Development Code § 10.06.050 Affordable Housing
2. Livermore Municipal Code Chapter 3.26 Affordable Housing Fee