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HomeMy Public PortalAboutWhitepaper - Livermore Affordable Housing Fee 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