Title
Recommendation to Accept the Annual Review of the Affordable Housing Unit Fee Requirements Consistent with Section 27-1 of the Alameda Municipal Code, Accept the Annual Affordable Housing Unit Fee Fund Activity Report, and Find that: 1) Unit/Fee Requirements Set Forth in Local Law Remain Reasonably Related to the Impacts of Development, and 2) the Affordable Housing Units, Programs and Activities Required by Local Law Remain Needed to Support the Production of Affordable Housing in the City of Alameda. (City Manager 20821840-52010)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On December 19, 1989, the City Council adopted an Affordable Housing Ordinance (Ordinance), which authorized imposing affordable housing in-lieu fees that would apply to non-residential construction. The City of Alameda's (City) Affordable Housing Unit Fee (AHUF) requirements may be satisfied either by providing affordable housing units or by paying an in-lieu fee. These in-lieu fee payments are deposited and tracked in the Affordable Housing Fund (Fund 208). Pursuant to Alameda Municipal Code (AMC), the City is required to annually report on the status of the funds and the uses for which the funds were expended. Exhibit 1 shows the AHUF Fund activity for Fiscal Year (FY) 2023-24, including an ending fund balance of $922,197.
BACKGROUND
The Ordinance authorizes affordable housing in-lieu fees that apply to office/research and development, retail, warehouse/industrial, manufacturing, and hotel/motel construction. The Ordinance established the City's AHUF requirements in Section 27-1 of the AMC and stated that these requirements can be satisfied either by providing housing units affordable to very low-, low- and/or moderate-income households or by paying an in-lieu fee. Such fees are not subject to the Mitigation Fee Act. See California Building Industry Assn. v. City of San Jose (2015) 61 Cal.4th 435 (inclusiona...
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