Title
Workshop to Discuss Updates to the Inclusionary Housing Ordinance. In accordance with the California Environmental Quality Act (CEQA), this workshop is categorically exempt from further environmental review pursuant to CEQA Guidelines section 15262 (Feasibility and Planning Studies).
Body
To: Honorable President and Members of the Planning Board
From: Allen Tai, Director of Planning, Building and Transportation
Steven Buckley, Secretary to the Planning Board
EXECUTIVE SUMMARY
Program 7 of the Housing Element calls for a review of the City's Inclusionary Housing Ordinance, which currently requires residential projects of five or more units to provide 15% of units at affordable prices for moderate, low, and very low-income households. State law also requires that developers have alternative compliance options, such as paying an in-lieu fee, dedicating land, or constructing units off-site. In addition, meeting certain affordable housing thresholds helps the City qualify for state and regional funding programs related to planning, transportation, and climate adaptation.
Over the past year, staff, a consultant team, and a working group have reviewed feasibility analysis, discussed program structure, and gathered input from developers. This includes feedback from the HHS Division of the City Manager's Office based on their experience managing and monitoring the affordable housing program. Based on this work, staff is seeking Council feedback on potential updates that would generally maintain the overall cost of compliance for developers while adjusting the income mix to better align with local housing needs and regional grant eligibility. Staff is also presenting options for establishing a citywide in-lieu fee that could be calibrated to either encourage on-site affordable units or generate funding for off-site affordable housing development. These approaches may differ for rental and ownership projects. Overall, staff and the working group believe fle...
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