San Juan Capistrano Housing In Lieu Fee Review. Housing Advisory Committee s Recommendation Regarding Fee Revisions

Transcription

1 San Juan Capistrano Housing In Lieu Fee Review Housing Advisory Committee s Recommendation Regarding Fee Revisions 1

2 Purpose City Council is to consider the Housing Advisory Committee s recommendation to reduce all development related fees, including but not exclusive to the housing in lieu fee, by 10%. 2

3 Housing Advisory Committee Comments Subsequent to the elimination of redevelopment, in lieu fees are the only remaining financial source for assisting the development of affordable housing. Several alternatives to paying the in lieu fee exist: Building inclusionary units within a development Providing affordable units in a separate development Providing land to accommodate new affordable units. 3

4 Housing Advisory Committee Comments Continued The in lieu fee is an impact fee like a park or sewerfee,eachtimelandisconsumedthey re fewer resources for affordable housing. The current fee is still too low to support the development of affordable housing. TheCityalwaysretainstherighttonegotiateanyfee, including the housing in lieu fee. 4

5 State Requirements State law requires that all cities develop and adopt Housing Elements. Housing Elements are required to include: Land use methods of meeting the Regional Housing Needs Allocation (RHNA). City s land use methods include Rezoning, Building, and Inclusionary Housing. Inclusionary Housing allows 10% of undeveloped residential property to count toward RHNA; without which the City would be required to rezone or build housing sites. 5

6 Inclusionary Requirement Residential zoned land remaining to be developed. 239 Units Allowed Development Name and Zoning 155 Whispering Hills Canyons (Planned Community) 8 Don Juan Estates (MRD 4,000) 31 Belladonna Estates (Hillside Residential) 7 Hidden Creek Estates (RS 10,000) 41 Oso Ranch (Planned Community) 56 Frost Property (Hillside Residential) 28 McCracken Hill (RSE 20,000) 45 Oak s Property (RS 10,000) 18 Calle Lorenzo Property (RS 4,000) 100 Whispering Hills Apartments (Planned Community pending) 239 Historic Town Center Master Plan 728 Total Units X 10%=72.8 Inclusionary Requirement 6

7 Quantified State Requirement State law requires cities to plan for housing to be provided for all economic segments of the community. RHNA is established to provide a quantitative requirement for new construction. The City s RHNA for 2006 to 2014 : RHNA Very Low 228 Low 188 Moderate 210 Above Moderate 436 Total

8 Background The City adopted a 10% Inclusionary Requirement to assist in satisfying RHNA. In accordance with State law when adopting inclusionary requirements, the City adopted a Housing In Lieu fee, calculated as 1% of the building value. Fee was approximately $2,400 per unit. The City has no affordable units from the original inclusionary requirement. Fees collected contributed to Habitat for Humanity and Season s II developments. 8

9 Background Continued In 2009, the fee was updated to encourage developers include units or pay a fee to sufficiently fund rezones or construction. The fee is now around $10,400 per unit. Directly resulting from the update, developers now show interest in providing inclusionary units. Distrito La Novia/San Juan Meadows: 26 units. New developments have shown interest in providing affordable units; however, to date, no additional agreements have been made. 9

10 In Lieu Fee Survey Staff conducted a survey to compare the City s housing in lieu fee to other Cities within Orange County. 11 cities maintain housing in lieu fees. TheCity sfeewasbelowtheaveragein lieu fee per unit, when compared to the other cities. County Average: $21, per dwelling unit San Juan Capistrano fee: $10, per dwelling unit (negotiable at developer s request) 10

11 Council Actions Recommendations: Review the Housing Advisory Committee s recommendation to reduce all developmentrelated fees, including but not exclusive to the housing in lieu fee. Direct staff in next actions, if any are desired. 11