CC 05-19-2020 Item No. 24 BMR Linkage Fee Goldfarb_PresentationEXISTING BMR HOUSING PROGRAM
•For Sale: 15% BMR
•Rental: 15% BMR for
low/very low income
households
Housing Element
Strategy HE-2.3.2
•Implements Housing Element
Requirements
•Authorizes rules and regulations
•Includes alternative compliance
options
BMR Ordinance
CMC Chapter 19.172
•Defines specific requirements applied to
individual projectsHousing
Mitigation
Manual
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CC 05-20-20 Item No. 24
EXISTING BMR HOUSING PROGRAM
New
Residential
Development
with 7 or
More Units
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Rental Units
Very-Low Income Units Low Income Units
60%40%
15% of total units reserved for BMR
Program
Ownership Units
Median Income Units Moderate Income Units
50%50%
INCOME LIMITS
HCD 2020 Household Income Limits for Santa Clara County
Income Category Approximate Percent of Area
Median Income*
Income Limit for 4-Person
Household
Extremely Low Up to 30%$47,350
Very Low Up to 50%$78,950
Low Up to 80%$112,150
Median Up to 100%$141,600
Moderate Up to 120%$169,900
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*HCD adjusts very-low and low-income limits, which do not precisely equal 50% and 80% of the median.
EXISTING MITIGATION FEES
Established following 2015 Nexus Study
Housing Mitigation Fees:
$18.45/sf for detached single family
$20.29/sf small lot single family/townhomes
$24.60/sf for condos/lower density apartments
$30.75/sf for higher density apartments
Commercial Linkage Fees:
$24.60/sf for office/R&D uses
$12.30/sf for hotels
$12.30/sf for retail uses
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LEGAL FRAMEWORK:
RESIDENTIAL PROJECTS
CBIA v. San José (2015)
Upheld inclusionary requirements
No nexus study required
Requirements must be reasonably related to the public health, safety, and
welfare
Property owners may not be denied fair return opportunity
AB 1505 (2017)
Permits inclusionary requirements applied to rental projects, provided that:
Requirements must be imposed in the zoning ordinance
If more than 15% of total units are required for low income households, HCD
could require a feasibility study
Alternatives to on-site compliance must be offered
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LEGAL FRAMEWORK:
NONRESIDENTIAL PROJECTS
Impact fees (aka commercial linkage fees) are
generally allowed, provided:
Fees are reasonable; and
A nexus exists between the fee amount and a project’s
impact on need for affordable housing
A nexus study is legally required
Nexus studies identify the upper limit of fees that may be
imposed
Cities frequently set fees well below the legal maximum
identified in a nexus study to preserve project financial
feasibility
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PROPOSED BMR HOUSING PROGRAM
New
Residential
Development
with 7 or
More Units
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Rental Units: 15% Required
Very-Low Income Units Low Income Units
60%40%
15% -20% of total units reserved for
BMR Program
Ownership Units: 20% Required
Median Income Units Moderate Income Units
50%50%
PROPOSED MITIGATION FEES
Housing Mitigation Fees: No Change
$18.45/sf for detached single family
$20.29/sf small lot single family/townhomes
$24.60/sf for condos/lower density apartments
$30.75/sf for higher density apartments
Commercial Linkage Fees:
$30.00/sf for office/R&D uses (from $24.60)
$15.00/sf for hotels (from $12.30)
$12.30/sf for retail uses
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MITIGATION FEE MANUAL
Manual Updated to:
Recognize 20% requirement for ownership units
Require on-site rental inclusionary units (per AB
1505)
Allow applicants to request a waiver if a
constitutional challenge
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