A proposed ordinance in one California city would require developers planning residential projects costing $100,000 or more to pay an affordable housing impact fee.
The Mill Valley Planning Commission voted unanimously on Tuesday to recommend the City Council adopt the new affordable housing ordinance that would apply to new houses, condominiums, apartments, renovations and additions to existing residential developments.
he fee would equal 1.5 percent of the project's valuation, or construction cost. City planners estimate that the fee would generate more than $500,000 annually, which would be fed into an affordable housing trust fund.
The trust fund would be "solely for the purposes of fostering affordable housing within the community, including the acquisition, construction, development, rehabilitation and maintenance, and, or administration of such properties," said Danielle Staude, senior planner.
The City Council is scheduled to review the proposed ordinance at its July 17 meeting. The ordinance would also require the formation of a housing committee to assist staff with housing programs.
Under the ordinance, multi-family ownership projects that are four units or more would be required to have at least 25 percent of those living spaces as affordable units, Staude said.
The purpose of the ordinance is to ensure that all residential development projects contribute to the city's housing goals by constructing affordable units or by paying a fee to fund affordable housing initiatives, Staude said.
Commissioner Anne Bolen called it "a work in progress process," explaining that she anticipates that city planners will have a one-year review of the effort to consider additional modifications.
"I think because of all the building going on we should be in favor of this," she said. "All in all, I think it's a great job."
Commissioner Nate Bosshard pointed out that by establishing an affordable housing trust fund, the city is setting itself up for potential state funding to support future projects.
"Whether it's matching in support and land we could access, I just think people need to know that this '500k' is a stake in the ground," he said. "I think this differentiates Mill Valley. I think we actually as a community do truly believe we need affordable housing, not just gestures."
Dennis Klein, the chairman of the Mill Valley affordable housing committee, a citizens' advocacy group, supports what the city planners have proposed, but said the ordinance needs to take it a few steps further.
"What you consider the most important reason for this ordinance, our affordable housing committee is in lockstep," he said to the commission at the June 26 hearing. "What I do see in the ordinance looks fine. What we don't see ... is any real concrete addressing of 100% under market" housing initiatives.
He explained that under inclusionary housing, 1,200 units have to be built at market rate to get 400 units below market.
"It's not a bad ordinance, it just has things that are not in it yet," he said.
Klein and other residents argued that the city could benefit from more community input.
The commissioners said there will be opportunity for more public input when the City Council considers the ordinance next month.
