HomeMy WebLinkAboutCC Resolution 15179 (Proposed Master Fee Schedule) 1
RESOLUTION NO. 15179
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESCINDING
RESOLUTION NO. 11942 AND ESTABLISHING AN AFFORDABLE HOUSING IN-LIEU FEE
FOR DEVELOPMENTS WITHIN THE CITY OF SAN RAFAEL EQUAL TO $362,817 FOR
EACH AFFORDABLE HOUSING UNIT AND PROVIDING FOR ANNUAL ADJUSTMENT OF
FEE
WHEREAS, the San Rafael General Plan 2040 sets forth the relationship between future
development and the need for new housing affordable to very low, low and moderate income
households; and
WHEREAS, Section 14.16.030 of the San Rafael Municipal Code establishes
requirements for the provision of affordable housing units by new residential and non-residential
development projects and the option to accept fees in-lieu of the creation of new affordable
housing units, with such in-lieu fees being dedicated and used by the City for the creation,
rehabilitation and acquisition of off-site affordable housing units; and
WHEREAS, SRMC Section 14.16.030(D)(4) states that an in-lieu fee will be established
by resolution of the City Council; and
WHEREAS, State Housing Law (Government Code Section 65580) states that local
governments have a responsibility “to facilitate the improvement and development of
housing…[for] all economic segments of the community”; and
WHEREAS, for the 2014-2018 period, 31% of households in San Rafael were either
extremely low or very low income, and 46% of households in San Rafael were low income,
based on data from the Comprehensive Housing Affordability Strategy (CHAS); and
WHEREAS, the General Plan 2040 identifies a shortage of housing affordable to very-
low or low-income households caused by a variety of factors including high land and
construction costs; and
WHEREAS, the lack of local, affordable housing contributes to traffic congestion within
and through San Rafael due to the need for lower-wage workers to commute from outside Marin
County to jobs in San Rafael; and
WHEREAS, the State-imposed Housing Needs Determination for the period from 2023 to
2031 mandates the planning for 3,220 additional housing units in San Rafael, 1349 of which are
to be very low and low income units; and
WHEREAS, the purpose of the in-lieu housing fee is to help provide affordable housing
units which require public assistance in situations where it is infeasible or impractical to
construct such units onsite; and
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WHEREAS, developers have indicated that consistency in fees across jurisdictions
facilitates development by reducing the time needed to understand fee policies of individual
jurisdictions; and
WHEREAS, Resolution No. 11942, previously adopted by the Council to provide for the
calculation of an in-lieu fee for residential development projects, uses a methodology that is not
in alignment with other jurisdictions in Marin County; and
WHEREAS, the City Council determines that the affordable housing in-lieu fee shall be
based on the difference between the cost to construct a residential unit, including the costs of
site improvements, off-site improvements and land, and the affordable price at which it could be
sold or rented. This affordability gap was analyzed for a range of rental and ownership housing
developments constructed in Marin County in the “Inclusionary Program and In-Lieu Fee Study”
by Strategic Economics and Vernazza Wolfe Associates (2022) (Exhibit A). The City Council
wishes to adopt an in-lieu fee based on these assumptions and annually adjusted for inflation in
construction costs and land values.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael
hereby adopts this Resolution, rescinding Resolution No. 11942, establishing a new affordable
housing in-lieu fee equal to $362,817 for each affordable housing unit required to be provided
by Section 14.16.030 of the San Rafael Municipal Code, and providing for annual adjustment of
the fee based on the changes in the California Construction Cost Index, or comparable index as
selected by the Community Development Director. The first adjustment to the City’s in-lieu fee
shall be made on July 1, 2023.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the Council of
said City on Monday, the 19th day of December, 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk