American Canyon is expanding its affordable housing impact fee to include commercial development and rental residential projects. The city’s current inclusionary policy requires market rate residential developers to set aside 10 percent of units for affordable residents or pay an in-lieu fee of $10,250 per required affordable unit. Rental and commercial developers pay nothing. Under the revamped program adopted in February, the new fees are $3 per square foot for single family houses and townhouses, $3.50 per square foot for stacked flats and apartments, and 50 cents to 75 cents per square foot for commercial projects. For-sale residential developers must still either construct 10 percent of the units on-site as affordable OR pay the new impact fee if it is determined that building affordable units within the project is not feasible. The new fee, however, is lower than the old rate which was the equivalent of $3.19 to $3.82 per square foot. American Canyon has issued building permits for 148 multi-family units and no single-family units between January 2011 and December 2015. Click here to view the American Canyon City Council staff report and associated documents.
