The City of San Jose is getting in a few last minute fee increases before the holiday break. At the Tuesday December 19th City Council meeting, both parks fees and affordable housing fees will be on the agenda. The Council will first tackle the transition from the rental housing impact fee ordinance that was established in 2014 to an inclusionary zoning ordinance for new rental construction. This transition was made possible by the adoption of AB 1505, the so called “Palmer Fix”. Staff is recommending that in lieu fees for new rental construction will jump from $17 per sq. ft. to about $35 per sq. ft., approximately double the existing fee. However, after BIA efforts to educate the Mayor and other Councilmembers regarding the effect of these increases, there is solid support for a compromise at about $25 per sq. ft. Developers can also satisfy the requirement by building 15% inclusionary at 9% moderate and 6% very low. To read the Staff report click here. To read the Mayor’s memo click here.
San Jose parks fees are also on the December 19th agenda with an annual increase to align fees with property values according to the MLS listings for each district in the City. Effective March 1, 2018, an increased parkland obligation for new residential development projects, with increases ranging from 1.5 percent to 8.2 percent in each of the City’s Multiple Listing Service (MLS) districts. Staff also proposes to establish a new park impact fee rate for Downtown Core Area high-rise units, based upon observed occupancy of existing high-rises in Downtown San Jose. To read the Staff reports on this item click here and here.
