The Union City City Council will deliberate on April 11, 2017, a proposed new affordable housing impact fee on rental housing and proposed revisions to its existing requirements for new market-rate housing. Currently, for-sale housing developers must set aside 15 percent of the units as affordable, pay an in-lieu fee or reach an alternative in-lieu compliance agreement with the city. Staff is recommending the city convert the two in-lieu options to a single per sq. ft. fee. The fee would start at $20 per sq. ft., increase to $22 per sq. ft. in the second year and increase annually according to the CPI. (The rates as specified under the new structure are lower than the existing in-lieu fees for all but the smallest units although some developers have negotiated less costly deals through the alternative compliance program.) For new rental developments, staff is recommending a new affordable housing impact fee that would be phased-in over four years, rising from $10 per sq. ft. to $14 per sq. ft. and then adjusting annually based on the CPI. In lieu of the fee, developers could build 15 percent of the units on-site as affordable. Click here to view and download the staff report and attachments. For questions or comments, contact BIA’s Lisa Vorderbrueggen at 925-348-1956 or lvorderbrueggen@biabayarea.org.
