CC Resolution No. 15-036 Adopting residential and Non-Residential Housing Mitigation Fees RESOLUTION NO. 15-036
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADOPTING RESIDENTIAL AND NON-RESIDENTIAL HOUSING
MITIGATION FEES
WHEREAS, to mitigate the impact of new development on the need for
affordable housing within its boundaries, the City of Cupertino (the "City") has since
1993 implemented an Office and Industrial Housing Mitigation Program and a
Residential Housing Mitigation Program, described in the Housing Element of the
General Plan, requiring the payment of housing mitigation fees by non-residential
development and residential projects with six units or less or with fractional unit
requirements, and requiring the provision of moderate-income and median-income
housing in developments with seven units or more (the "Housing Mitigation Program");
and
WHEREAS, the City Council of the City of Cupertino has initiated the Nexus
Study Update project with the approval of the 2014-2015 Work Program on May 6, 2014,
and on March 27, 2015, the City published notice of the initiation of proceedings in the
form required by Government Code.Section 66474.2(b); and
WHEREAS, to further implement the affordable housing goals, objectives,
policies and programs of the City's Housing Element, and to ensure that the housing
mitigation fees recommended by this resolution do not exceed the actual affordable
housing impacts attributable to the development projects on which the fee is imposed,
the City Council has received and considered three reports from Keyser Marston
Associates, Inc. (KMA) dated April 2015 and entitled "Summary and Recommendations:
Below Market Rate (BMR) Housing Mitigation Program;" "Non-Residential Jobs-
Housing Nexus Analysis;" and "Residential Below Market Rate (BMR) Housing Nexus
Analysis" (collectively, the "KMA Reports"); and
WHEREAS, the KMA Reports use widely used, appropriate methodology to
determine the maximum amount needed to fully mitigate the burdens created by
residential and non-residential development; and
WHEREAS, to ensure that development projects remain economically feasible,
the recommended housing mitigation fees as shown in the attached Exhibit A are lower
than the maximum amount needed to fully mitigate the burdens created by new
development on the need for affordable housing as determined in the KMA Reports
and
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WHEREAS, a duly and properly noticed public hearing regarding the proposed
fees was conducted by the Housing Commission of the City of Cupertino on April 9,
2015; and
WHEREAS, the Housing Commission recommended to the City Council that
housing mitigation fees be adopted as described in the staff report; and
WHEREAS, at least ten days prior to the date this resolution is being heard, data
was made available to the public indicating the amount of cost, or estimated cost,
required to provide the service for which the fee or service charge is levied and the
revenue sources anticipated to provide the service, including general fund revenues, in
accordance with Government Code Section 66019; and
WHEREAS, at least fourteen days prior to the date this resolution is being heard,
notice was provided to any persons or organizations Who had requested notice, in
accordance with Government Code Section 66019; and
WHEREAS, notice of the hearing on the proposed fees was published twice in a
newspaper of general circulation in the manner set forth in Government Code Section
6062a as required by Government Code Section 66018; and
WHEREAS, a duly and properly noticed public hearing was conducted by the
City Council on May 5, 2015.
NOW, THEREFORE, BE IT RESOLVED:
Section 1. After careful consideration of the KMA Reports, facts, exhibits, staff report,
testimony and other evidence submitted in this matter, the City Council finds as
follows:
1. The foregoing recitals are true and correct and incorporated into this resolution
by this reference.
2. The purpose of the housing mitigation fee is to mitigate the burdens created by
new residential and non-residential development projects on the need for
extremely low, very low, low, median, and moderate-income housing.
3. All housing mitigation fees collected shall be deposited into the City's Below
Market-Rate (BMR) Affordable Housing Fund (AHF) to be used to increase and
preserve the supply of housing affordable to households of extremely low, very
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low, low, median, and moderate incomes (including necessary administrative
costs).
4. The KMA Reports use widely used, appropriate methodology to determine the
maximum justified nexus fees and inclusionary percentages.
5. The .findings of -the KMA Reports have been considered and are hereby
incorporated by this reference into this resolution, and the City Council finds
that new residential development and non-residential development will create a
need for affordable housing by:
a. Aggravating the existing shortage of affordable housing by reducing the
supply of land for affordable housing and increasing the price of
remaining land.
b. Increasing local employment at extremely low, very low, low, median,
and moderate-income wage levels, which increases the demand for and
exacerbates the shortage of housing available to persons at those income
levels.
6. As shown in the .Housing Element, there is a need in the City for housing
affordable to households of extremely low, very low, low, median, and moderate
incomes.
7. The facts and substantial evidence in the record establish that there is a
reasonable relationship between the need for affordable housing and the impacts
of the development described in the KMA Reports for which the corresponding
fee is charged, and that there is also a reasonable relationship between the fee's
use and -the type of development for which the fee is charged, as is described in
more detail in the KMA Reports included submitted to the City Council.
8. The KMA Reports set forth cost estimates, in 2015 dollars, that are reasonable for
constructing affordable housing, and the fees expected to be generated by new
development will not exceed these costs.
9. Adoption of,this resolution is exempt from the California Environmental Quality
Act because the proposed fee increase is not a project, in that it is a government
funding mechanism which does not involve any commitment to any specific
project (CEQA Guidelines Section 15378(b)(4)).
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Section 2.
1. Adoption of Housing Mitigation Fees. The City Council hereby adopts the
housing mitigation fees shown on Exhibit "A," incorporated by this reference,
and repeals any previously adopted housing mitigation fees.
2. Annual Adjustment to Housing Mitigation Fees. Fees shall be evaluated annually
in accordance with the City's review of all fee schedules.
3. Effective Date. This Resolution shall go into full force and effect on July 6, 2015.
PASSED AND ADOPTED, at a regular meeting of the City Council of the City of
Cupertino this 5th day of May 2015 by the following roll call vote:
Vote: Members of the City Council
AYES: Sinks, Chang, Paul, Vaidhyanathan, Wong
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: APPROVED:
Grace Schmidt, City Clerk Rod Sinks, Mayor, City of Cupertino
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Exhibit A
Housing Mitigation Fee Schedule
Residential Housing Mitigation Fees
Ownership Develo merits (1-6 Units)
Detached Single Family Residence $15.00/sq. ft.
Small Lot Single Family *$16.50/sq. ft..
Residence/Townhome
Multi-family Attached *$20.00/sq. ft.
Townhome/Apartment/
Condominium (up to 35 du/ac)
Multi-family Attached *$20.00/sq. ft.
Townhome/Apartment/
Condominium (over 35 du/ac)
Residential Housing Mitigation Fees
Rental Develo ments (1+Units)
Multi-family Attached *$20.00/sq. ft.
Townhome/Apartment/
Condominium (up to 35 du/ac)
Multi-family Attached *$25.00/sq. ft.
Townhome/Apartment/
Condominium (over 35 du/ac)
Non-Residential ousing Mitigation Fees
Office/Research&Development(R&D)/
Industrial *$20.00/sq. ft.
Hotel *$10.00/sq. ft.
Commercial/Retail *$10.00/sq. ft.
*Fee amounts shall be adjusted annually based on the percentage increase in the Consumer
Price
Index for All Urban Consumers for San Francisco, California