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Council reviews affordable-housing incentives, ADU incentive carryover and DDA terminal commitment
Summary
Council reviewed housing incentives in the 2026 recommended budget: a $125,000 ADU incentive carryforward (potentially up to $325,000 with an expected DOLA grant), an existing $1 million DDA terminal project commitment, and several impact-fee waivers and tap-fee backfill requests totaling about $1.38 million before offsets.
City staff reviewed the affordable housing measures included or referenced in the recommended 2026 budget and asked council to confirm support before final budget adoption.
Key items reviewed: - ADU (Accessory Dwelling Unit) incentive: staff said $125,000 currently exists in 2025 and would be carried forward into 2026 to continue an ADU production incentive program. Staff said a pending DOLA grant application could increase available incentive funding to $325,000 if awarded. The ADU program has supported roughly 22 ADUs in 2025, and staff said the incentive and related outreach have correlated with increased ADU production. - Downtown Development Authority (DDA) terminal project commitment: council previously passed a resolution committing “up to $1 million” to the DDA terminal project;…
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