Napa supervisors direct staff on possible bump to housing impact fees, ask for narrower exemptions and escalator

NAPA, Calif. — Napa County staff presented updated nexus and feasibility studies on residential and commercial development impact fees on Sept. 23, saying the technical work supports much larger maximum fees than the county currently charges but that those maximums would likely undermine development feasibility in many cases.

The Board of Supervisors directed staff to return Oct. 21 with a resolution for public hearing and to bring fees into effect on a later date if the board adopts them, and they signaled consensus on using the California Construction Cost Index as an annual escalator. Supervisors also asked staff to consider targeted exemptions and incentives for small homes and accessory dwelling units and to revisit fee levels if a regional or local housing bond passes.

Why it matters: The county has not updated its affordable-housing and commercial-linkage fees since 2010 and 2014. Staff said current fees are recovering only a small fraction of the funding the county says is justified by the growth it permits. The studies estimate theoretical “maximum justified” fees by measuring how new development increases demand for subsidized affordable housing. But the feasibility analysis shows many of those maximum levels would make projects unprofitable and therefore unlikely to be built.

What staff presented Becky Craig (staff member) framed the consultants’ work and said water and sewer connection fee work is postponed; Jennifer Palmer, director of Housing and Community…