Housing Advisory Board recommends council consider $15/sq ft impact fee on single-unit replacements and substantial additions

City staff presented a draft ordinance and supporting nexus study proposing an affordable-housing impact fee for “single unit dwellings” — replacement homes and substantial additions — and the Housing Advisory Board voted to recommend that city council consider adopting the ordinance.

A city staff presenter (Sloan, title not provided in the meeting transcript) summarized the legal standard for impact fees under state law and a consultant nexus study completed in late 2024. Sloan said the consultant found that demolition-and-replacement projects and large additions tend to increase the value of housing and create demand for locally employed workers, and that a fee in the range of $15–$23 per square foot could be supported depending on scenario. Sloan told the board the staff recommendation is a flat $15-per-square-foot fee for qualifying development, with a credit for the size of the demolished structure and an exemption for accessory dwelling units (ADUs). Sloan said the fee would not apply to homes under 2,000 square feet total area and that additions would receive a one-time 500-square-foot credit before the fee applies.

Sloan outlined the scope and key provisions in the draft ordinance: the fee…