Commission studies inclusionary housing options; consultant flags feasibility trade-offs, in-lieu fees

The Orinda Planning Commission held an extended study session on July 8 to review an economic feasibility and market study for a potential inclusionary housing ordinance (IHO), an implementing action of the city's 2023 housing element. Principal Planner Christine Thompson introduced the item; Dave Bergman of Lisa Wise Consulting presented the consultant's findings, modeled prototypes and preliminary policy options.

The consultant framed an IHO as a land-use regulation (not a fee) and noted AB 1505 (the "Palmer fix") and subsequent state guidance require rental projects to have an alternate compliance option (typically an in-lieu fee). The team tested three project prototypes: a 100%-residential RH40 multifamily project (surface parking), a downtown commercial mixed-use project (structured or non-surface parking), and a single-family prototype under RL10. Key findings: rental prototypes in RH40 and downtown commercial could be feasible with a 15% inclusionary share targeted at 80% of area median income (AMI); downtown for-sale projects were thinner financially…