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Committee approves updates to fee-exemption program aimed at preserving affordable housing and supporting targeted industries
Summary
Staff presented a proposed revision to the city's fee-exemption program for affordable housing, historic and small nonprofit projects, including a proposed annual budget allocation of $3 million and a per-project cap of $250,000; the committee approved the proposal and asked follow-up questions about post-fire rehabilitation eligibility and which
The Planning and Development Committee on Oct. 28 approved proposed updates to the city's fee-exemption program intended to preserve affordable housing, support small historic projects and incentivize developments in targeted industries. Staff said the program has supported preservation of more than 8,210 affordable housing units to date and proposed an annual allocation of $3 million with a maximum per-project exemption of $250,000.
Erika Rexdale of Neighborhood and Housing Services summarized program background and proposed changes. Staff described the applicant types the program targets (affordable housing projects, occupied historic properties and small businesses) and said the city has used the exemption as a tool for rehabilitation following fires and floods. The presentation included income-targeted counts: the staff slide cited more than 1,230 rental units serving households at or below 30 percent of area median income and over 6,050 units serving households at or below 60 percent of area median income, figures staff said reflect past program outcomes.
Staff proposed adjusting per-project limits and eligibility timelines to align with project schedules and said the department is negotiating multi-year availability of exemptions with the Office of Strategic Services (SOS) to ensure multi-year commitments in five-year blocks. Staff signaled they may request adjustments to increase the overall fund for affordable housing partners to $3 million, including incremental partner contributions in multi-year agreements.
Committee members asked whether units damaged by fire would qualify for exemptions and whether very large projects such as a new stadium could qualify; staff said qualifying projects must meet the program's housing or small-business criteria and that stadium projects that do not meet housing program definitions would not qualify for the housing-focused exemptions. Deputy Director Brenda Hicks answered questions about the industries targeted for economic development exemptions, citing manufacturing, bioscience and corporate services among categories considered.
The committee moved and approved the proposal by voice vote; the transcript records a voice vote but does not include a roll-call tally. Staff said they will return with final program language and any contractual timelines for multi-year commitments.
