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Buena Park adopts new per-square-foot development impact fees, approves affordable-housing incentives
Summary
After a lengthy public hearing, the council adopted a nexus study and a municipal code amendment establishing per-square-foot impact fees for water, sewer, transportation and parks, and an affordable housing in-lieu fee; council also approved an amendment to waive or reduce fees for deed-restricted affordable housing (full waiver for for-sale and 50% reduction for rental, per the council amendment).
Buena Park ' The City Council voted Jan. 28 to adopt a Willdan-prepared nexus study and to add a new chapter to the municipal code establishing development impact fees calculated on a per-square-foot basis for transportation, water, sewer and parks. Council also adopted a policy amendment that provides fee relief for deed-restricted affordable housing: a full waiver for for-sale affordable units and a 50% reduction for deed-restricted rental units, as amended by Council Member Susan Sani.
Director Matt Folkes framed the proposal as compliance with the Mitigation Fee Act and AB 602, which generally pushes fee calculations toward a square-foot basis and requires transparency. The study sets maximum justifiable fee amounts (examples in the staff presentation included a parks fee of $10.47 per square foot applied to new residential units and affordable in-lieu fees of about $99.59 per square foot for rental and $107.16 for for-sale affordable units).
Folkes walked the council through hypothetical scenarios comparing the proposed fees to the city's current practice (parks and recreation fees that in some cases date from the early 2000s) and to neighboring cities. He said the proposed schedule would increase impact fees for many new projects because water and sewer fees were not previously assessed by the city.
Council members asked for and received clarification on applicability (fees apply to new square footage, including additions and tenant improvements, and exemptions for small ADUs under 750 square feet) and on possible fee-deferral options. Stakeholders including the Building Industry of Southern California asked for additional study; the council adopted the nexus study and then passed the ordinance and fee schedule with the affordable-housing fee modification.
Folkes told the council that projects already in the development pipeline would remain subject to previously adopted fees. The city also discussed the mechanics of an in-lieu fee for affordable housing, which would be limited to substituting for up to 25% of required affordable units in qualifying housing-incentive-overlay projects.
What happens next: Staff will post the nexus study materials required by AB 602, implement the new fee schedule for projects that apply after the effective date, and prepare any requested fee-deferral program language or further options to incentivize affordable units.
Sources: Willdan nexus study and presentation by Matt Folkes; public comments; council motions and votes.
