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Commission recommends childcare fee increases, splits designated-childcare-unit proposal for further work
Summary
The commission recommended approval of an expanded residential childcare in-lieu fee and clarifications to area-plan fee treatment, and asked that the proposal to allow designated childcare units inside affordable units be studied and handled separately; motion passed unanimously.
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Planning staff sought the commission—s recommendation on a package to expand childcare impact fees to residential development and increase existing rates. Monica Mohan, planning staff, described capacity shortfalls and proposed program elements, and Supervisor Yee spoke in support of the changes and a novel provision allowing developers to dedicate on-site units for licensed family childcare as partial fee credit.
Supervisor Yee said the city currently licenses capacity for roughly 42 percent of children with working parents and that there are about 3,500 children on the childcare eligibility list, urging new tools to expand capacity. Staff proposed a residential childcare impact fee, additional fees for conversions, and a program allowing a project sponsor to provide designated childcare units (two-bedroom, minimum ~1,000 sq ft) occupied by tenants who agree to operate a licensed small family day care home for at least 10 years as a partial fee offset.
Commissioners and staff discussed implementation details and risks: MOHCD and planning staff recommended separating the designated childcare unit (DCCU) approach from the inclusionary housing program to avoid creating a precedent that counts the same unit for both childcare and inclusionary credits. Staff recommended the Office of Early Care and Education enforce the program and proposed monitoring and contingency actions if DCCUs were not established.
Commissioner Antonini moved to approve the fee increase portions with staff—s recommended modifications, to clarify that area-plan fees remain dedicated to those plan boundaries, and to separate the DCCU concept into a distinct piece of legislation for further study. The motion was seconded and passed unanimously (5-0). Staff and MOHCD representatives said they will continue refining details and outreach for the DCCU option.
