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Council probes how new per‑square‑foot fees could affect housing affordability
Summary
Councilmembers asked whether per‑square‑foot fees and exemptions for affordable housing would shift costs onto developers or buyers; consultant said cities may reduce or exempt fees for affordable projects and that per‑sq‑ft pricing aims to favor smaller units.
Councilmembers pressed Willdan and staff on how the draft nexus study’s shift toward per‑square‑foot residential fees could affect housing costs and affordable‑housing projects.
Councilmember Wu noted the possibility that impact fees may pass through to consumers and asked whether the city or state limits charging fees on affordable housing. James Edison replied: “You absolutely can” reduce or exempt fees for affordable housing and said many cities set reduced rates or full exemptions for subsidized projects. Edison explained the state encouragement of per‑square‑foot fees was intended to ease burdens on smaller, more affordable units by charging larger units more.
Council members and staff also reviewed numeric examples provided by the consultant. The presentation used a 2,000‑square‑foot single‑family prototype to illustrate per‑square‑foot calculations; Edison and staff offered to return with historical, “apples‑to‑apples” comparisons using recent local permitting to show how actual projects would fare under the new schedule.
Councilmembers asked staff to evaluate options for exemptions or reduced rates for affordable and mixed‑income projects and requested a follow‑up that compares recent building activity under current fees with projections under the proposed per‑sq‑ft schedule.
