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Council questions fee model as staff weighs 60% vs 80% AMI for rentals
Summary
Council raised concerns about the fee-in-lieu model showing a near-zero or negative fee at 80% AMI; staff recommended keeping the fee tied to 60% AMI to preserve a fee signal for deeper affordability while acknowledging market alignment at 80%.
Council members pressed staff on the technical results of the updated fee-in-lieu model and how the chosen AMI baseline would affect the fee. Council member Heffner pointed to a table in the staff packet and said calculating the fee at 80% AMI (the proposed compliance level for rentals) produced a negative fee in the model and suggested the model was counterintuitive.
Jeff Hirt said the model showed rental rates at 80% AMI had moved closer to market rents in current conditions and confirmed "that's what the model says"; he and staff therefore recommended keeping the fee calculation tied to 60% AMI to ensure a nonzero fee that supports deeper affordability policy goals. Hirt added the model is a point-in-time analysis and staff plans to revisit assumptions as part of the broader code update.
