Council tables housing fee-waiver policy amid debate over waivers vs. deferrals

City staff presented a proposed resolution to expand fee waivers and reductions—modeled on a recent school-district request—to private developers for projects that increase housing supply and meet price-range criteria.

Planning staff (speaker 21) described the package as including waivers of land-use fees, reductions in some building permit fees (estimated around a 40% reduction in the model), and limited reductions to water/sewer assessment-related charges (but not actual tap or installation costs). Staff said some fee reductions could amount to “somewhere in the $20 to $40,000 range” per project depending on the permits involved.

Developers and contractors urged that the city consider deferral or incentive-based alternatives rather than outright waivers. Tim Matthews (speaker 16), a local contractor, suggested deferring fees until certificate-of-occupancy or first sale and offering modest discounts to incentivize timely payment. Multiple councilors and public commenters pressed staff to define transparent criteria, address equity concerns and explain how the city manager’s discretion would be bounded.

Given recent information from state staff indicating deferral options may be viable, the council voted to table the resolution to Sept. 2 to allow staff to revise the policy and present clearer criteria for waivers, deferrals and budget safeguards.