Board gives staff direction to update TIF offset policy, with larger changes to be studied

The Board received an update on Board Policy B14, the Traffic Impact Fee (TIF) Offset program for affordable housing, and provided informal direction to staff to proceed with technical clarifications while staff studies larger potential changes.

Planning and Building staff explained the program (established in 2007), its intent to incentivize affordable housing, and the fund assumptions used in the nexus (roughly $1 million/year over a 20‑year horizon, $20 million total). Staff recommended removing legacy references to accessory dwelling units (ADUs) that had been handled previously; updating references from “TIM” to “TIF”; clarifying what constitutes a project that is “developing” (eligibility to require a submitted planning application); and tightening deed‑restriction language.

The Affordable Housing Task Force suggested broader measures — extending eligibility up to 150% of area median income for workforce housing, moving to a 100% offset for low‑income units, allowing year‑round or more frequent application cycles, delegating award authority to the CAO or department director (with board appeal), and aligning deed restriction durations with state/federal funding (45–55 years). Staff cautioned that grant funding assumptions and program fiscal capacity limit how much additional offset can be made available today and recommended staff study those options further before bringing any substantial changes back to the board.

Board members generally supported the technical edits and asked staff to return with a final redline for formal adoption. Positions varied on delegation: some supervisors favored a more administrative award approach to speed approvals, while others preferred retaining board review for transparency and oversight. Staff will prepare the redline that includes the technical changes and return with analysis on the feasibility and fiscal impacts of the larger proposals.