City Committee, Council Will Vote on Fee Developers Pay as Alternative to Including Affordable Housing Units in Projects

Published : Monday, August 27, 2018 | 5:42 AM

The Pasadena City Council’s Finance Committee is set to conduct a public hearing Monday on proposed adjustments to the current rate of the City’s inclusionary housing in-lieu fee, which developers pay to the City as an alternative to providing affordable housing within a proposed project that is subject to the Inclusionary Housing Ordinance.

The ordinance, enacted in 2001, applies to new housing developments of 10 or more units and requires developers to provide affordable housing for low-income and moderate-income buyers or renters within their project site.

The ordinance also provides three alternatives to providing on-site affordable housing: provide the units at another property or “off-site,” pay the Inclusionary in-lieu fee, or donate land at a value equal to or greater to the in-lieu fee amount.

Of the three, the in-lieu fee is the most exercised by developers.

An agenda report for the City Council prepared by Finance Director William Huang said the rate structure for in-lieu fees was last modified in 2005. With new state legislation signed into law in September 2017 impacting the affordable housing program in local governments, the report said it is important to review the fees and update them.

At the public hearing, part of the Finance Committee meeting Monday, a consultant hired by the Finance Department is scheduled to present findings of its analysis of the current fees in support of the City’s efforts to update the fees to reflect current housing market conditions.

Aside from the public hearing, other new items in the agenda for the Finance Committee meeting include amendments to the Capital Improvement Budget for fiscal year 2018, deliberation on a proposed 10-year contract with a parking systems provider and a recommendation to increase budget appropriations for off-street parking facilities, and a proposal to amend a contract with Friends in Deed, which operates the City’s Homeless Prevention Project.

The discussion will also include a recommendation from the Department of Transportation to authorize the City Manager to enter into an agreement with the California Office of Traffic Safety (OTS) to receive a grant of $175,000 for the Pedestrian and Bicycle Safety Outreach Program for 2019, which will also require an amendment to the department’s 2019 operating budget.

A resolution governing the advancement and repayment of residential impact fees from one park impact fee district to another, and amending the 2019 Capital Improvement Program budget accordingly, will be presented to the Finance Committee, for final adoption by the City Council later Monday.

The Finance Committee meeting begins at 4 p.m. at the City Council Chamber, Room S249 at City Hall.

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