funding affordable housing€¦ · • commercial linkage fee update and progress • community...
TRANSCRIPT
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F U N D I N G A F F O R D A B L E H O U S I N G :
SAN JOSE'S COMMERCIAL
LINKAGE FEE
Friday, July 24, 2020 | 12 P.M. - 1 P.M.
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Welcome!Housing Action Coalition
• Welcoming Remarks• Commercial Linkage Fee Update and Progress• Community Impact and Affordable Housing Need• Remarks by San Jose Councilmember Raul
Peralez Questions and Answers• Next Steps and Closing
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TODAY'S SPEAKERS
MATHEW REEDPolicy Manager
SV@Home
NADIA AZIZDirect ing AttorneyLaw Foundat ion of Silicon Valley
RAUL PERALEZCouncilmember City of San José
District 3
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Standard tool for generating revenue for Affordable Housing
Commercial Developers pay a fee to mitigate need for Affordable Housing created by new jobs
San Jose is the only major city in Santa Clara County without a Commercial Linkage Fee
What is aCommercial Linkage Fee?
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Neighboring Cities (2019-2020)
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NEXUS STUDY (July 17th)
Required by State mitigation fee laws
Prepared by Keyser Marston Assoc. in coordination with city staff
Eight types of commercial development were studied in San Jose
Different number of employees per square foot
Different types of jobs, with different wages
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Nexus – Employee Household Income Distribution
Keyser Marston Associates, Inc. -- July, 2020
Employees live in households that may have more than one worker
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Nexus - Maximum Fee Calculation
Keyser Marston Associates, Inc. -- July, 2020
Calculates “gap” between household income, and the cost of providing housing that would be affordable to them
Legal Maximum fee is amount per square foot that would be required to fully mitigate the additional housing burden produced by different types of new commercial development
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Also prepared by Keyser Marston Associates in coordination with City staff
Not required by law, requested by City Council
Technical assessment of the impact of fees at different levels on development feasibility
Different types of development like Nexus Study
Different geographies - Downtown, North San Jose, Edenvale, etc.
Should present fee options and explain how they are sensitive to market conditions
FEASIBILITY STUDY (July 24th)
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Feasibility Study - What we are looking for Original study completed in February, and updated in light of the COVID pandemic and economic recession
Difficult time to assess the future of commercial development in the City -- fees set now will be on offices and warehouses that won’t be completed for 2-5 years and beyond
New assumptions will have a significant impact on the analysis of how fee levels will impact the feasibility of future development
In this period of uncertainty is the need to mitigate affordable housing impacts what is holding up development?
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20193.9 Million Sq Ft Permitted Up to 11,000 new workersNo fees for affordable housing
March 2020Pipeline of 38 Million Sq FtUp to 125,000 new jobs
Between 2021-2031Every $1 increase in CLF Fee levels could potentially fund more than current average annual production of affordable homes
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Community Need in San Jose
Housing Crisis:
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RAUL PERALEZ
COUNCILMEMBER CITY OF SAN JOSÉ
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QUESTIONS AND
ANSWERS
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CAMPAIGN TIMELINE
PUBLIC MEETING
Ju ly17
Ju ly 24
Aug .
6Aug .
14
Aug .
25CITY COUNCIL DELIBERATES
STAFF RECOMMENDATIONS
NEXUS STUDY
FEASIBILITYSTUDY
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GET INVOLVED!
PUBLIC MEETING
The City wi l l host a pub l icmeet ing on We d n e s d a y,A u g u s t 6 solicit ing inpu tf rom the commun i t y .
The inpu t wi l l i n fo rm staffrecommendat ions to CityCouncil .
LETTERS OF SUPPORT
City staff is scheduled to release their recommendat ions to City Counci l on Fr iday, A u g u s t 14.
Letter of Support wi l l be c irculated as wel l as an onl ine Take Act ion pet i t ion .
PUBLIC COMMENT
City Counci l is presented w i th staff recommendat ions at its Tu e s d ay, A u g u s t 25 meet ing .
T U R N O U T !
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@SVatHome
#PasstheFeeSJ!!!
@si l iconval leyathome @svathome
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THANK YOU!
MATHEW REEDPolicy Manager
SV@Home
NADIA AZIZDirect ing Attorney
Law Foundat ion
of Silicon Valley