Report Prepared by: Leah Brown, Management Analyst, Development Services
Title
SUBJECT: In-Lieu Fees and Regional Housing Needs Allocation (RHNA) Unit Production Plan Policy Amendments
REPORT IN BRIEF
Presentation on In-Lieu Fees following City Council's guidance and possible amendments to the RHNA Unit Production Plan.
RECOMMENDATION
City Council - Consider the report and provide more defined direction on elements to include in future resolution to adopt in lieu fees.
Body
ALTERNATIVES
1. Approve, with adjustments to the fee based on area, such as AB3312 land, North Merced, South Merced; or,
2. Approve waiving or reducing the In-Lieu Fee for In-Fill development; or,
3. Approve with differing fees for land within the City and land in unincorporated areas; or,
4. Deny any changes and maintain direction given on August 21, 2023, to keep production requirement of 12.5% and set the fee based on 10%; or,
5. Continue to a future meeting (date to be specified in the motion).
AUTHORITY
City of Merced Charter, Section 200; et. seq.
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget and City Council's Prohousing Policies
DISCUSSION
RSG, the City's pro-housing feasibility consultant, gave a presentation to City Council on August 21, 2023, on the attached Final In-Lieu Fee Analysis and sought direction to confirm the percentage of affordable units the Council would like and to set the fees to determine the in-lieu fee calculation.
Questions came up regarding triggers for the affordable housing requirement in the RHNA Unit Production Plan (City Council Resolution 2022-15). Those triggers include a Legislative Action Agreement, Development Agreement, Pre-Annexation Development Agreement, or size of development.
RHNA makes it the City's responsibility to have adequately zoned sites for development. The City's RHNA Unit Production Plan has other options for meeting RHNA production goals, for example, a developer can pay an in-lieu f...
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