Report Prepared by: Leah Brown, Management Analyst, Development Services
Title
SUBJECT: Approval of a Professional Services Agreement for $95,000 to Conduct a Prohousing Feasibility Study
REPORT IN BRIEF
Recommend approving an Agreement for Professional Services with RSG, Inc., for $95,000 to evaluate our current policy, conduct a Prohousing Feasibility Study, recommend an in-lieu fee structure for affordability, Housing Trust Fund guidance and assisting with applying for State of California Housing and Community Development's (HCD) Prohousing Designation Program.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving an Agreement for Professional Services with RSG, Inc. (RSG), in the amount of $95,000.00 to conduct a Prohousing Feasibility Study, recommend an in-lieu fee structure for affordability, policy guidance for establishing a Housing Trust Fund, and assisting with applying for HCD's Prohousing Designation Program; and,
B. Authorizing the City Manager or Deputy City Manager to execute the agreement, and any necessary documents to apply for HCD's Prohousing Designation Program.
Body
ALTERNATIVES
1. Approve the agreement, as recommended by staff; or
2. Deny; or
3. Refer to staff for reconsideration of specific items.
AUTHORITY
Charter of the City of Merced, Section 200, et seq.
CITY COUNCIL PRIORITIES
As provided for in the 2022-2023 Adopted Budget and the City Council's Prohousing Policies.
DISCUSSION
On April 4, 2022, the Merced City Council adopted Council Resolution No. 2022-15 (Attachment 1), which adopted a bridge or interim affordable housing production requirement similar to Inclusionary Zoning to new private market rate development, with some specific exclusions and exemptions, at a rate of twelve and a half percent (12.5%). The Council additionally supported the preparation of a study to determine if this rate is appropriate or if other rates should be considered given the local housing market conditions. This study woul...
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