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HomeMy WebLinkAboutAgenda Item 4A - Inclusionary Housing 09-09-21Inclusionary HousingAgenda Item #4A September 9, 2021 DEVELOPMENT SERVICES DEPARTMENT Background •Report on inclusionary ordinances provided to City Council on April 8, 2021 •Staff assembled a workgroup to assist in further study of inclusionary ordinance and impacts DEVELOPMENT SERVICES DEPARTMENT Inclusionary Housing Workgroup •Desert Valleys Builders –Gretchen Gutierrez •PS Modern Homes –Dennis Cunningham •CVHC –Kenneth Rodgers •Lift to Rise –Taylor Libolt Varner •Planning Commission –Lauri Aylaian Members of the public also attended and participated in discussions, offered input DEVELOPMENT SERVICES DEPARTMENT Inclusionary Housing –General •Requires percentage of new housing units for low-to moderate-income households •Percentage: Typically 5% to 25% •May include options for construction of affordable units off site or an in-lieu payment •Requires staffing to administer program and monitor units DEVELOPMENT SERVICES DEPARTMENT How Many AffordableUnits Could Be Built? •Ordinance would only apply to new developments (Escena, Elan, Miralon, Serena Park excluded) •Current average rate of construction:Single-family: 131 units/yearCondominiums: 56 units/yearApartments: 6 units/year DEVELOPMENT SERVICES DEPARTMENT How Many Affordable Units Could Be Built? •Approx. 370 acres of undeveloped residential land •Most remaining parcels are less than 5 acres •Many parcels are Allotted Trust Land •These factors could slow the rate of construction Impacts of Inclusionary Ordinance •Issue: Costs to market-rate builders •Issue: Impact of ordinance on housing cost, rate of production, supply •Issue: No other cities in the Coachella Valley have an inclusionary ordinance –this may put Palm Springs at a disadvantage DEVELOPMENT SERVICES DEPARTMENT Incentives to Offset Impacts •Waivers of development standards •Density bonuses •Expedited entitlements and permits •In-lieu fee payments •SCIP Financing DEVELOPMENT SERVICES DEPARTMENT Alternatives to Inclusionary Ordinance •Voluntary affordable housing program •Fee reductions and waivers •Density bonuses •Commercial linkage program •TOT tax increase to fund affordable housing •Homebuyer assistance/self-help programs •EIFD Program •Revise/eliminate exclusionary zoning DEVELOPMENT SERVICES DEPARTMENT Next Steps Items for Consideration: •Economic feasibility study to study costs of inclusionary housing program •Nexus study to evaluate commercial linkage program •Evaluate regional affordable housing program •Pursue development of alternatives DEVELOPMENT SERVICES DEPARTMENT Inclusionary HousingAgenda Item #4A September 9, 2021 DEVELOPMENT SERVICES DEPARTMENT