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Nexus-Based Affordable Housing Fee Analysis for Rental Housing <br /> Draft Report 02/26/18 <br /> used to compute the total number of income-qualified households generated by construction of <br /> market-rate units. The number of income-qualified households required to provide goods and <br /> services to new housing units is summarized on Tables 6 through 9 and detailed in <br /> Appendix B. <br /> The nexus methodology used herein computes the total number of income-qualified households <br /> generated by market-rate units and calculates the impact fee based on the estimated cost to <br /> subsidize the production of units to meet that affordable housing demand. This methodology <br /> does not suggest that all lower income service workers serving City residents will reside in the <br /> City, but it does assume that new development should mitigate for the new affordable housing <br /> demand it creates, even if some of those lower income households reside outside the City. <br /> Fee Calculation <br /> The affordability gap analysis quantifies the subsidy required to construct affordable housing at <br /> various income levels. Analysis of consumer expenditures that rely on lower wage workers <br /> provides an estimate of the total number of income-qualified households generated by new <br /> rental units. Then for each category of market-rate rental units, the nexus-based fee is <br /> calculated by applying the total number of income-qualified households generated to the <br /> affordability gap computed for each affordable household income level. The analysis provides <br /> the maximum supportable nexus-based fees for new rental housing development in Pleasanton. <br /> Tables 6 through 9 show the impact fee calculation by number of bedrooms for rental units. <br /> The total impact fees required for a representative project of 100 units is calculated by <br /> multiplying the number of affordable units required per income level by the cost of subsidizing <br /> such housing. All income-qualified households are assumed to be housed in multifamily units <br /> and the subsidies needed are calculated as the affordability gaps shown in Table 3. The <br /> resulting maximum impact fee for market-rate rental units ranges from $24,911 for a studio <br /> apartment to $46,631 for a 3-bedroom apartment. <br /> Economic&Planning Systems, Inc. 18 p:\151000x\151111pleasantonFee ReporWordabk_Noosing\151111report022616rentaldoa <br />