CITY COUNCIL REGULAR MEETING AGENDA PACKET

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 6 the City as appropriate and documented herein. The level of service is articulated in the CIP provided in Appendix A-1. x Per Square Foot Residential Fees: AB 602 notes that for fees adopted after July 1, 2022, the nexus study must “either calculate a fee levied or imposed on a housing development proportionately to the square footage of the proposed units, or make specific findings explaining why square footage is not an appropriate metric to calculate the fees.” AB 602 also notes that “This bill would require that a local agency that calculates fees proportionately to the square footage of the proposed units be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.” This analysis relies on assumptions about the average unit size for residential units developed following market research and conversations with City staff. The average home sizes were then applied to the per unit fees, to determine the maximum per square foot fee for both single family and multifamily development. All State statutory requirements have been followed in establishing this DIF, as documented in subsequent chapters. Chapter 6 summarizes the specific findings that explain or demonstrate this nexus. If the DIF is adopted, this Nexus Study and the technical information it contains should be maintained and reviewed periodically by the City to ensure its accuracy and to enable the adequate programming of funding sources. To the extent that infrastructure requirements, costs, and development potential changes over time, the DIF will need to be updated. AB 602 requires the DIF to be updated at least every 8 years. Affordable Housing In-Lieu Fees Inclusionary housing programs require that new market-rate residential development projects include a certain percentage of housing units at rents or sale prices that are affordable to lower-income households. Instead of providing required affordable housing units on site, developers may opt to pay an in-lieu fee. Local governments gain the authority to enact inclusionary housing programs and charge in-lieu fees through their general police power to regulate the development and use of real property.2 The City of Pleasanton is updating its Inclusionary Zoning Ordinance, and as part of the process is updating the in-lieu fee levels. These in-lieu fees are not “mitigation fees” and therefore do not require a nexus study illustrating demand generated by new housing developments. The City’s authority impose in-lieu fees was confirmed with the approval of AB 1505 in 2017 which allows jurisdictions to require the inclusion of affordable housing in new rental housing projects, thereby superseding the 2009 decision of Palmer/Sixth Street Properties, L.P., et al. v. City of Los Angeles (2009) 175 Cal.App.4th 1396. 2 California Building Industry Assn. v. City of San Jose, 61 Cal.4th 435 (2015). Page 67 of 893