It is anticipated that any General Fund revenue loss resulting from the Impact Fee Deferral Program will be offset by increased economic activity within the county resulting from these actions. All other fee adjustments will have no impact on the General Fund.
Development Impact Fee Realignment Program Fee
On June 2, 2009, the Board of Supervisors adopted Ordinance No. 2009-14 authorizing the realignment of certain impact fees by allowing for the deferral of specified fee payments for residential development projects through December 31, 2011.
Fees included in this program are Area of Benefit Fees, Child Care Fees, Inclusionary Housing Fees, Park Impact Fees, Police Services Fees (Minor subdivisions), and Traffic Impact Fees. Special district and regional authority fees are not included in this program. Fees not included are: multi-jurisdictional fees involving joint powers agencies, fire district fees, school impact fees, fees derived from conditions of approval rather than by ordinance, fee program funding services (e.g. Dougherty Valley Transit Fee Program), planning/engineering application fees, and building permit fees.
The Ordinance requires that a developer apply to participate in the deferral program, and execute an agreement that will be recorded as a lien on the property. The developer will be required to pay a $500 one-time service fee. This fee will help to off-set staff costs incurred in processing the application, monitoring the development, and ensuring that the fee is paid when the development is complete.
Inclusionary Housing Ordinance In-Lieu Fee
On October 24, 2006, the Board of Supervisors adopted County Ordinance 2006-43 Inclusionary Housing (IHO). The IHO is applicable to all new residential developments of five or more units, as well as condominium conversions. Fifteen percent of all the residential units are required to be affordable. The IHO provides some alternative compliance options, including the payment of fees in-lieu of developing affordable units (“in-lieu fee”), allowing the affordable units to be developed on a separate site, and allowing a developer to convey land suitable for affordable housing development to a qualified affordable housing developer. In addition, the County may consider any other reasonable alternative that a developer proposes.
On July 21, 2009, the Board directed staff to update the Department of Conservation and Development’s Fee Schedule to reflect changes in the area median income, median home sales price, and median rent. Upon adoption of the Fee Schedule, the in-lieu fee for for-sale developments will be $3,874.89 per market rate unit, and $26,774.55 per market rate unit in rental developments.
Affordable Housing Program Loan Subordination Request Review and Document Preparation Fee.
1. Fees For Subordination To Multi-Family Refinances
The Board of Supervisors has allocated Community Development Block Grant, HOME Investment Partnerships Act, and Housing Opportunities for Persons with HIV/AIDS, and Redevelopment Agency funds to developers of affordable housing over the past 30 years. Over the past year, the County has received requests from some of the project owners to assist in refinancing by subordinating to a new first mortgage. Some of these transactions are straightforward and require minimal County staff time. Other transactions are quite complex and require significant staff time as well as new or modified legal documents. These costs can exceed $5,000 per transaction.
A deposit of $1,000 plus time and materials will assist in offsetting costs and allow the Department to maintain a balanced budget for affordable housing programs.
2. Fees For Subordination To Single-Family Refinances
The Board of Supervisors has provided homeownership opportunities through below market priced homes and silent second loan programs. The County has frequent requests from homeowners to subordinate the County Deeds of Trust to a new first mortgage. Some of these transactions are straightforward and require minimal County staff time. Other transactions are quite complex. In addition to County staff time, it is sometimes necessary to draft new legal agreements. These costs are $350 per transaction at a minimum.
A flat fee of $350 for subordination requests for County financed affordable single-family housing will assist in offsetting costs and allowing the Department to maintain a balanced budget for affordable housing programs.
3. Fees Related to Refinancing and Issuance of Mortgage Credit Certificates for Affordable Multi-Family and Single-Family Housing
Staff and legal costs for time in reviewing requests and for preparing and processing documents related to refinancing and mortgage credit certificates can also be $5,000 or more. The following fees will assist in covering these staff and legal costs:
Multi-Family Affordable
Housing Refinancing Fee $1,000 deposit plus time and materials
Single-Family Affordable
Housing Refinancing Fee $350
Mortgage Credit
Certificate Issuance $300
Re-Issuance of
Mortgage Credit Certificate $300
Replacement of Lost
Mortgage Credit Certificate or
Reissued Mortgage Credit
Certificate $100
Lender/Broker Mortgage
Credit Certificate Participation $400
Lender/Broker Mortgage
Credit Certificate Participation
Annual Fee $200
Montalvin Manor Planned-Unit District Fee Schedule and Amnesty Program
On June 16, 2009, the Board of Supervisors adopted the Montalvin Manor Planned-Unit District rezoning. This action provides for a streamlined application process for many types of development applications. The fees adopted by the Board for the Montalvin Manor Planned-Unit Zoning District reflect the actual charges for staff time needed to review administrative permits in this new zoning district. These fees are consistent with the Bay Point, Rodeo and North Richmond Planned-Unit Zoning Districts. The deposits for Land Use Permit and Development Plan applications for both of these areas cover the standard processing costs. Time and Materials are charged to all applicants that exceed the cost of the initial application fees and/or deposits.
At the same time as the adoption of the Montalvin Manor Fee Schedule, the Board also adopted an Amnesty Program exempting certain structures within Montalvin Manor from building permit fees through December 31, 2011. The exempt structures include: roof conversions from flat to pitch; porch covers/roof extensions; second story additions; room additions to the rear of the dwelling; carport conversions to garage or living space; garage conversions to living space. All building codes and standards and health and safety standards as well as the Montalvin Manor Planned Unit District requirement must be met.
Update Building Inspection Services Section of the Fee Schedule
The last update to the Building Inspection Services section of the Land Development Fee Schedule was in 1997. Changes to both costs of doing business and to various building valuation source information have occurred.
In 1997, building valuation data was published by the International Conference of Building Officials (ICBO) in a monthly magazine. In the intervening years, the ICBO has been replaced by the International Code Conference (ICC) and the building valuation data is now published in the ICC’s monthly journal. The fee schedule needs to be modified to allow for any future organizational changes but still retain use of the internationally recognized data on building valuation. Additionally, the Fee Schedule needs to be modified to reflect the consolidation of departments into the Department of Conservation and Development.
Both hourly rates for staff and costs for vehicle trips to sites requiring code enforcement inspections have changed since 1997. Modifications to the Fee Schedule increase the vehicle trip charges for code enforcement from $25 per trip to $50 per trip. Also, the new Fee Schedule eliminates the hourly rate listed for Additional Processing for Permit Processing but provides for using the hourly rate in effect at the time the additional plan check services are required.
The Land Development Fee Schedule will not reflect actions already taken by the Board of Supervisors, and the fees charged will not cover the cost of the service.
ADOPTED the recommendations and Resolution No. 2009/559 as amended today to exclude affordable housing restrictions on rental units.