Mountain House Municipal Code Ch. 5 Affordable Housing Impact Fee

It is the intent of this Chapter to establish an Affordable Housing Impact Fee in order to promote the development of housing that is affordable to low-income households within the Mountain House Community through the use or application of fee revenues, as specified in the Mountain House Master Plan.

(Ord. 2024-18, § 1(Exh. A), 2024)

In establishing the Affordable Housing Impact Fee, the Board of Supervisors found, and the City Council to the extent necessary and appropriate finds, as follows:

(a) Following extensive planning, environmental impact analysis, and public review, the Board of Supervisors adopted the Mountain House Master Plan as an implementation measure to the City of Mountain House General Plan.

(b) One of the principal objectives of the Mountain House Master Plan is to ensure that those who work in the community are able to afford to live in the community. By providing housing for all income groups who work within the community, certain benefits to the environment and residents will occur: reduced traffic congestion, improved air quality, increased opportunity for transit and bicycle use, and increased opportunity for pedestrian use throughout the community.

(c) The presence of a housing supply affordable to all income groups also means that the community will be more likely to attract the employment base needed to achieve the jobs/housing balance required by the Mountain House Master Plan. This is critical to the success of the community. Prospective employers consider the availability of affordable housing for their employees as a highly desirable attribute in deciding where to locate their business. Consequently, the availability of a diverse and affordable housing stock will facilitate the development of employment opportunities, thereby helping to implement the concept of a balanced community as provided in the Mountain House Master Plan.

(d) Although the market alone is anticipated to provide housing that is both available and affordable to all income groups, it is anticipated that there will be low-income and medium-income persons working in the community who will be unable to live in the community without some form of housing assistance.

(e) Since residential development in the Mountain House Community will be dependent to some extent on the services provided by low-income and medium-income persons, it is essential that such residential development assume a reasonable share of the responsibility for providing a sufficient number of units which are affordable to these individuals.

(f) In order to ensure the development of residential units which are affordable to low-income and medium-income persons who work in the Mountain House Community, it is necessary to assess an Affordable Housing Impact Fee against residential development, and to create and implement a mechanism whereby revenues generated from said fee can be utilized to fill affordability gaps for such income groups.

(g) For certain categories of residential development, it is inappropriate to assess an Affordable Housing Impact Fee and therefore these categories are excluded from paying said Affordable Housing Impact Fee. These categories include second unit dwellings, Density Bonus Units, and Additional Town Center Units, that are specifically meant to provide affordable housing opportunities for low-income and medium-income persons; residential units in Pre-Existing Residential Areas that do not receive municipal utility services provided by the City of Mountain House; and remodeling projects and projects involving the replacement of existing residential structures up to the total livable area of said structures.

(Ord. 2024-18, § 1(Exh. A), 2024)

An Affordable Housing Impact Fee is hereby authorized in the Mountain House Community.

(a) The Affordable Housing Impact Fee shall be established by a Resolution adopted by the City pursuant to this Chapter and to the Mountain House Public Financing Plan.

(1) The Affordable Housing Impact Fee and any revisions thereto shall be based on the Affordable Housing Impact Fee Technical Report (AHFTR) which specifies the methodology and serves as the basis for the fee computation.

(2) The Affordable Housing Impact Fee shall consist of two (2) components: a fee per dwelling unit square foot and a fee per lot square foot. Said fees shall be revised in accordance with the provisions of Subsections (c) of this Section.

(b) The total amount owed on property subject to the Affordable Housing Fee shall be determined as follows:

(1) For new construction, the total amount owed shall be determined by multiplying the livable area of the residential unit and the square footage of the subject property by the applicable fee components of the Affordable Housing Impact Fee and summing the results.

(2) For additions to an existing residence, the total amount owed shall be determined by multiplying the liable area of the addition by the applicable fee component of the Affordable Housing Impact Fee.

(3) For projects involved the replacement of an existing residential structure, the total amount owed shall be determined by multiplying the livable area exceeding the livable area of the prior structure by the applicable fee component of the Affordable Housing Impact Fee.

(c) The components of the Affordable Housing Impact Fee shall automatically be adjusted on July 1st of each year based on the percentage change in the Mountain House Housing Index, as set forth in the Resolution pertaining to the Fee adopted by the City, for (MH Housing Index) the preceding fiscal year.

(Ord. 2024-18, § 1(Exh. A), 2024)

Unless otherwise specified, all residential construction within the Mountain House Community shall be subject to the Affordable Housing Impact Fee. Non-residential development shall not be subject to said fee.

(Ord. 2024-18, § 1(Exh. A), 2024)

The following categories of residential development shall be exempted from the Affordable Housing Impact Fee:

(a) Additional Town Center Units;

(b) Density Bonus Units;

(c) Projects involving the replacement of an existing residential structure but only up to the total livable area of the prior residential structure;

(d) Remodeling projects;

(e) Residential developments in Pre-Existing Residential Areas in which the zoning is AU-20; and

(f) Second unit dwellings.

(Ord. 2024-18, § 1(Exh. A), 2024)

The total amount owed on property subject to the Affordable Housing Impact Fee shall be payable prior to the issuance of a building permit. The Director shall determine the total amount which is owed.

(Ord. 2024-18, § 1(Exh. A), 2024)

A Mountain House Housing Trust Fund (MHHTF) shall be established by the City for the purposes of this Chapter. Money generated as a consequence of the provisions of this Chapter shall be deposited within said fund. Money within said fund, and any interest generated therein, shall be used solely for the implementation and administration of the Affordable Housing Program for the Mountain House Community.

(Ord. 2024-18, § 1(Exh. A), 2024)

If a building permit lapses and becomes void, then the payer of the Affordable Housing Impact Fee amount shall be entitled to a refund, without interest, of said fee amount; provided that the portion of any fee amount received by the City as reimbursement of its costs in administering the provisions of this Chapter shall not be refunded.

(a) The fee payer shall submit an application for a refund of the Affordable Housing Impact Fee amount paid to the City within ninety (90) calendar days of the expiration of the building permit.

(b) Failure of the fee payer to submit a timely application for refund of the Affordable Housing Impact Fee amount shall constitute an absolute waiver of any right to a refund.

(Ord. 2024-18, § 1(Exh. A), 2024)