Mountain View Municipal Code Div. 3 Commercial and Industrial Development: Housing Impact Fee Program

a. Housing fund. Housing impact fees shall be deposited in the City of Mountain View housing fund. The city finance and administrative services director shall maintain the funds in a subaccount separate from other funds in the Mountain View housing fund account.

b. Administration. The housing fund shall be administered by the community development director, who shall have the authority to govern the housing fund consistent with this chapter, and to prescribe procedures for said purpose, subject to approval by the council.

c. Purposes and use of funds.

1. Moneys deposited in the housing fund, along with any interest earnings on such moneys, shall be used solely to increase and improve the supply of housing affordable to households of very low, low and moderate income; including, but not limited to, acquisition of property and property rights; cost of construction, including costs associated with planning, administration and design, as well as actual building or installation, as well as any other costs associated with the construction or financing of affordable housing; and reimbursement to the city for such costs if funds were advanced by the city from other sources. To the maximum extent possible, all moneys should be used to provide for additional affordable housing and services. Moneys may also be used to cover administrative expenses not reimbursed through processing fees, including consultant and legal expenses related to the establishment and/or administration of the housing fund. No portion of the housing fund may be diverted to other purposes by way of loan or otherwise.

2. Moneys in the housing fund shall be used to construct, acquire, rehabilitate or subsidize very low-, low- and moderate-income housing and/or to assist other governmental entities, private organizations or individuals in the construction, rehabilitation and reimbursement of city-advanced funds. Moneys in the housing fund may be disbursed, hypothecated, collateralized or otherwise employed for these purposes from time to time as the community development director and city council determine is appropriate to accomplish the purposes of the housing fund. The housing fund moneys may be extended for the benefit of rental or owner-occupied housing or housing services.

3. Expenditures by the community development director from the housing fund shall be controlled, authorized and paid in accordance with general city budgetary policies. Execution of contracts related to the use or administration of housing fund moneys shall be in accordance with standard council policy.

4. Construction projects assisted with housing impact fee funds shall comply with the prevailing wage requirements of the Federal Community Development Block Grant (CDBG) Program or the HOME Investment Partnership (HOME) Program or successor programs. If the project is not assisted with CDBG or HOME program funds, state prevailing wages shall apply.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19.)

a. Housing impact fee. A housing impact fee is hereby imposed on all developers of nonresidential projects that involve the construction of new floor area, except as otherwise set forth herein.

b. Calculation of housing impact fee.

1. The housing impact fee for nonresidential development projects shall be charged on a per-square-foot basis for all net new gross floor area, including all additions where floor area is increased, with a specific per-square-foot amount set for each nonresidential land use category and amount of floor area identified in Table 36.40-1 below. The amount of the fee shall be computed as follows: (gross square feet nonresidential floor area minus existing floor area) x (applicable fee as listed in Table 36.40-1) = housing impact payment.

2. The amount of each such fee shall be established by resolution of the city council and shall be adjusted annually as a part of the city's annual budget process by the percentage change in the Consumer Price Index for the San Francisco-Oakland-San Jose area for the previous year.

3. In calculating the fee, the chief building official shall use those fees in effect by resolution of the city council at the time of the issuance of the building permit or, if no building permit is required, at the time of issuance of a use or other discretionary permit.

4. The community development director shall determine the appropriate land use category as set forth in Table 36.40-1 below for each new nonresidential development project.

TABLE 36.40-1

HOUSING IMPACT FEE REQUIREMENTS

c. Alternative to payment of a housing impact fee. As an alternative to payment of the housing impact fee, a developer of a nonresidential development project may submit a request to mitigate the impacts of such development through the construction of residential units, the dedication of land or provision of other resources. Such requests may be granted in the discretion of the city council, if the city council determines that such alternative will further affordable housing opportunities in the city to an equal or greater extent than payment of the housing impact fee. However, for combined or mixed-use projects subject to administrative approval pursuant to Section 36.44.75 of the city code, requests for alternatives to payment of housing impact fees may be granted by the housing director, in consultation with the community development director, upon a determination that such alternative will further affordable housing opportunities in the city to an equal or greater extent than payment of the housing impact fee.

d. Adjustment, reduction or waiver. An adjustment, reduction or waiver of the fees required by this Section may be granted for nonresidential development projects under the following circumstances:

1. Upon the remodeling of a building to add square footage, the appropriate housing impact fee shall be paid only on the additional square footage.

2. If the nonresidential development project is in whole or part a replacement for space previously on the site, but vacated or demolished in the twelve (12) months prior to the filing of the application for a zoning permit for the new construction or remodel, credit shall be given for the space vacated or demolished or to be vacated or demolished at the rate applicable to the prior use of that space.

3. If the nonresidential development project is constructed for a specific use involving no employees or fewer than one (1) employee per two thousand (2,000) square feet of gross floor area, the project may be eligible for a waiver of the fees. To be eligible for a waiver, the building must be designed and built such that it cannot be converted to a use capable of housing a larger number of employees except by major reconstruction. The burden of proof shall be on the applicant. If a waiver is granted, a "notice of conditional waiver of housing impact fee" shall be recorded in the Santa Clara County Office of the Recorder. If a subsequent change in the use or structure of the building occurs which involves additional employees, the waiver granted herein shall be deemed revoked, subject to a hearing before the zoning administrator, who shall make a recommendation on the revocation to the city council. The decision of the city council shall be final.

4. If, upon evaluation of facts presented by the applicant, there is an absence of any reasonable relationship or nexus between the impact of the development and the need for housing, the project shall be eligible for a waiver of the fees.

Adjustment, reduction or waiver of the fees required by this Section may be granted by the city council for all development projects, except adjustments, reduction or waiver of the fees required by this Section may be granted by the housing director, in consultation with the community development director, for combined or mixed-use development projects subject to administrative approval pursuant to Section 36.44.75 of the city code.

e. Exemptions. This fee shall not apply to developers of nonresidential projects which fall within one (1) or more of the following categories:

1. Buildings which are owned and at least seventy-five (75) percent occupied by governmental or nonprofit agencies and organizations.

2. Any building which is damaged or destroyed by fire or natural catastrophes so long as the total square footage of the repaired or replaced building remains the same.

f. Grandfather provision. The following nonresidential projects shall be exempt from the provisions of this Article:

1. Projects for which a complete application has been submitted by December 11, 2001 and final approval for a valid zoning permit has been issued and is in effect as of March 9, 2002; or

2. Projects for which a complete application has been submitted by December 11, 2001 and final approval for a valid zoning permit has been issued and is in effect as of March 9, 2002 and which are subsequently the subject of a revised application except that any increase in the amount of originally approved floor area shall be subject to the provisions of this Article.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 10.2026, § 6, 6/9/26.)

a. Filing requirements. The zoning administrator shall develop administrative guidelines for processing applications subject to the requirements of this section.

b. Payment of fee. Unless otherwise mandated and preempted by state law, the housing impact fee shall be paid prior to the issuance of the first grading or building permit.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19.)

a. Payment of the housing impact fee is the joint and several obligation of the applicant and/or the property owner for the subject nonresidential development project. In the event of administrative error, the city shall provide the applicant with a written notice and the applicant shall be required to pay the fees within thirty (30) days.

b. The provisions of this article shall apply to all owners of the property, which is the subject of the application, and developers, agents, successors and assigns of an applicant proposing or constructing a nonresidential development governed by this article. No zoning permit shall be issued for a nonresidential development after March 9, 2002, unless it is in compliance with the terms of this article.

c. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny or suspend any permit or development approval. The city shall be entitled to costs and expenses for enforcement of the provisions of article, or any agreement pursuant thereto, as awarded by the court, including reasonable attorneys' fees.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19.)

Appeals of a housing impact fee condition in a zoning permit or parcel or subdivision map shall be filed with the clerk of the city council within ten (10) calendar days of the notice of decision. The council shall hold a public hearing to consider any appeals in accordance with the procedures of Sec. 36.56. Appeals of any decision of the community development director pursuant to this program may be made to the city council in accordance with Sec. 36.56.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19.)