Chapter 17.40 — AFFORDABLE HOUSING FEES

An affordable housing fee (previously known as the lower-income housing fee) is established as set forth in this chapter in order to assist in meeting the affordable and moderate-income housing goals as established in the general plan.

(Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

As used in this chapter:

"Commercial office or industrial development project" means any construction of a new commercial, office or industrial structure, the addition to any existing commercial, office or industrial structure, or the conversion of an existing commercial, office or industrial structure to a use classification capable of employing additional employees.

"Housing Unit, lower-income" means a new or rehabilitated unit to be made available at a sales price or rental cost affordable to a household whose income does not exceed 80 percent of the area median income, as those terms are defined in Chapter 17.44.

"Housing Unit, moderate-income" means a new or rehabilitated unit to be made available at a sales price or rental cost affordable to a household whose income is more than 80 percent of the area median income, but does not exceed 120 percent of the area median income, as those terms are defined in Chapter 17.44.

"Rehabilitated unit" means any housing unit not meeting Uniform Building Code requirements for occupancy which is improved so as to meet those requirements.

"Residential development project" means the construction of a new housing unit. (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

• A. All residential and commercial office or industrial development projects not otherwise exempt shall pay an affordable housing fee as established by separate city council resolution and which fee shall be set forth in the city's master fee schedule, as amended.

If additional floor area is constructed for, or converted to, commercial, industrial or office use, the fee shall be applicable only to the square footage of the floor area added or to that portion of the square footage of the floor area converted for which the fee has not been paid.

• B. The city council may adjust the fee in consideration of on-site programs promoting lowerincome housing such as the dedication of land suitable for lower-income housing, or in conjunction with an alternative compliance proposal made as part of an affordable housing proposal in accordance with Chapter 17.44.

• (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

• A. The following are exempt from the affordable housing fee:

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City of Pleasanton, CA

PLEASANTON CODE

§ 17.40.040

§ 17.40.060

1. All units within a residential development project when the project has a minimum of 15 percent deed-restricted lower-income housing units;

2. Those lower-income housing units in a residential development project with less than 15 percent deed-restricted lower-income housing units;

3. Deed-restricted moderate-income housing units in residential development projects;

4. Second units and accessory dwelling units and junior accessory dwelling units as those terms are used in Section 66313 of the Government Code and Chapter 18.106;

5. Reconstruction or other new development on a site when such reconstruction replaces an equal number of square feet of floor area, as defined in the Uniform Building Code, when the use is similar, and when such reconstruction occurs within two years from the time the previous structure on the site was demolished;

6. Facilities used exclusively for religious purposes as defined in California Revenue and Taxation Code Section 207.

• B. The project developer shall enter into a regulatory agreement with the city in order for a project to qualify for an exemption by the inclusion of lower-income or moderate-income housing units.

• (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

• A. The city council may reduce the required fee for a commercial, office or industrial development project when the project developer can demonstrate: (1) that the proposed use will generate substantially fewer workers than the uses which have established the fee; and (2) that the building design is unable to house another use without substantial renovation. Examples of such uses are public utility facilities, exclusive storage buildings, etc.

• B. In the event such buildings are renovated to house another use, the fee then applicable shall be due at that time.

• (Ord. 2287, 12/3/2024)

Commercial, office or industrial development projects may construct lower-income housing to fulfill the requirements of this chapter in accordance with this section, and with the applicable provisions of Section 17.44.040.

• A. Lower-income housing proposed to offset the requirements of this chapter must be proposed in conjunction with the commercial, office or industrial development project which would give rise to the fee and must be approved by the city council in offsetting otherwise required affordable housing fees.

• B. For lower-income housing constructed on lands designated for other than residential development in the general plan as of the effective date of the ordinance codified in this chapter, the project developer shall be given a credit, for purposes of offsetting the affordable housing fee otherwise required, in an amount established by separate city council resolution and which credit amount shall be set forth in the city's master fee

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City of Pleasanton, CA § 17.40.060

PLANNING AND RELATED MATTERS

• C. For lower-income housing constructed on lands designated for residential development in the general plan as of the effective date of the ordinance codified in this chapter, for each lower-income housing unit constructed beyond 15 percent of the residential development project, the project developer shall be given a credit for purposes of off-setting the affordable housing fee otherwise required, in an amount established by separate city council resolution and which credit amount shall be set forth in the city's master fee schedule, as amended.

• D. In the event the lower-income housing constructed by the developer of a commercial, office or industrial development project creates an offset of the affordable housing fee greater than the total fee required by the development project, the developer may apply the difference to other sites then owned by the developer. This transfer shall be so noted in the regulatory agreement accompanying the project.

• (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

The affordable housing fee shall annually be revised effective January 1st of each year, commencing on January 1, 1992, by the percentage increase or decrease in the Engineering News Record Consumer Construction Cost Index for the San Francisco Bay Area. (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

• A. All fees generated pursuant to this chapter shall be deposited into the affordable housing fund, and any property interest or other value contributed, including interest earned by the fund, shall be segregated and used exclusively for the purposes provided for herein.

• B. The city manager shall make a written annual report to the city council regarding the administration of the affordable housing fund.

• (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

• A. Any monies generated by this chapter shall be used in accordance with and in support of activities to administer and implement the city's adopted housing element and other policies and programs specifically related to affordable housing as may be approved or authorized by the city council. Activities may include, but are not limited to, land acquisition, construction, rehabilitation, subsidization, and counseling or assistance to other governmental entities, private organizations, or individuals to expand housing opportunities to lower-income households.

• B. Monies in the affordable housing fund may be disbursed, hypothecated, collateralized, or otherwise employed for the purposes set forth herein. These purposes include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, development loan funds, participation leases, loans to develop affordable housing or other public/private partnership arrangements. The affordable housing fund may be used for the benefit of both rental or owner-occupied housing.

• C. When the city uses affordable housing fund monies to construct or assist in the construction

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City of Pleasanton, CA

PLEASANTON CODE

§ 17.40.090

§ 17.40.100

of lower-income units, the city may establish the rules which will apply to occupancy of said units. It is the intention of this chapter and the general plan that such units be made available on a priority basis to Pleasanton residents and workers.

• D. The city council may use affordable housing fund monies for moderate-income housing as determined necessary and desirable to meet general plan goals and policies.

• (Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

Affordable housing fees shall be paid at the time of issuance of a building permit for the residential unit and/or for the commercial, office or industrial development project giving rise to the fee, unless otherwise determined by the city.

(Ord. 1488 § 1, 1990; Ord. 2192 § 2, 2019; Ord. 2287, 12/3/2024)

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City of Pleasanton, CA § 17.44.010

PLANNING AND RELATED MATTERS