San Ramon Municipal Code Ch. XIII Affordable Housing Commercial Linkage Fee (Commercial Development

Projects) Contents: C4-190. - Purpose. C4-191. - Definitions. C4-192. - Affordable housing commercial linkage fee imposed. C4-193. - Exemptions from payment of affordable housing commercial linkage fee. C4-194. - Alternative to payment of affordable housing commercial linkage fee. C4-195. - Affordable housing fund. C4-196. - Enforcement. C4-197. - Waiver. C4-198 through C4-204. - Reserved.

The purpose of this Chapter is to: A. Enhance the public welfare by imposing an affordable housing commercial linkage fee consistent with the Mitigation Fee Act (Government Code §§ 66000, et seq.) whereby developers of commercial development projects will mitigate the impacts of their projects on the need for affordable housing by contribution to the supply of housing for households with extremely low-, very low-, low-, and moderate-incomes; and B. Implement the General Plan 2040 housing element by creating a mechanism to provide benefits to the community from new commercial development in the form of affordable housing, and to thereby help meet the needs of all socio-economic elements of the community as provided in the housing element; and C. Implement the Affordable Housing Commercial Linkage Fee consistent with the City Council adopted Development Fee Study (the "Nexus Study") while supporting fees that do not significantly hinder economic development. (Ord. No. 487, § II, 4-9-2019; Ord. No. 537, § 1F (Exh. 6), 03/24/2026)

Effective on: 4/23/2026

(Ord. No. 487, § II, 4-9-2019; Ord. No. 537, § 1F (Exh. 6), 03/24/2026) The following words and terms as used in this chapter shall have the following meaning: Affordable housing commercial linkage fee, also referred to herein as commercial linkage fee, means the fee paid by developers of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the city. Affordable housing fund means a fund or account designated by the city to maintain and account for all monies received pursuant to this chapter. Automatic annual adjustment means the automatic annual adjustment of the Affordable Housing Commercial Linkage fees based on the inflation factors identified by the applicable Nexus Fee Study. City of San Ramon, CA | Municipal Code 446

Effective on: 4/23/2026 Building permit includes full structural building permits as well as partial permits such as foundation- only permits. Commercial development project means the new construction of non-residential retail space including, but not limited to, retail, service, office, restaurant, entertainment, lodging, industrial, warehouse and manufacturing uses. Developer means the person(s) or legal entity(ies), who also may be the property owner, who is seeking real property permits or approvals from the city for a commercial development project. Nexus Fee Study means the current and applicable Development Impact Fee Justification Study including other studies, reports, and all supporting data referred to and relied upon in the study to establish applicable fees, which may thereafter be amended, supplemented, or updated from time to time with adoption by the City Council.

Effective on: 4/23/2026 Project means any approval of a commercial development project including, without limitation, a development plan or development plan amendment, rezoning, tentative map, parcel map, land use permit, minor use permit, minor exceptions, variances, building permit or architectural review.

A. Applicability. An affordable housing commercial linkage fee is imposed on all new construction of commercial development projects, including mixed use projects, regardless of zoning designation of the project site, unless otherwise exempted under this chapter. Payment of the commercial linkage fee shall be added as a condition of approval for all development projects subject to this chapter. The fee amount shall be established by resolution adopted by the city council, which may be amended from time to time by the council. Fees shall not exceed the cost of mitigating the impact of commercial development projects on the need for affordable housing in the city. For mixed use projects, the commercial linkage fee (as set forth in this chapter) is imposed on that portion of the project that consists of new commercial development; the city's inclusionary housing requirements for residential projects (as set forth in Chapter XII of this Code) will apply to the residential portion of a mixed use projects. B. Future affordable housing commercial linkage fees will be subject to the automatic annual adjustment inflation factors as provided for by the applicable Nexus Fee Study. C. Calculation of Fee. The amount of the fee, as further described in the fee resolution, is imposed on a per square foot basis for net new gross floor area. The formula below shall be used in calculating the amount of the commercial linkage fee: (Gross square feet nonresidential floor area, excluding structured parking) minus (existing gross square feet of floor area) multiplied by (per square foot fee) equals (total commercial linkage fee). D. Timing of Payment. Commercial linkage fees shall be paid following the filing of a building permit application and prior to issuance of the first building permit for the project. A developer may pay all or a portion of the fee owed at any time prior to issuance of the building permit, at the rate in effect at the time payment is made. For phased projects, the amount due shall be paid on a pro rata basis across the entire square footage of the approved development, and each portion shall be paid prior to the issuance of any building permit for each phase. (Ord. No. 487, § II, 4-9-2019; Ord. No. 537, § 1F (Exh. 6), 03/24/2026)

Effective on: 4/23/2026

City of San Ramon, CA | Municipal Code 447

A. The commercial linkage fee shall not apply to commercial development projects adding five thousand square feet or less of new net square footage. B. The commercial linkage fee shall not apply to projects that fall within one or more of the following categories: 1. Schools and places of public assembly; 2. Public facilities; 3. Any structure proposed to repair or replace a building that was damaged or destroyed by fire or other calamity, so long as the square footage and use of the building remains the same, and construction of the replacement building begins within one year of the damage's occurrence. Upon request by the applicant, the review authority may extend the time for replacement for an additional year if the review authority determines that the applicant has proceeded in good faith and has exercised due diligence in replacing the building in a timely manner. (Ord. No. 487, § II, 4-9-2019)

As an alternative to payment of the commercial linkage fee, a developer may request to mitigate the housing impacts through construction of affordable residential units on an appropriate housing site, the dedication of land for affordable housing, or the provision of other resources to provide affordable housing. The review authority may approve this request if the proposed alternative furthers affordable housing opportunities in the city that is at least equal in value to the payment of the commercial linkage fee. A developer requesting an alternative must submit their request at the time the original application is filed. (Ord. No. 487, § II, 4-9-2019)

Affordable housing commercial linkage fees shall be deposited into an "affordable housing commercial linkage fund" ("fund"). A. All monies collected pursuant to this chapter shall be deposited into the fund. B. Payment of the affordable housing fee shall be added as a condition of approval for development projects subject to this chapter. C. The fee amount shall be established by resolution adopted by the city council, which may be amended from time to time by the council. D. All monies in the fund, together with any interest earnings on such monies less administrative charges, shall be used or committed to use by the city for the purpose of providing or supporting very low-, low-, and moderate-income ownership or rental housing in the city. E. The city shall prepare an annual report to the city council identifying the balance of monies in the Fund, the affordable units provided and any monies committed to providing or supporting very low-, low-, and moderate-income housing. The annual report shall also include a review of administrative charges. (Ord. No. 487, § II, 4-9-2019)

A. The community development director shall enforce this chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The community development director may suspend or revoke any building permit or approval upon finding a violation of any

City of San Ramon, CA | Municipal Code 448

provision of this chapter. No land use approval, building permit, or certificate of occupancy shall be issued for any commercial development unless exempt from or in compliance with this chapter. The Community Development Director 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. B. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the approval authority from any other remedy or relief to which it otherwise would be entitled under law or equity. (Ord. No. 487, § II, 4-9-2019)

A. Notwithstanding any other provision of this chapter, the requirements of this chapter may be waived, adjusted, or reduced if an applicant shows, based on substantial evidence, that there is no reasonable relationship between the impact of a proposed commercial project and the requirements of this chapter, or that applying the requirements of this Chapter would take property in violation of the United States or California Constitutions. B. Any request for a waiver, adjustment, or reduction under this section shall be submitted to the city concurrently at the time of development application. The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim. C. The request for a waiver, adjustment, or reduction shall be reviewed and considered by the approval authority for the application in the same manner and at the same time as the project. It may only be approved following adoption of written findings to the extent necessary to avoid an unconstitutional result.

C4-198 through C4-204. - Reserved.