The 2022-2023 Inclusionary Housing (IH) update will analyze the program to identify opportunities to increase production of housing affordable to middle income households and incorporate best practices for the program.
At the City Council meeting on Sep. 2, 2023, staff provided an update on the project and requested input on potential code changes. At the meeting council members asked clarifying questions of staff and the project consultant on the financial assumptions and analysis. They voiced support for a Nexus Study to support a potential linkage fee on new single-family homes and large additions (this item is related to but not addressed in the IH program.
The majority of the conversation was around the code changes intended to increase the feasibility of middle-income homeownership units produced through the IH program. There was a policy discussion around the tradeoffs between encouraging on-site middle-income units and the CIL that would be paid on a project. Some felt that the proposal to reduce the on-site requirements on for-sale projects was directly pitted against the provision of additional housing since CIL can be used to provide at least double the number of units elsewhere in the city. Most of the members of the council were not comfortable with any reduction in CIL contributions. On a straw poll only three members supported the proposal to make changes to support on-site middle-income housing. Thus, council directed staff to remove the proposal to reduce the for-sale on-site requirement and to increase the unit price requirements. The majority of the council were not comfortable with the values tradeoff necessary to encourage these types of housing units.
Staff incorporated these changes into the IH ordinance.