HomeMy WebLinkAbout9/17/2024 Item 7b, Tway and Amini - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 17, 2024
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 7B. INTRODUCE AN ORDINANCE TO ESTABLISH AN IMPACT
FEE DEFERRAL PROGRAM FOR QUALIFYING RESIDENTIAL
PROJECTS
This Staff Agenda Correspondence is meant to provide clarity on an aspect of the
proposed Impact Fee Deferral program. The Development Impact Fee Deferral Program
Guidelines that are included as Attachment C to the staff report define the projects that
are eligible for the fee deferral program. Staff has determined that, as currently worded,
it is not clear that eligible projects must be for-rent projects, and that for-sale projects are
not eligible. The staff report also did not specifically call out this requirement.
Staff is recommending that only for-rent projects be eligible for the program, as they will
remain under one ownership during the life of the project, and therefore, there will be one
owner that is required to pay back the fee deferral loan when it becomes due. It would be
very difficult or impossible to collect a fee deferral loan from a for-sale project (such as a
condo project) that includes many owners. Staff is proposing an update to the Guidelines
document, shown below in blue, to clarify that only for-rent developments are eligible for
fee deferral under the program.