HomeMy WebLinkAboutR-11521 providing for the deferral of city-wide development impact fees for eligible affordable housing projectsR 11521
RESOLUTION NO. 11521 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SUPERSEDING RESOLUTION NO. 9903 (2007
SERIES) PROVIDING FOR THE DEFERRAL OF CITY-WIDE
DEVELOPMENT IMPACT FEES FOR ELIGIBLE AFFORDABLE
HOUSING PROJECTS. THE PROJECT IS EXEMPT FROM
ENVIRONMENTAL REVIEW (CEQA), AS REPRESENTED IN THE
STAFF REPORT AND ATTACHMENTS DATED SEPTEMBER 17, 2024
WHEREAS, the City’s General Plan requires that the costs of public facilities and
services needed for new development shall be borne by new development unless the
community chooses to help pay the costs of a certain development to obtain community-
wide benefits; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California, on November 21, 2000, adopting Council Resolution No. 9131 (2000 Series)
for the purpose of waiving city-wide development impact fees for affordable housing units
in excess of inclusionary requirements; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California, on June 5, 2007, adopting Council Resolution No. 9903 (2007 Series), which
superseded and replaced Resolution No. 9131 (2000 Series); and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California, on September 17, 2024, to introduce an ordinance to amend Section 4.56.050
of the Municipal Code to establish a development impact fee deferral program for
qualifying affordable housing projects; and
WHEREAS, at said hearing on September 17, 2024, the City Council considered
all evidence, including the deferral program’s consistency with the Mitigation Fee Act and
the California Constitution, the City’s ongoing need to cover the costs of increased
residential development, the input of interested parties, and evaluation and
recommendations by staff; and
WHEREAS, fee deferral serves a public purpose because it would incentivize the
development of affordable housing within the City by deferring certain up-front costs
which can be burdensome and cost-prohibitive for developers of affordable housing
and/or benefit the competitive score needed to secure state low-income tax credit
financing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
Docusign Envelope ID: 1F93F176-D149-4236-BBDF-E56E7CC8730D
Resolution No. 11521 (2024 Series) Page 2
R 11521
SECTION 1. Environmental Review. This fee deferral program is exempt from the
California Environmental Quality Act (CEQA), because it is not a “project” under Public
Resources Code § 21065 in that the impact fee deferral program would not cause either
a direct or reasonably foreseeable indirect physical change in the environment. Every
development project subject to a development impact fee deferral loan would be required
to undergo applicable development review, including CEQA compliance or finding of
exemption.
SECTION 2.
1. In accordance with Ordinance No. 1742 (2024 Series) and the City’s Affordable
Housing Development Impact Fee Deferral Program Guidelines, as modified
from time to time, a developer of Affordable Housing projects may apply for a
Development Impact Fee Deferral from the City. If the application is approved,
the developer will be required to execute a Development Impact Fee Deferral
Agreement and a Promissory Note, secured by a Deed of Trust. The
Promissory Note and Deed of Trust will be recorded on the property. The
Promissory Note shall describe the deferral as a loan on the property for a term
of 20 years and shall account for an annual simple fixed interest rate of three
percent, to be paid in full at the end of the term. The amount of deferred fees
(the loan amount) will be calculated according to the City’s Fee Schedule in
effect at the time the fees would otherwise become due, or as otherwise
determined by the City, and shall be reflected in the Promissory Note.
2. The Community Development Director is authorized to approve and execute
any eligible fee deferral under this Program. The Community Development
Director may, at their discretion, refer approval of an impact fee deferral
application to the City Council on an as-needed basis or concurrently with
Affordable Housing Fund (AHF) awards.
3. The fee deferral period for any approved development project is twenty (20)
years from the date of final occupancy for the project, with no payments
required during the deferral period. Prior to or at the end of the deferral period,
the impact fees and associated interest must be repaid in full in a single
payment.
4. An annual simple fixed interest rate of three percent (3%) shall be paid in full
at the end of the term. Interest shall accrue starting at the commencement of
the deferral period for an approved development project.
5. The impact fee deferral plus any accrued interest may be paid at any time prior
to the end of the deferral period without penalty. An early payment in the full
amount plus interest would remove any loan contingencies.
6. Upon full repayment of the loan, the City shall cooperate with the applicant in
recording a notice of cancellation of the lien.
Docusign Envelope ID: 1F93F176-D149-4236-BBDF-E56E7CC8730D
Resolution No. 11521 (2024 Series) Page 3
R 11521
SECTION 3. “Affordable housing” means housing which can only be purchased or
rented by a household with extremely low, very low-, low-, or moderate-income, as
described in the City’s Below Market Rate Housing Standards. Eligible Affordable
Housing projects are those as defined in the City’s Affordable Housing Development
Impact Fee Deferral Program Guidelines, as modified from time to time.
SECTION 4. Water and wastewater development impact fees shall not be eligible
for deferral under this Resolution or the adopted Affordable Housing Development Impact
Fee Deferral Program Guidelines.
SECTION 5. This deferral only applies to City-wide development impact fees; it
does not apply to fees, assessments, or special taxes for infrastructure improvements
applicable to special benefit areas.
Docusign Envelope ID: 1F93F176-D149-4236-BBDF-E56E7CC8730D
Resolution No. 11521 (2024 Series) Page 4
R 11521
SECTION 6. This Resolution supersedes and replaces Resolution No. 9903 (2007
Series) adopted by this Council on June 5, 2007. This Resolution shall become effective
thirty (30) days after final passage of Ordinance No. 1742 (2024 Series.)
Upon motion of Council Member Shoresman, seconded by Council Member
Francis, and on the following roll call vote:
AYES: Council member Francis, Marx, Shoresman, Vice Mayor Pease, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 17th day of September 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Docusign Envelope ID: 1F93F176-D149-4236-BBDF-E56E7CC8730D
9/20/2024 | 8:47 AM PDT