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City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2003 / 10/21 / Affd. Housing Fees

Affd. Housing Fees

[Council Communication] [ACLT Letter]

Council Communication
Title: Request for Waiver of Community Development and Engineering Fees Associated with the Building Permit for Affordable Housing at 41 Garfield Street.
Dept: Planning Department
Date: October 21, 2003
Submitted By: John McLaughlin, Director of Community Development
Approved By:
...........................		 Gino Grimaldi, City Administrator

Synopsis: The Ashland Community Land Trust (ACLT) is developing a six-unit affordable apartment project at 41 Garfield Street. Since this project is part of ACLT, there is a long term guarantee of affordability. The City has awarded funds from the CDBG process to assist in this development. ACLT is requesting that the Community Development and Engineering Fees be waived for this guaranteed affordable project. The Community Development Fee is $4,266 while the Engineering Fee is $3,555, for a total of $7,821.

The City has a process for deferring systems development charges (SDC's) for affordable projects, as well as a process for reducing the cost of utility hook ups. However, we are still formulating the policy for the reduction of other fees associated with affordable development. The Housing Action Plan states that the City should determine which planning and development fees could be waived for affordable housing.

Both the Community Development and Engineering Fees were instituted a few years ago to address the overall funding needs of the Planning and Engineering Divisions. They are collected at the time of building permit issuance and are based on a percentage of the value of construction.
Recommendation: Staff recommends that the Council waive the Community Development and Engineering Fees for the affordable housing project at 41 Garfield. This in line with the adopted Housing Action Plan, as well as with the precedents set by the SDC deferral and reduced utility hook ups. Due to the long term affordability guarantees, staff does not see the need for any recapture agreements for this project.
Fiscal Impact: Overall revenues to the Planning Division will be reduced by $4,266, and revenues to the Engineering Division will be reduced by $3,555. Given the importance of this project to the City and the overall budgets of these divisions, this is a relatively small amount and will not negatively impact either division.
Background: A letter from ACLT outlining their request is attached to this communication.
Attachments:

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