Affordable Housing Inclusionary, Residential Impact Fee & Commercial Linkage Fee Requirements

On November 22, 2016, the City Council adopted updates to San Bruno Municipal Code Chapter 12.230 Affordable Housing Program, which included updated regulations related to affordable housing requirements, including affordable housing inclusionary requirements for on-site construction, residential impact fees, and commercial linkage fees.

On September 24, 2019, the City Council adopted Resolution No, 2019-86 adjusting the Affordable Housing Impact Fee for residential and nonresidential development projects based on the percentage increase in the Engineering News-Record Construction Cost Index of San Francisco, California. The rate increase is 4.82%, and the new fees will be posted on the City's Master Fee Schedule on the City's website and will take effect 60 days after the adoption of the resolution on November 25, 2019

The Ordinance and Resolution applies to new residential ownership or rental developments of five units or more, and all new nonresidential developments throughout the City. Public uses such as hospitals and community facilities and quasi-public uses such as child care centers, community facilities, churches and schools are exempt from these requirements.

Chapter 12.230 Affordable Housing Program includes requirements for affordable housing units restricted for occupancy by very low, low, or moderate income households and the payment of commercial linkage fees for non-residential development projects. The requirements are currently:

For-Sale Residential Units: On-Site Units are required to be 15% affordable (broken down by 6% low income + 9% moderate income).

Rental Residential Units: Payment of Residential Impact Fees, or On-Site Units as an Alternative (subject to City Council approval). On-Site Units are required to be 15% affordable (broken down by 6% very low income + 4.5% low income + 4.5% moderate income).

Non-Residential Uses: Payment of Commercial Linkage Impact Fees.

Affordable Housing Impact and Commercial Linkage Fees

All fees and detailed calculation methodology is included in the current City Council Resolution setting the Fees (PDF).

San Bruno Municipal Code Chapter 12.230 Affordable Housing Program is available in the City's online Municipal Code. 

Background

Adoption of the ordinance and fees implements Housing Element Program 3-J, which called for adopting impact fees to help increase the supply of housing affordable to very low, low, and moderate income households.

The impact fees are supported by a Nexus Study, required by State law, which analyzed the connection between the need for affordable housing associated with new residential and nonresidential development the impacts caused by development and the fees charged. The Nexus Study calculated fees based on the gap between what lower income households can afford to pay and the cost of developing new housing units.