The San Mateo County Grand Nexus Study October 3, 2014

21 Elements Best Practices HCD Coordination Housing Element Material Public Outreach Housing Element Material Countywide Data and Coordination

Many similarities Some differences Land costs Strength of market Nexus Study Construct costs Spending patterns sf per worker Some differences Land costs Strength of market Any time there is jurisdiction specific data, we use it.

Lots of Cities How do you get them on board? Give them a deal they can’t refuse Make it as apolitical as possible Provide lots of time Redwood City San Mateo S. San Francisco San Bruno Pacifica

Grand Nexus Study Details Cost is approx. $15,000 per jurisdiction 14 jurisdictions participating plus Palo Alto Residential and commercial studies Nexus and feasibility Strategic Economics/Vernazza Wolfe selected through RFP 21 Elements coordinating Funding from HUD/MTC and Enterprise Community Partners Final reports by the end of the year

Yes Yes Yes Big Questions If there are multiple jurisdictions participating, is it accurate? Is it legally sound? Can it help meet our RHNA? Yes Yes Yes small print small print small print small print small print small print small print small print small print small print

Big Questions If there are multiple jurisdictions participating, is it accurate? Any time there is local data, we use it More robust outreach to developers More data points Every city gets their own study

Big Questions Is it legally sound? Every city gets their own study with local data Follow standard methodology For cities – there are always legal risks

Big Questions Can it help meet our RHNA? Potentially in future cycles Better to use existing law rather than change the law Transfer of RHNA is permitted currently

Units or Ducats Inclusionary or Impact Fee Based October 3, 2014

Units or Ducats Inclusionary or Impact Fee Based October 3, 2014

Big Questions Do you have a nexus study? Can you leverage the money? Can you spend the money (quickly)/how soon do you want the units? Are you committed to mixed income buildings/developments and neighborhoods? How much control do you want over the final product? What level of affordability do you want? Do you have capacity to manage the units?

Do you have a nexus study?

Can you leverage the money?

Can you spend the money (quickly)? We evaluated the length of time before an equivalent amount of funding was committed and expended and found that typically, the first commitment from a given fee payment was made after 33 months (2.75 years) and paid out 47 months (3.9 years) after the fee was received. Initially the Office of Housing was somewhat constrained regarding the location of projects that could receive bonus funds. In June of 2009, the passage of Ordinance 122990 removed this constraint and the funds have been committed more rapidly since. While the Office of Housing does not keep funds from different projects separate, in order to evaluate the typical length of time between receipt and commitment or expenditure of funds, Cornerstone constructed a model that assumed that money were spent in the order that it was received (ie. funds from a given project were not spent until all money from prior projects had been fully spent). City of Seattle, Uncommitted Funds

Are you committed to mixed income buildings and neighborhoods? We evaluated the length of time before an equivalent amount of funding was committed and expended and found that typically, the first commitment from a given fee payment was made after 33 months (2.75 years) and paid out 47 months (3.9 years) after the fee was received. Initially the Office of Housing was somewhat constrained regarding the location of projects that could receive bonus funds. In June of 2009, the passage of Ordinance 122990 removed this constraint and the funds have been committed more rapidly since. While the Office of Housing does not keep funds from different projects separate, in order to evaluate the typical length of time between receipt and commitment or expenditure of funds, Cornerstone constructed a model that assumed that money were spent in the order that it was received (ie. funds from a given project were not spent until all money from prior projects had been fully spent).

How much control do you want over the final product How much control do you want over the final product? What level of affordability do you want?

Do you have capacity to manage the units? 14% + Foreclosure rate City properties CLT properties