1. The San Mateo County Grand Nexus Study
October 3, 2014

2. 21 Elements Best Practices HCD Coordination Housing Element Material
Public Outreach
Housing Element Material
Countywide Data and Coordination

3. 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.

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

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

12. 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?

13. Do you have a nexus study?

14. Can you leverage the money?

15. 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 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

16. 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 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).

17. 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?

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