HomeMy WebLinkAboutResolution 2023-068Exhibit A
Resolution 2023-068
Exhibit A
Fee Deferment Policy for Affordable Housing Units
Residential dwelling units may be eligible for a deferment of Development Impact fees,
subject to City Council approval, in accordance with the following:
1.Project shall include a minimum of five (5) or more residential units that are
affordable to residents within the low, very low, or extremely low-income categories
and deed restricted as such.
2.Only rental residential units that are deed restricted as affordable to residents that
qualify as low, very low, or extremely low-income categories in accordance with
the Affordable Housing Standards published by the County of San Luis Obispo
shall be eligible for impact fee deferment. Deed restriction shall be for a term of 55
years or greater.
3.Deferments shall only apply to rental residential development constructed with City
approved construction permits within zoning that allows for residential uses in
accordance with the City’s General Plan and Zoning, unless otherwise approved
by City Council.
4.The deferment shall be requested prior to issuance of construction permits and
may only be granted following recordation of affordability covenants.
5.Project must record a deed restriction for affordability, subject to City terms, in
conjunction with or prior to recordation of deferral agreement.
6.Development Impact Fees, including wastewater capacity charges, shall be
eligible for deferment.
7.Construction plan check fees and associated permit fees shall not be eligible for
deferment.
8.Units that are converted to “for sale” units or that are sold prior to the completion
of the deferment term shall no longer be eligible for deferment and all applicable
development impact fees and wastewater capacity charges shall be due prior to
close of escrow.
9.Deferment agreements shall be approved by City Council.
Fee Deferment Terms
The deferral shall be for a term of 17 years. The simple interest rate shall be
calculated as of the date of the request for deferral to the City, and shall be the higher of
the City’s investment return or the City’s 2-Year Treasury Weighted Portfolio Yield as
presented in the most recently Council adopted quarterly Treasurer’s Report, plus 1%.
The deferred fees plus all accrued interest shall be payable in full at the earlier of 1) the
completion of year 17, or 2) the sale of the property or conversion to condominium units.
All fee deferments shall be subject to a City Loan Agreement and recordation of applicable
covenants.