Affordable Housing Ordinance & Fees

Summary of Affordable Housing On-Site and In-Lieu Fee Requirement Ordinance

The purpose of the Affordable Housing On-Site and In-Lieu Fee Requirement Ordinance is to establish requirements for the provision of inclusionary affordable housing designated as deed restricted for very low, low, and moderate income households in conjunction with new development projects that include ten or more new units in the City of Millbrae. These requirements will mitigate the impacts of residential projects on the need for affordable housing by increasing the supply of affordable housing to a broad range of households with varying income levels within the City and will implement the Housing Element. This Ordinance will also establish the requirement for an affordable housing in-lieu fee on residential development projects consisting of four to nine units, or when the calculation of the inclusionary units in development projects of ten or more units result in a fractional unit of less than 0.5. The fee is to be contributed to the City's Affordable Housing Fund and used to fund the development of affordable housing and related programs in Millbrae. Projects with three units or less, including new single-family homes, Accessory Dwelling Units, and Junior Accessory Dwelling Units, are exempt from the Ordinance.

Summary of Affordable Housing Commercial Linkage Impact Fee Ordinance

The purpose of the Affordable Housing Commercial Linkage Impact Fee Ordinance is to establish requirements for an affordable housing commercial linkage impact fee applicable to new commercial development projects to address the impacts of their projects on the demand for affordable housing by contributing to the supply of housing for households with very low, low, and moderate incomes. These requirements will increase the supply of affordable housing to a broad range of households with varying income levels within the City and will help implement the Housing Element by creating a fiscal mechanism to meet the demand for additional affordable housing created by new commercial development.

Resolutions Summary

The Regulation Resolution establish the requirements relating to on-site affordable housing requirements, alternative means of compliance, development standards, and the timing and phasing of new inclusionary requirements, and processing requirements. The Fee Resolution would adopt affordable housing in-lieu fees for residential uses and commercial linkage impact fees for commercial uses.

Past City of Millbrae Public Meetings

City Council Study Session - May 11, 2021

The City Council meeting on Tuesday, May 11, 2021 at 7 pm included the following agenda item: Study Session: Discussion and Guidance on Affordable Housing Regulations and Fees. The City Council held a study session to review the draft nexus studies, draft Ordinance and draft Resolutions and provide direction to staff regarding affordable housing regulations and fees.

View the City Council Agenda which includes the staff report and attachments.

The City Council reviewed the draft Ordinance, Resolutions and nexus studies documents and provided the following policy direction action that was incorporated into the final draft documents:

  • Modify the draft Ordinance and Resolutions to stipulate that the Ordinance and associated fees apply to projects with four or more dwelling units instead of five or more.
  • Modify the draft Ordinance, Section 10.05.3430 Exemptions to remove "commercial development project consisting of less than 5,000 square feet of net new gross square feet."
  • Add new provisions to the City Council Resolution Adopting Affordable Housing Requirements and Program Regulations addressing how the City would handle a project that is originally constructed with nine or fewer units and additional unit(s) are approved on the residential development project site within a defined period of time after the initial approval. The new language is included in the Resolution, as follows:
    • Single Residential Development Project. In the event a residential development project is approved with nine or fewer units and additional unit(s) are approved on the residential development project site within five years of the initial approval, that are not an accessory dwelling unit or junior accessory dwelling unit, the City and developer shall enter into an agreement determining the appropriate number of inclusionary units required and affordable housing in-lieu fees.

Planning Commission Public Hearing - June 7, 2021

On Monday, June 7, 2021, the Planning Commission held a public hearing and voted 4-0-0 to adopt a Resolution recommending the City Council adopt the Ordinance. The Planning Commission did not recommend any modifications to the Ordinance, which was previously reviewed in draft form by the City Council on May 11, 2021.

Search Laserfiche to view the Planning Commission meeting agenda which includes the staff report, draft Ordinance, draft nexus studies, and other attachments.

City Council Public Hearing - June 22, 2021

On June 22, 2021, the City Council held a public hearing and voted 5-0-0 to waive the first reading and introduce the Ordinance adding Article XXXIII Section 10.05.3300 et seq. Affordable Housing On-Site and In-Lieu Fee Requirements and Article XXXIV Section 10.05.3400 et seq. Affordable Housing Commercial Linkage Impact Fee to Chapter 10.5 of Title 10 of the Millbrae Municipal Code.

Search Laserfiche to view the City Council meeting agenda which includes the staff report, final Ordinance, draft Resolutions, final nexus studies, and other attachments.

City Council Public Hearing - July 13, 2021

On July 13, 2021, the City Council held a public hearing and voted 5-0-0 to waive the second reading and adopt (1) Ordinance to Add Article XXXIII Section 10.05.3300 et seq Affordable Housing On-Site and In-Lieu Fee Requirements and Article XXXIV Section 10.05.3400 et seq Affordable Housing Commercial Linkage Impact Fee to Chapter 10.5 of Title 10 of the Millbrae Municipal Code, and adopt the associated Resolutions:

  • Adopting Affordable Housing Requirements and Program Regulations; and
  • Establishing Affordable Housing In-Lieu Fees for Residential Development Projects

Ordinance & Resolutions Applicability Timing for "Pipeline" Development Applications Under Review

The Ordinance includes standard and additional "pipeline" project exemptions in Sections 10.05.3330 Exemptions and 10.05.3430 Exemptions. This topic is discussed in more detail in the City Council Public Hearing staff report.

Contact

Please contact the Planning Division at 650-259-2341 with any questions about the Ordinance or Resolutions.