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Affordable Housing Impact Fee Assessed on Building Permits Starting November 1, 2018

Affordable Housing Impact Fee Assessed on Building Permits Starting November 1, 2018                                   

(All Residential Construction Projects Valued at $100,000 or more)  


The 15 month grace period exempting projects from the affordable housing impact fee ends November 1, 2018.   Residential projects receiving a building permit after November 1, 2018 will be subject to the impact fee.  To qualify for the exemption, the building department must issue the building permit prior to November, which requires that the building application is complete and has adequately addressed and responded to plan check.  

 

Additional information:

The affordable housing ordinance was adopted in 2017, and includes an impact fee to establish an Affordable Housing Trust Fund. All residential development projects with a construction valuation of $100,000 or more within a 24-month period are subject to the impact fee. The impact fee is 1.0% of the construction valuation. Accessory dwelling units and commercial renovations are exempt from the impact fee. Multi-family residential projects with 4 or more units must build affordable units (rather than paying the fee). 

 

The Affordable Housing Ordinance is aimed at implementing one of the community's overarching goals of "encouraging the continued diversity of housing, income levels and lifestyles in the community" (Mill Valley 2040 General Plan, Goal #2).   The impact fee is anticipated to generate approximately $375,000 a year, and will be collected and maintained in the City’s Affordable Housing Trust Fund. All money collected in the Trust Fund "shall be expended exclusively to provide or assure continued provision of affordable housing in the City to meet the housing needs of the City's workforce through acquisition, construction, development assistance, substantial rehabilitation/maintenance, finance, rent or other subsidies, and for costs of administering programs which serve those ends." The City will administer Trust Funds with guidance received from the Housing Advisory Committee and authorization from City Council.