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apparently not a land developer by profession, land developers have families, too. And you
<br />could easily have a situation where a person does a subdivision, who is a land developer,
<br />conveys lots to the immediate family members, and if you allow those to be exempted from
<br />affordable housing, then you dont get any affordable housing on, perhaps, quite a large number
<br />of lots, depending how broadly you define the concept of family members. Well, there are many
<br />people who have a dozen or so brothers, sisters, and children, even if you take that as a family
<br />member, or perhaps even more.
<br />So my, one possible resolution of this is that if the developer goes by in-lieu fee that the in-lieu
<br />fee is charged on any subsequent conveyance to somebody other than a family member. But this
<br />is something that has not really been solved and I think has to be dealt with at the Council level.
<br />Because its not, right now as I sit here, Id say that the affordable housing has to apply to even
<br />conveyances to family members. And thats the position I have to take unless a less restrictive
<br />position is taken by the Council.
<br />SIRACUSA:I -.
<br />ALAMEDA:Commissioner Siracusa.
<br />SIRACUSA:Correct me if Im wrong, Director Yuen, but when we were talking about
<br />impactfeesandthebenefitsofimpactfeesasopposedtothewaytheCountyhasbeengoing
<br />where we would really be generating more income for the County, the in-lieu doesnt really
<br />cover the cost of the additional infrastructure needs that are created. Would you comment on
<br />that, please.
<br />YUEN:Well, the impact fees and the housing requirement are two different tracks
<br />or two different types of fees. The in-lieu fee, I mean, the impact feet or what we now call the
<br />fair share and what would go to an impact fee system, if we passed an impact fee ordinance, is
<br />meant to deal with the impacts other than affordable housing of a new development. So theres
<br />actually not a fair share or an impact fee that covers or is meant to pay for affordable housing.
<br />Thats, so the affordable housing requirement is a separate requirement.
<br />You would have, theres no impact, theres no fair share on this, on it being a three-acre
<br />subdivision. Right? The cutoff between having a fair share and not has been, I believe, the one-
<br />acre limit. But, so, thats really a separate track. And affordable housing is not under impact
<br />fees or fair share
<br />As far as whether the in-lieu fee covers the cost of affordable housing, the idea was that, the in-
<br />lieu fee is an option for the developer. In the past before the change in February 2005, the in-lieu
<br />fee was a very attractive option because it was quite low. In the current way of calculating in-
<br />lieu fee, it tends to be quite a bit of money, particularly with the price of lots. So, for example,
<br />lets leave aside the question of the family members in this case and say they were going to sell
<br />lots at market, and just to use numbers say there was $295,000. Then every lot that they sold,
<br />and they went in-lieu for the affordable housing, every lot that they sold would be $50,000 as an
<br />in-lieu fee. So this eleven-lot subdivision, you would collect $550,000 toward affordable
<br />housing. And you dont have to give people free houses with the in-lieu fee. All you have to do
<br />is collect enough money that you can bring down the price of a unit that is made, say, by a public
<br />3EXHIBIT A
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