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HomeMy WebLinkAboutAGENDA REPORT 2025 1105 CC REG ITEM 09C POWERPOINTPresented by Gene Burse, AICP Deputy Community Development Director 1 City of Moorpark Inclusionary Housing In-Lieu Fees City Council Meeting November 5, 2025 Content •Background and Purpose •Nexus Study- Maximum Justifiable Fees •Comparison to other Jurisdictions •Proposed Fees & Recommendation •Conclusion 2 Background and Purpose •Policy Context –This aligns with the City’s 2021-2029 Housing Element and 2023 Zoning Code Update. –The goal is to provide housing opportunities for all income levels and expand housing variety. •Inclusionary Housing Requirements (Section 17.24.065) –Requires 10 or more units to reserve 15% of units as affordable housing. •Developer Flexibility –Developers have the option to construct affordable units on-site or pay an in-lieu fee as a compliance alternative. •Purpose of this item –To recommend adoption of in-lieu fees 3 Nexus Study: Maximum Justifiable Fees •The fees reflect the estimated cost to build affordable units required by the Ordinance and represent the maximum supportable fees. 4 Development Type Total Fee Per Unit Local City Survey Average Single-Family For-Sale $111,670 $153,427 Multifamily For-Sale $65,497 $86,442 Multifamily For-Rent $55,203 $73,849 Comparison to Other Jurisdictions •The Nexus Study compared Moorpark’s proposed fees to other nearby cities. 5 Municipality Year Fees Adopted Single Family For- Sale Multifamily For- Sale Multifamily For- Rent Moorpark (Proposed) -$111,000 $65,000 $55,000 Agoura Hills 2018 $487,953 $262,541 $260,196 Oxnard 2020 $36,000 $35,000 $28,000 Ventura 2023 $133,070 $53,150 $30,850 Calabasas 2021 $66,900 $48,100 $19,000 Thousand Oaks 2023 $43,210 $33,419 $31,200 Comparable City Average $153,427 $86,442 $73,849 Comparable City Average (excluding Agoura Hills) $69,795 $42,417 $27,262 Proposed Fees and Recommendations •Example •Fees paid on per unit basis multiplied the total number of all market-rate units proposed. For example, 150 multifamily for-rent units would result in an in-lieu fee of $8,250,000 (150 units x $55,000/unit) •Adopt the fees near the maximum supportable amounts calculated in the Nexus Study. •These recommended fees are less than the average of other local agencies. •Fiscal Impact •Revenue will be used by the Housing Division (Fund 2121) to finance the development, acquisition, and/or preservation of affordable housing units. •Annual Adjustment •Staff recommends an annual adjustment starting July 1, 2027, based on the Engineering News Record Construction Cost Index (LA Region) to keep pace with rising construction costs. 6 Conclusion •Goal Compliance •This action achieves Council Goal 1, Objective 1.3 (Inclusionary Housing Policy) and is consistent with Goal 3, Objective 3.5 (Financial Sustainability). •Action •Staff recommends the City Council adopt a resolution, as amended, to implement inclusionary housing in-lieu fees. 7