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File Number: 21-687 streamlined review process by the same applicant, AMG & Associates (the “Applicant”). The first project is located at 110 East 14th Street and consists of 221 units, all of which are studios. The project, which utilized a state density bonus, will be one hundred percent (100%) affordable at the moderate, low and very low-income levels. The second project is located at 15693 East 14th Street and consists of 497 units, of which 405 units are studios and 92 units are one-bedrooms. This project is the first multi-family development to be approved under the Bay Fair TOD Specific Plan and will be fifty percent (50%) affordable at the low and very low-income levels. Under the City’s existing fee schedule, the Park Impact Fees for the two projects are $3,923,192 and $8,822,744 respectively. The two projects are collectively referred to as the “Projects.” The Applicant requests that the City waive a portion of the Park Impact Fees for the Projects. The Applicant contends that because the Projects are primarily composed of studio apartments, the anticipated occupancy factor is well below the 2.02 people per multi-family unit upon which the Park Impact Fee is based. Specifically, the Applicant reports that the average occupancy factor for its portfolio of units is 1.25 people per studio and 1.75 people per one bedroom. Analysis The City Council has discretion to waive impact fees for particular projects. Staff carefully reviewed the request for a partial fee waiver from the Applicant and believes that granting a partial waiver of the Park Impact Fee is appropriate. The Projects are unique in that they are overwhelmingly studio apartment units. The Park Impact Fee was established based on an assumed occupancy rate of 2.02 people per multifamily unit. That assumed occupancy rate is not supposed to be an exact measure of the average occupancy of each unit in a specific project, but rather the average occupancy rate of new multi-family units generally. Some projects may have a slightly higher average occupancy rate, and some projects may have a slightly lower occupancy rate. However, while most residential projects have a range of unit sizes, often including 2-bedroom and 3-bedroom units, the Applicant’s Projects are comprised of smaller studio units. Staff is not aware of any past or proposed project in San Leandro that is similarly comprised of mostly studio units. The Applicant requests that the Park Impact Fee be reduced proportionately to reflect an assumed occupancy of 1.25 people per studio and 1.75 people per one bedroom. Staff believes this request is reasonable given that all units in the Projects are restricted as affordable units (except for manager’s units). California law establishes assumed household sizes for affordable housing units. Specifically, state law assumes an affordable studio unit is occupied by a household of 1 person, and that a one-bedroom unit is occupied by a household of 2 people. While these assumed occupancy rates are not directly applicable to the Applicant’s request, they are a relevant point of comparison. The assumed occupancy rates requested by the Applicant are roughly comparable to similar standards established by State Law. Proportionately decreasing the Park Impact Fee based on the Applicant’s request would result in a fee reduction of approximately 38% percent for studio units and a fee reduction of approximately 13% for one-bedroom units. This would result in a waiver of $1,495,474 for 110 East 14th Street, resulting in a Park Impact Fee of $2,427,718 for FY2021-2022, and a waiver of $2,958,872 for 15693 East 14th Street, resulting in a Park Impact Fee of $5,863,872 for FY2021-2022. The total combined fee waiver for both Projects would be $4,454,346 and the total Page 2 City of San Leandro Printed on 12/2/2021 153