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Housing Constraints <br /> <br />Draft Housing Element 3-37 <br />Development Fees for a Typical Unit Single-Family Multi-Family Total Multi-Family Per Unit <br />Estimated Construction Cost1 $714,525.0 <br />0 <br />$13,392,940.0 <br />0 <br />$216,015.16 <br />Overall development cost $788,250.1 <br />2 <br />$15,176,928.7 <br />0 <br />$244,789.17 <br />Proportion of fee cost to overall development cost 9.35% 11.75% 11.75% <br />1 Construction costs do not include land costs. When land costs are considered, fees as a proportion of total development cost are <br />significantly lower. <br />3.2.5 Inclusionary Housing Ordinance <br />Inclusionary housing regulations help increase the availability of affordable housing stock in the city. <br />San Leandro’s Inclusionary Housing Ordinance requires that a certain percentage of new residential <br />development be made affordable to low- and moderate-income households, depending on whether <br />the project is intended as ownership or rental housing. Currently, for all new residential <br />developments, at least 15 percent of the total units must be inclusionary units restricted for <br />occupancy by moderate-, low-, or very low-income households at either the affordable rent or <br />affordable ownership cost appropriate for the income of the household. A new for-sale housing <br />development with two to six total units has the option of providing one affordable unit for <br />moderate-income households or pay an in-lieu fee defined in the ordinance. The in-lieu fee does not <br />apply to rental developments. New for-sale housing developments and condominium conversions <br />involving fewer than two units and new rental housing developments with fewer than four units are <br />exempt from this ordinance. As described in Program 12 of Chapter 6, Housing Plan, the City will <br />conduct an economic feasibility study to guide any decisions on changes to the Inclusionary Housing <br />Ordinance, including the consideration of an increased inclusionary housing component and/or <br />changes to the in-lieu fee structure and the desire and ability of developers to contribute to the <br />Affordable Housing Trust Fund (AHTF). Based on the findings of the evaluation and the study, the <br />City shall consider amendments to the ordinance with the goal of increasing the amount of <br />affordable housing built in the city while ensuring the requirements do not pose a constraint to <br />overall housing production. <br />3.2.6 Permit Procedures and Processing Times <br />Certainty and consistency in permit processing procedures and reasonable processing times is <br />important to ensure that the development review/approval process does not discourage developers <br />of housing or add excessive costs (including carrying costs on property) that would make the project <br />economically infeasible. The City is committed to maintaining comparatively short processing times. <br />Processing and permit procedures can pose a considerable constraint to the production and <br />improvement of housing. The lengthy processing time, unclear permitting procedures, layered <br />reviews, multiple discretionary review requirements, and costly conditions of approval can <br />contribute to the high cost of housing. 24 Processing times depend on the magnitude and complexity <br />of the proposed development project. In the City, the typical period for administrative review is one <br />to three months. A Use Permit, parking exceptions, and variances take approximately six to eight <br />months to complete. Administrative Site Plan Review takes three to four months to complete, <br />unless it is a major residential project which takes six to eight months and is always concurrent with <br />a CUP. <br /> <br />24 California Department of Housing and Community Development. 2021. Building Blocks. https://www.hcd.ca.gov/community- <br />development/building-blocks/constraints/processing-permitting-procedures.shtml. Accessed October 28, 2021