The Housing Mitigation Ordinance (HMO) requires developers of land to mitigate the impact of development projects on the availability of workforce and affordable housing and address the housing shortage, either directly or through the payment of fees,
due to the resulting decrease of land available for workforce housing and for persons with low and moderate levels of income, a demonstrative increase in the price of housing, and an increase in the need for workers within the county. Under the adopted ordinance, current housing mitigation requirements are suspended for 60 days until Feb. 9, 2020. The new HMO, which goes into effect Feb. 9, 2020, levies fees on the following types of projects: single-family residential, multi-family residential, storage and warehouses, commercial, industrial/service commercial, and visitor accommodations. The HMO also contains numerous exemptions intended to prevent the fees from being applied to projects that help meet affordable housing needs. The fees are adopted separately by resolution. The fee resolution sets fees at the following levels: 5% inclusionary requirement for single-family residential developments, 3.33% inclusionary requirement for multi-family residential developments, $0.50/square foot (sf) for storage and warehouses, $1/sf for
commercial, $0.50/sf for industrial/service commercial, $4/sf for visitor accommodations including short-term rentals. A separate fee is charged for a change from a residential land use to short-term rentals because the change of land use results in separate and different impacts to affordable housing needs based on the nexus study. The Resolution also includes the policy that underlies the fee structure, provides for an adjustment of fees based on the Construction Price Index on March 1 of every year, and provides for the Board to periodically revisit the fee structure as needed.