Burlingame looking at residential building fees

While noting no decision is slated to be made at the upcoming meeting, Mayor Michael Brownrigg said the matter deserves careful consideration, as officials seek the most effective means of addressing a central community concern.

“We need to remember what the goal is, which is to preserve and increase the stock of affordable housing. The goal is not to raise these fees because we can,” he said.

Central to Brownrigg’s concern is assuring any fund potentially established would hold sufficient money for the city to make a significant dent in the affordable housing market.

Officials are examining establishing fees ranging between $10 per square foot and $20 per square foot of new residential growth, according to a city report. With about 850 units and 900 units in the development pipeline, assuming an average unit size of 850 square feet, the city stands to generate between $7 million and $19 million over the next five years, according to the report.

Median fees across the county range around $20 per square foot of townhome and condominium development and $21 per square foot of apartment construction, according to the report.

The fees would flow into a fund available for officials to allocate toward a variety of efforts designed to keep housing more affordable. In a recent discussion regarding the potential fund, officials identified programs which may be worthy initiatives.

Paying into the county’s Housing Endowment and Regional Trust, or HEART, to address broad housing issues while preserving some money locally to support residents feeling the pinch of the affordability crisis were among the suggestions floated.

Financially assisting tenants who, in case of an emergency, may miss rent payments essential to keeping their home; collaborating with regional housing support providers such as Samaritan House; and offering funds to property owners improving and preserving affordable apartments or living spaces are some of the smaller, more immediate efforts eyed in Burlingame.

As the variety of initiatives are examined by officials, Brownrigg reiterated his belief that it is essential to pursue those designed to make a tangible difference.

“We need to make sure any program we adopt is effective,” he said.

The study session comes in the wake of officials last year adopting commercial linkage fees, which also are designed to address affordability frustrations fueled by the imbalance of local jobs and housing opportunities.

Fees will rise as high as $22 per square foot for office spaces, $12 per square foot for hotels and $7 per square foot for retail projects but there would be discounts for developers willing to pay prevailing wages to construction workers, according to the council’s June decision.

With two large commercial projects at 250 California Drive and 1499 Bayshore Highway in the development pipeline, officials expect to collect as much as $3.9 million in fees, according to a city report. The Burlingame Planning Commission also gave positive reviews to another proposed office building neighboring the California Drive project which could also generate more commercial fees.

For his part, Brownrigg suggested he was uncertain that establishing residential fees was the best method for ameliorating housing affordability concerns. Instead, he said the matter is likely to return for further deliberation following the upcoming study session.

“It’s a really, really important issue, and I think this a conversation all year for Burlingame,” he said.

The Burlingame City Council meets in a 6 p.m. study session Tuesday, Feb. 20. The regular meeting is slated to begin an hour later.

austin@smdailyjournal.com

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