Housing tool eyed to help affordability

An inclusionary zoning ordinance will be the focus of a May 7 council meeting, and while the details are yet to be unveiled, Assistant City Manager Aaron Aknin said it would require between 10 percent and 20 percent affordable units in residential developments within city limits.

Councilmembers have yet to settle on their preferred percentage, but Vice Mayor Diane Howard said she wants a 20 percent below-market-rate requirement.

Aknin also said the ordinance, which is currently being drafted, will include an in-lieu option for developers in certain circumstances to pay into a fund instead of building on-site units. Other features yet to be worked out include the levels of affordability required, sunset dates and how the ordinance will apply to rental, for-sale or single-family homes, among other types of projects.

“We need to do something to ensure BMRs are included in rental developments,” Bain said. “Right now we’re reliant on the good will of developers and I’d say that good will is not always there.”

The city’s Downtown Precise Plan adopted in 2011, but amended in 2016, requires developments in the downtown area to include 15 percent affordable units, a step in the direction of the upcoming inclusionary zoning ordinance. 

The ordinance also follows a shift in state law last fall that allows cities to consider requiring on-site affordable units for rental projects.

While city staff does negotiate with developers to include affordable units in projects or otherwise pay an impact fee, there is currently no citywide requirement for affordable construction.

The ordinance is part of an ongoing effort to address housing issues in the city and beyond. In March, the council adopted minimum lease terms and renter relocation assistance, and in June the council will consider affordable housing fee guidelines. A community meeting on April 11 organized by the city and Home for All initiative also brought some 200 residents together to share their experiences and brainstorm housing solutions.

“The council was there in a listening mode and that was good, I think the community felt heard and it was the beginning of the dialogue rather than the end,” Bain said of the meeting.

The goal of the inclusionary zoning ordinance is to create more affordable units, and according to the city’ annual housing report, which was recently submitted to the state, there’s much work to do.

To meet its Regional Housing Needs Allocation goal for affordable housing, Redwood City must construct 502 moderate-, 372 low- and 699 very-low-income units by the end of 2023 when the cycle ends.

“Even with that [inclusionary zoning] we won’t solve all affordability challenges but it gives us another tool,” Councilwoman Shelly Masur said. “I think the situation is so critical across the region that everything we do to address it will make some difference.” 

Bain echoed that perspective.

“There is no silver bullet when it comes to housing,” he said. “Some people might be under the impression we’ll come up with some ordinance to fix this problem and that’s not the case. It’s a series of small actions to come to a balance.”

The city’s Housing and Human Concerns Committee has a community discussion scheduled for May 22 for residents to weigh in on how to allocate funds from affordable housing fees. And the city’s Planning Commission will discuss affordable housing requirements and density bonus update at a meeting May 1.

Bain said these meetings are part of an attempt to facilitate more productive discussions beyond council meetings, which are opportunities to speak, but not have a dialogue. 

As for future housing-related efforts, Howard wants the city to expand its partnerships with other organizations, including nonprofits, religious organizations and school districts to rehab and build affordable units. 

“This is an important avenue we haven’t explored as much as we could,” she said.

Bain sees transportation as central to the housing conversation.

“The other part of this issue is that longer term we can’t continue to do things the way we’re doing things in terms of the jobs/housing imbalance. Its good we have a driving economy when companies want to move here, but we need to look at companies moving farther out when they move here,” he said. “So we need to look at regional housing issues and that’s a reason we’re exploring high-speed rail and Dumbarton rail. If they can quickly get to jobs without cars that’s a good incentive for companies to build office space in other areas.

We have to be conscious of the jobs/housing imbalance as we review applications and ask ourselves if they’ll help us address or exacerbate the problem,” he added.

Howard said the council is “always open to new ideas and strategies,” but every councilmember appears to draw the line at rent control.

“I know some people in the community feel rent control is the answer and I’ve grown up around it and watched the abuses of rent control and I don’t feel it incentivizes owners of property to put more money into property if they’re not guaranteed a reasonable rate of return,” Howard said. 

zachary@smdailyjournal.com

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