By The Sierra Club Yolano Group Management Committee
June 27, 2023
Introduction
The Davis Affordable Housing Ordinance is now implemented on a temporary basis. Renewal with some modest changes is anticipated this evening.
However, the existing Affordable Housing Ordinance has provisions which we believe do not provide social justice, equity, and fairness in terms of meeting the needs of the City’s low-income population because it is biased toward the financial benefit of developers rather than maximizing the availability of affordable income housing in Davis.
Following please find our recommendations for immediate changes to update the City's temporary Affordable Housing Ordinance for ownership development projects. Additionally, we suggest the City embark on a concerted effort to further revise the ordinance to make it more equitable and understandable to developers and the general public for both ownership and rental development projects as more fully described below.
Recommendation for Immediate Change
1) Eliminate Accessory Dwelling Units (ADUs) as an acceptable alternative to provide on-site Affordable Housing – Prior to the immediate renewal of the Affordable Housing Ordinance, we strongly recommend completely eliminating the provision whereby ADUs are allowed as fulfillment for up to 50% of a For Sale project’s affordable housing obligations as currently exists.
2) Substantially increase in-lieu fees if chosen by a developer as an acceptable alternative to provide on-site or offsite Affordable Housing – We recommend that in-lieu fees be substantially increased so that it is no longer a financially preferable option for developers to pursue. We endorse the staff recommendation to have an "in lieu fee to represent the full cost to build an actual unit."
Recommendations for Further Changes in the Very Near Future
3) Increase the minimum percentages of affordable housing required in most developments –
a) For rental multifamily developments and ownership detached housing, increase the standard 15% requirement for onsite or offsite affordable housing units to 25% (15% Very Low Income and 10% Low Income).
b) For ownership and rental mixed use and stacked-flat condominiums, increase the affordable housing requirement from 5% to 10% (5% Very Low Income and 5% Low Income) and eliminate the exemption for such units in the core area from the requirements of the Affordable Housing Ordinance.
4) Increase the minimum parcel size for land donated to alternatively meet affordable housing requirements to 4 acres – Experts in the field of non-profit low income housing project financing have stated that land donation requirements of lesser sizes are not feasible to finance given the realities of financing requirements and available tax credits.
We elaborate on each of these recommendations further below.
















