Print Back to Calendar Return
    14.    
City Council Regular
Meeting Date: 05/12/2020  

SUBJECT:
ANNUAL AND FIVE YEAR REPORTING FOR HOUSING IN-LIEU FEE FUND AND MITIGATION FEE FUND FOR THE TRAFFIC SIGNAL AT CARBON CANYON ROAD AND CANYON HILLS ROAD
RECOMMENDATION:
  1. Review and file the Annual and Five Year Reporting for the Housing In-Lieu Fee fund and Five Year Reporting for the Mitigation Fee fund for the Traffic Signal at Carbon Canyon Road and Canyon Hills Road.
     
  2. Adopt a resolution entitled:  A RESOLUTION OF THE CITY OF CHINO HILLS, MAKING ANNUAL AND FIVE YEAR FINDINGS FOR UNEXPENDED DEVELOPMENT FEES IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTIONS 66006(b) AND 66001(d), APPLICABLE TO THE AFFORDABLE HOUSING IN-LIEU FEE PROGRAM, AND SECTION 66001(d) APPLICABLE TO THE MITIGATION FEE FUND RELATIVE TO THE TRAFFIC SIGNAL AT CARBON CANYON ROAD AND CANYON HILLS ROAD
BACKGROUND/ANALYSIS:
California Government Code Section 66000 et seq., authorizes the City of Chino Hills ("City") to impose, collect, and expend mitigation fees to offset the impacts of development within the City. Among the procedural requirements mandated by the Mitigation Fee Act is a requirement in Government Code Section 66006(b) that the City make specified annual findings of the funds collected and expended. The procedural requirements of the Mitigation Fee Act also include those specified in Government Code Section 66001(d) that the City make specified five year findings of the funds collected and expended.
 
The City has prepared these required findings for the Affordable Housing In-Lieu Fee fund and the Mitigation Fee fund relative to the traffic signal at Carbon Canyon Road and Canyon Hills. These findings are detailed in the Annual and Five Year Reporting for the Housing In-Lieu Fee Fund, and Five Year Reporting for the Mitigation Fee Fund for the Traffic Signal at Carbon Canyon Road and Canyon Hills Road (“Report”), as required by Government Code Sections 66006(b) and 66001(d). (Attachment 1.) This report presents the annual findings for fiscal year (FY) 2018-2019 for the Affordable Housing In-Lieu Fee fund, established pursuant to Resolution No. 06R-10. The report follows the Annual Development Impact Fee Financial Report completed by the City as of June 30, 2019, and also presents the five-year findings for FY 2014-2019 consistent with Section 66001(d) of the Government Code for the Affordable Housing In-Lieu Fee fund and the Mitigation Fee fund relative to the traffic signal at Carbon Canyon Road and Canyon Hills Road. There is no fee increase proposed at this time.

A. California Government Code Section 66006(b) – Affordable Housing In-Lieu Fee fund
 
Government Code Section 66006(b) defines the specific annual findings that local agencies are required to make for imposition of mitigation fees. For the Affordable Housing In-Lieu Fee fund, these annual findings are detailed in the Report, and summarized below:
  1. Brief Description of the Type of Fee: The fee is an affordable housing in-lieu fee. On March 14, 2006, the City adopted Resolution No. 06R-10 to establish an interim affordable housing in-lieu fee, and approved the Affordable Housing In-Lieu Fee Program. On April 14, 2006, the City Council approved Resolution No. 06R-16, thereby establishing the City’s permanent Affordable Housing In-Lieu Fee Program for the purpose of generating fees that could be utilized to provide and maintain affordable housing.
  2. Amount of the Fee: Under the adopted Program, the payment by the developer of an Affordable Housing In-Lieu Fee in the amount of $1 per square foot of livable space is required for each eligible residential dwelling unit constructed within the City, with the following not-to-exceed fee amounts: $3,500 for a new single-family unit, and $1,000 for a new multi-family unit.
  3. Fee Balance: The Affordable Housing In-Lieu Fee fund beginning balance on July 1, 2014 was $ 543,279 and ending balance on June 30, 2019 was $3,168,698. At the beginning of last fiscal year (July 1, 2018), the balance of the fund was $2,980,850.
  4. The Amount of the Fees Collected and the Interest Earned: During the past fiscal year, $60,029 in fees were collected and $145,470 in interest was earned on the fund.
  5. An Identification of Each Public Improvement on which Fees were Expended and the Amount of the Expenditures on Each Improvement, including the Total Percentage of the Cost of the Public Improvement that was Funded with Fees: During the past fiscal year, $17,651 of staff time was charged to the fund. These staff hours were expended working on the Habitat for Humanity Veterans Build Homes Program project, meeting and coordinating with non-profit housing developers regarding possible affordable senior housing development in the City, and researching appropriate sites for a possible affordable senior housing development project. For the Habitat for Humanity Veterans Build Homes Program project, past fiscal year staff time expenditures represent about 1% of the estimated project expenditures. For the affordable senior housing development project, past fiscal year staff time expenditures represent about 0.01% of the estimated project expenditures. These expenditures are related to development projects still in their planning phases so total project costs are preliminary.
  6. An Identification of an Approximate Date by which the Construction of the Public Improvement will Commence, if the Local Agency Determines that Sufficient Funds have been Collected to Complete Financing on an Incomplete Public Improvement: The Habitat for Humanity Veterans Build Homes Program project is expected to commence construction within two years and an affordable senior housing development is expected to commence construction within five years.
  7. A Description of Each Interfund Transfer or Loan Made from the Account or Fund, including the Public Improvement on which the Transferred or Loaned Fees will be Expended, and, in the case of an Interfund Loan, the Date on which the Loan will be Repaid, and the Rate of Interest that the Account or Fund will Receive on the Loan: Interfund transfers or loans have not been identified at this time.
  8. The Amount of Refunds Made Due to Insufficient Funds being Collected to Complete Financing on Incomplete Public Improvements, and the Amount of Reallocation of Funds Made Due to Administrative Costs of Refunding Unexpended Revenues Exceeding the Amount to be Refunded: All fees collected through the Affordable Housing In-Lieu Fee fund are expected to be allocated to projects that support affordable housing, including the Habitat for Humanity Veterans Build Homes Program project and affordable senior housing. These funds will be paired with City land transfers, volunteer contributions, developer financing, grants and tax incentives available to non-profit development. Consequently, sufficient funds are expected to be available to complete planned affordable housing projects, and no refunds or reallocations are expected.
B. California Government Code Section 66001(d) – Affordable Housing In-Lieu Fee fund
 
Government Code Section 66001(d) defines the specific five year findings that local agencies are required to make for imposition of mitigation fees. For the Affordable Housing In-Lieu Fee fund, these five year findings are detailed in the Report, and summarized below:
  1. Identify the Purpose to which the Fee is to be Put: The fee is an affordable housing in-lieu fee. On March 14, 2006, the City adopted Resolution No. 06R-10 to establish an interim affordable housing in-lieu fee, and approved an “Affordable Housing In-Lieu Fee Program.” On April 14, 2006, the City Council approved Resolution No. 06R-16, thereby establishing the City’s permanent Affordable Housing In-Lieu Fee Program for the purpose of generating fees that could be utilized to provide and maintain affordable housing. Projects allocated for funding through the Housing In-Lieu Fee fund include projects that support affordable housing including Habitat for Humanity housing and senior housing, both activities that target households meeting the state of California Housing and Community Development Department (HCD) definition of lower income.
  2. Demonstrate a Reasonable Relationship between the Fee and Purpose for which it is Charged: Under the adopted Affordable Housing In-Lieu Fee Program, the payment, by the developer, of an In-Lieu Fee in the amount of $1 per square foot of livable space is required for each eligible residential dwelling unit constructed within the City, with the following not-to-exceed fee amounts: $3,500 for a new single-family unit, and $1,000 for a new multi-family unit.
  3. Identify all Sources and Amounts of Funding Anticipated to Complete Financing in Incomplete Improvements: The Affordable Housing In-Lieu Fee fund beginning balance on July 1, 2014 was $543,279 and ending balance on June 30, 2019 was $3,168,698. At the beginning of last fiscal year (July 1, 2018), the balance of the fund was $2,980,850. During the next five years, the fund is expected to generate an additional $2,960,535 in revenues plus an additional $512,723 in interest, for a total five-year increase of $3,473,258. Additional sources of funding are expected to come from City surplus land contributions, volunteer contributions, developer financing, grants and tax incentives available to non-profit development.
  4. Designate the Approximate Dates on which the Funding is Expected to be Deposited into the appropriate account or fund: Based on expected residential development during the next five years, revenue and interest to be collected in the Affordable Housing In-Lieu Fee fund from fiscal year 2020-21 through 2024-25 are as follows:
 




C. California Government Code Section 66001(d) – Mitigation Fee Fund related to the Carbon Canyon Road and Canyon Hills Road Traffic Signal
 
Government Code Section 66001(d) defines the specific five year findings that local agencies are required to make for imposition of mitigation fees. For the Mitigation Fee fund related to the Carbon Canyon Road and Canyon Hills Road Traffic Signal, these five year findings are detailed in the Report, and summarized below:
  1. Identify the Purpose to which the Fee is to be Put: The purpose of this mitigation fee is to install a traffic signal at Carbon Canyon Road and Canyon Hills Road.
  2. Demonstrate a Reasonable Relationship between the Fee and Purpose for which it is Charged: The cost of the traffic signal is based on fair share contributions of development projects. There continues to be a reasonable relationship between this mitigation fee and the installation of a traffic signal at Carbon Canyon Road and Canyon Hills Road. Subsequent traffic studies conducted along Carbon Canyon Road, including the Phase 2 Traffic Study completed in October of 2018, demonstrate continued traffic congestion at this section of Carbon Canyon Road.
  3. Identify all Sources and Amounts of Funding Anticipated to Complete Financing in Incomplete Improvements: Total cost for the signal is estimated at $350,000. The other sources of funding for this project will likely come from the developer(s) of the properties within the vicinity of the intersection, fair share contributions from other potential development projects along Carbon Canyon Road and Caltrans. The City currently projects that these sources will be sufficient to completely fund this improvement.
  4. Designate the Approximate Dates on which the Funding is Expected to be Deposited into the appropriate account or fund: The installation of a traffic signal at Carbon Canyon Road and Canyon Hills Road is dependent on the speed of the Hidden Hills development, but will likely be completed in the next five years.
NOTICE:
Notice of availability of the Report and recommended findings contained in the Report as well as notice of the meeting to consider the report and findings was mailed or emailed to interested parties who requested mailed or emailed notice on April 27, 2020 (Attachment 2.), and was also posted on the City’s website and at the following physical locations: City Hall.  Further, the annual Report and recommended findings was made available to the public for review on the City’s website and at City Hall by appointment beginning on April 27, 2020.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.; "CEQA") and CEQA regulations (14  California Code Regulations §§ 15000, et seq.) because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
FISCAL IMPACT:
None.
REVIEWED BY OTHERS:
This agenda item has been reviewed by the City Attorney, the Finance Director and the Public Works Director.
Attachments
Annual and Five Year Report
Affidavit of Mailing
Resolution

AgendaQuick©2005 - 2021 Destiny Software Inc., All Rights Reserved