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Agenda
54953. Any member of the public may attend this meeting, however, if you are feeling sick,
please do not attend the meeting in person. Questions regarding this matter may be addressed to HAC@berkeleyca.gov. Written communications submitted by mail or e-mail to the Housing Advisory Commission by 5:00 p.m. the day before the meeting will be distributed to the members of the Committee in advance of the meeting and retained as part of the official record. All agenda items are for discussion and possible action. Public comment policy: Members of the public may speak on any items on the Agenda and items not on the Agenda during the initial Public Comment period. Members of the public may also comment on any item listed on the agenda as the item is taken up. Members of the public may not speak more than once on any given item. The Chair may limit public comments to 3 minutes or less.
Attachments (91)
- https://cityofberkeley-info.zoomgov.com/j/1611379152.
- HAC@berkeleyca.gov.
- HAC@berkeleyca.gov.
- HHCS@berkeleyca.gov
- HHCS@berkeleyca.gov
- 1350
- 11004
- 11003.2
- 11003.2
- 33007.5.
- 21.16.020,
- 13.76.130.A
- 13.76.130.A
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- R 982.310
- r 21.16,
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- 21.24,
- 13.76.130.A
- 13.76.130.A
- 1946
- 1946.1;
- 827,
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- r 21.44
- 1;
- https://www.rocketmortgage.com/learn/home-renovation-costs,
- y https://rentboard.berkeleyca.gov/elected%20rent%20board/news/2024-adjustments-relocation-assistance-
- payments, a
- ] https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-List-Folder/DGS-California-
- Construction-Cost-Index-CCCI
- b] https://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm
- ] https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve
- https://bekinsmovingservices.com/blog/alameda-county-property-tax/
- HHCS
- HAC @berkeley
- PAGE ca.
- 49 gov
- Background and Purpose
- Review of Condominium Conversion Ordinances in Peer Cities
- [a] Following a legal challenge to the lifetime lease provision, San Francisco no longer accepts applications for condominium conversions except those from the small number of applicants that are exempt from this provision.
- [b] Income-qualified tenants have a right to purchase at an affordable price as determined by the City.
- Sources: Municipal codes for the respective jurisdictions, 2024; Strategic Economics, 2024.
- Review of Berkeley’s Current Policy Results
- [a] Condominium values adjusted to 2023 dollars using the Zillow Home Value Index for Berkeley.
- Sources: City of Berkeley, 2024; Strategic Economics, 2024.
- Note: Excludes condominium conversions exempt from the AHMF.
- Source: City of Berkeley, 2024; Strategic Economics, 2024.
- Analysis of Fee Alternatives
- Condominium Conversion Prototypes and Assumptions
- Revenues
- Costs
- Project Return and Maximum Feasible Cost Burden
- Sources: City of Berkeley, 2024; Redfin, 2024; Rocket Mortgage https://www.rocketmortgage.com/learn/home-renovation-costs, accessed 2024; Strategic Economics, 2024.
- Source: Strategic Economics, 2024.
- Feasibility of Existing Nexus-Based Fee
- [a] Monthly rent assumes total housing costs equal to 30 percent of household income, including a utilities assumption of $229 per month for one-bedrooms and $283 for two-bedrooms.
- [b] See Figure 20 in the Appendix for details on the calculation of the nexus fee.
- Sources: City of Berkeley, 2024; U.S. Department of Housing and Urban Development, 2023; Strategic Economics, 2024.
- Note: Total Cost Burden is the calculated nexus fee reduced by 25 percent for early payment, plus tenant relocation costs of $24,710 per household for rent levels at 50% and 80% of AMI, and $18,533 per household for a rent level of 100% of AMI.
- Source: City of Berkeley https://rentboard.berkeleyca.gov/elected%20rent%20board/news/2024-adjustments-relocation-assistance-payments, accessed September 25, 2024; Strategic Economics, 2024.
- Feasibility of the Fee Cap Option
- Source: Strategic Economics, 2024.
- Source: Strategic Economics, 2024.
- Feasibility of Proposed “Replacement Cost Nexus Fee”
- [a] Monthly rent assumes total housing costs equal to 30 percent of household income, including a utilities assumption of $229 per month for one-bedrooms and $283 for two-bedrooms.
- [b] See Figure 22 in the Appendix for details on the calculation of the supportable debt.
- [c] The nexus fee is development cost minus supportable debt.
- Sources: City of Berkeley, 2024; U.S. Department of Housing and Urban Development, 2023; Strategic Economics, 2024.
- Source: Strategic Economics, 2024.
- Source: Strategic Economics, 2024.
- Recommendations
- Source: Strategic Economics, 2024.
- Sources:
- [a] https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI
- [b] https://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm
- [c] https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve
- Strategic Economics, 2024.
- Appendix
- Source: City of Berkeley, 2024; Strategic Economics, 2024.
- Source: Condominium Conversion Fee Sheet, City of Berkeley, 2024; Strategic Economics, 2024.
- [a] Total Cost Burden assumes a 25 percent reduction of the nexus fee for early payment plus applicable tenant relocation assistance.
- Source: Strategic Economics, 2024.
- See Figure 15 for assumptions for development cost (a), operating expense (d), debt coverage ratio (f) and interest rate for supportable debt (h). Supportable Debt is calculated by converting the annual income available for debt service to a present v...
- See Figure 20 for assumptions for monthly rent (b).
- Source: Strategic Economics, 2024.
- MEMORANDUM