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Oakland Proposed Developer Fees Summary

Unlike most large Bay Area cities, Oakland has not charged development impact fees to pay for affordable housing, but that is likely to change soon. The ramifications of a proposal to impose fees on new residential and commercial development in Oakland will come into much clearer focus on Jan. 26, 2016 when the Oakland City Council’s Community and Economic Development Committee reviews detailed City staff recommendations on the fees, which are intended to pay for affordable housing, transportation infrastructure and other capital improvements. City staff has proposed a phased approach and different fee levels based on three geographic zones. Finally, staff has set a preferred deadline for when the fees would kick in. While the fees are expected to apply to market-rate multifamily construction, townhomes, single-family homes and commercial development, our summary below focuses on multifamily projects.

The staff recommendations follow more than a year of study on the “nexus” between fees and the impacts of new development, and the economic feasibility of imposing fees on new development.  The staff report breaks the City into three geographic zones:  Zone 1 — Central /North Oakland and Hills (including Downtown and Jack London Square); Zone 2 — West Oakland; and Zone 3– East Oakland (view the map). The report identifies lower fees for Zone 2 and Zone 3 to account for market differences and related wherewithal to pay fees. According to the proposal, fees would increase over three phases, December 1, 2016 – November 30, 2017; December 1, 2017-November 30, 2018 and anything after December 1, 2018. Staff recommends that fees be imposed when projects submit a building permit application — a critical detail for projects already in the pipeline, but lacking building permits.

The key points for proposed multifamily residential projects in Zones 1-3 are set forth below.

Zone 1 (Central/North Oakland and Hills)

  • No impact fee if the project applies for a building permit by December 1, 2016
  • Permit filed between Dec. 1, 2016 – November 30, 2017: $5,710 per unit
  • Permit filed between December 1, 2017-November 30, 2018: $10,710 per unit
  • Permit filed after December 1, 2018: $20,710 per unit

Zone 2 (West Oakland)

  • No impact fee if the project applies for a building permit by December 1, 2016
  • Permit filed between Dec. 1, 2016-November 30, 2017: $4,000 per unit
  • Permit filed between December 1, 2017-November 30, 2018: $8,000 per unit
  • Permit filed after December 1, 2018: $16,000 per unit

Zone 3 (East Oakland)

  • No impact fee if the project applies for a building permit by December 1, 2016
  • Permit filed between Dec. 1, 2016-November 30, 2017: $3,000 per unit
  • Permit filed between December 1, 2017-November 30, 2018: $6,000 per unit
  • Permit filed after December 1, 2018: $12,000 per unit

If approved by the Community and Economic Development Committee, the recommendations would go to the full City Council for approval. Click here to see the full report.

Attorneys

Selna, Robert W.

Practice Areas

Land Use