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Gridley Herald

Gridley Explores New Housing Incentives

Feb 07, 2020 12:00AM ● By By Seti Long

GRIDLEY, CA (MPG) – With the availability of affordable housing scarce throughout California, Gridley is not exempt from the issue.        

The City of Gridley has taken a serious look at how to tackle the problem. In August of 2018, Council adopted the Temporary Resident Housing Incentive Program #1 (TFHIP). Previously, the City’s Development Impact Fee (DIF) rates were generated from a study conducted in January 2007 and revised in 2011. The TFHIP sought to reduce DIF fees by 75 percent for potential developers but restricted the number of permits to just 45, allotting only 15 permits to any individual developer.

With TFHIP #1 a success, the City has adopted a TFHIP #2, with a DIF reduction by 75 percent for Certificates of Occupancy issued on or before through December 31, 2022. The amount of permit allowances has increased to a total of 150, with 30 permits available for any one developer.

A current example shows that the total of City impact fees run around $30,000 per dwelling unit. TFHIP #2 would reduce that to around $7,000. The 75 percent fee reduction incentive of TFHIP #2 is in accordance with bills AB 562, adopted by the State of California in October of 2013, establishing regulations dictating economic development incentives enacted by municipalities. They are also supported by AB 430, a bill adopted by the California State Legislature on September 6, 2019 to provide housing relief for Camp Fire victims.

The bill AB 430 authorizes housing developments in specific jurisdictions using a streamlined ministerial process, which allows projects to be permitted by an administrative review by the city to make sure they are consisted with the requirements. Requirements for AB 430 developments include being located in Biggs, Corning, Gridley, Live Oak, Orland, Willows or Yuba City, must be on residential or residential mixed-use zoned properties, have minimum density of 4 units per acre on a site no larger than 50 acres which is zoned for residential or residential mix-use, are consistent with current zoning standards and comply with the California Green Building Code.

At this time, the City and Council leadership have identified new residential development sites and have planned an infrastructure to support about 1,500 new units. Per information provided in a document by City Administrator and Financial Director Paul Eckert, City Council has “demanded a significant improvement of engineering and building inspection services.” Council has also approved the development of a Senior housing project, two planning maps for two new housing tracts to begin construction this year, with two more in the works and a potential fifth development. Council is also considering a new program to address vacant housing to increase the availability of rentals in the area.

The end goal of the TRHIP program and the City of Gridley, according to a city agenda informational packet, is to “prudently grow our population, tax income, and job numbers that are essential to maintaining a high quality of life for residents and businesses.” And of course, provide affordable housing in an already strained housing market.