Inclusionary Housing Feasibility Study and Affordability Gap Analysis Services

The vendor is required to provide to conduct a comprehensive inclusionary housing feasibility study aims to analyze local market conditions and economic impacts, thereby ensuring that the county can effectively implement an updated ordinance requiring 20-25% inclusionary housing in new developments, ultimately enhancing the availability of affordable housing options for the community.
- This study should provide:
• Assessment of existing market conditions regarding housing availability.
• Analysis of the economic impact of inclusionary housing policies on developers and the community.
• Calculation of an appropriate in-lieu fee for both rental and for-sale housing.
• Identification of potential financing models to support the development of affordable housing.
• Recommendations for policy adjustments based on empirical data and trend analysis, based on best practices and legal requirements.
- The study will yield actionable insights to guide policymakers in establishing frameworks that facilitate sustainable development while ensuring a sufficient number of affordable housing units are constructed to meet community needs.
- Critical milestones include:
• Initial data collection and market analysis to be completed within the first two months.
• Draft report presentation(s) to county staff and housing policy reform Adhoc within four months for feedback and refinement, with such presentations allowable by zoom.
• Finalization of the study and submission of the final report no later than six months after project initiation.
• Include add on cost for finalization of the study and submission of the final reports within three months of project initiation.
- Written reports and public hearings:
• Prepare a final report detailing findings, methodologies, and proposed action steps for the implementation of recommendations.
• The initial draft report shall be provided for staff and the housing policy reform ad-hoc to review.
• The revised draft will be provided to staff and the housing policy reform Adhoc for comments.
• Attend one planning commission meeting to present conclusions and answer questions regarding the study, anticipated to occur in winter of 2025.
• A final report and PowerPoint presentation will be provided, and a draft resolution, ordinance, and staff report should be prepared in addition to the fiscal analysis.
• Attend one county board of supervisors meeting to present conclusions and answer questions regarding the study, anticipated to occur in winter of 2025.
• A final report, PowerPoint presentation, resolution, ordinance, and staff report will be provided.
• Extra meetings (if needed) shall be charged at an estimated hourly rate.
- Economic feasibility study
• Examination of data. Analyze the existing conditions within the county and the region, including the current inclusionary housing ordinance, cost to produce affordable and market rate housing, the existing market demand for housing, and existing affordable housing supply.
• Conduct a comprehensive review of local and neighboring jurisdictions’ real estate market conditions, including existing housing stock, rental rates, and housing demand projections.
• Identify specific factors influencing construction costs, including land values, labor, materials, and financing options.
- Affordability gap analysis
• Determine the financial difference between constructing market-rate and affordable housing units.
• Calculate an in-lieu fee for both rental and for-sale housing, in compliance with applicable laws, representing the financial contribution developers can make toward affordable housing initiatives at a range of 20-25% inclusionary housing.
• Modify the methodology to include very low-income households in the gap analysis for for-sale housing and reconsider the gap for low-income and moderate-income households.
• Reconsider the gap for very low-, low-, and moderate-income rental housing.
- Questions/Inquires Deadline: May 12, 2025