DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Amendments to the Center City Housing Incentive Policy (CCHIP) and Inner City Reinvestment/Infill Policy (ICRIP)
SUMMARY:
A Briefing on proposed amendments to the Center City Housing Incentive Policy (CCHIP) and Inner City Reinvestment/Infill Policy (ICRIP).
BACKGROUND INFORMATION:
The Center City Housing Incentive Policy (CCHIP) and Inner City Reinvestment/Infill Policy (ICRIP) encourage the redevelopment of the inner city through financial incentives and technical assistance. Both policies are administered by the Center City Development and Operations Department.
Inner City Reinvestment and Infill Policy
In 2010, the ICRIP was approved by City Council to encourage infill activity and the creation of sustainable neighborhoods that are safe, walkable, mixed-use, compact and well-designed. The policy provides financial assistance, such as City and SAWS fee waivers, and staff support for assistance in navigating regulatory and procedural processes. The current ICRIP boundary was adopted in January 2013 and is 84 square miles. The most recent amendments to the program guidelines were approved by City Council on May 28, 2015. Since 2012, over 1,600 fee waiver applications have been approved. These applications represent $4.4 billion in investment and over 10,000 housing units. Of the 10,000 housing units, 4,200 or 42% are affordable or workforce housing.
Center City Housing Incentive Policy
In June 2012, City Council adopted the Center City Housing Incentive Policy (CCHIP) - an as-of-right housing incentive program designed to encourage economic development in the center city. The CCHIP was renewed with amendments in 2016, reducing the program boundary, improving administrative operations, and extending the program through June 2018.
Since its creation, the CCHIP has facilitated 63 projects. These projects represent a total investment of $1.2 billion and the CCHIP provided $92.7 million in incentives for these projects:
$3.3 M City Fee Waivers (General Fund)
$5 M Forgivable Loans or Grant (General Fund and will not be repaid)
$2.9 M Loans (General Fund and will be repaid)
$14.8 M SAWS Fee Waivers (SAWS)
$66.7 M Tax Rebates (Rebate on ad valorem taxes paid to the City by the developer as a result of the project)
$92.7 M
For every $1 of City-provided incentives for these projects, it has returned nearly $12 in private investment. The projects will yield 6,238 housing units, 35,000 square feet of office space, and 132,000 square feet of retail. Of the 6,238 housing units, 1,285 or 20% are workforce or affordable housing.
On October 2, 2017, a Council Consideration Request was issued, requesting a review of City incentives for residential and commercial developments to include ICRIP and CCHIP, among others. On January 11, 2018, City Council approved a temporary moratorium on administrative approvals of CCHIP agreements, directing staff to reevaluate the existing program. Staff has initiated a review of both programs and commissioned a housing study to evaluate the success of the CCHIP and to perform a separate analysis on its impact to development.
ISSUE:
The Economic and Workforce Development City Council Committee will receive a briefing on the proposed amendments for the ICRIP and CCHIP. The recommendations are based on stakeholder interviews, alignment with the SA Tomorrow Regional Center Plans, and market conditions. Additionally, staff’s recommendations have been coordinated with the Mayor’s Housing Policy Taskforce.
Following this presentation, staff will initiate additional stakeholder input and would like to present the CCHIP and ICRIP to City Council on September 20, 2018.
ALTERNATIVES:
This item is for briefing purposes only.
FISCAL IMPACT:
There is no fiscal impact associated with this briefing.
RECOMMENDATION:
Staff is requesting approval to proceed to City Council for consideration on September 20, 2018.