Oakland City Council Approves Impact Fees

As we recently reported, the City of Oakland has been hammering out details of new development impact fees for the past several months. On April 19 the Oakland City Council approved two new fee ordinances in essentially the same form as we last described them.

The City Council made one significant change to the affordable housing impact fee zones, moving the Coliseum area back into Zone 3, the lowest of the three zones, which generally encompasses East Oakland. Most of Zone 3’s fees also do not kick in until July 1, 2018, two years after the other two zones.

The fees are intended to pay for affordable housing, transportation infrastructure and other capital improvements. All three fee categories apply to housing development. Only the transportation and capital improvement fees apply to commercial development. A residential project can avoid the affordable housing fee if it provides a specified percentage of affordable housing within the project or off-site, with City Council approval.

Oakland has been a notable exception among large Bay Area cities for not imposing comprehensive development fees, including those intended to help fund affordable housing. The City has proposed a phased approach and different fee levels based on the three geographic zones. 

The fees will go into effect on September 1, 2016. In order to avoid fees, projects generally will need to submit complete building permit applications by August 31, 2016. The City Council’s vote will become final when the ordinance undergoes a second reading in two weeks.

To read detailed City staff reports and related material on the fees, please click the link below, then click on 1. View Report.

Read Full Staff Report