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HomeMy WebLinkAboutR03-Economic Development Agency :L;.... ~ , o o o o DEVELOPMERT DEPARTMERT OF THE Cln OF SAlt BEJllWU)IRO REOUEST FOR CO~SSIOR/ComrCIL ACTIOR FROM: KENNETH J. HENDERSON Executive Director SUBJECT: IUW COlfSTRUCTIOR SIlfGLE FAMILY FEE StIIlVEY DATE: October 17, 1991 SvnoDsis of Previous CftMMission/Counci1/Committee Action(s): On September 17, 1991 the Housing Committee reconsidered guidelines for the Infill Housing Program and requested staff to provide additional information regarding cost estimates. On October IS, 1991, the Housing Committee reviewed the attached staff report regarding costs associated with the development of infill housing in the City of San Bernardino. Recommended Motion(s): (Coaaunitv De'll'e1omaent C_ission) MOTIOR: That the Community Development Commission receive and file the attached staff report regarding costs associated with the development of infill housing in the City of San Bernardino. -1 Adminlstrator Contact person(s): Ken Henderson/Doris Daniels Phone: 5081 Project Area(s): All Ward(s): 1-7 Supporting Documentation Attached: Staff ReDort: Exhibit FUNDING REQUIREMENTS: $ N/A Source: N/A Amount: Budget Authority: Commission/Council Botes: o KJH:DAD:OI02L ~SSIOB MEETIRG AGENDA Meeting Date: 10/21/1991 Agenda Item llumber: 3- --0';,,,-;;-,':::'" , o o o o DEVELOPMEJlT DEPARTMEJlT OF TIlE CITY OF SAIl BUlWlDIJlO STAFF REPORT Jlew Construction Sina1e-FlIIIIilv Fee Survey At the September 17, 1991 meeting, the Housing Committee reconsidered guidelines for the Infi11 Housing Program and reviewed requested amendments to an agreement with SSLM Ventures, Inc., to develop housing on infi11 lots and to implement the Infill Housing Program. Staff was requested to provide additional information regarding cost estimates for a 1,500 square foot house on an infill lot. Costs were to include those associated with typical development expenses, such as land, development fees, construction costs, bank fees, and sales costs. This information would assist the Committee to more accurately determine the costs associated with typical infill housing development. On October 16, 1991, the Housing Committee reviewed Exhibit "I" regarding costs associated with the development of infill housing in the city of San Bernardino. The following concerns were noted: 1. It is usually difficult to find lots of standard size (i.e. 7,000 to 7,200 square feet) on which to build a house that is larger than 1,200 square feet. Lots normally range from a minimum of 5,000 square feet to 6,000 square feet. 2. Width is normally a problem in that infill lots are usually 40 to 50 feet wide. 3. When attempting to build a house that is 1,500 square feet on a small lot, the builder must construct a two story structure which becomes too expensive for the current market of infill housing. The costs detailed in Exhibit "I" cover expenses associated with the building of three types of infill houses: (a) a 1,200 square foot house on a small lot (5,000 to 6,000 square feet); (b) a 1,500.square foot house on a small lot, and; (c) a 1,500 square foot house on a 7,200 square foot lot. As is shown on the attached exhibit, prior notions about the ability of developers to build $65,000 - $75,000 homes in San Bernardino is no longer possible without other forms of assistance. In addition, it is ------------------------------------------------------------------------------- o KJH: DAD: 0102L ClMIISSIOJl MBETIJIG AGEJlDA Meeting Date: 10/21/1991 Agenda Itell l'I18ber: 3 ~".,~.. , o o o .....;-- o o DEVELOPMDT DBPA.uiv.ar SrAFF IIBPORT Comprehell8ive BousiDa Affordability Strategy October 17, 1991 Page Rumber -2- also important to note that costs included in the attached exhibit are exclusive of the developer's profit. When this item is taken into account, it is increasingly clear that homes below $100,000 are difficult if not impossible to construct and sell without some additional assistance to the developer. Based upon the foregoing, staff recommends adoption of the form motion. ~~. _._Dirett.. Deve10Iaellt Depa aaent KJH:DAD:0102L COIIIIISSIOB IIBBTIRG AGBBDA BeetiDa Date: 10/21/1991 Agenda Its llullber: 3 ,"',- 0' o o o o o DEVBLOPMDT DEPAIarIIml: STAFF REPORT Comprehensive BousiDg Affordability Strategy October 17. 1991 Page lIumber -3- EXIIIBIT "I" IBFILL BOUSIBG DEVBLOPMDT COSTS The following are costs associated with the development of infill housing: LAND: CONSTRUCTION COSTS: DEVELOPMENT FEES: (School; Sewer; Water; Plan Check, and Related Fees) OFFSITE IMPROVEMENTS: Curb; Gutter; Side- walk; Drive Approach) BANK FEES: SALES COSTS: MISCELLANEOUS: TOTAL COSTS: KJH:DAD:OI02L 1200 SQ. FT. BOUSE OB S"'AT.T. LOT 1500 SQ. FT. BOUSE 1500 SQ. FT. HOUSE OB R"'lT.T. LOT OB IlEDImI LOT $20,000 $44,000 $ 8,000 $20,000 $52,500 $ 8,000 $ 25,000 $ 52,000 $ 8,000 $ 2,000 $ 2,000 $ 2,000 $ 5,000 $ 5,500 $ 5,500 $ 6,000 $ 6,000 $ 6,000 S 2.000 S 2.000 S 2.000 i876000 i06.000 i1006500 COMMISSIOB ImETIBG AGENDA Meeting Date: 10/21/1991 Agenda Item lIumber: ~