Since 1987, the City of Livermore has been setting inclusionary housing policies, which require residential development projects to contribute to the production of affordable housing units for low-income and moderate-income households. By requiring developers to set aside a portion of a market rate housing project’s units as affordable, the City’s Affordable Housing Ordinance, which was codified in 2000, has produced over 180 homes for low- and moderate-income first-time homebuyers. Approximately 25% of the units produced have been purchased by Livermore schoolteachers. The program has also contributed to the City’s inventory of 1,098 affordable rental units through City Affordable Housing In-Lieu Fee funding and implementation of the on-site requirement. 

Residential projects of 11 units or more within the General Plan, Downtown Specific Plan and Isabel Neighborhood Plan Area are subject to the on-site requirement. 

What types of projects are subject by right to pay the in-lieu fee? 

Projects of 10 or fewer units may also pay the in-lieu fee. Projects within the South Livermore Valley Specific Plan are exempt from the on-site requirement, but must pay the affordable housing in-lieu fee.

A residential development’s specific affordable housing requirements are detailed in Section 10.06.050 of the Livermore Development Code. Currently, for-sale residential development projects in the General Plan area (i.e., outside the Downtown Specific Plan area) are required to set aside 15% of a project’s units as affordable, with 7.5% affordable for moderate-income households earning 120% of Area Median Income and 7.5% set aside for low-income households earning 80% of the Area Median Income. In the Downtown Specific Plan area, 10% of the for-sale units for residential development projects must be set aside for low-income households.  

On November 9, 2020, the Livermore City Council adopted the Isabel Neighborhood Specific Plan, which included affordable housing requirements for both rental and ownership residential development in the Isabel Neighborhood Specific Plan area. The project-level minimum inclusionary requirement is 20% in this area to take advantage of the strong connection between density, transit, and affordable housing. The affordability requirements for units within the INSP are specified in Section 10.06.050 of the Livermore Development Code. 

The Development Code also establishes construction and implementation standards for affordable housing units, including minimum gross floor areas as well as requirements that affordable units be comparable in unit mix and type, economically equivalent to a project’s market rate homes, and integrated throughout the development. 

The maximum affordable purchase price and affordable rent levels for units subject to these requirements are set annually by City Council and posted to the City’s Housing Website, here.  

The Development Code also provides alternative methods of complying with the inclusionary requirements, such as land dedication or paying an Affordable Housing Fee (also known as an In-Lieu Fee) which must be pre-approved by City Council. Projects with ten (10) or less units can satisfy their entire affordable housing requirement by paying the In-Lieu fee which is adopted annually by City Council. For residential projects of 11 or more units, alternatives to building the affordable housing requirements on-site must have City Council approval. Staff work extensively with developers to implement City Council Affordable Housing priorities and identify alternatives that are economically equivalent to building required units on-site, address the City’s affordable housing needs, and are feasible for the development project. The requirements are designed to maximize the impact of each residential development and allow the City to respond to emerging opportunities.

Fee calculation methodologies for all projects are described in LMC Chapter 3.26. Projects of 10 or fewer units are subject to the In-Lieu fee adopted by City Council annually and specified in the City Development Fee Schedule. Projects with 11 or more units which have been approved for a portion of on-site units to be satisfied in fee are subject to the fee methodology based on the actual development cost of the market rate units subject to the requirement, as described in the Code. 

Yes. Exceptions to paying the in-lieu are fully listed in LMC Chapter 3.26 of the Municipal Code. Generally, residential exceptions commonly include: expansion or remodeling; replacement which occurs within 36 months of demolition/destruction; accessory dwelling units, projects which satisfy the City’s inclusionary requirements or which receive a density bonus, and church/temple/religious property used primarily for worship.  

Commercial exceptions generally include: public and private daycare, elementary or secondary school, development for public use on public property; minor remodeling or additions and replacement within 36 months; temporary uses; public hospitals.