The city has modified an affordable housing fee that was established in 1994, and charged for either new condominiums or condo conversions, by a unanimous vote of the Del Mar City Council.
The vote came at the City Council’s meeting on Monday, May 21. The fee is charged for new condo developments of between two and five units, as wells as conversions from apartments to condos.
Until now, the city had charged a flat rate of $23,508 per unit, a fee that was set in 2007. Under the new rules, a fee of $30 per square foot will be charged. According to a city staff report, the fee for a new, 2,100-square-foot townhome will rise to $66,000 under the new rules, while the fee for an 850-square-foot condo conversion will rise to $25,500.
The money is used for a rental assistance program for low and very low income families. Currently, four families are receiving assistance, and the program can accept up to eight families, said city staff members. In the future, the money could also be used to purchase or build affordable housing.
The fee will be tied to the Consumer Price Index and adjusted annually.