To: Board of Supervisors
Department or Agency Name(s): County Executive Office
Staff Name and Phone Number: M. Christina Rivera, Christel Querijero, Jennifer Larocque; (707) 565-2431
Vote Requirement: Informational Only
Supervisorial District(s): Countywide
Title:
Title
Affordable Housing Impact Fee Elimination Program and Nexus Study Update
End
Recommended Action:
Recommended action
Receive an update on the Affordable Housing Impact Fee Elimination Program and Nexus Study.
end
Executive Summary:
The County’s Affordable Housing Impact Fee Elimination Program, adopted by the Board of Supervisors (Board) on March 11, 2025, eliminates park and traffic impact fees for very low, low, and moderate income housing through December 2026 or until a new nexus study is adopted. To date, 71 affordable units have received eliminated park and traffic fees, resulting in $587,028 in avoided development costs ($325,890 in traffic fees and $261,138 in park fees).
In July 2025, the Board approved a contract with Harris & Associates to prepare an updated nexus study for park and traffic impact fees. Project work is underway, including data collection, review, and development of land-use growth forecasts. In 2026, staff and consultants will prepare the draft nexus study, conduct stakeholder engagement, and present the study to the Board for consideration.
The March 2025 item included a commitment to provide an update before the end of the calendar year; this update fulfills that commitment.
Discussion:
Affordable Housing Impact Fee Elimination Program
Development impact fees are charged on new development to fund public infrastructure and services such as traffic, parks, and fire safety. On March 11, 2025, the Board established a program to eliminate park and traffic impact fees for very low, low, and moderate income housing. The program allows eligible projects to receive fee elimination if they obtain a building permit before December 2026, or before the County adopts an updated nexus study and fee schedule, whichever occurs first.
Building permits have been issued for 71 affordable units - 11 very low income units and 60 low income units - that are eligible for eliminated park and traffic impact fees. This has resulted in $587,028 in avoided development costs: $325,890 in traffic fees and $261,138 in park fees. Eliminated fees for each project will be finalized at the time of final inspection or issuance of the certificate of occupancy. Additional affordable units at very low, low, and moderate income levels will qualify for the program if they meet the eligibility criteria and obtain a building permit within the program period.
The Board programmed $3 million to backfill eliminated fee revenue, subject to County Executive review and approval. Backfill need will be assessed when projects reach final inspection or issuance of the certificate of occupancy. If program demand exceeds the $3 million allocation, the County will continue to eliminate eligible fees without providing backfill.
Nexus Study
The County’s existing nexus study was developed in 2020. On July 22, 2025, the Board authorized execution of a professional services agreement with Harris & Associates to prepare a new development impact fee nexus study for park and traffic fees. The updated nexus study will comply with relevant state law, including the Mitigation Fee Act; AB 602 (Development fees: impact fee nexus study); and SB 937 (Development projects: fees and charges).
The County convened a project kickoff meeting in August 2025 with representatives from the County Executive's Office, Sonoma County Public Infrastructure, Regional Parks, County Counsel, and Permit Sonoma. Recent project activities include data collection and review, as well as the preparation of land use growth forecasts. Upcoming work includes additional data analysis and development of draft nexus study tables. In 2026, staff and consultants will prepare the draft nexus study and conduct stakeholder engagement. Staff anticipate presenting the study to the Board for consideration in the fourth quarter of the calendar year.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
• 7/22/25 - The Board authorized an agreement with Harris & Associates to produce a development impact fee nexus study for park and traffic fees.
• 3/11/2025 - The Board established a Two-Year Development Impact Fee Elimination Program for Affordable Housing.
• 1/14/2025 - The Board directed staff to return to the Board with a resolution to establish a two-year development impact fee elimination program for affordable housing.
• 11/5/2024 - The Board directed the County Administrator’s Office to initiate a Request for Proposals to conduct a Nexus Study for Parks and Transportation development impact fees.
• 6/10/2024 - The Board provided direction to staff to return to the Board with a variety of options related to development impact fees, including waivers and a study.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
There is no fiscal impact associated with this update.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
N/A
Related Items “On File” with the Clerk of the Board:
N/A