Title
Planning and Building Department, Affordable Housing Unit, and the Department of Transportation recommending the Board of Supervisors approve and adopt revisions and administrative edits to Board Policy B-14, Traffic Impact Fee Offset Program (formerly Traffic Impact Mitigation Fee Offset Program).
Funding: Federal and State Transportation Grant Revenues - 100%
Body
Discussion / Background
Traffic Impact Mitigation Fee Offset Program Policy B-14 Background
The Traffic Impact Fee (TIF) Offset Program, established in 2007 (Legistar File 07-1822), supports affordable housing development by using federal and state transportation grants to reduce TIF costs for qualifying affordable housing projects. The Program provides up to $1 million annually to offset fees for developments with five (5) or more units that include at least twenty (20) percent affordable housing. These offsets are not direct subsidies; instead, grant funds backfill the reduced fees. Eligible multifamily projects must enter into an Affordable Housing Agreement requiring units to remain deed-restricted and income-restricted for at least twenty (20) years, based on the current policy.
Over time, the Board of Supervisors (Board) has expanded and modified the program. Accessory Dwelling Units were made eligible in 2013 (Legistar File 13-1516), and in 2016 (Legistar File 14-0245), the Board granted all ADUs a full one hundred (100) percent offset, eliminating the application requirement.
County Housing Element Policies and Goals
The Housing Element requires the County to implement measures that promote affordable housing, including the use of fee incentives and offsets. If specifically identifies Measures HO-5 (Incentives for Low-Income Housing Development) and HO-33 (Traffic Impact Fee Program) as key actions the County must continue to implement effectively. The Housing Element also commits the County to monitoring incentive programs under HO-34 and updating them as needed to better mitigate impact fees for transitional and supportive housing, employee housing, and housing for disabled or elderly residents. Together, these measures show that the TIF Offset Program plays a central role in reducing cost and regulatory barriers and enabling affordable housing to be developed under market conditions that would otherwise prevent it.
Board Direction
On May 12, 2026 (Legistar File 26-0743), the Board directed staff to review Policy B-14 with the Affordable Housing Task Force (AHTF) and to provide suggested revisions to the Board for consideration. Staff held a workshop with the AHTF on June 10, 2026 (Legistar File 26-1032) and discussed updates to the policy that would modernize program requirements, clarify definitions, update terminology, and consider changes such as adjusting application round frequency, modifying eligibility criteria, and extending deed-restriction periods. Some AHTF suggestions were found infeasible, such as increasing grant funding beyond the current limits or exempting certain single-family homes from TIF. Other topics-such as expanding eligibility to higher income levels, increasing offsets for low-income units, delegating approval authority, and aligning deed-restriction lengths with State and Federal standards-require additional Board direction.
On August 25, 2026 (Legistar File 26-1288), the Planning and Building Department, Affordable Housing Unit (Housing Unit) and the Department of Transportation (DOT) met with the Board to discuss Housing Unit and AHTF edits and suggestions to Policy B-14. The Board provided feedback and directed staff to make the following changes and return for adoption of the revised Policy:
1. Remove ADU Language (no longer applicable as ADUs are exempt following adoption of the 2016 Major TIM Fee Program Update).
2. Update all Traffic Impact Mitigation (TIM) Fee Program references to Traffic Impact Fee (TIF) Program.
3. Define “developing” to indicate that a submitted application shall be an eligibility requirement to apply for an offset.
4. Add requirements of “any associated documents.”
5. Modify the deed restrictions to align with State and Federal funding policies.
The Housing Unit and DOT will continue collaborating to refine the TIF Offset Program based on Board feedback. Any significant updates will require cross-departmental collaboration to ensure the program remains effective, compliant with state housing laws, and supportive of the County’s broader goals to reduce barriers and promote the development of affordable housing.
Alternatives
The Board may choose not to update the Policy as recommended by staff, make additional modifications, or direct staff to further evaluate options and return to the Board at a future date for consideration.
Prior Board Action
See Discussion/Background above.
OTHER Department/Agency involvement
Chief Administrative Office; County Counsel; DOT
CAO Recommendation
Approve as recommended.
Financial Impact
There is no change to net County cost associated with this agenda item. The TIF Offset Program for Developments with Affordable Housing Units currently assumes that over the next 20 years, $20 million in TIF offsets will be awarded to eligible affordable housing projects. These offsets are backfilled by State and Federal grant revenues applied to projects funded by the TIF Offset Program.
Clerk of the board follow up actions
The Clerk of the Board will update the online Board Policy Manual with the approved and adopted changes.
Strategic Plan Component
Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Develop a comprehensive plan for affordable housing opportunities
contact
Jennifer Morris, Sr. Administrative Analyst
Planning and Building Department
Zach Oates, Sr. Civil Engineer
Department of Transportation