Mill Valley to Consider Affordable Housing Ordinance to Combat Rising Rents, Home Prices

MILL VALLEY, CA — A new affordable housing ordinance proposed for the city of Mill Valley will be presented by city planners to the Planning Commission at a meeting scheduled for Wednesday, Aug. 23.

According to a city statement Tuesday, the proposed ordinance is a continuation of the city's work to enhance the affordability of housing in Mill Valley so that modest income households can join and remain an integral part of the Mill Valley community.

The ordinance is also a comprehensive update to the housing regulations contained in Mill Valley Municipal Code Section 20.80, and includes the establishment of a local affordable housing fund, an affordable housing impact fee and requirements for new developments with four or more new units.

According to the statement, the Mill Valley City Council has the adopted core value of the preservation of a vibrant community that respects Mill Valley's small town character, and the preservation of the community's high quality of life. The City Council has identified the key issue of residential and commercial development with emphasis on affordable housing for workforce, elderly and low-income residents at a scale and density consistent with Mill Valley's character.

The Mill Valley General Plan MV2040, has also identified the goals of protect the city's unique small town character and encouraging the continued diversity of housing and income levels.

The statement Tuesday said that in recent years, the city of Mill Valley has taken a leadership role in encouraging the continued diversity of housing by supporting the development of second units on larger lots, and requiring the construction of affordable units as part of any development project with four or more units.

However, city officials said they recognize there is more to be done:

"Mill Valley community members, like many in the Bay Area, frequently express concern about the significant trend in rising rents and home prices. Community members have experienced the displacement of residents that can no longer afford to pay housing prices such as seniors on a fixed income. We have heard of residents refer to themselves as 'house poor' — meaning that they pay more than one-third of their household income toward housing costs which, in turn, can create a shortage in discretionary income to pay for other important items such as food, clothing, transportation and medical care. Based on U.S. Census data, 37 percent of Mill Valley renters and 43 percent of Mill Valley homeowners fall into this category.

"Meanwhile, housing costs continue to rise. According to Zillow and Trulia, in May 2016, the median home price was $1.4 million and the average rent for a three-bedroom unit is approximately $5,000 a month — requiring household incomes exceeding $200,000-$300,000 (depending on financing). These housing prices primarily affect lower income renters and first-time homebuyers, and also limit the housing opportunities for local workers such as teachers, firefighters and retail service providers. According to the US Census, a retail salesperson typically makes $33,342 and a paramedic makes $56,336 a year."

Supporting documentation, including a staff report, the draft ordinance and supplemental materials for the Aug. 23 Planning Commission hearing can be downloaded here. For FAQs on the draft affordable housing ordinance, click here. The meeting begins at 7 p.m. in City Council Chambers, Mill Valley City Hall, 26 Corte Madera Ave. in Mill Valley.

For more information or to provide comments on the draft ordinance, community members may contact Danielle Staude at dstaude@cityofmillvalley.org or 415-384-4812.

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