The City of Santa Clara is considering adding additional fees to new construction of residential housing to pay for affordable housing projects. This will impact the ability of new housing to be built at prices affordable to the average family. The dream of homeownership is already difficult for many families to achieve and these new fees could push this dream completely out of reach.
Santa Clara has commissioned a nexus study, which is a specific study that legally allows the city to justify adding hidden taxes to the cost of housing; these taxes are known as impact fees. This study would justify up to $71,800 in added impact fees for the construction per single-family home and $43,400 per apartment unit. This will not make housing more affordable in Santa Clara. Additionally, these fees will hurt property values, as the study shows the fees would decrease land values by 10% to 40% depending on how high the fees are set.