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Commissioner Malmrose noted that developers would provide for 14 unit developments rather than 15 unit developments where affordable homing would be required. He noted that the fee per unit for not providing affordable homing within a project in inexpensive at $2,000 per unit. Vice Chairperson Sullivan noted that the free market has not provided the number of affordable units that are needed in the City and there is a need for an ordinance. He noted he would prefer an ordinance that has flexibility. Vice Chairperson Sullivan expressed concern with the affordable housing in lieu fee and that developers will prefer to pay the in lieu fee rather than provide affordable homing. He spoke in favor of the in lieu fee being raised and with another nexus study being conducted to examine other opportunities for affordable homing. He noted the emphasis should be on providing the units and not paying the fees. Vice Chairperson Sullivan spoke in favor of the process outlined in the proposed ordinance, such as a proposal by the developer and having all the Commissions review the developer's proposal. He noted this would provide the Planning Commission with the Homing Commission's input. Commissioner Arkin suggested that this item be tabled and that ajoim meeting be conducted in the Fall of 2000 with the Homing Commission to discuss this proposed ordinance and their suggestions. Commissioner Kameny stated he served as a commissioner on the Homing Commission for seven years and he noted the Commission's frustration was with the number of developers who paid the in lieu homing fee. Commissioner Kameny noted that the proposed ordinance would provide for affordable homing in developments. He spoke in favor of this item being discussed and analyzed with the Homing Commission and that the suggestions by Mr. MacDonald be considered. Vice Chairperson Sullivan inquired as to the process, and Mr. Bocian noted that the Homing Commission has performed an extensive review process for this proposed ordinance. He noted the Homing Commission would like the proposed ordinance to be heard by the City Council. Further, Mr. Bocian stated that the Homing Commission has made a recommendation relating to the in lieu housing fee being increased. He noted the City Council approved a fee, based on the analysis provided. Commissioner Arkin stated he would like to hear the Homing Commission's view of the issues raised by Mr. MacDonald. Commissioner Arkin moved to postpone the decision on the proposed Inclusionary Zoning Ordinance until a joint workshop meeting is conducted between the Homing Commission and the Planning Commission. Further, that this issue be postponed until the time that the San Francisco Bemal property is conducted. Vice Chairperson Sullivan suggested a friendly amendment to the motion to include a recommendation that another nexus study of increasing the affordable homing in lieu of fee be conducted. Commissioner Arkin concurred with the amendment. Vice Chairperson Sullivan seconded the motion. A motion was made by Commissioner Arkin, seconded by Vice Chairperson Sullivan, to postpone decision on the proposed Inclusionary Zoning Ordinance until a joint workshop meeting between the Housing Commission and Planning Commission is conducted. Further, that this workshop be conducted after completion of the San Francisco Bernal PLANNING COMMISSION MINUTES July 26, 2000 Page 7