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Mr. Dolan noted that there is a chance that any of the sites could be acquired by a non-profit developer whose sole business is to provide affordable housing. He stated that in general, most if not all units in these buildings would have some sort of reduction in rent and would be limited as to what they could be rented for to address needs. He indicated, however, that the reality is that property in town is very expensive, and it is hard for these developers to acquire land, and even when they get free land, they often need millions of dollars in subsidy. He stated that for this reason, the chances of many of these sites ever being acquired by them are not great. He noted that they could deliver more units if they were able to do projects like that, but the reality is that it will be difficult for them to get these sites. Mr. Dolan stated that most of these sites will most likely get market-rate developers who will do the nicest apartments they can provide, and the only affordable or income-restricted units will be those required through , which integrates affordable and income-restricted units throughout projects so that no one really can tell which units are income-restricted. He explained that should the Commission approve an apartment anywhere before doing any of this, 15 percent of those units will have to be income-restricted and will have that limitation that will be different than the rest of the apartments in town, and the rest will be market-driven market-rate units. He noted that when people hear that the City is going to rezone 10 acres at 30 units per acre, the image that comes to mind is that the developer would be building 300 units of affordable, income-restricted housing; but this is not the case. He concluded that he knows the Commission understands this, but he thinks it needs to be repeated so that the entire community understands it as well. Chair Narum asked Mr. Dolan to confirm that using his example of 10 acres at 30 units per acre, 45 of the 300 units would be restricted-income units General Plan. Mr. Dolan confirmed that was correct and would be consistent with the Inclusionary Zoning Ordinance. Commissioner Pearce asked Mr. Dolan to explain what restricted income means in a community like Pleasanton, and the different types of below-market income levels. Mr. Dolan explained that there are three categories of below-market income levels which are based on units that are affordable or moderate, which would be those who make from 80 percent to 120 percent of median income, as calculated on a countywide level. He continued that there is then the low income, which would be a total annual income of $72,000 for a family of four, and finally the very-low income which would be $45,000 annually for a family of four. He added that there is a calculation for what the rent can be for a certain size unit, and the developer must provide a unit at what is affordable to the family at a certain percentage of their income, which cannot be a very high percentage. He indicated that, for example, it would not be allowed to have PLANNING COMMISSION REGULAR MINUTES, April 27, 2011 Page 20 of 40