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This disconnect is also evident between the City's Housing Site Development Standards and Design Guidelines which require compliance with the City's IZO and the "by right" aspect of high density rental housing. Finally, the City is expected to implement a range of Housing Element programs that should, if appropriately applied, lead to meeting state mandated and RHNA housing and affordable housing targets. However, absent strict IZO requirements, it is doubtful that new affordable housing units will approach these targets. Regarding this matter, as evidenced in the table below, even in the best of situations, meeting RHNA targets is impractical within the current housing market. SUMMARY OF CURRENT AND DRAFT RHNA 2007 — 2014 2014— 2022 Income Levels Ado•ted RHNA Draft RHNA Very Low (50°/0 AMI) 1,076 713 Low (80% AMI) 728 389 Moderate (80% to 120% AMI) 720 405 Above Moderate (+120% AMI) 753 551 TOTAL UNITS 3,277 2,058 As an example, assuming that the California Center, St. Anton and Auf der Maur developments each met its affordability goals by providing all 15% of their inclusionary units at very low income, a total of 117 very low income units would be provided. Notwithstanding this situation, the City is obligated to carrying out its Housing Element that is designed to meet both RHNA goals and state housing policies requiring cities to demonstrate how they will meet existing and projected housing needs for all income categories. Affordable Housing Rent Calculations Prior to reviewing available options for amending the IZO, it's important to note that the generally accepted definition of affordability is to provide housing so that a household pays no more than 30 percent of its monthly income on housing (i.e., rent or mortgage). Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. As a way of fine tuning the definition, HUD established various generally accepted income categories of very low, low, median and moderate which are used as identifiers for various income levels. Further, these general income levels are categorized by household size. (Attachment 3 details the recent HUD income figures.) As a result, providing affordable housing units includes establishing a rent structure that is no more than 30% percent of a household's income based on annual income and household size. One common variation to the above standard is that while household size is always consistent when determining annual income qualification (that is a three person household must meet the income requirements for a three person household), the Page 3 of 9