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PL£AS,4NTON. ATTACHMENT 6 Housing Commission Minutes - EXCERPT [SUBJECT TO APPROVAL) City Council Chambers, 200 Old Bernal Ave., Pleasanton, CA May 2, 2013 7:00 p.m. PUBLIC HEARINGS AND OTHER MATTERS 11. Approval of Proposed Affordable Housing Agreement for St. Anton Partners / Nearon Site Apartment Development Mr. Bocian reviewed with Commissioners a PowerPoint presentation for the Affordable Housing Agreement with St. Anton Partners for a 168 -unit apartment development on a 5.6 acre site located at 5729 West Las Positas Boulevard. The Commission was advised that the developer proposes to build an apartment complex that will include 168 apartment units, one club house building with leasing office, on -site amenities, and surface parking. Mr. Bocian noted that of the two options proposed, staff was recommending Option 2 that would include 34 rent - restricted units at 50% AMI (very low income). To provide this level of affordability, the developer anticipates utilizing tax exempt multifamily housing revenue bonds and state tax credits and has already submitted a preliminary financing application to the state's processing agency. In addition to this financing, the City would provide $500,000 in the form of a fee waiver or cash as a financial contribution to the project. Since making the recommendation, Mr. Bocian advised that staff has had further discussions with the developer resulting in changes that will enhance affordability. The modified option will be referred to as Option 2A. He informed the Commission that Option 2A increases two - bedroom units from 17 to 18, three - bedroom units from 3 to 4, and will add one affordable unit overall, resulting in 21% of the total units affordable. Additional discussions included information about the $500,000 contribution by 1:he City, the general terms of the Affordable Housing Agreement, the concept of IZO transfers, and issues related to compliance regarding the transfer of unit credits. Mr. Bocian noted that staff fell the credit transfer concept offered a unique opportunity, and staff is recommending approval of Option 2A for consideration by the City Council. St. Anton Partners representatives indicated they were proud of this option and believed it was what the Commission was looking for. They discussed the critical timeline for getting this to the Planning Commission and City Council. Commissioner Probed asked about incentives of the unit transfers from the developer's perspective. The Commission also discussed financial incentives and the developer's experience with similar projects and financing structures. Commissioner Welsh asked about the sale of the unit credits and Page - 1 -