04 - Laserfiche WebLink

that a development with an excess number of affordable units could be issued "Inclusionary Unit Credits" (IUC's) which the developer could to transfer to another development enabling it to meet its IZO requirements through the use of off-site units. For Anton Hacienda, the IZO requires that a total of 26 of its units be affordable to low and very low income categories. However, because the developer is proposing to provide 35 affordable units at the very low income category of 50% AMI, it has a total of nine (9) units in excess of the IZO required 26 units which could, upon City Council approval, be used as IUC's. Notwithstanding the nine unit IUC allowance, as part of staff discussions with St. Anton, it requested that the City consider approving a total of 16 IUC's based on the facts that; (1) its level of affordability (i.e., all 50% AMI units) significantly exceeds the requirements of the IZO and (2) that the level of affordability being proposed is much deeper than what was recently approved by for the California Center development and what can be expected from pending high density development applications. In response to St. Anton's request, staff recognized the uniqueness of having all affordable units being at the 50% AMI income level, but it was concerned that approval of 16 IUC's would result in the total affordable unit count, for it and its potential partner, being less than 15%. In response, St. Anton has agreed to provide an additional affordable unit restricted at 100% AMI for each IUC transferred in excess of 8 IUCs. As a result, assuming all 16 IUC's were transferred to another development, the St. Anton project end up with 35 affordable units at 50% AMI and eight affordable units at 100% AMI. However, sixteen of the 50% AMI units would be credited to another development which would have its on-site IZO requirement reduced by 16 units. A summary of the impact of this condition is outlined below: Impact of 16 IUC's on Anton Hacienda Affordability Unit Type Units Percentage** Total Number of 50% AMI Units Credited 19* 11% to St. Anton Total Number of Additional Affordable 8 5% Units at 100% AMI Total Number of Affordable Units Credited 27 16% to St. Anon *35 total affordable units less 16 TUC's used by another development **Represents the percentage of the project's total of 168 units If approved, the Inclusionary Unit Credit Agreement establishes that the City Council is approving the use of the IUC's at a yet to be identified development(s) and authorizing the City Manager to approve a IUC use/transfer agreement between St. Anton and the other party without further City Council approval. As a result, the Council is accepting that another development would be submitting an affordable housing proposal, or requesting an amendment to an existing affordable housing agreement, with sixteen off- site affordable units. The agreement further stipulates that the IUC transfer can be made with any existing or future not yet occupied development provided the transaction is finalized prior to Anton Hacienda's certificate of occupancy. St. Anton assumes the Page 8 of 14