12 ATTACHMENT 6 - Laserfiche WebLink

• One of the affordable 1-bedroom units, one affordable 2-bedroom units and one affordable 3-bedroom units shall be fully accessible for the physically disabled. Unit design shall include amenities such as grab bars, modified case work and bathroom facilities and other amenities deem significant for disabled access • In lieu of providing the 27 rent restricted units, the developer would pay an in-lieu fee of $2,300,000. The option of paying this fee or providing the units resides with the City and must be determined within 45 days of the developer notifying the City that it intends to apply for a building permit. • Identifies a HUD income source to be used for calculating Annual Household Income required to determine project eligibility. • Specifies that the AHA would not apply to the land in the event the PUD expires and the project is not built. Regarding compliance with the Inclusionary Zoning Ordinance's, the unit mix meets the requirement that 15% of the units be rent restricted. It does not however, fully meet the IZO's requirement that all for the affordable units be affordable to very low (50% AMI) and low income (80%) of the Area Median Income. Nevertheless, it is consistent with the AHA approved previously by the City Council for the California Center and the Aud der Maur developments and staff assumes that this level of affordability will be consistent with Council expectations for this project. All other items, including perpetuity, the disbursement of affordable units throughout the development, etc. are consistent with the IZO. Regarding compliance with the City's Housing Site Standards and Design Guidelines which stipulate that 10% of the affordable units will be 3-bedroom units and 35% will be 2-bedroom units, the proposed agreement calls for 11% of the affordable units to be 3-bedroom units and 33% of the affordable units to be 2-bedroom which staff determines to be consistent with the Design Guidelines since an additional unit would exceed the target percentage. Regarding the option for the developer to pay $2,300,000 rather than providing affordable units, staff supports this alternative primarily because it could provide the City with all or a significant portion of the funding needed to develop, or assist in developing, an additional affordable project with deeper levels of affordability than provided in this project. Further, it could be used to develop programs or other options for creating housing for lower income households. In addition, the Commission may recall that the City has committed $8 million of its Lower Income Housing Fund to the Kottinger Place development project and this in lieu payment would represent a significant contribution toward replacing those funds for future uses. The in lieu fee equals $12,994/unit which is roughly equivalent to the $13,043/unit which was approved for the Auf der Maur development. As outlined in the IZO, the Housing Commission's role is to recommend the City Council accept, reject or amend the terms of the attached AHA. The Commission may also make recommendations to the Planning Commission concerning conformance with the IZO. However, the Planning Commission does not have an identified role in determining project affordability, Page -5 -