10 - Laserfiche WebLink

As an outcome to this workshop, the City Council directed staff and the Housing Commission to pursue a flexible model for attempting to achieve affordable rent restricted BMR units in new residential rental developments. As such, it encouraged all parties to attempt and strive to meet the IZO in a flexible, negotiated way, recognizing the fact that the City has multiple interests it's trying to address, including parking, school impact needs, and affordable housing, all of which fuel the outcome of negotiations. Based on this direction, staff has focused its efforts on pursuing creative options for meeting long term affordable housing needs. The Ring project meets the criteria for being subject to our IZO and as such during the plan review process, staff negotiated with the developer in an attempt to reach agreeable terms that could be included in an Affordable Housing Agreement (AHA). Based on those negotiations, the parties agreed, and the City Council approved, an AHA that includes two options. The first option, similar to other multi - family developments, is the requirement to provide rent restricted units. In this case the agreed upon affordability mix is as follows: E & S Ring Required Affordability Very Low Income Unit Type (50% of AMI) Low Income (80% of AMI) Median Income (100% of AMI) TOTAL Studio 6 1 Bedroom 3 2 Bedroom 1 3 Bedroom 0 TOTAL 10 1 Annual Median Income for Alamed moderate income) 2 4 6 5 17 a County (50% = 8 16 (31 %) 5 12 (23 %) 7 14 (27 %) 5 10 (19 %) 25 52 very low income; 80% = low income; 100% = The second option, calls for payment of a $4.5 million fee which would be in lieu of any rent restricted units. The payment amount equals $13,043 /unit which is significantly more than the then - existing lower income housing fee which was $2,655 /unit and $2.83 per square foot of commercial at the time the AHA was developed. The current fee is $2,696 /unit and $2.87 per square of commercial. Using the current LIHF fee schedule, the current LIHF fee payment would be $1,041,421 (345 units X $2,696 /unit plus $2.87 X 38,781sq ft of commercial = $1,041,421). The difference between the current required LIHF payment of $1,041,421 and the total amount of the potential cash payment is $3,458,579 ($4,500,000 minus $1,041,421 = $3,458,579). Regarding the first option, the AHA includes standard language requiring that the affordable units be disbursed throughout the development, that they be constructed with similar materials as the market rate units, that they be marketed consistent with the City's preference system and that they remain affordable for perpetuity. Page 3 of 9