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The Housing Commission, at its February 18, 2016 meeting supported Ponderosa's proposal of using its remaining IUCs for this project. The Housing Commission unanimously recommended approval of the Affordable Housing Agreement (AHA) to the City Council. Please refer to the Housing Commission staff report for a detailed discussion (Attachment 7). With the approval of the proposed development, Ponderosa Homes will exhaust its remaining IUCs. PLANNING COMMISSION ACTION The Planning Commission held a public hearing on March 23, 2016 to review the proposed project. The draft minutes of this meeting are provided in Attachment 6. The Planning Commission focused its discussion primarily on the proposed development standards for the housing project. The Commission agreed that it could support the proposed FAR range but would only allow five of the nine homes that were originally proposed to have a bonus room option to be constructed with a bonus room in order to minimize building mass. As requested by staff, the Planning Commission also added a condition requiring specific home plans on Lots 1 -5, the result of an agreement between Ponderosa and residents to the east of the project site. The Commission unanimously recommended the approval of the proposed applications by Ponderosa Homes to the City Council. DISCUSSION The Planning Commission staff report (Attachment 6) provides additional background information and a detailed discussion of the proposed project, including the project's General Plan and zoning consistency, development standards, architectural design, tree removal and replacement, golf ball net study, and considerations related to the geotechnical study, investigation of potential waters of the United States, noise and visual simulations. The following sections summarize key points of analysis, and the proposed Development Agreement. General Plan and Zoning The General Plan Land Use designation for the Arroyo Del Valle is Open Space — Public Health and Safety and Wildland Overlay. The non -creek portion of the subject site is designated Medium Density Residential (MDR) in the General Plan. The MDR designation allows a density of 2 to 8 dwelling units per acre (DU /AC). The General Plan states that major arroyos are not to be counted as part of residentially designated gross developable acreage. Excluding the arroyo area, the site has approximately 7.01 gross developable acres, resulting in a density of 2.7 DU /AC, which is consistent with the General Plan. Floor Area Ratio (FAR) The proposed site development standards include FARs up to 45 %. The Commission questioned the compatibility of the proposed FAR with the existing residential developments in the vicinity and discussed whether the proposed FAR could be capped at 40 %. While the applicant indicated that it could accommodate further restrictions on FAR, it desired some flexibility to exceed 40% FAR on selected lots in order to meet the market demand for larger units. The Commission approved a condition of approval allowing only five homes to have a bonus room option instead of the proposed nine Page 5 of 8