21 ATTACHMENT 6 AND 7 - Laserfiche WebLink

Ponderosa's Ironwood Development includes 191 single - family homes and a 172 -unit senior apartment complex (Gardens at Ironwood). An Affordable Housing Agreement (AHA) for the Ironwood Development, approved in 2003 (see Attachment 4), established a 24% affordable unit requirement (87 affordable units) for the entire 363 -unit project. The applicant built 138 affordable units as part of its 172 -unit senior apartment project in the Ironwood Development. Because these units exceeded the requirement for 87 affordable units, the City granted the applicant (as allowed by the IZO) 51 Inclusionary Unit Credits (IUCs) that could be used to satisfy the requirements of the IZO on Ponderosa's Busch Road site or, subject to City Council approval, at other unspecified sites in the City. The approval of the IUCs was memorialized in the First Amendment to the original AHA executed in September 2007 (see Attachment 4). The amendment requires that two IUCs be provided for each affordable unit in a single - family development. The first 33 of the original 51 IUCs were used several years ago for the 110 -unit Village at Ironwood project. In October 2015, the Housing Commission approved Ponderosa to use an additional 10 IUCs to meet the affordable housing requirement for the Centerpointe project, leaving a remaining balance of 8 IUCs to be applied to future projects. DISCUSSION As described earlier, Ponderosa is proposing 19 single family units in the Rose Avenue Estates project. The IZO requirement for a project of this size would be four (4) affordable units (19 units x 20% IZO requirement = 3.8 affordable units (rounded to 4 units per the IZO)). Based on the First Amendment to the AHA, this would in turn require the use of 8 IUCs (4 affordable units x 2 IUC /unit = 8 IUCs required). Application of the remaining 8 credits on the Rose Avenue Estates project would fully expend Ponderosa's IUC balance and they will have no remaining IUCs to use on future projects. The City's IZO, adopted in 2000, was designed with a range of alternatives. While the emphasis was on providing actual affordable units within a development, the goal was to provide flexibility both to the City and to developers to come up with solutions that suited the particular conditions of a project and /or site. As noted above, Ponderosa exceeded its affordable housing requirement under the IZO when it built the Gardens at Ironwood senior apartment development in 2005. At that time, the City approved IUCs for the "excess" units consistent with the IZO. Ponderosa's current proposal to utilize a portion of its remaining IUCs on the new development is consistent with the IZO allowance for credit transfers (Section 17.44.080C) and is a continuation of the use of available IUCs by Ponderosa several years ago with the Village at Ironwood project. The proposed development will include 4- bedroom homes ranging in size from 3,937- 4,458 sf which is not conducive for Below Market Rate homes. In addition, Ponderosa has already met its affordable housing obligation under the IZO by exceeding its requirement on a past project and receiving credits for future use. Staff is recommending approval of the attached Affordable Housing Agreement which confirms the City's approval for Ponderosa to utilize the remaining balance of 8 IUCs to satisfy its affordable housing requirement for the Rose Avenue Estates development (PUD -99). Page -2-