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City staff is going through the public process to have the project considered at this time and residential is the use proposed by the developer. Commissioner Brown stated the Inclusionary Zoning Ordinance (IZO) percentage requirement is 20 percent, but the staff presentation showed up to 30 percent as an alternative and asked why it was not 20 percent of 112 units but instead calculated 20 percent of 93 units. Ms. Hagen explained that the IZO is being met through dedication of the land and the donation of $1 million. Additionally, staff would like to see 20 percent of the market rate units be affordable so 20 percent of the 93 units would be 19 units. Ms. Hagen then introduced Fran Reisner, the City's Housing Specialist who was available for questions. Commissioner Allen stated the IZO also specified requirements that said that the low cost housing element of a project should be built prior to or in conjunction with the market rate element of a project. In this case, the Commission is being asked to approve single family homes. She asked if the homes cannot be built until the lower cost housing element is in place. Ms. Reisner stated that this provision pertains to when the developer is providing inclusionary housing on site. In this case, the inclusionary requirement applies only to the market rate units, and the developer is providing a land dedication to meet that obligation. Under the ordinance stating the requirements of land dedication, they must have a site sufficient to develop the number of inclusionary units and the appropriate approvals, utility connections and funding toward fees, so this would meet the conditions of the ordinance. Commissioner O'Connor indicated that an email received stated "if a residential project is proposed that offers inclusionary housing we also need to postpone the rezoning in order to help meet the future 2022 RHNA." He asked if the City would receive credit or carry over RHNA numbers for the affordable housing units given the City has already met its RHNA numbers in the current cycle. Mr. Beaudin said no; there is no way to secure credit for future RHNA cycles. The City has zoned for its current RHNA obligations, and this is not a site that has been identified as an opportunity site in the Housing Element. That would mean that these units would not count toward the next RHNA cycle or that the City would get less of an allocation because of this. The City works with the Department of Housing and Community Development (HCD) and provides a progress report on all housing types in the community so this is consistent with Housing Element policies. It is not a credit toward future RHNA allocation but it represents positive progress relative to the City's other housing policies and with respect to the City's reporting to the state. Commissioner O'Connor asked why this would not reduce the City's RHNA allocation for the next cycle. PLANNING COMMISSION MINUTES, August 10, 2016 Page 4 of 33