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Mr. Beaudin explained there are various criteria that go into the calculation and the number of housing units is a factor as are the number of jobs, and the jobs /housing balance. Chair Ritter stated the Commission received a letter from HCD and the author writes "approving and permitting the Irby Ranch project would be considered progress toward the regional housing need and can be reported as RHNA credit in the annual report on implementation of the General Plan pursuant to Government Code Section 65400." Commissioner Allen asked if the project the Commission is asked to approve tonight in any way guarantee that Sunflower Hills will be the provider of the affordable housing. Mr. Beaudin said no, with the strong caveat that Sunflower Hill is an identified City Council Work Plan priority. The reason they do not have a project with the City tonight is due to the complicated nature of funding affordable housing projects. Sunflower Hill has a proven track record producing high quality projects like this in the area and in discussing the exclusive negotiating rights agreement with Sunflower Hill, they are the City's preferred partner. Tonight, the recommendation would be to approve the market rate housing project with the affordable housing agreement that has been reviewed by the Housing Commission; to set aside that land and the money; and currently the City's preferred partner would be Sunflower Hill in the form of an exclusive negotiating rights agreement that the City Council would ultimately make a final decision on, but they are not part of the application tonight. Commissioner Allen said if for any reason anything changed she asked what would be the alternative for the affordable segment of the property. Mr. Beaudin said the applicant will transfer land and money to the City to choose a preferred housing provider for that land at a future date. Commissioners Allen asked if it was possible that market rate homes would be built in advance of any affordable housing being built. Mr. Beaudin said it is possible. The City has been in discussions with Sunflower Hill and they will aggressively pursue this project, but the funding cycles for affordable housing projects is competitive and it is possible that Sunflower Hill would not be on the same schedule as this market rate project. The applicant needs the agreement and the land to be able to be competitive for the funding and this is the reason for the lag. Commissioner Brown referred to traffic and said when looking at Exhibit G, his questions related to traffic demands and pressure on the intersection at First Street and Bernal Avenue, given there is a 350 unit project under development there. He knows the level of service on First Street south is already at LOS D, but he had questions about the table on page 106 of the report. He stated that existing was today; near term was five years with or without the project, and cumulative was 20 years. He noted that Stanley Boulevard and First Street went PLANNING COMMISSION MINUTES, August 10, 2016 Page 5 of 33