3_Exhibit E - Laserfiche WebLink

Page - 3 - Anticipated Unit Mix Unit Type Number of Units Average Unit Size (SF) Studio 29 570 1-bedroom units 173 766 2-bedroom units 131 1,090 3-bedroom units 27 1,451 Total Units 360 DISCUSSION Affordable Housing Requirements This rental housing development meets the 15 or more total unit threshold, and therefore, is subject to the City’s Inclusionary Zoning Ordinance (IZO) (Attachment 2) that requires that 15 percent of the units in multifamily residential developments (e.g., apartments and condominiums) must be affordable to very low- and/or low-income households (50% to 80% AMI). SPG’s proposal to restrict 58 units (or 16 percent) of the 360 total units complies with the City’s IZO as well as with the SDBL previously described above. SPG will be counting the inclusionary units towards the density bonus requirements; therefore, the Project is required to comply with both City’s IZO and SDBL requirements. City staff have been negotiating with SPG on how its project can meet both the intent of the IZO and the requirements of SDBL. As an outcome of these negotiations, a recommended draft Affordable Housing Agreement (AHA) has been prepared. A listing of the AHA’s most notable terms are as follows: • Provide 58 units restricted for households whose income does not exceed 80% (low income) AMI. California Health & Safety Code section 50079.5 states that “low income households” include very low income (50% AMI) and extremely low income (30% AMI) households. Unit Type Household Size Income (≤80% AMI)* 1 Bedroom1 Two (2) person household 32 2 Bedroom Three (3) person household 20 3 Bedroom Four (4) person household 6 Total Units 58 *The 2022 published HUD 80% Area Median Income for a household of four is $106,000. • Rent restrict the 58 affordable units to low-income households with rent charged calculated based on the household income. As allowed by the SDBL, there are two tiers of rent proposed for the Project: 1 The City and SPG have agreed that no studios will be income and rent restricted. The City targets its affordable rental housing units to households that have multiple members. 1-bedroom units are also better suited than studio units to support households that may grow in size. For SPG’s standpoint, this mix of unit types makes it easier to sort applicants during the tenant turnover process.