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The project is also required to comply with the City's Inclusionary Zoning Ordinance, which mandates a minimum of 15 percent below-market-rate units (very-low and/or low- income) be included in the project, with no requirement as to the split between income categories. The project's 58 units would represent 24 percent of the "base" density, and 16 percent of the 360 total units in the project and would thus be consistent with both State density bonus requirements and the IZO. As described above, the Housing Commission unanimously recommended the approval of the proposed Affordable Housing Agreement, including the number and type of affordable housing units, based on conformance to the IZO and State housing density bonus law. 2012 Desiqn Guidelines Exceptions Requested by Applicant Under State Density Bonus law, the City is required (with limited to no discretion), to provide for a number of"incentives," "concessions," or "waivers or reductions of development standards" based on the percentage of affordable units and qualification for State housing density bonuses. A concession or incentive is defined in State law as a reduction in site development standards, or a modification of zoning code or architectural design requirements, or other regulatory incentives or concessions which result in identifiable cost reductions. A project including up to 24 percent lower-income units is entitled to up to three incentives or concessions. State law separately defines "waivers or reductions of development standards" as a further form of assistance available to developers with eligible density bonus projects. The City is not permitted to apply a development standard that would physically preclude the construction of the project at its permitted density. Accordingly, a developer may request such standards to be modified or "waived". For most projects, there is no limit on the number of waivers or reductions of development standards that may be requested. The project proposes two waivers to the 2012 Design Guidelines as described below: • Building Height. The Design Guidelines allow a maximum height of approximately 65 feet or five stories. The project proposes five-and-one-half stories with a maximum height of approximately 65 feet. The applicant has indicated that allowing for the additional one-half story of height allows the project to meet the minimum densities to be met, and by adding to unit count, reduces the construction cost per unit. • Ground Floor Units. The Design Guidelines require a minimum of 75 percent of ground floor units (within approximately five feet of grade) to have entries onto street, internal street, paseo (walk), or open space (including corridor buildings). The project would provide no ground-floor unit entries. The applicant has indicated due to the modest downslope from the northwest to the southeast corner of the subject site, that custom, ADA compliant ramps would need be constructed for ground-floor units with an entry onto the street and extra space dedicated to fit walkways, porches and access room around each entry. Inclusion Page 29 of 41