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Page 4 of 7 Figure 3: Building A Elevation Affordable Housing Requirements The approved development includes more than 15 units, and condominiums are considered a multi-family development pursuant to the definitions included in the Inclusionary Zoning Ordinance (IZO); therefore, the approved development is generally subject to a 15 percent affordability requirement for very low and low-income households (i.e., should provide a minimum of six (6) affordably priced units in the development). However, the IZO also includes provisions for alternative compliance in Section 17.44.080, as follows: “The primary emphasis of this inclusionary zoning ordinance is to achieve the inclusion of affordable housing units to be constructed in conjunction with market-rate units within the same project in all new residential projects. However, the city acknowledges that it may not always be practical to require that every project satisfy its affordable housing requirement through the construction of affordable units within the project itself. Therefore, the requirements of this chapter may be satisfied by various methods other than the construction of inclusionary units on the project site. Some examples of alternate methods of compliance appear below. As housing market conditions change, the city may need to allow alternatives to provide options to applicants to further the intent of providing affordable housing with new development projects.” On this basis, the IZO permits a developer to satisfy the inclusionary requirement through alternative means. Alternatives described in the ordinance include options such as off-site development, land dedication, and payment of the Affordable Housing Development Impact Fees (Affordable Housing Fee, previously and sometimes currently referred to as the Lower Income Housing Fee). Historically, the City has taken a flexible approach to negotiating how residential projects meet their affordable housing requirement; in some cases, most frequently for lower-density single-family ownership projects, the City has allowed payment of affordable housing fees rather than on-site construction. Such past decisions were made at the discretion of the City Council, based on a negotiated Affordable Housing Agreement. In addition to affordable units being provided on-site, land dedication and projects using “credits” from other developments have also been accepted. While it was the City’s past practice to apply discretion in whether it accepted alternatives to Page 42 of 228