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Planning Commission Duties with Planning Commission Respect to IZO and Housing Programs 2 of 6 As described in Ordinance No. 2276, the Planning Commission’s duties include making recommendations to the City Council on these matters and, in some more limited cases, establishing administrative policies for certain City housing programs. DISCUSSION Inclusionary Zoning Ordinance In November 2000, the City adopted the Inclusionary Zoning Ordinance (PMC Chapter 17.44) in order to increase the production of residential units affordable to households of very low-, low-, and moderate-income and to provide funds for the development of very low-, low-, and moderate-income ownership and/or rental housing. The IZO shifted the emphasis of the City’s affordable housing efforts from collection of an in-lieu Lower Income Housing Fee to more strongly emphasize the provision of actual affordable housing units as part of new future residential developments, although the IZO also provides opportunities for “alternative compliance” in meeting its requirements . In order to attain the City’s affordable housing goals and to assure that the limited remaining developable land in the city is utilized in a manner consistent with the City’s housing policies, the IZO requires that 15 percent of the units in multiple family developments consisting of 15 or more units - such as apartments, condominiums, and townhomes where units are configured as multiple units on a single parcel of land - must be affordable to very low- [30-50 percent Area Median income (AMI)] or low- (50-80 percent AMI) income households. For all new single-family developments of 15 units or more, at least 20 percent of the project’s dwelling units must be affordable to very low- (30-50 percent AMI), low- (51-80 percent AMI), and/or moderate-income (up to 120 percent AMI) households. The IZO does not currently specify the exact mix of inclusionary units that must be provided. While the IZO provides for inclusionary units between 30 and 120 percent AMI, historically, the City has primarily targeted the IZO program for households at low-income (80 percent AMI), particularly in below market rate rental housing projects. Over time, the IZO has secured the construction of hundreds of below-market rate units. Combined with units produced prior to adoption of the IZO, the City’s policies and programs have resulted in approximately 1,123 units of deed -restricted, below-market rate housing in Pleasanton. In addition to inclusionary requirements for projects of 15 or more units, the IZO and related PMC Chapter 17.40 (Affordable Housing Fees), specify that projects of less than 15 units, and Commercial, Office and Industrial developments must pay affordable housing fees, established in the Master Fee schedule on a per unit basis for residential development, and per square foot for non-residential projects. Incentives to Constructing Inclusionary Units The IZO allows the City to provide the following incentives to developers to provide inclusionary units, with such incentives offered at the discretion of the City Council. •Fee waiver or deferral: The City may waive or defer payment of development impact fees and/or building permit fees applicable to the inclusionary units or the project of which they are a part.