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Page 1 of 8 HOUSING COMMISSION AGENDA REPORT March 21, 2024 Item 5 TITLE: REVIEW AND PROVIDE A RECOMMENDATION TO THE CITY COUNCIL FOR ALTERNATIVE AFFORDABLE HOUSING AGREEMENTS WITH CATALYST DEVELOPMENT PARTNERS, LLC FOR A CONDOMINIUM HOUSING PROJECT AT 3200 HOPYARD ROAD SUMMARY This report summarizes two alternative Affordable Housing Agreements (AHA) arising from the Pleasanton Inclusionary Zoning Ordinance (IZO) for a condominium housing project located at 3200 Hopyard Road in Pleasanton. Catalyst Development Partners, LLC (Catalyst) is proposing to demolish an existing church and daycare facility on the project site and construct a condominium project with two variations: Alternative 1, which was the original application submitted by Catalyst, involves 57 attached condominium units, comprised of 48 townhome-style condo units across nine three-story buildings and nine (9) one-bedroom apartments, internal streets, and common open space. The AHA for Alternative 1 would meet the IZO by deed-restricting the nine apartment units to low-income households making 80 percent or less of the Area Median Income (AMI). Nine units is 15.7% of the project, where 15% very low or low income units is required. The AHA also provides that the rental units may be sold to qualified non-profit affordable housing operators at a price affordable to a low-income household. Alternative 2, which is a revised project more recently submitted by the applicant, involves 55 attached condominium units, comprised of two two-story duet units, eight three-story townhome-style condo buildings, eight (8) one-bedroom units attached to the three-story buildings, internal streets, and common area. The AHA for Alternative 2 proposes to meet the IZO by: (i) deed-restricting the eight one-bedroom units for sale to moderate income households making 120 percent or less of AMI; and (ii) paying $77,228 in additional fees. Eight units is 14.54% of the project, where the 55-unit project requires 15% very-low or low affordable units, which equals 8.25 units. Because it is not possible to build a fraction of a unit, the additional fees represent the cost of the fractional 0.25 unit to total to the 15% requirement. With the units deed-restricted at the moderate income level plus the payment, Alternative 2 currently does not conform to the IZO that requires the units to be restricted at the very low and/or low income levels, and the Alternative 2 AHA is therefore proposed as an alternate method of compliance. RECOMMENDATION Review the Affordable Housing Agreements for Alternative 1, the 57-unit project, and Alternative 2, the 55-unit project. Staff suggests that the Commission recommend approval of the AHA for Alternative 1 to the City Council as meeting the IZO; and also review and recommend approval of the AHA for Alternative 2 to the City Council with the stipulation