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Page 5 of 8 Planning Commission Recommendation At the March 13, 2024, meeting, the Planning Commission voted 4-1 to approve both Alternative 1, the 57-unit project proposal, as well as to approve Alternative 2, the 55 unit project, both subject to approval of an Affordable Housing Agreement in conformance with the IZO. The Planning Commission further recommended that for Alternative 2, the City Council consider using Lower Income Housing Funds (LIHF) to support improving the affordability of the proposed for-sale units to be affordable to lower-income, rather than to moderate- income households. Since approval of the related AHAs was not in the purview of the Planning Commission, the dual recommendation would allow for either project alternative to proceed, contingent upon the City Council’s ultimate approval of the AHA that may reflect either of the alternatives (or a modification thereof). DISCUSSION Affordable Housing Requirements Alternative 1 includes 57 condominium units, which are considered a “multi-family development” pursuant to the definitions included in the Inclusionary Zoning Ordinance (IZO).1 PMC Section 17.44.040(A) provides that for all new multiple-family residential projects of 15 units or more, at least 15 percent of the project’s dwelling units shall be affordable to very low, and/or low-income households with such units provided on-site. To meet the requirements of the 57-unit project, the developer is proposing to provide nine (9) one-bedroom units on-site as “rental affordable units” to conform to the IZO. The units would be required to be rented to income-eligible lower-income households. Similar to other multi-family developments, Alternative 1 will enter into an Affordable Housing Agreement memorializing basic affordability elements including the levels of affordability and unit counts for the rental affordable units, which is recommended to be as follows: Unit Type Low Income (60 to 80% of AMI) 1 Bedroom 9 Total: 9 The rent charged for the rental affordable units shall not exceed one-twelfth of 60% of the Area Median Income (AMI) multiplied by 30%; however, actual household income can be between 60% and 80% AMI, adjusted for household size. “For-Sale” Compliance Options The City has held discussions with the applicant about options that would allow some of the rental units to be separately conveyed or sold, also to eligible low-income households at 60% to 80% AMI. This flexibility would permit the units to be purchased either by a qualified 1 See Municipal Code §17.44.030.