ITEM 23 ATTACHMENT 7 - PC Agenda Report

P22-1089, PUD-147 and Tract 8522, Merritt Planning Commission 30 of 33 Inclusionary Zoning Ordinance (IZO) and Affordable Housing Agreement (AHA) Chapter 17.44 of the PMC (IZO) requires for new single-family residential projects of 15 units or more, that at least 20 percent of the project's dwelling units shall be affordable to very low, low, and/or moderate-income households. For the proposed project, the applicant is proposing to conform to the IZO by providing eighteen (18) (20% of the base 92-unit project) affordable for-sale units to moderate-income households at 120% of the Area Median Income (AMI). These restricted units are two-bedroom alley-loaded and/or court-yard detached and duet homes dispersed in several clusters throughout the project site and would feature the same exterior finishes and amenities as those planned for market rate units. (Note that earlier iterations of the project plans clustered the units in a single area of the site; based on City comments, the units are now distributed in several locations within the site.) The applicant is also proposing to further expand the affordability component of the Project by providing a minimum of four (4) Accessory Dwelling Units (ADUs); two (2) of these ADUs will be within the main home (attached ADUs) and the remaining ADUs will be detached structures in rear yards. While the ADUs are not required to be rented or sold at affordable levels, and do not “count” against the requirements of the IZO, the ADUs are considered affordable by design and do provide a beneficial increment of relatively affordable housing. Further, pursuant to the IZO, an Affordable Housing Agreement (AHA) must be entered into by the City and the project owner. The agreement shall record the method and terms by which a project owner shall comply with the requirements of this chapter. The approval and/or recordation of this agreement shall take place prior to final map approval or, where a map is not being processed, prior to the issuance of building permits for such lots or units. Per PMC Section 17.44.090, the Affordable Housing Agreement (Exhibit E) will be reviewed by both the Planning Commission and the City Council with the City Council providing final approval of the AHA. Included as part of the AHA are requirements for administering the sale of the affordable senior units to qualified buyers. These requirements have been drafted with input from the City’s consultant, Bay Area Affordable Homeownership Alliance (BAAHA) and are tailored to the somewhat unique circumstances presented by these being affordable, senior, ownership units, based on the City’s existing Pleasanton Homeownership Assistance Program guidelines (PHAP). While the requirements are intended to ensure there will be an appropriate pool of qualified buyers, the AHA allows for the Community Development Director to approve changes to the Merritt project-specific PHAP Requirements, to attract additional qualified buyers, if needed. The completion of the AHA is included as a condition of approval. Development Agreement As described, a Development Agreement between the City and the Developer is proposed. The key negotiated terms of the draft DA attached in Exhibit D are as follows: • Term: Initial 10 years from the date of annexation approval by LAFCO with option for an extension (length to be determined at the time of request for extension) to be approved by the City Manager • Allows for vesting of fees in place at the time of proposed project approval and allows for appropriate annual escalators as specified by respective fee type programs • Allows for deferred payment of City impact fees to final inspection request for each unit/facility. Third party impact fees (i.e., DSRSD, Zone 7, and PUSD are not applicable)