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Table 6: Peer Cities Comparison, Inclusionary Rates and Fees for Rental Projects City Inclusionary Requirement Income Targets In-Lieu Fee1. Per Sq. Ft. Per Unit (Equivalent)2 Pleasanton 15% Low, Very Low $68.85 $52,023 Danville 15%Moderate Market-gap calculation Dublin 10%Low $9.00 $7,200 Fremont 10%Low $17.50 $14,000 Livermore 15% Low, Very Low n/a 3 n/a San Ramon 15% Low, Very Low $14.63 $11,704 Walnut Creek 10% 6% Low Very Low $21.86 $17,488 1. Circumstances under which payment of in-lieu fees may be paid vary by jurisdiction. In most cases, in-lieu fees apply for projects below a minimum number of units or are subject to approval as part of an alternative compliance proposal. 2. Assumes units are 800 sq. ft apartments 3. Rental projects less than 10 units exempt from in-lieu fee Inclusionary Zoning Ordinance: Other Policy Considerations The following policy questions and considerations are proposed for City Council consideration, reflecting some of the key elements of the IZO: Classification of Unit Types for Applicability of IZO Rate and Affordability Criteria The existing IZO currently defines and assigns different inclusionary rates and affordability levels based on whether units are classified as “Single-Family” Units, or “Multi-Family” Units.6 Among the peer cities reviewed, Pleasanton’s approach is unusual, since most other cities use tenure (i.e., whether the unit is for sale, or a rental unit) to determine inclusionary requirements and affordability limits. Tenure has a much more significant effect on how projects function financially: for example, the affordability limits applied to a rental project typically differ significantly from a for-sale project, based on factors such as household eligibility and income; the gap between market rents/sales price and affordable rent/sales prices varies greatly between rental and for-sale projects. Staff recommends the IZO be modified to use tenure, versus the current unit type definition, to define the applicable inclusionary rate and income levels. Threshold Project Size for On-Site Inclusionary Requirements Staff recommends the minimum project size to which the IZO apply be reduced from 15 units to a project of 10 or more units. As shown in Table 6, this threshold is commensurate with peer cities, and helps to address the modest reduction in total 6 The distinction between unit types based on the project’s parcelization: A unit that sits on its own parcel of land is considered a “single-family” unit, whereas multiple units located on a single parcel or land are defined as “multi-family” units, irrespective of whether those units are for-sale, or for-rent. Page 13 of 40