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Table 1: For-Sale Projects (Single-Family Detached) - Revised Inclusionary Scenarios) Inclusionary Rate Affordability Mix In-Lieu Fee/Square Foot*. Equivalent In-Lieu Fee/Unit Existing IZO 20% 120% AMI $17.40 $52,203 Maximum Feasible Fee $67.38 $202,151 Scenario 1 (Recommended) 15% 120% AMI $126.38 $379,134 Scenario 2 20% 120% & 150% AMI $159.28 $477,838 * Assumes typical single-family detached home size of 3,000 sq. ft. Table 2: For-Sale Projects (Townhomes) – Revised Inclusionary Scenarios Inclusionary Rate Affordability Mix In-Lieu Fee/Square Foot* Equivalent In-Lieu Fee/Unit Existing IZO 20% 120% AMI $26.10 $52,203 Maximum Feasible Fee $45.57 $91,144 Scenario 1 (Recommended) 15% 120% AMI $42.10 $84,190 Scenario 2 20% 120% & 150% AMI $47.59 $95,174 *Assumes typical townhome size of 1,800 sq. ft. Conclusions/Recommendations: Staff recommends Scenario 1 (15% Inclusionary Rate/120% AMI) for both single- family detached and townhome projects, for the following reasons:  The 15% rate is the most feasible for for-sale townhomes and detached single- family homes. Consistent with the ODS, this allows the City to set the affordability limit at 120% AMI, a moderate-income rate that will contribute toward meeting that RHNA segment.  The City could consider varying the inclusionary percentage for detached single- family homes versus townhomes (i.e., 15% for single-family detached projects, and 20% for townhomes). However, a consistent approach will be more straightforward to implement, and will avoid developers attempting to seek loopholes (for example, building zero-lot line units that are technically detached to qualify for the lower inclusionary rate).  As shown in Table 5, below, the 15% rate is comparable to peer cities surveyed, including Livermore, Dublin and Fremont; other cities surveyed (Walnut Creek, Danville and San Ramon) have rates or 10% or less. Page 8 of 40