SR 05:080 - Laserfiche WebLink

While all three options have unique benefits and challenges, staff is recommending Option A because it is most consistent with past City practice of not acquiring a privately owned site for the purpose of providing long term housing. Further, as noted, staff has concerns about leading a development effort without fully exploring neighborhood interests and needs. Staff recognizes that this option may lead to a development proposal for a product other than a senior project. However, while staff recognizes the needs of the Kottinger Place Task Force regarding relocation opportunities, it has not pursued senior housing for this site. Ultimately, any project that comes forward on this site will be required to meet Inclusionary Zoning Ordinance requirements that will yield affordable units which is staff's primary concern regarding development orientation. PROJECT FINANCING/INCLUSIONARY UNIT CREDITS As noted, staff has had discussions with EAH, the owner and Jack Dove regarding the cost of developing an affordable project. As a result, there have been a number of meetings held during the past year regarding potential financing options including state and federal programs such as the Low Income Housing Tax Credit (LIHTC) program and the HUD Section 202 program (which is specifically targeted for affordable senior housing projects). While all available programs are highly competitive, it is felt that a senior project with a significant level of affordability and appropriate amenities would compete favorably. Mr. Jack Dove has also proposed the concept of generating revenue for a project by selling Inclusionary Unit Credits to another developer(s) that need to meet the requirements of the City's Inclusionary Zoning Ordinance (IZO) but cannot or would prefer not to integrate affordable units within their projects. This type of option is addressed in Section 17.44.080 of the IZO: In the event a project exceeds the total number of lnclusionary Units required in this Chapter, the Project Owner may request Inclusionary Unit Credits (IUC'S) which may be used to meet the affordable housing requirements of another project. Inclusionary Unit Credits are issued to and become the possession of the Project Owner and may not be transferred to another Project Owner without approval by the City Council. The number of lnclusionary Unit Credits awarded for any project is subject to approval by the City Council. In addition, the IZO also encourages alternative methods of meeting inclusionary requirements as follows: Alternate Methods Of Compliance: Applicants may propose creative concepts for meeting the requirements of this chapter, in order to bring down the cost of providing inclusionary units, whether on- or off-site. The city council may approve alternate methods of compliance with this chapter if the applicant demonstrates that such alternate method meets the purpose of this chapter. SR:05:080 Page 5