PC 062304 - Laserfiche WebLink

_ He noted that three azeas of the ordinance were highlighted as a concern of Council or staff and requested that the Commission examine them more closely: Increase the Minimum Ration for Multi-Family Affordable Units The ordinance requires that 15 percent of the multi-family units be affordable to low- and very-low-income families. Staff believed that an increase from 15 percent to 20-30 percent would be justifiable to be consistent with the recently adopted Housing Element. Options for Affordable Housine Credits The ordinance contains a provision that states if a developer provides a number of affordable units in a particulaz development that is in excess to the required amount, the developer can request credits to be applied to another development. The credits would be the property of the project owner and cannot be transferred to another development unless approved by the City Council. Council would also approve the number of credits awarded. He noted that the provision maybe left as is, reviewing the credits on a case-by-case basis, and giving Council the greatest amount of latitude. The provision may be eliminated. Also, specific guidelines for credits may be established, including the use of apre-determined formula. Clarification for transferring credits from one developer to another may also be defined by the Council. 3. Modification to Reuirements for Ownership Housing Concerns have generally revolved around the issues of the subsidy amount for ownership housing, the length of ownership, and ongoing re-certification of income. There have also been concerns that the affordable units may affect the prices of market units and that there may be a lack of incentive to resell these units. Staff believes that the ownership component of the ordinance works as it was meant to work. Mr. Bocian noted that several options were listed in the report: a. Subsidizing ownership housing may be eliminated in favor of rental housing. b. Second mortgages maybe modified to accelerate payments if a household's income exceeds a certain level. c. Potential formulas may be considered that would increase an owner's equity in the home maybe examined. He noted that the Housing Commission reviewed this matter on May 20, 2004 and decided to retain the current unit requirements of I S percent for the rental units. The Housing Commission's justification was that the current language set a minimum threshold, and they would work to exceed that minimum. The Housing Commission believed the Council should retain the language relative to the inclusionary unit credits, which would give the Council the greatest flexibility regarding transfers. The Housing Commission indicated that retention of ownership housing was an important component of the City's affordable housing program, but staff should work on language and procedures for monitoring the ownership to assure that those owners were complying with the terms and conditions of the program. Commissioner Kameny complimented staff on the detail and complexity of the ordinance and inquired whether staff had any recommendations regazding the three items. - Mr. Bocian advised that staff recommended increasing the percentage of the rental units from 15 percent to 25 percent to be consistent with the City's Housing Element. He noted that the position taken by the Housing Commission was credible in the sense that it views it as a PLANNING COMMISSION MINUTES June 23, 2004 Page 3 of 15