SR 06:052 - Laserfiche WebLink

language was reviewed by the Planning and Housing Commissions. The commissions have completed their review and Ponderosa has modified its original request to reflect public and staff comment. As a result, staff is presenting the matter to the Council for action. Subject to City COuncil approval, the use of affordable housing credits is allowed as part of the City's Inclusionary Zoning Ordinance included as Attachment 4. Honorable Mayor and Members of the City Council: BACKGROUND At your meeting of May 6, 2003, the City Council approved an amended Affordable Housing Agreement for the Busch senior apartment development increasing the number of affordable units from 87 to 138 units. The total units within the senior project remained at 172. The increase creates an additional 46 one-bedroom units affordable at 50% of the area median incorne and five units affordable at 60% of the area median income. Because these additional 51 affordable units are in excess of the number required for the entire Busch development, the developer requested the Council approve the use of these 51 units as "credits" for meeting affordable housing requirements on future development on the Busch property or off-site at some not yet identified site. Future development on the Busch property could occur if the Pleasanton Unified School District does not exercise its option on the 23- acre site for school district use. This term of the option is five years. The developer's request for credits is consistent with section 17.44.080(c) of the City's Inclusionary Zoning Ordinance that allows, "credits" on one development if another development has an amount of affordability that exceeds the minimum amount required. In this case, the fifty one (51) affordable units approved by the City Council on May 6, exceed the required number of units and the developer desires to use these as a means of meeting affordable housing requirements for future development on the Busch property or on a not yet identified site. In addition, at the May 6 meeting, the developer requested the option of transferring the 51 credits to another developer. While the Inc1usionary Zoning Ordinance allows the use of credits if approved by the City Council, it is silent on transferring these credits to another developer. As a result, the Council expressed concern regarding the value of these credits and the potential benefit to the developer by offering them for sale. SR:03:308 Page 2