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If requested, the City will assist in processing bond and tax credit financing provided the City does not contribute financially. Based on the fact that the affordability meets the City IZO requirements, the developer will not be required to pay the Lower Income Housing Fee on the residential units (currently $2,328 per unit for multi-family projects). Mr. Bocian also went over the tentative rents for the two categories ofbelow-market units as well as anticipated market rents. He invited questions from the Commission. Vice Chairperson Stark clarified that page 2 of the agreement should read "80%" rather than 50%. Mr. Bocian concurred that this was a typo and would be changed in the final agreement. Chairperson Hodgett asked if the City uses an utility allowance in establishing maximum rents. Mr. Bocian responded that the utility allowance is only used if required by a specific funding source, such as tax credits, and was not included in determining the rent limits for this project. Commissioner Harris asked if the conditions included in the proposed agreement are standard and typical. Mr. Bocian affirmed that the conditions are standard and are consistent with the Inclusionary Zoning Ordinance and with other privately developed affordable housing projects that have been approved by the City in the past. Eric Heffner, Senior Vice President, Windstar Group, 11149 N. Torrey Pines Road, Suite 250, La Jolla, California, addressed the Commission. He provided a brief overview of the project as a supplement to Mr. Bocian's earlier comments. He stated that they are very excited to see this project off the ground. Commissioner Jones asked about the anticipated construction schedule. Mr. Heffner stated that they hope to start construction in late spring 2008 so that the units will be available for occupancy azound the same time as the scheduled opening of the BART station in summer 2009. He anticipates a construction period of approximately 26 months. Vice Chairperson Stark asked staff how much this project will benefit the City's RHNA numbers. Mr. Bocian responded that the project will provide S3 units toward the low and very low income targets, although a11350 units will count toward the aggregate target number. Chairperson Hodgett asked what market rents have been anticipated. Mr. Bocian referred her to page 3 of the staffreport. Ms. Hodgett noted that the market-rate apartments will probably count toward the moderate income target based on the anticipated rents. She added that the low and very low income units will count toward the state's Workforce Housing Initiative and might make the City eligible for state funding. Page - 4 -