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Attachment 10 Mitigation of Affordable Impacts - Analysis Pursuant to Section 29.7D of the Affordable Housing Ordinance, the City Council may approve an Affordable Housing Plan proposing any alternative method of compliance, including a land donation, if the City Council is able to make all of the findings in Section 29.7C (Approval of On-Site Affordable Units) and the proposal meets all of conditions in Section 2.7 D (Approval of Off-Site Affordable Units). One of the Section 29.7C findings is that “[t]he affordable units will mitigate the impact of the project on the need for affordable housing if the units are provided under the Affordable Housing Impact Fee program.” Mitigation Finding is Not Applicable to the Donation of Land It is important to note that Lane is not proposing to provide affordable units to satisfy the impact fee requirements of the Affordable Housing Ordinance. Instead, and as allowed under the Affordable Housing Ordinance (Sections 29.7D, 29.8 A and 29.8H), it is providing a donation of land (not affordable units) to satisfy the Impact Fee requirements of the Affordable Housing Ordinance. Donations of land have their own specific findings and requirements (set forth in Section 29.8H) which the land donation satisfies as discussed in Section XIII. Accordingly, the Section 29.7C finding that “[t]he affordable units will mitigate the impact of the project on the need for affordable housing if the units are provided under the Affordable Housing Impact Fee program” is not required to be made in order to approve the donation of the Substitute Site. Even if the Mitigation Finding Were Applicable, it is Satisfied Even if this finding (that the donation of the Substitute Site will mitigate the impact of the project on the need for affordable housing) were interpreted to apply to the donation of the Substitute Site, this finding is satisfied because its appraised value is more than the impact fee that otherwise would be required. Moreover, it is proposed by Eden for development of more affordable units than would be required if Lane chose to provide affordable units (rather than a donation of land) to satisfy its impact fee requirement. Section 29.3A of the Affordable Housing Ordinance imposes a housing impact fee on nonresidential development projects (with certain exceptions not applicable to the Lane Project). Pursuant to Section 29.5A, the amount of the impact fee is established by the Council by resolution from time to time pursuant to the most recently adopted Nexus Study which is defined to mean a “study or report that uses widely used, appropriate methodology to determine the maximum amount needed to mitigate the burdens created by residential and nonresidential development projects on the need for affordable housing in the City”. At the time the Development Agreement was approved, the impact fee calculated for the Lane Project was $5,773,437 based on a rate of $23.62/sq. ft of nonresidential development. The City has determined (by Resolution No. 16014) that 10 affordable units per 100,000 sq. ft. of nonresidential ATTY/RESO.0052/ CC RESO APPROVING SUBSTITUTE SITE AS AFFORDABLE HOUSING SITE (705 VETERANS)(1900 BROADWAY DA) - EXHIBIT 1 REV: 07-21-26 MI Page 52 of 53