AgdaPkt 2011-10-10 - Laserfiche WebLink

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6.1.E. - Page 2 The developer proposes to reserve seventeen (17) units affordable to persons of moderate incomes. For the foreseeable future, the developer intends to operate the project as a rental complex. During the time that the units are rented, the agreement requires that the 17 affordable units be rented to persons or families of low or moderate incomes. The owner may choose whether to rent to a low income household or to a moderate income household. However, if an affordable unit is rented to a low income person or family, the owner may only charge affordable rent, as defined in state law, for low income persons or families. If an affordable unit is rented to a moderate income person or family, the owner may charge affordable rent as defined, in state law, for moderate income persons or families. In the future, the project could be converted to condominium ownership, at which time the 17 affordable units may only be sold to moderate income households at an affordable price as defined by state law for moderate income households. Under Section 65915, the provision of these 17 affordable units entitles the developer to a density bonus of an additional thirteen (13) units over and above the NMSPP's density limit of 101 units. Additionally, in exchange for providing these affordable units, the developer is also entitled to certain incentives or concessions from the City under Section 65915. To satisfy the incentives or concessions requirement, the City is granting the developer (a) an additional eighteen (18) market rate units, bringing the total number of units in the project to 132, and (b) a waiver of the certain requirements of Chapter 30, Article XI of the City's Municipal Code, regarding condominium requirements. Finally, City staff and the Planning Commission agreed to waivers of certain development standards in the NMSPP to allow construction of the proposed project, as required by Section 65915. These density bonus units, incentives and concessions, and development standard waivers satisfy the City's obligations to the developer under Section 65915. The 17 affordable units consist of five one-bedroom units, nine two-bedroom units and three three-bedroom units. As a condition of approval for this project, an Affordable Housing Agreement has been prepared by the City and agreed to by the developer. This Agreement now requires City Council approval. The Affordable Housing Agreement (Attachment 1) describes the details of this project relating to the density bonus, the number and type of affordable units, incentives and concessions, and the development standard waivers. The purpose of the proposed Agreement is to ensure that the City can count the units towards its regional housing obligation and to ensure that these affordable units remain affordable to moderate income households as rental units for 55 years and for at least 45 years upon transfer and resale as ownership (e.g. condominium) units. The moderate income level as defined by California Health and Safety Code section 50093 is 120% of HUD's Area Median Income (AMI) for San Mateo County. ALTERNATIVES