22 - Laserfiche WebLink

. The City, with assistance of the developer, will coordinate the marketing and selling of the ten affordable units and the Developer will contribute $15,000 offset the cost of this process. • In addition to providing the ten affordable units, the developer will pay a the City's Lower Income Housing Fee (LIHF) for 44 units (46% of the 94 units) in the amount of $2,783 per unit for a total fee of$122,452. The per unit fee amount is subject to periodic cost of living adjustments that would apply at the time the fee is paid. • In lieu of providing the ten affordable units and paying the fee above, the Developer would pay an in lieu fee in the amount of$1,235,000 if directed to do so by the City Council. When reviewing the developer's overall plan, staffs perspective was that it is critical to include some affordability in the project rather than requiring a payment of the LIHF. Further, staff felt that it was important that the affordable homes be affordable to households at 80% AMI (low income) rather than higher income levels such as 100% or 120% AMI (moderate income) which has been used in some previous developments. As such, as it relates to ownership units for this development and in general, staff is of the opinion that it is better to acquire deeper affordability rather than a larger number of price controlled units with a higher selling price. This is especially critical since recent evidence from other communities indicates that the closer affordable ownership home pricing gets to market prices, the more difficulty there is with resales and overall unit management. Therefore, staff determined that having ten units at 80% AMI was more beneficial than 14 units (15% of the total development) affordable to a significantly higher income bracket. To offset this reduction (10-units rather than 14-units), and in addition to providing the ten affordable units, the developer is agreeing to pay a LIHF of $122,452. It should be noted that the IZO and LIHF ordinance require a 15% affordability requirement for multi-family developments and as such, by providing the ten affordable units, it is meeting 71% of its affordable housing requirement. Based on this requirement, the developer could fill that "gap" by paying a LIHF for 27 units (29% of the total units) which would result in a fee payment of $76,069. However, the developer offered and staff accepted that for this particular project, it would pay a LIHF fee based on the 20% affordable requirement set forth in the IZO for single family ownership homes. As such, the developer is paying a higher total fee amount. The following formula was applied for determining the fee: • 94 units X 20% = 19 units • 10 affordable units provided = 53% of the required 19 units • 47% unmet affordable need = 44 units (94 units X 47%) . 44 units X LIHF of$2,783 = $122,452 Page - 4-