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4. Affordable Housing Agreement and Housing Commission Recommendation The Housing Commission, at its April 16, 2015, meeting, reviewed affordable housing options to identify an Affordable Housing Agreement (AHA) for the project. The Housing Commission unanimously recommended the approval of the AHA to the City Council. The Inclusionary Zoning Ordinance (IZO) requires all new multi-family residential projects of 15 units or more to provide at least 15 percent of the project's dwelling units at prices that are affordable to very low, low, and/or moderate income households. The proposed development of 94 multi-family units would require 14 affordable units. For this for development, the applicant offered and staff accepted that the percentage of affordability would be based on the 20% requirement set forth in the IZO for a single-family residential project. As agreed between the applicant and staff, the applicant will provide 10 units and pay the City's Lower Income Housing Fee (LIHF) in a total fee of$122,452 to fulfill the IZO requirements. Commissioners agreed with the staff recommendation to approve the Affordable Housing Agreement for the SummerHill Development and wanted to ensure the in-lieu fees would be used properly. Staff responded that City Council has the latitude to decide about the disposition of in-lieu fees. Several Parkside residents attended the Housing Commission meeting. Lynn Kriegbaum, represented the neighborhood and spoke in support of the proposal. Please see the attached Housing Commission staff report and draft meeting minutes (Exhibit D) for additional details and discussion. 5. Development Agreement A development agreement is a commitment between the City and a property owner or developer to proceed with a specific development in accordance with the terms of an agreement that describes what land use and related processes shall apply to the application. In essence, a development agreement locks in the laws in existence at the time of entering into the agreement and the City agrees not to change its planning or zoning laws applicable to the specific development project for a specified period of time. The developer gains certainty, through the development agreement, of the continuity of regulations that were in force at the time of entering into the development agreement and prior to a commitment of a substantial investment for project improvements. In exchange, the City gets certain benefits and concessions that it might not be able to require through conditions of approval. In March 2014, the City Council approved a 10-year term Development Agreement. The developer is obligated to pay the applicable development impact fees which are in effect when the ordinance approving the agreement is effective. The agreement allows the City to utilize the project's in-lieu park dedication fees towards improving community parks in the City, including Phase II of Bernal Community Park. The agreement also ensures that the developer will provide a number and range of affordable housing units acceptable to the City. Summerhill Housing Group Planning Commission Page 19 of 28