18 ATTACHMENT 09 - Laserfiche WebLink

Location Ma.: The Villa•a at Valle Trails PUD-113) • Valley Trails . P elghborbood . P r 4 r'I Because this property exceeds the fifteen (15) unit threshold, it is subject to the City's 20% affordability requirement for very low, low, and/or moderate income households (i.e., provide 7.2 affordably priced units in the development), or to satisfy the requirement through an alternative means. Alternatives described in the ordinance include options such as off-site development, land dedication and payment of the Lower Income Housing Fee. Historically, the City has taken a flexible approach to negotiating how residential projects may meet their affordable housing requirement. In addition to affordable units being provided on-site (such as in the higher density "Vines" and "Andares" developments), affordable housing fee payments and land dedication have also been accepted. A copy of the Inclusionary Zoning Ordinance is included for reference as Attachment 2. DISCUSSION Most Below Market Rate (BMR) ownership homes have been duets, townhomes, multi-family or smaller, detached single-family units of approximately 1,200 sf. There are no larger single- family BMR homes in the City's inventory and staff and the City Council have traditionally not pursued that type due to the significant gap between the market sales price of the homes and sales prices which are affordable for low and moderate income households. For example, using the current median list price per square foot for homes in Pleasanton of $478, a 2,500 sf single family home would be priced at approximately $1.19 million. The mortgage that a low income household of four could afford (at 80% of Area Median Income) would be approximately $270,000. The significant subsidy gap creates a "windfall" perception for individual homeowners, does not maximize affordable housing goals which may serve more residents through other housing development opportunities and programs, and is economically infeasible. Historically, developments with larger single family units such as Ruby Hill, and most recently Lund Ranch, have provided fee payments in lieu of providing units on site. These fee payments have been an important funding source for affordable housing goals at other sites, including Kottinger Gardens, and in funding programs which support the variety of Housing Element goals. Page - 2 -