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• The affordable housing contribution should be deposited into the Lower Income Housing Fund and used for purposes in accordance with that fund. o The Commission further requested information on the appropriation status of other "Affordable Housing Contributions" received through the Vintage and Lund Ranch Affordable Housing Agreements, and none of those funds have been appropriated for projects as of the date of this report. • The project should consider options to include affordable units in the development to address the City's ownership housing goals for groups such as teachers, first responder, etc. Planning Commission will review the PUD on December 14 and, prior to that process, the Housing Commission is tasked with reviewing the additional information provided and forwarding a recommendation on the Affordable Housing Agreement to the City Council. The Minutes from the HC's discussion will be forwarded to Planning Commission for their information. DISCUSSION In response to the HC's concerns and to assist with consideration of this item, Staff has summarized some options. The HC is tasked with developing a recommendation to City Council which may be different from Staff's recommendation and the other options analyzed below. Option 1: Approve the Affordable Housing Agreement proposed by the Developer and recommended by Staff. This agreement, as described would assess a per unit fee amount which was included in the 2013 Nexus Based Affordable Housing Fee Analysis and which was based on a schedule (Table 1) which was used as the reference in the previous Affordable Housing Agreement negotiated for the Lund Ranch development. The 2013 Nexus study report was reviewed during a joint workshop with the Housing Commission and City Council on October 22, 2013. The study recommended maximum housing fee levels based on unit size which were then subject to a feasibility analysis. The Council opted not to increase fees at that time. As previously discussed with the Commission, Staff has been working with EPS to update market data through a 2016 study to comprehensively assess how conditions have changed and which has not been finalized at this time, therefore the 2013 is the most current available data which has been the basis for alternative fee discussions with developers. The current proposed Housing Fee structure would secure additional affordable housing fee resources beyond the current adopted fee amount of $11,515 per unit while taking a conservative approach that is based on the previous reviewed study that has been analyzed for feasibility. This approach is more than double the establish fee for each unit in the development and has prior precedent in the impact fee negotiations for Lund Ranch. As described in the previous report, staff supports the development fee recommendation because it will leverage other funding which could be used to support projects that can address Page - 2 -