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- Instead of requiring a percentage of the total number of units in projects to be affordable, modify the requirement to require a certain number of units per square feet of development. Staff notes that this is not a common approach and would likely need further review before implementation. - Allow for a sliding scale or otherwise modify the percentage affordable required such that if a project proposes more units at a lower affordability level, a lesser percentage of overall units is required (deeper affordability across fewer units). Of these possibilities, staff recommends: Modifying the affordability levels to be consistent between single-family and multifamily development as an implementation of the Housing Element (i.e., 20 percent) OR "flipping" the percentages between single-family and multi -family projects. Staff does not recommend at this time increasing the percentage of affordable units to more than 20 percent since Pleasanton's requirement is consistent with (or greater than) most other local jurisdictions, and a greater requirement could have unintended consequences3; and 2. Identifying a percentage split between income levels so that this requirement is objectively and consistently applied for all projects subject to the IZO. While this is recommended, staff also suggests that an "escape valve" be provided for a project to propose (or for the City to require) a different mix of units, if it would better meet other housing policy objectives to do so - for example, to achieve deeper affordability, or support production of units more suitable for special needs groups, such as larger households, seniors, or disabled individuals. If supported by the Planning Commission and ultimately City Council, a policy in the Housing Element would indicate that the municipal code be modified to reflect this change. Density Bonus As mentioned in this report, the density bonus section was added to the municipal code in 2013 as implementation of the 2012 Housing Element. Since then, state law related to the state density bonus has been modified significantly, and the City's ordinance is no longer in alignment with state law. Accordingly, staff recommends that a policy in the Housing Element indicate that the municipal code be updated to mirror current state law. Affordable Housinq Overlay Zone An option that could be considered for further investigation or study, related to density bonus, is the concept of an Affordable Housing Overlay Zones (AHOZ). This model typically prescribes, either citywide or within certain areas, that a project may be eligible for additional density based on providing a requisite number of affordable housing units. 3 Staff also notes that new requirements included in 2017's AB 1505 could subject the City to HCD review of an updated inclusionary ordinance requiring more than 15% of rental units to be restricted to lower-income households, if the City has failed to meet its Above -Moderate RHNA or to submit its Annual Planning Report (APR). The review, if required, could require preparation of an economic feasibility report demonstrating that the requirement would not "unduly constrain" the production of housing. (Government Code 65850.01.(a). Housing Element Update, P21-0751 Planning Commission 11 of 13