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housing; although prices of these homes are high, they are relatively more affordable than new, detached single-family homes built in the same timeframe. Figure 2: Examples of Missing Middle Housing (source: Opticos Design, Inc.) DETACH® BMGLE-RAMLY \ DUPLEX HOMES .. LI�AUORK COURTYARD EUWMALM TOWNWOUM KLTIPLEX ` ` APARTFB:fCouw — -� TRIPLEX < - — "SeltZ MIDOLE FOURPLEX While the City's municipal code allows for ADUs and SB9 units, the Planning Commission may want to consider whether it supports policy in the Housing Element encouraging alternative types of housing in select neighborhoods where additional infill may be appropriate. DISCUSSION AND POTENTIAL STRATEGIES The topics of workforce housing and affordable by design are complex and are likely to require additional consideration before implementation. Below are several strategies that could facilitate the development of both types of housing. Rental versus Ownership As discussed during the February 9, 2022 Planning Commission meeting, multifamily development has more often than single-family development constructed affordable units required by the City's Inclusionary Zoning Ordinance (IZO); single-family development has with greater frequency paid the in -lieu housing fee. Therefore, the City has a greater number of below market -rate rental units (about 1,000) than ownership units (about 100). At the February 9, 2022 Planning Commission discussion on potential changes to the City's Inclusionary Housing Ordinance, the Commission was supportive both of increasing the inclusionary percentage for single-family units, and making an effort to encourage projects to build those units on-site, versus paying an in -lieu fee (and/or increasing in -lieu fees to be more commensurate with the cost of actually building affordable housing units). One strategy that the Planning Commission may consider is whether to recommend policy/ies for affordable housing for ownership, designed for the "missing middle" population or for the workforce. However, staff notes that, whether for sale or for rent, smaller housing units tend to provide more affordability, and rental housing tends to be more affordable than for -sale housing. Thus, any strategy should not be to the detriment of providing rental housing since this may undermine overall affordability and access to workforce housing opportunities. The most appropriate strategies, therefore, may be to focus on production of units "affordable by design" — whether for rent or for sale; and basic approaches such as those noted above with respect to the IZO, to encourage affordable for -sale units. Housing Element Update, P21-0751 7of10 Planning Commission