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Page 8 of 11 • A minimum of 25 percent of the Affordable Units shall have rents set at no more than 30% of 50% of AMI (as defined below) for households with incomes up to 50% of AMI (Very Low-Income Units). • A minimum of 25 percent of Affordable Units shall have rents set at no more than 30% of 60% of AMI for households with incomes of 51% to 60% of AMI (Low-Income Units). • A maximum of 50 percent of Affordable Units shall have rents set at no more than 30% of 80% of AMI for households with incomes of 61% to 80% of AMI (also Low-Income Units). • The Developer may request to revise the affordability restrictions, subject to City Council approval. • Affordable Unit rents shall be based on the following household sizes and shall not exceed one-twelfth of 30% of the applicable Area Median Income (AMI) adjusted for the household sizes listed below: Unit Type Household Size 1-Bedroom Unit One and a half (1.5) person household 2-Bedroom Unit Three (3) person household 3-Bedroom Unit Four and a half (4.5) person household • The Affordable Units shall be rented to qualified applicants in accordance with the City’s Preference System (provided as Attachment 2 to Exhibit A - Affordable Housing Agreement of the resolution). • The affordability restrictions shall be in perpetuity. Per the PMC, an Affordable Housing Agreement is required to document the proposed approach to meeting the IZO and related requirements of the ODS. In the case of this project, some aspects of the affordable housing approach deviate from the strict requirements of the IZO, particularly with respect to the phasing/timing of the provision of the units as the IZO requires that “all inclusionary units in a project shall be constructed ‘concurrently within or prior to construction of the market rate units’”. The Developer is proposing an alternative means of compliance with the IZO. The alternative phasing and timing are necessary to address the specific way these units will be constructed and built, which may include a third-party Affordable Housing Developer and use of the Lower Income Housing Tax Credit (LIHTC) program funding to support the financing and construction of the multi-family affordable rental units. The City is agreeable to the Developer being able to proceed with site development and construction of a proportion of the single-family units in advance/non-concurrently with building permits being issued for the affordable units – doing so is a practical consideration based on the LIHTC funding application process (which happens bi-annually), phased nature of the market rate-development (where site improvements for the market-rate units will support development of the affordable units), and nature of the affordable project, which includes multiple units in each of its buildings, the timing of construction of which may not precisely Page 121 of 682