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Page 9 of 11 match to the phasing of the single-family project. The AHA includes the following provisions to provide adequate assurance that, should there be delay in construction of the affordable units or they not proceed at all, the IZO’s requirements would be guaranteed to be met subject to the following: • Developer shall deposit a “Fee Security” equaling the applicable Affordable Housing Fee per single-family unit multiplied by the number of affordable units that have not yet been constructed multiplied by five. Sample calculations are provided in the AHA. • The Fee Security shall be forfeited if Developer fails to obtain the building permits for the required number of affordable units within 12 months of City’s issuance of building permit(s) for the Market Rate Units. The Fee Security shall be refunded when the building permits for the affordable units have been obtained. It is important to note that the applicable requirement of the IZO in place in March 2023, permit the inclusionary requirement to be satisfied by payment of in-lieu fees. Although the project proposes to construct units, collecting in-lieu fees for the market-rate units that are only released with issuance of the proportionate number of affordable building permits, provides a “backstop” for compliance. The AHA also stipulates how the Developer shall meet its obligations under SDBL. The City and Developer have agreed to the following: • Developer shall complete all the necessary remediation, grading, site work, and utility connections for the Affordable Housing Site where the multi-family units shall be constructed prior to transferring the Affordable Housing Site to the Affordable Housing Developer. Upon transfer of the Affordable Housing Site, the City shall issue the building permits for the first 75 single-family units. • The City shall not issue the building permits for the 76th and/or any remaining single- family units unless the Developer has obtained the building permits for the affordable units, in accordance with one of the following increments: o Building permits for a minimum of 21 affordable units for very low-income households (between 30% and 50% AM); or o Building permits for a minimum of 42 affordable units for low-income households (between 51% and 80% AMI) Housing Element and Regional Housing Needs Allocation (RHNA) Compliance The City’s adopted 2023 Housing Element identifies the Project site as the Kiewit Site, Area 21. Per the Housing Element, Area 21 includes two separate subareas. As illustrated in the Housing Element Appendix B - Sites Inventory and Methodology, the site is shown as having an approximately 5-acre area designated for high-density housing at 30 dwelling units per acre (du/acre) and the remainder designated at a density of 8-13 du/acre. This project would allow the City to construct the RHNA housing units in the City’s 2023-2031 Housing Element cycle. The 310 single-family market rate units would be reported in upcoming Page 122 of 682