CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

4 158739848.5 I. Once each year, Owner (or Owner’s successor in interest) shall provide City with a report detailing the average annual income of tenants occupying the Affordable Units for each of the income categories described in Section 1(C) above, the number of persons for each household occupying an Affordable Unit, and the number of vacancies and new rentals during the year for the Affordable Units. J. All Affordable Units shall be subject to this Agreement for perpetuity. K. Owner, with City consultation, shall assume all responsibility to market the Affordable Units. Marketing shall be in accordance with City eligibility and income guidelines in conformance with the City’s Preference System, unless otherwise mandated by federal or state laws (including, without limitation, laws and regulations governing fair housing and low-income tax credits), in which case City and Owner shall mutually agree to a different process as permitted by such laws and regulations. Marketing material, the form of lease, rent-up schedules, and other publicly disseminated printed materials related to the Affordable Units shall be subject to City’s approval in its reasonable discretion. L. Owner shall accept Section 8 vouchers as a means of assisting qualified applicants/residents with Affordable Units. 2. Alternative Compliance With IZO A. The IZO requires that “all inclusionary units in a project shall be constructed ‘concurrently within or prior to construction of the market rate units’”. B. The IZO also permits the payment of an Affordable Housing Fee (as defined below) in lieu of constructing the inclusionary units, with such fee payable at time of issuance of building permits for the development. As used herein, (i) “Affordable Housing Fee” means the IZO in-lieu fee (under City Municipal Code section 17.44.080 (E)) in effect at the time Owner submitted the Preliminary Application for the Project, subject to any annual fee adjustments permitted under PMC section 17.40.070 (for the avoidance of doubt, the Affordable Housing Fee (taking into account applicable annual fee adjustments) in effect as of January 1, 2025 is $52,203.00 per Market Rate Unit) which amount shall be adjusted (based on the $50,480 Affordable Housing Fee plus applicable annual fee adjustments) at the time of the issuance of the building permit; and (ii) Market Rate Unit means any single-family residence in the Single-Family Component. C. Owner is proposing an alternative means of compliance for the IZO. Notwithstanding any provisions of the IZO to the contrary, City and Owner agree that Owner shall have the right to commence and complete construction of Market Rate Units ahead of construction of Affordable Units, subject to the following: 1. If Owner seeks building permit(s) for Market Rate Unit(s) prior to City issuing building permit(s) for the number of Affordable Units required to satisfy the resulting Affordable Units Requirement (as defined below), Owner shall deposit with City as security, concurrent with the issuance of the building permit(s) being sought for the applicable Market Rate Unit(s), the amount (“Fee Page 131 of 682