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Page 4 of 8 <br />Table 1: 2013 Affordable Units <br />Unit Type <br />Very Low <br />Income (50% of <br />AMI) <br />Low Income <br />(80% of AMI) <br />Median Income <br />(100% of AMI) <br />Total <br />Studio 5 3 8 16 <br />One-Bedroom 3 3 3 9 <br />Two-Bedroom 0 7 9 16 <br />Three-Bedroom 0 2 3 5 <br />Total 8 15 23 46 <br /> <br />Approved 2024 Development Modification/Amendment to Affordable Housing Agreement <br />As noted, in 2024, the Developer proposed to modify the approved four-story, 223-unit Podium <br />Residential Building to add a fifth floor with an additional 31 residential units. The new 5-story, <br />254-unit residential project in the Podium Building altered Avalon's obligated number of <br />affordable units to be built on site, in compliance with the 2013 Affordable Housing Agreement <br />between the City and the former owner, Pleasanton Partners, LLC. Avalon's required number <br />of affordable units increased from 46 units, as previously reflected in Table 1, to 51 units. <br /> <br />The City and Developer executed a First Amendment to the AHA on April 4, 2025 to <br />memorialize the five additional affordable units (see Table 2 below). The amendment did not <br />change any other aspect of the agreement, with the mix of units by bedroom county and <br />affordability levels remaining consistent with those specified in the original AHA. <br /> <br />Table 2: 2025 Affordable Units <br />Unit Type <br />Very Low <br />Income (50% of <br />AMI) <br />Low Income <br />(80% of AMI) <br />Median Income <br />(100% of AMI) <br />Total <br />Studio 6 4 8 18 <br />One-Bedroom 3 4 3 10 <br />Two-Bedroom 0 7 10 17 <br />Three-Bedroom 0 2 4 6 <br />Total 9 17 25 51 <br /> <br />Proposed Second Amendment to the Affordable Housing Agreement <br />Shortly after the First Amendment to the AHA was executed, the Developer asserted that <br />building the 51 required affordable units at the Avalon Pleasanton development would not be <br />financially feasible due to unstable economic conditions, including high interest rates, the <br />uncertainty of construction costs, and the general volatility of the current construction industry <br />and rental housing market. <br /> <br />Instead, the Developer requested consideration of an alternative proposed approach to comply <br />with the IZO. Specifically, in lieu of providing all 51 affordable rental units on site at the <br />Page 78 of 694