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POLICIES AND ACTIONS PROGRESS Policy 53.03 INCLUSIONARY HOUSING Require the inclusion of affordable housing in new housing developments-both inside and outside of redevelopment project areas. Modify existing inclusionary housing ordinances as needed to make these requirements clearer and more effective. Actions 53.03 A, B and C were addressed when San Leandro approved a new City-wide inclusionary housing requirement in November 2004. The ordinance now requires that all new residential projects provide a 15 percent affordable housing component (See Highlights). The City has established new rules for the payment of in-lieu fees for small projects with six or fewer units. Action 53.03-A: Changes to Inclusionary Housing Requireme~its Pursue the following changes to the City of San Leandro 's inclusionary housing requirements: • Expanding the requirement to apply to single family projects as well as multi family projects. • Expanding the requirement to apply to projects of 10 units or more, rattier than projects of 20 units or more (pr°ojects of 10 to 19 units would designate at least one unit as affordable). • Creating incentives to promote the inclusion of lower income units as well as moderate income units within owner-occupied projects. • Requiring some of the designated "affordable "units in large multi family projects to be reserved for very low income households, as well as low income households. The existing ordinance-which effectively applies only to projects outside of redevelopment project areas--requires 10 percent of the housing units in multi family projects of 20 units or more to beset aside as affordable housing. The recommended changes would make the ordinance more effective by lowering the threshold to 10 units, and including single family projects as well as apartments. The changes would also help ensure that some of the multi family units are specifically set aside for very low income households. Action 53.03-B: Redevelopment Area Inclusionary Housing Policy Require developers of residential projects within San Learidro's redevelopment areas to set aside at least I S percent of all new units as affordable housing. Pursuant to State law, at least 40 percent of these affordable units should beset aside for very low income households. This requirement is consistent with State law for redevelopment project areas. A higher percentage of affordable units are required for projects that receive financial assistance from the redevelopment agency. Year 2004 Annual Housing Progress Report 17 City Of San Leandro