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File Number: 15-580 ·New ownership development projects of 2 or more units shall make 15% of the total units affordable for moderate and/or low income homebuyers. Also, for projects between 2 to 6 units, the developer has the option to pay a housing in lieu fee rather than constructing the applicable affordable unit(s) ·The affordability period for inclusionary rental developments will be a minimum of 55 years and for ownership developments a minimum of 45 years ·Design of inclusionary units must be integrated into the overall project and shall be consistent or compatible with the market rate units ·Creation of an Affordable Housing Trust Fund shall be funded from affordable housing-related fees such as the housing in lieu fee The City amended the IZ Ordinance in 2006 to include residential condominium conversions. Prior to the 2005 enactment of the IZ Ordinance, the City’s inclusionary zoning regulations required a 10% affordable housing set-aside for residential development with 20 or more units. To date, 17 affordable ownership units from private residential development projects (such as Cherry Glen at Washington Ave/Springlake Drive, Toscani Place at Davis Street/Pacific Ave and The Willows on Fargo Ave) have been created under the IZ Ordinance. Due to the slow housing market in San Leandro since the inception of the IZ Ordinance in 2005, the annual Affordable Housing Trust Fund revenue has been minimal. The current Housing Trust Fund balance is approximately $85,000, which is a negligible amount to assist with the construction of new affordable units. Housing is currently a Bay Area wide concern. While there are numerous reasons for the crisis, the lack of supply is a major driver. The number of new housing units produced in the City of San Leandro, as well as most other Bay Area cities, has failed to meet the demand. There is a need for new housing of all types: affordable (low and very low), moderate, and market rate housing. In the past two years there has been increased interest from housing developers in housing opportunity sites in the City. As a built-out City, the majority of opportunities fall in Downtown San Leandro and along E. 14th Street, including the Bay Fair area. The Association of Bay Area Government (ABAG) has designated these transit rich areas as Priority Development Areas. The City’s Housing Element Update, adopted in January 2015, confirmed that zoning was in place for the construction of 2,287 new housing units in the next eight years, consistent with the City’s Regional Housing Needs Allocation. There are currently 12 new units on Aurora under construction and numerous housing developments in the planning process which could produce upwards of 800 new units (approximately 500 rental and 300 for sale). Application of the IZ Ordinance, which requires 15% of for sale homes be affordable, could generate 45 new affordable homes. The 500 rental units may also provide housing opportunities naturally to moderate income households. In San Leandro, a moderate income 2-person household is currently defined as those with an annual income of $89,000. The majority of affordable housing created in the City of San Leandro since 2005 received Page 2 City of San Leandro Printed on 10/27/2015