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EXHIBIT 4 affordability requirements exist for rental projects that result in an increase in residential density beyond 35%, as opposed those that result in new residential land use. Affordability requirements for for -sale projects increase depending on the household income targeted — the lower the income, the lower the percentage required since they require the greatest subsidy. Table 1 below summarizes these requirements. Alternatives: A developer can satisfy affordable housing requirements by building affordable units off-site of the project if affordability levels are comparable to those required for units provided on- site, and they are provided in proximity of the project. Other alternatives include acquiring and preserving a property containing at -risk affordable units, or paying an "in -lieu fee". In -Lieu Fee: The rental fee varies depending upon the unit size and affordability level. The for - sale fee depends on the size, affordability level, which community plan area the project is located, and housing type. According to the affordability gaps study, fee rates for for -sale units vary significantly: from a few hundred dollars per market -rate unit to over $400,000 per unit assuming the lowest rate that satisfies the affordability requirements. Additional Incentives: In addition to increased residential density or attaining new residential use for the development, a project under this program that satisfies the affordable housing requirements is also entitled to three incentives included in the state's density bonus program. Table 1: City of Los Angeles Measure JJJ Affordable Housing and Fee Requirements Rental Pro'ects` �_ For -Sale Proiects' Affardable UnitPercentagesr _ _ Increase in Residential Density 5% for extremely low income and 11 % for very low income; or Over 35%!. either: 20% for lower income; or 6% for very low income or 40% for moderate income 15% for lower income Residential Use Where Not : 5% for extremely low income and Same as above Previously Allowed either: 11 % very low income or 20% for lower income In -Lieu Fee Increase in Residential. Density Example: $46,350 per one bedroom i Could range between a few hundred Over 35% ! unit assuming .5%for extremely low ; to over $400,000 permarket-rate income and 60/for very low income j unit Residential Use Where Not Example: $66,585 per one -bedroom Same as above Previously Allowed'.. unit assuming 5% for extremely low income and 11% for very low ' The affordability unit percentages indicate the minimum percentage of affordable units required within a residential development. Affordable units must have rents or prices set at a level that is affordable to the specified targeted household income. 2 Rental income thresholds: Extremely low-income units target household incomes up to 30% of AMI; very low-income units target households up to 50% of AMI, and lower-income units target households up to 80% of AMI.6 3 For -sale income thresholds: very low-income targets households up to 50% of AMI, lower-income targets households up to 80% of AMI, and moderate -income targets households up to 120% of AMI. 6 In -Lieu Fee Study for Compliance with City of Los Angeles Measure JJJ, Affordability Gaps Study, March 13, 2017, htti)s://planniniz.lacity.org/ordiiiances/does/TOC/LA Measure JJJ Affordability Gap Analysis 03132017 Edit.pdf 4 65B-16