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Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 3 FEEDBACK PROVIDED BY THE EDIBT COMMITTEE At the November 26, 2018, Economic, Development, Infrastructure, Budget and Technology Council Committee (EDIBT) meeting, the Committee provided feedback regarding areas of the Ordinance to be evaluated by staff. The feedback provided by the Committee included the following options for future consideration: 1) On -Site Development: a. Require inclusionary units to be built on-site. b. Require all developments to comply with the Ordinance instead of only those projects that trigger the Ordinance when the number of units exceeds the densities permitted under the General Plan. However, exclude adaptive -reuse projects that are more difficult to develop. c. Remove the option for developers to build 10% of the units on-site for very low- income families and only permit developers to develop 15% of the units on-site for low-income families. 2) In -Lieu Fees: a. Establish a more competitive in -lieu fee option with criteria. 3) Density Bonus Concession: a. Make the concession merit -based to provide more very low-income units on-site, serve special needs populations and/or provide deeper affordability. NEXT STEPS AND POLICY AREAS STAFF WILL EVALUATE For the next steps, staff will conduct stakeholder outreach with the private market developer community and nonprofit community before returning to City Council for a Work Study session in early Spring 2019. Using the feedback from the EDIBT Committee, staff has prepared a non - exhaustive list of five key policy areas to evaluate for the City Council. By fiscal year end, staff anticipates to have an amended Ordinance ready for City Council review and consideration that incorporates revisions proposed through stakeholder feedback and the Work Study session. Following are the five policy areas and options that will be evaluated: L City Density Bonus Concession: The current Ordinance allows second density bonus on top of State density bonus, which can almost double the base density permitted. Staff is unable to negotiate additional project requirements that match the General Principles adopted by City Council on March 20, 2018 in the Affordable Housing Funds Policies and Procedures because the density bonus concession in the Ordinance allows a developer to receive the concession without any further merit -based requirements or criteria. Therefore, regarding the density bonus concession, staff will study the following policy options for future City Council consideration: 1) No change. 2) Remove the City Density Bonus Concession. L•