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Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 3 Although the Project is proposing a total number of units (552) that is below the maximum City - prescribed density for the Project site based on its acreage (620 units), the developer is able to seek up to three (3) density bonus concessions and a waiver because it is a 100-percent affordable Project. The three (3) requested concessions and the waiver are permitted by State Density Bonus Law. Specifically, the developer is seeking concessions allowed pursuant to Government Code section 65915(d)(1) as listed above pertaining to: publicly accessible open space; building setbacks; and, residential parking; as well as a waiver allowed pursuant to Government Code section 65915(e)(1) pertaining to driveway width. In order to receive these three (3) density bonus concessions and a waiver, the Developer has agreed to restrict all units in the Project, except for five (5) manager's units, to eligible low- and very low-income households. Based on the above calculations, the proposed Project complies with both the California Density Bonus Law and the City's Housing Opportunity Ordinance. As such, a Density Bonus Agreement has been prepared (Exhibit 1). The Developer has paid the City's Density Bonus Setup fee in the amount of $82,084.05 to prepare this agreement. The Planning Commission Staff Report from June 4, 2018 provides much more detailed information regarding the requested incentives/concessions (Exhibit 2). Key Items in the Density Bonus Agreement The following is a list of key items agreed upon in the Density Bonus Agreement: • The Project shall have no less than five -hundred and fifty-two (552) units which shall be comprised of twenty-seven (27) one -bedroom units, and two -hundred and thirty-nine (239) two -bedroom units, and one -hundred and forty-six (146) three -bedroom units, and one - hundred and forty (140) four -bedroom units, of which five (5) unrestricted units (i.e. manager's unit) with unit sizes as may be determined by the Developer. The affordable units shall be restricted to use and occupancy by eligible households for a total period of no less than fifty-five (55) years including: o No less than fifty-six (56) affordable units in the Project shall at all times during the term of the Agreement be rented to very low income tenants at 50% Area Median Income (AMI); and o No less than four -hundred ninety-one (491) affordable units in the Project shall at all times during the term of the Agreement be rented to low income tenants at 60% Area Median Income. • Affordable Rent Schedule. The affordable rents shall be determined by the regulatory agreements entered into between the Developer and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) governing the Project. • Maintenance. The Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner. If at any time the Developer fails to maintain the Project then the City shall have the right to enter upon the applicable portion of the Project and perform all acts and work necessary to protect, maintain, and preserve the Project, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such work. • Maintenance Agreement. Developer shall execute a Maintenance Agreement with the City which shall be recorded against the property prior to occupancy. 60A-3