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EXHIBIT 1 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 compatible 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 communityplan 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 It City of Los Angeles Measure JJJ Affordable Housing and Fee Requirements Rental Projects' ForSale Protects__ difmvtaMe UnY Asrcentaeerr Increase in Residential Density 5%s for extremely low income end 11 for vary 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 — R6i4ential Use. -Where Not :: 5% for extremely loww income and. Same as above' .ProvioUtly.Alldwed' •••.c 11%vety low,incom'aor`.^. 20%kilowerindohie. ;' ... Tn-T,fen Fee .. Crt;ase in Residential,Density' Exampl6: $46,350 petorie b'ei3room' Cbuld ruhge between a f0ly hutidred ' Over•3'S% dttitassumm$5%uforeXtremelylow to,'dyer'.$40%1300 par:prmket -rate ' income and:6%forverylowineome-'unit Residential Use Where Not Example, $66,585 per oue•bedroom Same as above Previously Allowed unit assuming 5% for extremely low income and 11% for_ very low income t The affordabilityunitpememages indicate the minimum percentage of affordable units required within a residential development. Affordable unite 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.° a For -sale income thresholds: very low-income targets households up to 50% of AMU, lower -income targets households up to 80% ofAML end moderate -income targets households up to 120%of AM. 6In-Lieu Fee Study for Compliance with City of Los Angeles Measure JJJ, Affordability Gaps Study, March 13, 2017, httus•//nlnnning lacity arc/orditrancesldocs/I'OCILA Measure, JJJ Affordability Gan Analysis 03132017 Edit ndf 65B-15