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EXHIBIT 1 Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 5 N. Applicability of the Ordinance - a. General Plan Update Completion. - The current ordinance only applies to projects when the number of units exceeds the densities permitted under the General Plan. As a result, there are various projects that do not trigger the Ordinance. Specifically, this does not allow thel City to require incluslonary housing for residential projects in residential zones. It is anticipated that with the adoption of the new General Plan, all housing projects will be In residen tal zones. Generally, since the adoption of the Ordinance more affordable housing units would have been created If all of the projects had been required to build on -site. Therefore, I agarding the applicability of the Ordinance, staff will study the following policy optio s for future City Council consideration: 1) No change, recognizing that revenues and housing u its will decrease once the General Plan Is update completed. 2) Modify the ordinance to apply to all housing projects. b. Adaptive Reuse. The current Ordinance requires adaptive reuse projects t . provide onsite affordable housing or pay an in -lieu fee. Simultaneously, the City s Adaptive Reuse Ordinance allows developers to convert vacant or underused existing office l or commercial space to residential uses. Certain Incentives are provided to encourage the provision of housing in this way. Therefore, regarding the applicability of the Ordinance, staff will study the following policy options for future City Council consideration: 1) No change. 2) Create a reduced requirement for adaptive reuse project i. 3) Eliminate the applicability of the Ordinance on adaptive reuse projects. c. Non -Residential Uses - The current Ordinance only applies to residential proje s. Some cities require inclusionary housing fees for non-residential projects. Therefore, regarding the applicability of the Ordinance, staff will study the following p ]icy options for future City Council consideration: 1) No change. 2) Modify the Ordinance to create an inclusionary housing f Be for non-residential uses. V- Percent Set -Aside for On -Site Units: The current Ordinance allows developers the option to develop 100/8 units on -site for very low- income families or 15% units on -site for low-income families. If only the higher threshold of 15% is applied, the City will receive more affordable housing units an the 10% alternative. Therefore, regarding the percentage of units to be built on -site, staff V1 ill study the following policy options for future City Council consideration: 1) No change. 2) Modify to allow a reduced percent set -aside for very low-inco �e as well as other housing including Special Needs Housing or housing types that meet o r Regional Housing Needs Assessment requirements. 65B-7