Item 28 - Housing Ad Hoc Committee Progress Report Regarding The Housing Opportunity Ordinance

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Housing Ad Hoc Committee Progress Report and Recommendations July 6, 2021 Page 3 1 8 7 8 Table 1: Summary of Amendments Code Section Subject Ad Hoc Recommendations Title Update Title: 2021 AFFORDABLE HOUSING OPPORTUNITY & CREATION The updated title will provide clarity and distinction from prior versions of the Ordinance. 41-1901 Definition: Deletes Entitled residential project definition The new ordinance will be likely be effective after October 1, 2021, and the provision for “Entitled Residential Projects” no longer applies. 41-1902 Applicability: Establishes new standards for projects that need to comply with the ordinance This section is amended to revert the language to the previous HOO before it was previously amended in October 2021. The HOO would apply to projects that will require a zone change or general plan amendment, including city initiated zone changes and general plan amendments since November 28, 2011. The current ordinance only applies to projects that are requesting an increase in the density permitted by the General Plan. The amendment also adds a percentage of rental units that may be built on-site for extremely low-income households to 5 percent of the total number of units in an effort to incentivize the construction of extremely low-income units. 41-1903 Exempt Projects: Clarifies which projects are not subject to the ordinance This section is amended to further clarify the exclusions to the HOO that may be agreed upon by City Council in a development agreement. 41-1904 In-Lieu Fee Option: Revises the in-lieu fee and changes the timing of payment This section is amended to increase the in-lieu fee from $5 per habitable square foot to $15 per habitable square foot. This section also removes the incentive for “Entitled Residential Projects” to obtain