Agenda Packet_2024-07-16 (Revised)

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Habitat for Humanity of Orange County Affordable Ownership Units July 16, 2024 Page 4 7 du/ac). Moreover, the law states that units added by a density bonus are excluded from the calculations. As outlined by Table 2 below, the base density for the 0.37-acre site at 7 du/ac is 3 units. All six units of the Project are proposed to be affordable to low income households (a 100% affordability rate) that allows Habitat for Humanity to request a density bonus of 80%, which equates to a maximum of three density bonus units, five concessions, and unlimited waivers that assist with production of the units onsite. Table 2: Density Bonus Calculation Affordable Unit— 100% (6 units)* Density Bonus Calculation Units Allowed Base Density- Duplex Dwelling Building type 0.37 acres x 7 3** 80-Percent State Density Bonus (3 units x 0.80) +3 Units** Total Units Allowed 6 Units Total Units Proposed 6 Units *Affordable unit percentage is calculated excluding units added by a density bonus. **AB 2501 states that any density calculations resulting units shall be rounded up to the next whole number. Applies to: Number of affordable units required to be eligible for the density bonus; Base density i.e. the number of affordable units in the base project); and Eligible bonus units. The purpose of the Density Bonus Law is to encourage the development of affordable housing and a local jurisdiction is limited in its ability to deny requested concessions/waivers, and is preempted from denying the increased density. Pursuant to Government Code § 65915 (d)(1), a requested concession or incentive shall be granted unless the City makes written findings, based on substantial evidence of any of the following: (1) the concession or incentive does not result in identifiable and actual cost reductions to provide the proposed affordable housing, (2) the concession or incentive would have a specific, adverse impact on public health and safety, or on any real property listed on the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the project unaffordable to low-income and moderate-income households, or (3) the concession or incentive would be contrary to state or federal law. The Density Bonus Law also constrains the ability to deny requested waivers. Subject to exceptions for projects that receive a waiver from controls on maximum density, Government Code § 65915 (e)(1) provides that the City cannot apply any development standard that would physically preclude the construction of a development entitled to a density bonus at the increased density or with the concessions or incentives, unless the City makes findings that the waiver would have a specific, adverse impact on public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Although the City has analyzed the Project and has identified several areas of concern, the conditions of approval proposed for the Project are intended to address any of the Project's potential impacts. Table 3 outlines the incentives/concessions and waivers requested by the applicant. City Council 12 — 4 7/16/2024