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Item 18

Date: May 11, 2004

To: Mayor and Council Members

From: Howard Sword, Economic Development Director

Subject: Affordable Housing Agreement, Pulte Homes, Rose Garden Subdivision located at Empire and Neroly

Section 17.725.005 “Implementation Procedures” Section “A” of Ordinance 756 states: “... The affordability agreement shall be prepared by the City Manager or designee, City Attorney and developer, considered for approval by the City Council Housing Committee, and forwarded to the City Council as an information item…”

At its meeting of April 15, 2004 the Housing Subcommittee approved the Affordable Housing Agreement with Pulte Homes for the Rose Garden Subdivision.

The requirement per the City Ordinance is 26 units of affordable housing. Per the Ordinance, eight units are required for very-low income households and 18 units are required for low income households. The developer has exceeded the requirement in both categories. The agreement meets the requirements as follows:

Low income Requirement – 7%

1) Four duplexes (8 units) transferred to City for rental units 16 units
(8 units x 2 (2 for 1 credit))

2) Two duplexes (4 units) for sale by Developer 4 units

3) Two single-family homes for sale by Developer 2 units

Total 22 units

Very-low income Requirement – 3%

1) Sale of land to Habitat for Humanity for $1 1.5 units
(Property located on Fairview, south of Balfour)

2) Pay in-lieu fees in the amount of $558,662.50* 5.5 units

(5.5 units X $101,575)

3) Two market rate units purchased off of the project
and resold to very-low income households 2 units

Total 9 units

* $10,000 per unit will be deducted for landscaping cost for backyards and side yards of dedicated rental units to the City.

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