REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Authorizing the City Manager to Execute an Amended and Restated Affordable Housing Agreement with ZAEN Partners, LLC for construction of 150 affordable housing units located at 2302 Calle Del Mundo and Approving the Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
The subject project, 2302 Calle Del Mundo, is one of several projects currently under development within the Tasman East Specific Plan. The project developer, ZAEN Partners, LLC ("Developer"), an affiliate of Ensemble Development ("Ensemble"), is the project sponsor for three infill, mixed-use projects within the Tasman East Specific Plan area that would cumulatively result in the development of approximately 969 rental apartment units, associated parking garages, up to 30,000 square feet of retail space, 4,500 square feet of leasing space, and 55,000 square feet of amenity space (collectively, the "ZAEN Tasman East Projects"). One of these, the project proposed at 2302 Calle Del Mundo, would include 150 residential rental units with approximately 5,000 square feet of retail (the "Parcel 24 Project"). The Tasman East Specific Plan includes a 10% moderate income (Mod) inclusionary housing, with a lower percentage applied for projects that meet certain density requirements.
Initially, Ensemble proposed to consolidate the inclusionary housing requirement for its three projects into one of the project sites, 2302 Calle Del Mundo. As a benefit to the City in exchange for this allowance, Ensemble proposed that the inclusionary component of the project would provide a deeper level of affordability with units designated as very low-income (VLI) affordable units. Because VLI units create a significantly greater cost to the developer than Moderate Income (Mod) units, the developer also requested that the total number of inclusionary units be reduced from 83 Mod units (spr...
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