Affordable Housing Plan

Affordable Housing Plan CORDOVA HILLS SPECIAL PLANNING AREA 1 Proposed Project Conwy LLC is the master developer ( Master Developer ) of that certain real property in the County of Sacramento ( County ) in which the Master Developer, or its successors, propose to develop and construct the Cordova Hills Special Planning Area ( SPA ) ( Development Project ). This Development Project is located on the east side of Grant Line Road approximately ½ mile south of Douglas Road. The total area of the Cordova Hills Special Planning Area is 2,419.7± acres. For purposes of this Affordable Housing Plan, the total gross area is 1,208.5± acres as defined in Section 22.35.020 of the Sacramento County Code. The Master Developer will be donating approximately 240± acres of land for a post-secondary educational facility. This land is not a part of this Affordable Housing Plan. The residential portion of the Development Project consists of the following unit mix: PROPOSED SPA ZONING GROSS ACRES 1 TOTAL UNITS UNITS WITHIN ZONING DESIGNATION 2 DENSITY BONUS UNITS REQUESTED TC 223.7 0 0 0 HDR-2 30-40 0.0 3 150 150 0 HDR-1 23-30 79.6 1620 1620 0 RD-20 52.1 888 888 0 MDR 7-15 311.0 3110 2483 627 LDR 4-7 442.8 1930 1544 386 ER 1-7 64.7 147 116 31 Flex Comm 34.6 155 155 0 TOTAL 1,208.5± ac 8,000 units 6,956 units 1,044 units TOTAL NUMBER OF UNITS IN RESIDENTIAL DEVELOPMENT 8,000 units 1 Note that Gross acres excludes public parks, public schools, open space areas, habitat mitigation or other similar public non-residential features as defined in Section 22.35.020. 2 This is the total units to be built exclusive of any density bonus units requested. If density bonus units are being requested (either under the AHP or under State law), the units per the zoning designation should always be the maximum allowed based on proposed zoning x gross acres. Units shown are targets based on density ranges established in the Cordova Hills SPA document. 3 HDR-2 area is included in TC area. The unit mix shown above is based on specific density targets for each land use category. The Cordova Hills SPA contains density ranges for each land use. These ranges are shown in the Proposed SPA zoning in the above table. Due to the density ranges allowed in the SPA, the actual market rate residential units may vary as the Development Project develops over time. In no case will the 8,000 total units be exceeded unless the SPA is amended by the County. Page 1 Page 1 of 33

2 Affordable Housing Policy The County of Sacramento ( County ) adopted an Ordinance adding Chapter 22.35 of Title 22 to the Sacramento County Code ( Ordinance ) on December 8, 2004. This Ordinance requires that developers seeking entitlement approvals for new development projects include or provide for an affordable housing component. Pursuant to section 22.35.050 of the Ordinance, Development Projects may be able meet this obligation through the construction of Very Low and Low Income housing for-rent either on or off site, or through the dedication of land to the Sacramento Housing and Redevelopment Agency ( SHRA ) and payment of affordability fees. The Ordinance may be amended in the future after approval of this Plan. The Master Developer reserves the right to amend or revise this Plan to be consistent with changes to the Ordinance. The Master Developer, or its successors and assignees, shall construct or cause to be constructed, or dedicate land, sufficient to accommodate multifamily rental developments affordable to Very Low Income Households ( Very Low Income Units ) and Low Income Households ( Low Income Units ) as defined in the Sacramento County Code Section 22.35.020, equal to fifteen percent (15%) of the total number of non-density bonus housing units approved for the Development Project. Due to the scale and timing of master plan development, the Master Developer will likely not construct affordable housing within this Development Project. Smaller, Individual Development Projects within the SPA will be developed separately by other developers ( Project Developer ). A Project Developer will be responsible for implementing all or part of the affordable housing requirements of this Plan for the Individual Development Projects. The term Developer includes both Master Developer and Project Developer as defined in this Plan. Pursuant to the County Code Section 22.35.140, an Affordable Housing Plan ( Plan ) must be submitted as part of the Development Project s application for master plan entitlement approvals. The hearing body shall consider this Plan along with the master plan entitlement approvals, and compliance with the Plan shall become a condition of the Development Project. County Code Section 22.35.140 (B)(1) sets forth the required information to be included in this Plan. This document constitutes the Plan, and, as supplemented and amended from time to time, is intended to begin implementation of the affordable housing requirement for the Development Project. All future approvals for the Development Project shall be consistent with this Plan. 3 Land Suitability Findings Pursuant to Section 22.35.050(A) of the Ordinance, the Developer may dedicate land to comply with the affordable housing obligation if the County and SHRA have determined that there is suitable land in the Development Project for land dedication. Pursuant to Section 22.35.070(B), the land obligation of the Development Project is based on a formula that considers both land size and proposed zoning. In order for land to be deemed suitable by the County and SHRA, the land obligation of the Development Project must be, at a minimum, four (4) net buildable acres. The entire residential portion Page 2 Page 2 of 33

of the Development Project acreage, including any land to be dedicated, must be included when calculating the total net acres required for dedication. The land obligation for the Development Project is: Formula Acreage SPA Zoning Gross Acres of Assumed Land Zoning 1 Requirement TC 223.7 10.0 x 15% 17 = 0.0 HDR-2 (4.8 2 ) 10.0 x 15% 17 = 0.42 HDR-1 79.6 10.0 x 15% 17 = 7.02 RD-20 52.1 10.0 x 15% 17 = 4.60 MDR 7-15 311.0 10.0 x 15% 17 = 27.44 LDR 4-7 442.8 4.4 x 15% 17 = 17.19 ER 1-7 64.7 2.3 x 15% 17 = 1.31 Flex Comm 34.6 4.5 x 15% 17 = 1.37 1,208.5 total gross acres in project 58.93 total net acres required for dedication 1 Assumed zoning is the average density within the proposed SPA zoning for LDR & below. Assumed zoning is RD-10 for zoning higher than RD-12. 2 HDR-2 area is included in TC area. Assumed to be 4.8 acres (using 31.0 du/ac) for this calculation only. The land dedication obligation shown above is greater than the acreage of the six proposed affordable housing sites described in Section 5. The above land dedication obligation is required only if all Individual Development Projects select the land dedication option described in Section 6.2. It is anticipated that this will not occur since there is a mix of fulfillment options and the actual number of units may be less than the planned number. However, the County and SHRA shall monitor the implementation of this Plan, and require amendments to the SPA and/or this Plan if necessary, to insure adequate acreage is provided if a large amount of land dedication is proposed with Individual Development Projects. 4 Special Planning Area (SPA) Approach The goal of this Cordova Hills Affordable Housing Plan is to meet the intent of Housing Element Strategy 45: Density Bonuses and Affordable Housing and Chapter 22.35 through a comprehensive, master planned approach. Section 22.35.045 provides for this comprehensive approach with land use master plans associated with an SPA. This comprehensive approach provides two options for compliance with the Affordable Housing Ordinance through either on-site construction of multi-family housing or land dedication. This Plan also includes comprehensive features including implementation of this Plan from a master plan level to project level, and flexibility in phasing, concurrency, and timeframes to address possible future changes as the large scale, long term Cordova Hills Development Project develops over time. The Master Developer will work with separate Project Developers to coordinate implementation of the SPA approach to complying with Plan. Page 3 Page 3 of 33

Pursuant to Section 22.35.030 of the Ordinance, the standard affordable housing component requires that no less than 15% of the residential units in the Development Project must be affordable as follows. 6% affordable to and occupied by Low Income (LI) households; and 6% affordable to and occupied by Very-Low Income (VLI) households; and 3% affordable to and occupied by Extremely-Low Income (ELI) households. The standard component is further modified by Section 22.35.040(C) of the Ordinance, which specifies that units produced as a density bonus generate no affordable housing obligation. This Plan assumes the 3% Extremely-Low Income (ELI) households will be provided onsite. However the ELI component will be eligible to participate in the County ELI buy down program as provided in Section 22.35.065 of the Ordinance. Overall proposed residential units and required 15% affordable housing units are described as follows. The Development Project proposes a total of 6,956 non-density bonus residential units and is required to provide 1,044 affordable units. The Cordova Hills SPA will be incorporated into the County Zoning Code and will apply to the total project area of 2,419.7± acres. To ensure that the comprehensive approach of this Affordable Housing Plan is applied to the Development Project, this Plan shall be incorporated into the Cordova Hills SPA Ordinance and included in the zoning for the total project area 5 Development Project Housing The Development Project will satisfy the required 1,044 affordable housing units through either on-site construction or land dedication. A summary of the affordable housing units is described below. Required Affordable Housing LI VLI ELI Total On-site rental (apartments) 417 417 210 1,044 % of Development Project 6% 6% 3% 15% All 1,044 rental affordable housing units will be located at six different sites within the Development Project. The locations of these six identified affordable sites are shown in Exhibit 1 and are dispersed amongst project villages as noted in the following table. Page 4 Page 4 of 33

Site Village Units Area 1 1 Town Center 160 8.0± n. 2 Town Center 160 8.0± n. 3 Ridgeline 194 9.8± n. 4 University Village 164 10.5± n. 2 5 East Valley 174 9.5± n. 6 Creekside 192 10.3± n. 2 Totals 1,044 56.1± net 1 Areas listed are net of right-of-way, landscape corridor, and sidewalk/mow strip. Actual fee title area of Site may extend to right-of-way (back of curb) with separated sidewalk and larger total area. 2 Per Section 6.2, no dedicated affordable housing site can be larger than 10 net buildable acres. Sites 4 and 6 meet this requirement when considered net of unbuildable slope. Site 4 has slope on the north and west sides that reduces buildable area to 8.77± acres. Site 6 has an overall change in elevation of 15± feet from east to west over the width of the site which will require some internal slope in the site design, reducing buildable area to 10± acres. Phasing of the Cordova Hills project is subject to a number of different factors including housing market demand and construction of the University. Cordova Hills is generally planned to develop in a west to east direction. Exhibit 2 shows the preliminary phasing for the Development Project. However, the exact configuration and timing of each phase cannot be defined as part of this Plan. Monitoring of concurrency requirements described in Section 7 of this Plan will ensure adequate timing of construction for affordable units or land dedication. 5.1 Change in Units As described in Section 1 of this Plan, the planned 6,956 market rate residential units may change. It is possible that the actual number of units will be less than the planned number of units. If the actual number of units developed in the Development Project is less than 6,956 non-density bonus units, then the required 1,044 affordable housing units described in this section will be proportionately less. It is possible that all six of the identified affordable housing sites will not be required. For this reason, the number of constructed market rate residential units in the Development Project must be monitored by the County to determine the required number of affordable housing units. If lower than planned densities are achieved with actual construction of market rate residential units, the required number of affordable housing units shall be reduced consistent with this Plan. Any excess affordable units will be reduced from the last phase of the Development Project. The size and/or number of identified affordable sites within the Development Project may be modified in this case. Such modification may require an amendment to this Plan as described in Section 9.1 of this Plan. Any such change shall be to the satisfaction of SHRA and the County. If Project Developers opt to fulfill their obligation in a way that results in the production of affordable units in excess to the 1,044 outlined in this Plan, the units produced shall be credited to portions of the Development Project as proposed by the Project Developer and found acceptable to SHRA and the County. 5.2 Unit Mix Pursuant to Section 22.35.100(A), the Development Project is being built to Page 5 Page 5 of 33

accommodate diverse family sizes. Exhibit 3 identifies the mix of for-rent affordable units for all of the identified affordable sites. This proposed mix is based on the best available information; however, due to the long time frame for development of the Cordova Hills project, the mix of for-rent affordable units among the proposed sites may change. 6 Fulfillment Options The sections below outline two options available to Developers to fulfill the affordable housing obligation. Due to market instability, the Master Developer is uncertain of the ability to negotiate the successful development of an affordable project, and this Plan provides flexibility in choosing either a construction option or a land dedication option. The Master Developer will work with separate Project Developers to coordinate implementation of the SPA approach to complying with this Affordable Housing Plan. This Plan contains six identified affordable housing sites. The selection of a fulfillment option shall be made independently for each identified affordable site as Individual Development Projects are submitted to the County. Selection may be made by either the Master Developer or Project Developer of a particular Individual Development Project. A final selection of one fulfillment option for each of the identified affordable sites must be made at least 9 months prior to approval of an Individual Development Project or beginning construction of an identified affordable site. 6.1 Option #1: On-site Construction of Multifamily Housing The first option reserved with this Plan is construction of an affordable multifamily project at one or more of the identified affordable sites. Pursuant to the Ordinance, a developer may construct multifamily housing to meet the affordable obligation for this Development Project. Size and location for on-site construction at one or more of the identified affordable sites shall be consistent with Section 5 of this plan. 6.1.1 Standard Affordable Housing Component Pursuant to Section 22.35.065, Development Projects proposing to meet their affordable obligations through the construction of multifamily rental units must offer at least 20% of their affordable obligation to SHRA to buy down such that the 6% of affordable obligation is affordable to low income households, 6% affordable to very-low income households, and 3% affordable to extremely low income (ELI) households. SHRA will have the option to buy down the obligation at a price consistent with the difference in subsidy required to make a unit affordable to a very low income household and that required to make a unit affordable to an ELI household. Buydown subsidies are subject to availability of funds. Based on the current proposal of 6,956 non-density bonus residential units, the total affordable obligation for the Development Project is: Page 6 Page 6 of 33

Unit Type Affordability Number of Units Length of Affordability Rental Low Income (80% AMI) 417 55 years Rental Very Low Income (50% AMI) 417 55 years Rental Extremely Low Income (30% AMI) 210 55 years TOTAL NUMBER OF AFFORDABLE 1,044 UNITS * AMI = Area Median Income as defined by the U.S. Department of Housing & Urban Development. In the event that SHRA waives its option to buy-down ELI affordable units, 10% of the obligation must be affordable to very low income households and 5% of the obligation must be affordable to low income households as follows: Unit Type Affordability Number of Units Length of Affordability Rental Low Income (80% AMI) 348 55 years Rental Very Low Income (50% AMI) 696 55 years TOTAL NUMBER OF AFFORDABLE 1,044 UNITS In the instance that the calculated percentages as described in the tables above equal nonwhole numbers, the Developer shall round up when the fraction equals.50 or more and down when the fraction equals less than.50, consistent with the definition of percentage in Section 22.35.020. Should such rounding create a situation where the additive requirement of the proportions (6% plus 6% plus 3%, or 10% plus 5%) equals more than the minimum 15% overall obligation, the larger requirement must be constructed, to ensure that at least 6% of the Development Project is low income, 6% is very low income, and 3% is extremely low income, or in the event that SHRA waives its option to buy down ELI units, 10% of the Development Project is very low income and 5% is low income. All affordable housing units shall be subject to recorded legal documents, including a recorded Affordable Housing Regulatory Agreement and Deed of Trust with SHRA detailing the affordable housing regulatory requirements. In rental projects, those restrictions shall govern the rent, occupancy and management agreements for at least 55 years. The Master Developer of the on-site constructed affordable housing units will be Conwy LLC, or its successor, or a Project Developer to be determined at a later date. The owner of the affordable housing units will be Conwy LLC, or its successor, or a Project Developer to be determined at a later date. Pursuant to Section 22.35.100(A), the Development Project is being built to accommodate diverse family sizes. In a multifamily rental project being built to meet the obligation of one or more single-family developers, a minimum of 15% of the total units must be three bedrooms or larger, and a Page 7 Page 7 of 33

maximum of 20% of the total units may be one bedrooms. Exhibit 3 contains the mix of unit types and sizes in the overall Development Project, and identifies the affordable units within the overall mix. This proposed mix is based on the best available information; however, due to the long time frame for development of the Development Project, the mix of for-rent affordable units among the proposed sites may change but will be subject to review by the County at the time of the approval of the entitlements for the small lot tentative map or development plan review. 6.1.2 Accessibility Pursuant to Section 22.35.110, a minimum of five percent (5%) of the affordable dwelling units (but not less than one unit) in a multifamily project constructed to meet an affordable housing obligation shall be made accessible for persons with impairments. Multifamily projects include all projects with residential units that are not on individually-owned lots. A unit that is on an accessible route and is adaptable and otherwise in compliance with the standards set forth in 24 CFR Section 8.32, or any successor statute, is accessible for purposes of this section. An additional two percent (2%) of the affordable dwelling units (but not less than one unit) in such a multifamily project shall be accessible for persons with hearing or vision impairments. The Development Project is a single family, duplex, or half plex project, consequently, this section does not apply (Proceed to concurrency section). The Development Project is a multifamily project. At least the following number of affordable units shall be designated as accessible units: Type Accessible Unit Obligation # Units Location Mobility Impaired Affordable Obligation x 5% = 52 unknown Vision & Hearing Impaired Affordable Obligation x 2% = 21 unknown Total Accessible Obligation 73 Note that the Development Project may also be subject to accessibility requirements of state or local building codes and/or funding sources. It is the Developer s responsibility to ensure the requirements of all applicable accessibility requirements are being met. Location of accessible units pursuant to the Ordinance shall be determined within each of the identified affordable sites at the time of project design. Each small lot map or development plan review will also be subject to the 5% and 2% accessibility requirements described above on an individual project basis. No individual project may round down so that less than 5% and 2% of its units are accessible and vision/hearing accessible, respectively, even if, when combined with other affordable projects, the total number of accessible units produced exceeds the total unit Page 8 Page 8 of 33

requirement listed above. 6.2 Option #2: Land Dedication The second option reserved with this Plan is a land dedication option. A Developer may dedicate a portion of the land within the residential development to SHRA and pay an affordability fee to fulfill the affordable obligation for the Development Project. Land proposed to be dedicated must be suitable from the perspective of size, configuration, physical characteristics, physical and environmental constraints, access, location, adjacent use and other relevant planning criteria. In addition, the land proposed for dedication must have characteristics consistent with affordable housing financing program criteria and be deemed qualified for financing under these programs by SHRA. More specifically, land must meet the following criteria: 1. The total number of acres required to be dedicated is equal to at least four (4) net buildable acres at any one location, according to the land dedication formula in Section 22.35.070(B) and as demonstrated in Exhibit 5. The land proposed for dedication cannot be larger than ten (10) net buildable acres in any one location. 2. The land proposed for dedication is feasible to develop considering known environmental constraints. Prior to final acceptance by SHRA, the Developer must comply with all Tentative Map Conditions of Approval or other Project Level Approvals, and must execute the SHRA Dedication Agreement. Conditions of Approval may include measures to mitigate identified environmental and development constraints. The Master Developer must disclose any known environmental or development constraints and certify their agreement to mitigate such constraints by completing and signing the Property Disclosure and Certification form attached as Exhibit 6. 3. If any hazardous substances are known to be on the land proposed to be dedicated, Developer shall remediate all to a level consistent with the Department of Toxic Substances Control s ( DTSC ) clean-up levels for residential land uses, and shall obtain written certification that the property is free of contamination from DTSC and any other federal, state or local agency having jurisdiction regarding hazardous substances standards or remediation and as may be necessary to avoid incurring further liability under any Federal, State, or local law or regulation. 4. The land proposed for dedication is (or will be) properly zoned and adequately served with necessary infrastructure prior to transfer of title to SHRA, unless the phasing schedule in this Plan provides otherwise. Infrastructure improvements include, without limitation, extension of roadways, water and sewer lines, storm drainage and flood control systems, and dry utilities. Infrastructure shall be constructed or provided at the Master Developer s sole cost and expense to the land proposed for dedication concurrently with Page 9 Page 9 of 33

development of the Project. All necessary infrastructure improvements shall be installed at an adequate depth and capacity to serve the site to be dedicated. 5. The land proposed for dedication is (or will be) free of Mello Roos or other special assessments related to the Project. 6. The roads abutting the land proposed for dedication are (or will be) improved as required by the County, including but not limited to road widening and installation of any roadway signals or other improvements. Land proposed for dedication that abuts a major arterial shall be able to accommodate at least two access driveways in compliance with County street standards. 7. The land proposed for dedication is not located within the 100-year flood plain or will be graded and elevated to be removed from the 100-year flood plain. 8. The land proposed for dedication is located within a half mile of at least three of the following amenities as shown in the amenity map included as Exhibit 7 (check all that apply and indicate if the amenity is existing or planned): A planned public elementary, middle or high school: A planned public park or recreational facility: A planned transit stop: A planned grocery store or planned commercial center of at least 10 acres: A planned public library: At the time of signing this Plan, the identified sites either meet the above outlined requirements or the Developer has agreed to continue to implement Conditions of Approval prior to the execution of a site-specific SHRA Dedication Agreement. Final acceptance of the land for dedication is conditioned upon agreement by the Developer to comply with the Conditions of Approval of the Tentative Map or other Master Plan or Project Level Approvals, and the SHRA Dedication Agreement. 6.2.1 Excess Acreage Dedication Pursuant to Section 22.35.050, the Developer may propose to dedicate excess affordable housing acreage. Such acreage must meet land suitability standards set forth in Section 22.35.070(A)(1) and shall be subject to the written approval of the Planning Director upon a determination that all criteria set forth in Section 22.35.070(D)(3) have been met. The criteria are as follows: The amount of acreage dedicated does not exceed ten (10) net buildable acres at a single location. Acreage credits must be utilized within the same community plan or SPA as Page 10 Page 10 of 33

the donor site or within a one-mile radius of the donor site, except projects within the unincorporated areas of the Delta, Cosumnes, Southeast community planning areas and the Rancho Murieta planned unit development may purchase acreage credits within the Vineyard or Rancho Cordova community planning areas. Acreage credits must be utilized within five (5) years of when they are earned. Acreage credits must be sufficient to meet the entire obligation of the Development Project pursuant to Section 22.35.070(B). 6.2.2 Timing of Land Transfer and Dedication Agreement The Cordova Hills SPA has six identified affordable housing sites proposed for the dedication option, and the number of units to be credited as part of the Affordable Housing Plan on the Tentative Subdivision Map is included with Exhibit 5. The following must occur prior to recordation of the Development Project s small lot final maps or issuance of building permits for Individual Development Projects; Mitigation of all known environmental and development constraints pursuant to an approved Mitigation Monitoring and Reporting Program; Execution and recordation of a Dedication Agreement between the Master Developer and SHRA, on the applicable portion of the Development Project property, which will describe the land and transfer transaction in more detail and offer dedication of the site to SHRA at no cost. In addition, the applicable small lot final map will be conditioned upon the recordation of the Dedication Agreement to ensure compliance with the Master Developer s or its successors or assignees obligations under this Plan. Following completion of the above, the developer shall obtain approval of the Individual Development Project s applicable small lot final map. Either immediately following recordation of the Individual Development Project s final map or immediately following delivery of the necessary infrastructure to the site, whichever occurs later, transfer of title for the dedicated site to SHRA or its designee shall occur. However, no more than 75% of the building permits for market rate residential units in the Individual Development Project may be pulled prior to delivery of infrastructure to the affordable housing site. All other applicable concurrency requirements identified in Section 7 of this plan must also be met. When the land to be dedicated is transferred to the affordable housing developer, a regulatory agreement that specifies the number of affordable units required to be built on the dedicated site and income targeting for those affordable units will be recorded against that parcel. Pursuant to Section 17.190.060(B)(5), SHRA shall ensure the dedicated land is developed in a manner that will result, at a minimum, in the production of the number of affordable units credited to the site. The dedicated land and all affordable housing units shall be subject to recorded legal documents, including an Affordable Housing Page 11 Page 11 of 33

Regulatory Agreement and Deed of Trust. 6.2.3 Payment of Affordability Fee Payment of an affordability fee is required pursuant to Section 22.35.080(B) when the land dedication fulfillment option is selected. No affordability fee is required if the onsite construction fulfillment option is selected for an identified affordable site. The affordability fee is based on the total number of market rate residential units and excludes land dedication units and density bonus units. Of the 8,000 total units proposed, 1,044 are land dedication units and 1,044 are density bonus units. For the purposes of the affordability fee, the remaining market rate units are 6,956. Based on the proposed Development Project of 6,956 market rate units, the affordability fees for the Development Project under the current fee schedule are as follows: Affordability fee: 6,956 units x $3,750 = $ 26,085,000 Payment of the affordability fee shall be made concurrent with issuance of building permits for an identified affordable site and shall be based on the proportionate share of affordable units associated with the dedicated site. 6.3 Other Fulfillment Options Other options are available to fulfill the requirements of the Affordable Housing Ordinance. Section 22.35.030 describes the standard affordable housing component and allows for on-site construction of for-sale affordable housing units to 6% low income, 6% very low income, 3% extremely low income households. Section 22.35.050(B)(1) allows for on-site construction of for-sale affordable housing units to 15% low income households. These fulfillment options are available to the Master Developer or Project Developers of Individual Development Projects. Selection and construction of these other fulfillment options may reduce the number and/or the affordability levels of the affordable housing units required for the overall Development Project described in this Plan. Any proposal for use of other fulfillment options shall contain sufficient information to describe the type of proposed for-sale affordable housing units and shall be submitted and reviewed by SHRA and the County for consistency with this Plan. An amendment to this Plan as described in Section 9.1 of this Plan may be required to allow construction of other fulfillment options depending on the size and type of option proposed. Any such change shall be to the satisfaction of SHRA and the County. 7 Concurrency Individual Development Projects shall include an Affordable Consistency Plan (ACP) with submittal of entitlement application to the County. The ACP shall be reviewed for consistency with this Affordable Housing Plan and compliance with concurrency requirements described in this Section. 7.1 On-Site Construction Housing Concurrency linkages between the market rate units and the affordable units will be Page 12 Page 12 of 33

accomplished on a project-by-project basis. The ACP for each Individual Development Project shall include a phasing plan that shall provide for the development of the affordable units concurrently with the market rate units as required by the Ordinance. 7.2 Land Dedication Prior to the recordation of the first final map of an Individual Development Project meeting a portion of its obligation through dedication as outlined in Section 6.2, the site proposed for dedication must have received development plan approval. The final map will be conditioned upon the completion of the following for the site proposed for dedication at no cost to the County or SHRA: (i) infrastructure improvements as required for the development of the affordable development; (ii) environmental mitigation; (iii) elimination of other development constraints identified by SHRA or the County; (iv) transfer of the site to SHRA or its designee; (v) site grading and (vi) recordation of a regulatory agreement indicating the number of affordable units required to be built and the targeted income for those affordable units. These conditions must be met on a timely basis to accommodate the ability to begin development of the affordable units concurrently with the corresponding market rate units. When the land is transferred to SHRA, SHRA shall enter into agreements with affordable developers to construct affordable units on the dedicated sites. It is anticipated that the affordable units will be constructed within two years from the date of transfer. 7.3 Concurrency Provisions Pursuant to Section 22.35.060(A), the affordable units are to be built concurrently with the market rate units in the Development Project. Exhibit 4 is a proposed timeline for development of the master planned development, including many of the milestones associated with the concurrency requirements. The timelines are preliminary and will be affected by a number of different factors. This concurrency will be secured by a series of linkages between the market rate units and the affordable units as described below: The Master Affordable Housing Plan shall be approved concurrently with the Development Project entitlement approvals. According to the Master Affordable Housing Plan, building permits for market rate residential units and affordable units may be pulled as follows; Pursuant to Section 22.35.060(A), the Development Project requires phasing of the infrastructure improvements or other such development conditions that necessitate a relaxation in the concurrency requirements as described below: Specifically, the Development Project requires significant off-site infrastructure improvements including sewer, water, drainage, and roadways. Additional mitigation measures and conditions of approval that require on and off-site requirements add to the total cost of development and make feasibility of this Development Project marginal. Therefore the overall concurrency strategy is that up to 75% of building permits for residential market rate units in the Development Project may be pulled prior to the issuance of 100% of the building permits for the affordable Page 13 Page 13 of 33

units. The County shall monitor issuance of building permits for residential market rate units and issuance of building permits for affordable units to insure compliance with these concurrency requirements. An Affordable Consistency Plan (ACP) for each small lot tentative map or development plan review contained within the Development Project shall be approved concurrently with entitlement approvals, pursuant to Section 22.35.140(C). A flow-chart showing the processing of Affordable Consistency Plans is included as Exhibit 13. In addition to the concurrency requirements of the Master Affordable Housing Plan, each small lot tentative map or development plan review contained within the development will be subject to concurrency requirements pursuant to Section 22.35.060(A). Prior to approval of the ACP, a determination will be made by SHRA regarding whether or not the phasing of the infrastructure improvements or other such development conditions necessitate a relaxation of the concurrency requirements. Upon recordation of the final map for each small lot development or issuance of building permits for a development plan review, an Affordable Housing Agreement will be recorded. A Regulatory Agreement specifying rent restrictions shall be recorded when multifamily housing financing is closed for the Affordable units. The Affordable Housing Agreement shall be released for affordable units concurrently with recordation of the Regulatory Agreement. Marketing of the affordable units within the Development Project shall occur concurrently with the marketing of market rate units. 8 Incentives- Density Bonus Pursuant to Section 22.35.090, the Developer may request a variety of incentives from the County as part of the Development Project s Affordable Housing Plan. The density bonus incentives detailed in Section 22.35.090(A) must be approved as part of the Development Project s Affordable Housing Plan. In accordance with this section, the Developer is applying for the following density bonus incentives: A density incentive to allow the affordable housing obligation to be built on the affordable site(s) above the maximum zoned density of the site at no more than 30 dwelling units per acre. A density incentive of 1,044 units to allow an increased number of market rate units equal to the number of required affordable housing units constructed. The market rate Developer may request a density incentive up to the total number of affordable housing units required under this Affordable Housing Plan to be included in the market rate Development Project. A density bonus of _ units calculated consistent with State Density Bonus law. Page 14 Page 14 of 33

For the purposes of applying the above density bonus, the location of density bonus for market rate units and location of identified affordable housing sites shall all be considered on site within a single Development Project. This is consistent with the Special Planning Area approach described in Section 4. Density bonus described in this Section applies to all the fulfillment options described in Section 6 of this Plan. 9 Administration The Planning Director, with the advice of the Executive Director of SHRA, shall administer this Affordable Housing Plan and shall be responsible for ongoing monitoring of production of affordable housing units and concurrency with production of market rate units as described in this Plan. Reports may be needed as the Development Project proceeds to inform the County, SHRA, and Master Developer on the status of meeting the requirements of this Plan. 9.1 Amendments to Plan Changes may occur in development of the Development Project including changes of units as described in Section 5.1, selection of fulfillment options described in Section 6, or other changes not anticipated at time of preparation of this Plan. As a result, amendments to this Plan may be needed as the Development Project proceeds. Amendments to this Plan should be categorized as either major or minor. This determination is to be made by the Planning Director. The distinction of amendment type and process are described below. If an amendment to this Plan will result in changes to land use patterns or other elements in the Cordova Hills Master Plan (according to minor and major amendments as defined in section 9.2.2 of the Master Plan), then an application to amend the SPA Ordinance is required. If an amendment to this Plan will not result in changes to the Master Plan, then an application for amendment to the SPA Ordinance is not required. Major Amendment: An amendment shall be considered major if the Planning Director determines that a proposed change has a significant impact on the character or strategy contained within this Plan. Examples of a major amendment include but are not limited to a significant change in location of one or more identified affordable sites; selection of fulfillment options that substantially change the identified affordable sites or the number and/or affordability levels of the required affordable units; or changes to the County Ordinance that substantially change the obligations of this Plan. An application for a major amendment shall be filed with the Planning Department and processed in the same manner as an Affordable Housing Plan and may be processed concurrently with applications for an Individual Development Project. A detailed justification shall be submitted which explains why an amendment to the Plan is warranted. Major amendments to this Plan shall require approval by the County Planning Commission. The Commission decision may be appealed to the Board of Supervisors. Minor Amendment: An amendment shall be considered minor if the Planning Director determines that a proposed change does not have a significant impact on the character or strategy contained within this Plan. Examples of a minor amendment include but are not limited to changes to size and/or location within a village of identified affordable sites; Page 15 Page 15 of 33

change to market rate units and required affordable housing units as described in Section 5.1; or selection of other fulfillment options as described in Section 6.3 that do not change the overall character or strategy of this Plan. Minor amendments may require changes to the text or exhibits to this Plan, or may be included as a written addendum to this Plan. The Planning Director shall determine whether an amendment is minor or major. Application for a minor amendment shall describe the proposed change and shall include justification information. Minor amendments to this Plan shall require approval by the Planning Director. The Director s decision may be appealed to the County Planning Commission. 10 Developer Acknowledgement I attest that I have prepared this Affordable Housing Plan to comply with the affordable housing requirements of Section 22.35 of the County Code and that all information provided is accurate and complete to the best of my knowledge. Except for projectspecific information requested in the template, I have not modified the language provided in the County-provided template. Exhibits Exhibit 1 - Location and Size of Identified Affordable Sites in Development Project Exhibit 2 - Preliminary Phasing Plan for Development Project Exhibit 3 - Unit Mix and Affordable Housing Distribution Exhibit 4 - Project Timeline Exhibit 5 - Description and Land Size Calculation of Identified Affordable Sites Exhibit 6 - Property Disclosure and Certification form Exhibit 7 - Site Amenity Maps (Exhibits 7A through 7D) Exhibit 8 - Large Aerial Photo depicting the property lines of the dedicated sites (previously submitted- not included) Exhibit 9 - Soils/Geotechnical Reports (previously submitted- not included) Exhibit 10 - Phase I Environmental Site Assessment (previously submitted- not included) Page 16 Page 16 of 33

Exhibit 11 - Preliminary Title Report (previously submitted- not included) Exhibit 12 -Tentative map of the development project, indicating proposed zoning Exhibit 13 Affordable Housing Plan Processing Flow-Chart Page 17 Page 17 of 33

Exhibit 1 - Affordable Site Locations 7968.10 5-26-11 0 1800 ft Page 18 of 33

Exhibit 2 - Preliminary Phasing 7968.10 5-26-11 0 1800 ft Page 19 of 33

EXHIBIT 3 Unit Mix and Affordable Housing Distribution, if Constructed Lot # or Unit # Site 1 Site 2 # Bedrooms Unit Size (sq. ft.) Unit Type 1 Affordability Level 21 1 650 MF Rental Very Low Income 70 2 850 MF Rental Very Low Income 16 3 1120 MF Rental Very Low Income 11 1 650 MF Rental Low Income 34 2 850 MF Rental Low Income 8 3 1120 MF Rental Low Income 160 Total units 21 1 650 MF Rental Very Low Income 70 2 850 MF Rental Very Low Income 16 3 1120 MF Rental Very Low Income 11 1 650 MF Rental Low Income 34 2 850 MF Rental Low Income 8 3 1120 MF Rental Low Income 160 Total units Accessible? Page 1 Page 20 of 33

Lot # or Unit # Site 3 Site 4 # Bedrooms Unit Size (sq. ft.) Unit Type 1 Affordability Level 26 1 650 MF Rental Very Low Income 84 2 850 MF Rental Very Low Income 19 3 1120 MF Rental Very Low Income 13 1 650 MF Rental Low Income 42 2 850 MF Rental Low Income 10 3 1120 MF Rental Low Income 194 Total units 22 1 650 MF Rental Very Low Income 71 2 850 MF Rental Very Low Income 16 3 1120 MF Rental Very Low Income 11 1 650 MF Rental Low Income 36 2 850 MF Rental Low Income 8 3 1120 MF Rental Low Income 164 Total units Accessible? Page 2 Page 21 of 33

Lot # or Unit # Site 5 Site 6 # Bedrooms Unit Size (sq. ft.) Unit Type 1 Affordability Level 23 1 650 MF Rental Very Low Income 76 2 850 MF Rental Very Low Income 17 3 1120 MF Rental Very Low Income 11 1 650 MF Rental Low Income 38 2 850 MF Rental Low Income 9 3 1120 MF Rental Low Income 174 Total units 26 1 650 MF Rental Very Low Income 83 2 850 MF Rental Very Low Income 19 3 1120 MF Rental Very Low Income 13 1 650 MF Rental Low Income 41 2 850 MF Rental Low Income 10 3 1120 MF Rental Low Income 192 Total units Accessible? Notes; 1) MF = Multi Family, SF = Single Family. 2) Unit mix and affordable housing distribution shown for each Site is preliminary and subject to change with future individual development projects and affordable housing site proposals. 3) Accessibility to be determined with each affordable housing site proposal. Page 3 Page 22 of 33

EXHIBIT 4 Project Timeline INFRASTRUCTURE IMPROVEMENTS EXPECTED COMPLETION (1) Sewer and water 2015 - Phase 1 Stormwater 2015 - Phase 1 Utilities 2015 - Phase 1 LAND USE ENTITLEMENTS EXPECTED APPROVAL (1) Rezone & SPA, Large Lot Tentative Map, 2011 Development Agreement & others. Notes; 1) Expected approval and completion dates are preliminary estimates and are subject to change. Page 23 of 33

EXHIBIT 5 Description and Area of Affordable Housing Sites Site 1 Description: Parcel B-20 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW (1) Net to BOW (1) # of Units 9.0± acres 8.02± acres (2) N/A 160 Site 2 Description: Parcel B-9 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW Net to BOW # of Units 9.2± acres 8.41± acres 8.03± acres 160 Site 3 Description: Parcel B-21 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW Net to BOW # of Units 11.5± acres 9.84± acres (2) N/A 194 Site 4 Description: Parcel B-82 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW Net to BOW # of Units 12.8± acres 10.89± acres 10.50± acres (3) 164 Site 5 Description: Parcel B-35 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW Net to BOW # of Units 11.8± acres 10.07± acres 9.49± acres 174 Site 6 Description: Parcel B-60 as shown on the Cordova Hills Large Lot Tentative Map. Gross Net to ROW Net to BOW # of Units 11.8± acres 10.44± acres 10.26± acres 192 Notes; 1) ROW = right-of-way, BOW = back of sidewalk. 2) Net to ROW areas for Sites 1 & 3 also net landscape corridors. Net to BOW does not apply 3) Site #4 area is 8.77± acres net of planned slope area. 4) Areas shown are preliminary and subject to change. Page 24 of 33

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EXHIBIT 7A- Affordable Housing Site Amenity Map- Schools 7968.10 5-26-11 0 1800 ft Page 28 of 33

EXHIBIT 7B- Affordable Housing Site Amenity Map- Parks & Open Space 7968.10 5-26-11 0 1800 ft Page 29 of 33

EXHIBIT 7C- Affordable Housing Site Amenity Map- Transit 7968.10 5-26-11 0 1800 ft Page 30 of 33

EXHIBIT 7D- Affordable Housing Site Amenity Map- Commercial/Retail 7968.10 5-26-11 0 1800 ft Page 31 of 33

Chrysanthy Blvd. Large Lot Map 7968-10 Tentative Map Scale: N.T.S. July 1, 2008 PROJECT INFORMATION Revised: December 9, 2009 December 17, 2009 March 24, 2011 All Zoning = Special Planning Area EXHIBIT 12- Large Lot Tentative Map Page 32 of 33

EXHIBIT 13- Affordable Housing Plan Processing Flow Chart 7968.00 1-19-11 Page 33 of 33