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Page 7 of 10 Based on Council review and discussion: • Reducing the number of affordability options from three to two • Eliminating an option to provide affordable housing for those at or below 50% AMI • Reducing the percentage of units affordable for those at or below 60% AMI from 7.5% to 5%, • Clarifying that developers may choose one or more affordability options • Adding definitions for affordable rent, density bonus unit, and tenant paid rent. • Clarifying that the replacement requirement related to Naturally Occurring Affordable Housing does not require the same percentages as new construction. • Clarifying and refining the distribution and integration section of the draft ordinance for legibility • Removing erroneous language/typographical errors. Language added by staff to enhance clarity and enforceability, offer additional choices to meet the stated goals, and address concerns associated with unclear language leading to uncertainty for developers, residents, and policymakers alike: • Adding projects developed on property purchased from the City of Arden Hills to the list of qualified projects. • Adding a payment-in-lieu option for developers wishing to produce market-rate-only projects, known as a “Total Buy In” fee, an option that has the potential benefit of offering the city the opportunity to direct non-tax-levy funds to the production of affordable homes, • Clarifying and identifying regulations for how parking shall be provided. • Clarifying and identifying what fees or services comprise the sum total of an affordable payment. • Adding a second option for a density bonus for units affordable to those at 60% of AMI (this rental rate targets those who are teachers, firefighters and other essential workers). Staff seek feedback on Attachment A for a recommended approach from the Planning Commission to the City Council, following the public hearing. Additional work in progress: Addressing affordable housing and housing supply needs generally is naturally complex. Complex issues often require incremental, coordinated, and complementary approaches to resolve. City staff has been directed by Council to take an incremental approach, therefore this ordinance discussion should be considered in the context of other work ongoing to address the need for more places for people to live in Arden Hills, and for there to be a greater range of housing choices available within the city limits. There is also a known need to address the needs of residents who are aging in place and homes that may need repairs that are beyond the means of the owner’s economic situation today. Staff is continuing to work on those issues alongside issues associated with new construction, including new commercial construction. Some of the initiatives underway that are complementary to this proposed ordinance include: Pending zoning code reforms Direction from the council on January 12 was also clear that the list of zoning code reforms to establish standards, reduce regulatory barriers and become more in line with provide and accepted professional practices around minimum standards for parking, lot size, and housing types. As staff evaluates the drafted updates to the zoning code, based on the conversations with Council about affordable housing, we intend to address the following items discussed with council in those