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Housing Opportunity Ordinance September 7, 2021 Page 5 Regarding the other policy areas that were discussed by City Council, these policy areas were also discussed by the Housing Ad Hoc Committee and will be addressed as follows: • Prioritize production of housing for large families: o The summary of amendments to the HOO under Sec. 41-1909(a)(1) includes a priority on the creation of new affordable housing opportunities for large families currently living in the City. • Prioritize down payment assistance. o The Inclusionary Housing Fund eligible activities has already been modified as part of the October 2020 update to include down payment assistance to enable moderate - income families at 120% of the Area Median Income to purchase a home. • Add rental protections for tenants. o This is a policy area that is under review by the Housing Ad Hoc Committee. • Address displacement and protection. o This is a policy area that is under review by the Housing Ad Hoc Committee Regulatory Applicability and Vesting This issue was raised at the July 26t" study session and staff are seeking direction from City Council on the applicability of the proposed amendments to the HOO and the vesting trigger. This issue is most critical during the initial implementation of the amended Ordinance to serve as a cut-off threshold and provide clarity for development project proposals currently undergoing the development approval process with the City. One option is to apply the amended HOO policies to projects that have not yet received final entitlement approvals from the City Council. Alternatively, another option is to apply the amended HOO policies to projects that have not vested their entitlements by obtaining a building permit or have not paid the HOO in -lieu fee payment as of the effective date of the Ordinance. Both vesting options meet legal standards and are commonly practiced by local governments when implementing new regulations and policies effecting land use and development issues. As requested by the City Council, staff have provided maps showing the current HOO and how the amended HOO will apply to various areas of the City (Exhibit 2). Analvsis of Skilled and Trained Workforce and Slidina Scale for In -Lieu Fee The consensus from the City Council is to evaluate and implement a mandatory skilled and trained workforce requirement to create a living wage for projects that trigger the HOO and develop a sliding scale for the in -lieu fee for projects that incorporate a skilled and trained workforce. To analyze this policy area, staff reached out to three developers (two market -rate and one affordable), The Building Industry Association (BIA) of Southern California, and three labor unions to request data on the financial impact of a requirement to use a skilled and trained workforce. As part of that outreach, staff requested data to provide an understanding of the impacts and to facilitate the development of a sliding scale option of the in -lieu fee amount if a developer provides an enforceable commitment to use a STW. The BIA indicated that their members typically do not share this information; the labor organizations representing the various construction trades in City Council 35 — 5 9/7/2021