HABITAT FOR HUMANITY OF ORANGE COUNTY (4)

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2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain, or cause the development, operation and maintenance of, the Property, to provide the Affordable Units required by this Agreement. 2.2 Density Bonus. Developer understands and agrees that, for purposes of calculating the density bonus in accordance with the State Density Bonus Law, the base density for the Property is three (3) dwelling units (fractional units are rounded up) and therefore the Project will receive a density bonus to develop a total of six (6) dwelling units that will be restricted as Affordable Units under this Agreement. Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional dwelling units on the Property. Developer agrees that the Project is eligible for a density bonus based upon compliance with the requirement to develop the Project as a common interest development, in accordance with California Government Code § 65915(i). 2.3 Development Concessions, Incentives, and Waivers. As set forth in the City entitlements, Developer petitioned for and is hereby granted the following concessions, incentives, and waivers as part of the approval of Density Bonus Application: 2.3.1 Concession. In accordance with Government Code Section 65915(d)(1), Developer is granted the following concession(s): (a) The setback at the north end of the parcel shall be reduced from ten feet (10') to six feet (6'), and the setback at the west side of the parcel shall be reduced to seven feet (7') (provided that the Project provides a minimum of 1,200 square feet of open space per unit). (b) The building separation shall be reduced from fifteen feet (15') to nine to ten feet (9-10'). (c) The open space requirement for a private balcony for unit five, as identified on the Project entitlements, shall be reduced from one hundred (100) square feet to ninety one (91) square feet, provided that the unit is also provided with four hundred twelve (4 12) square feet of private yard space. (d) The private yard fencing encroachment into the front -yard area for unit one, as identified on the Project entitlements, shall be allowed to exceed the height restriction of three feet (3') but shall not exceed six feet (6'), as necessary to allow for the screening of the air conditioner. 2.3.2 Waivers. In accordance with Government Code Section 65915(e)(1), Developer is granted the following waiver(s): The drive aisle area by the trash enclosures shall be reduced by eight inches (8") to a total of eighteen feet ten inches (18' 10") to accommodate PWA trash pickup requirements. 2.4 Parking Requirements. Onsite parking shall be provided in compliance with Government Code Sections 65915 (p)(1)(A) and 65915 (p)(1)(B). All units will have a private 55394,00101\42405923.1