Agenda

Return

C.116

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	July 12, 2022

Contra

Costa

County

Subject:

Inclusionary Housing Agreement for Pantages Bay Project, Discovery Bay

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/12/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Amalia Cunningham, 925-655-2881

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: July 12, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute an inclusionary housing agreement, requiring the construction and sale of 41 affordable units and payment of an in-lieu fee in the amount of $24,200.22, for the Pantages Bay Project, a 277-unit for-sale housing development in the Discovery Bay area.

FISCAL IMPACT:

There is no cost to the County for entering into the Agreement. If approved, the County will realize a proportional share of the appreciation in value of each of the inclusionary homes if and when they are transferred to a non-income qualified buyer.

BACKGROUND:

The Pantages Bay Project, a residential single-family 277-home subdivision in Discovery Bay was approved by the Board of Supervisors on July 13, 2021. The approved project was subject to the County's Inclusionary Housing Ordinance, and the approval included conditions requiring the construction and sale of inclusionary housing on site, as well as paying an in-lieu fee for a partial unit. The Developer has already paid the in-lieu fee. An Inclusionary Housing Agreement (Agreement) is required by the County’s Inclusionary Housing Ordinance and the project approvals to implement the project’s inclusionary housing obligations. Staff has prepared the attached Agreement between the County and C & D Discovery Bay LLC and Waterfront Lots LLC, the current property owners. If the property is sold to another developer, the Agreement will run with the land and the new developer will be subject to the Agreement’s obligations.

The Agreement requires the developer to construct and sell 41 affordable units. Of the 41 affordable units, 33 must be made affordable to moderate income households, and 8 must be made affordable to lower-income households. The affordable homes must be phased in on the same schedule as the market rate homes and be of the same exterior appearance, with the same average number of bedrooms as the market-rate homes. The attached Final Inclusionary Housing Plan identifies where the affordable units will be located throughout the subdivision, with similar access to the development's amenities, in compliance with the County's Inclusionary Housing Ordinance. County staff will monitor the sales of affordable units to ensure compliance with the affordability restrictions. At the time of the subsequent resale to a non-income qualified buyer, the County will receive a proportionate share of the increase in value, which will be revenue for future affordable housing investments.

CONSEQUENCE OF NEGATIVE ACTION:

The project was approved with conditions for the developer to enter into an Inclusionary Housing Agreement pursuant to the County's Inclusionary Housing Ordinances. If the Agreement is not approved, development of the project would be delayed, as an executed agreement is required prior to the issuance of building permits or recordation of the parcel map.