Agenda packet — Highland City Council, March 10, 2026 (part 2 of 4)

-4-
As noted above, the Developer’s Project Financing Plan requires LIHTCs and an HCD MHP loan. As a consequence, the State of California, through CTCAC and HCD will require an additional 45 of the Project’s dwelling units be designated as affordable, which when added together with the Authority designated affordable dwelling units, the Project will provide a total of 89 affordable senior only dwelling units
.

Diminution of Site Value:

TKE has reviewed the Developer’s proforma

, which

confirms that the

use of

each of the
sources described above are

essential components of the Developer’s

Project F
inancing
P
lan.

Therefore, since the fiscal viability of the Project
depends on receiving

the Authority Grant
Contribution,
Tax Credit
Equity

and
an HCD MHP Loan, for which when added together these

funding sources

require the Project to provide

89 Affordable Units (including a mix of dwelling
units that are affordable to extremely
-low-
income, very
- low-
income and low

-
income

households
),
it is appropriate
in this analysis

to
assume that the Project’s net operating income
will be

significantly
impaired by the inclusion of the Affordable Units. This conclusion is confirmed by the Developer’s proforma
s
and
is

deemed to be a reasonable conclusion.

Project Benefits Community:

The Project contemplated by the proposed Amended DD/AHA/Lease is in furtherance of the :
i)
the Former

Agency
’s

Redevelopment Plan; ii)
City’s General Plan (Housing Element)

;
and

iii) the applicable Regional Housing Needs Allocation (“RHNA”) plan that estimated that approximately 2,5 13 new houses, condos or apartments should be developed in Highland during the period of 2021 - 2029.

1. Cost of Project
(
Amended
DD/AHA
/Lease

)

Authority
:

The overall Project is anticipated to produce a net cost to the

Authority

of $

5,024,201.25
(includes the Former Agency’s land contribution). This conclusion is based upon the following data:

Land Acquisition Cost
:

The

Former Agency acquired a portion of the real
property (APN 1192

-
431
-
05 -
0000) consisting of approximately 2.0 acres

for
$
101,570.25

. This parcel was transferred to the Authority

at no cost

for affordable
housing purposes by the Successor Agency.

T
he Authority, in its capacity as the
SHA,

acquired the remainder of the real property (APN 1192
-
431
-
04 -
0000)
consisting of approximately 1.73 acres

for $

295,000.00

. The
combined purchase
price for the Site is $
396,570.25

Clearance Costs:

The Authority expended $

50,181.00

to demolish the
dilapidated structure on APN 11

-
92 -
431
-
04 -
0000

Relocation Costs:

None, the Site was vacant at the time of acquisition.

Improvement Costs
:

None, t
he
Authority

has not incurred any
improvement costs.

Page 313 of 609 ends

-
5 -

Finance Costs
:

None.

The
Former Agency and the
Authority

exclusively funded the
acquisition price
s
with cash

for each parcel.

Other Costs:

To ensure the financial feasibility of the Project, the Authority will

contribute
a
grant in the amount of

$
4,577,450

for the purpose of
providing
gap funding to the Developer for the Project.

Offsetting Revenue:

None

2. Estimated value of
the
interest to be conveyed or leased, determined at
highest and best use permitted by the Redevelopment Plan:

The Developer’s
Project Financing Plan

for the

S
ingle
-
P
hase
Project with Affordable Units

is
very similar to

the financing plans presented by
affordable housing
developers seeking
financing for
other affordable rental housing

projects in California. Although some variances
may be included

for portions of
such

financing plans

and the Developer may seek additional
financing sources
, by and large, the basic sources of financing are identical (i.e.,

9%
or 4%
LIHTCs and

private activity
multifamily housing bonds

or HCD MHP Loans
).

These financing
sources require that
the
projects they approve include Affordable Units (as described above).

The practical effect of including Affordable Units with below

-
market rental rates is to
significantly diminish a project’s net operating inc
ome, which among other matters, limits the
project’s c

apability of obtaining debt financing and
paying

lease payments attributable to the
land. Further, these requirements render the value of the interest to be conveyed to a negative number, which triggers the need for additional preferential or soft financing.

With respect to the

Single
-
Phase
Project,
based upon its current

proforma

,
the Developer
estimates that

it
will require

approximately $

65.5 million

to develop.

Overall, it is estimated
that the
Single
-
Phase
Project’s projected
cash flow only supports approximately
$

28.1 million
or

37.4 %

of the Project’s costs
(
which includes the

permanent scheduled debt).

The
remaining
approximately
$

37.4 million or

57 %
shortfall

includes a variety of

essential
soft
financing sources

that includes

a
n approximately

$
4 .6

million

gap funding grant from the
Authority and an approximately

$3
.
5 million

deferred developer fee

contribution
.

It is important to note that the Developer has reflected within its proforma an assumed value of the
Authority
’s contribution of the Site to the Project of $

3 .6 million
.

This amount is based
on recent sales and listing prices of similar properties in the vicinity of Highland.

This amount
is included within the proforma for accounting purposes only and

relate
s

to maximizing the
Project’s eligibility for LIHTCs and does not indicate an actual

purchase price

(or basis for a
ground lease rate)

. For the purpo
se of quantifying the cash shortfall in the Project
’
s budget,
TKE has subtracted the value of the LIHTCs (approximately $

2 5
.
7 million), the permanent
scheduled debt (approximately $
2 8.1

million) and the accounting estimate for land value
(approximately $

3. 6

million) from the Project’s total development cost of approximately $

65.5 million. The result is a cash shortfall of approximately $

8.1 million.

However, in terms of
value, it is necessary

to
include

the lack of a land payment at the estimated land value of $3

.
6 million. As a result,
the
estimated value of the interest to be conveyed or leased, determined
at highest and best use permitted by the Redevelopment Plan equals a negative

1.7 million.

Therefore, by using
the
approach described in the preceding paragraph, the Developer’s financing plan for the Project that includes the required Affordable Units results in a

cash

Page 314 of 609 ends

-
6 -

shortfall of approximately $

8.1 million

and a land payment shortfall in the estimated amount
of $3

million
, which
together
contributes to a
negative land value of approximately $

1 1.7

million
.

Given
that the

Site
is dedicated to being used

solely for affordable housing purposes,
it is the opinion
of the undersigned
that the estimated value of the

interest to be conveyed or
leased, determined at highest and best use permitted by the Redevelopment Plan, is a negative value of approximately $

1 1.7

million.

3. Estimated value of the interest to be conveyed or leased, determined at the use and with the conditions, covenants and development costs required by the sale or lease:

The estimated value of the

interest to be conveyed or leased, determined at the use and with the conditions, covenants and development costs required by the sale or lease, is a negative value of approximately $
1 1.7

million.

4. The purchase price or sum of the lease payments which the lessor will be required to pay during the term of the lease:

The
Authority

anticipates receiving lease revenue from the Project

during

the
68 -
year
term of
the Lease

of one
-
dollar ($1.00) per year for a total of sixty
-
eight dollars ($68.00)
.

This
de
minimis
lease rate is required because of: i) the Project’s fiscal shortfall, as described above, and ii) that a significant portion of the Authority
’s Grant Contribution and land acquisition
costs include the use of tax
-
exempt bond proceeds that cap the use of such proceeds for private activities at five
-
percent (5%) of total proceeds for which the sum of the Authority’s financial incentive
s
in this matter well exceed five percent (5%)
.

5. Explanation of the reason (if applicable) why the sales price or lease rate paid to the

Authority

may be less than market value of the property as
determined at its highest and best use:

As noted above
, since the fiscal viability of the Project requires Tax Credit Equity

and
a HCD
MHP loan

for which both funding sources require the Project to provide the Affordable Units (in the mix described above), it is appropriate for this report to assume that the Project’s net operating income will be

significantly

impaired by the inclusion of the Affordable Units (as
described above) within the Project and will affect the residual value of the Site, as further described herein.

As more particularly

described above, the estimated value of the

interest
to be conveyed or leased, determined at the use and with the conditions, covenants and development costs required by the sale or lease, is a negative value of approximately $

1 1.7

million.

6. Explanation of why the sale or lease of the property will assist in the elimination of blight:

Prior to dissolution, the Former Agency acquired a portion of the real property (APN 1192 -
431
-
05 -
0000) consisting of approximately 2.0 acres, which was funded from the Former Agency’s Low
-

and Moderate
-
Income Housing Fund. The Successor Agency previously
transferred APN 1192
-
431
-
05 -
0000 to the Authority
at no cost
for affordable housing
purposes. Post dissolution of the Former Agency, the Authority, in its capacity as the SHA, acquired the remainder of the real property (APN 1192
-
431
-
04 -
0000) consisting o
f

Page 315 of 609 ends

-
7 -

approximately 1.73 acres located at 7433 Central Avenue, which was funded from the SHA’s Low
-

and Moderate
-
Income Housing Asset Fund. Both parcels were acquired for affordable housing purposes. However, APN 1192
-
431
-
04 -
0000 included a dilapidated (i.e., blighted)
structure that was demolished

(i.e., blight removal)
. In this matter,
the Project is an
a
ffordable
rental h
ousing project that will include attractive design features and amenities that will enhance the general neighborhood it is located within,

which is anticipated to set a
standard for its neighborhood that will contribute to the avoidance of blighting conditions

going forward.

The
Amended
DD/AHA/Lease

includes the requirements that the Developer
will follow the City’s customary planning process, including without limitation design review.

Certification:

I certify that this report complies with the reporting requirements of HSC §

33433.

Further, I do not have a present or p
ro
spective interest in the Site, the
Project,

or the parties to
the
Amended
DD/AHA/Lease
. My engagement to prepare this report was not contingent upon developing or reporting predetermined results. The statements of fact contained herein,

and the
substance of this report are based on public records, data provided by the

Authority
, reports
provided by its consultants or as otherwise n
oted herein. This report reflects my personal,
unbiased professional analyses, opinions and conclusions. If any of the underlying assumptions related to the
Amended
DD/AHA/Lease

change after the date provided below, then the
undersigned reserves the professional privilege to modify the contents and/or conclusions of this report.

Respectfully Submitted,

TKE ENGINEERING, INC.

STEVEN H. DUKETT

Managing Director

Development Services

SHD:n

Dated:

February

20 , 202
6

Page 316 of 609 ends

Attachment 2
Vicinity Map

Page 317 of 609 ends

Page 318 of 609 ends

Attachment 3
Parking Analysis Updated 2 - 24 - 26

Page 319 of 609 ends

Highland Senior Apartments – Parking Analysis

Highland Senior Apartments is a proposed new construction senior development comprised of

one
-

and two
-
bedroom units on a 3.76
-
acre site in the City of Highland.

Wakeland Housing and
Development Corporation has proposed two different

project executions:

1. Single
-
Phase Project
:

In the Single
-
Phase Project execution, a total of

90 units

will be
construct
ed

at once

on the

entire 3.76

-
acre site. T
wenty
-
three (23) of the units (25%) will
be set aside for Older Adults in need of Supportive Services at -
risk of homelessness. The
development

ill
be comprised of one two
-
story residential building served by an
elevator

,
and four single
-
story buildings with courtyards and walkways throughout the site to foster outdoor active and passive recreation.

2. Two
-
Phase
P
roject
:

In the Two
-
Phase Project execution,

a total of
60 unit

s will be
constructed during Phase I on half of the project site, which is 1.87 acres.

F
ifteen (15) of
the units (25%) will be set aside for Older Adults in need of Supportive Services at

-
risk of
homelessness.

Phase I

will be comprised of one two
-
story, U
-
shaped residential building
served by an elevator, surrounding a central courtyard plaza which will foster outdoor active and passive recreation.

Phase II of the Project will consist of no less than 30 units which will be constructed on the remaining 1.87 acres of the site. It is anticipated that the construction of Phase II of the Project will occur after Phase I is complete.

Either project e
xecution
will include an on
-
site

community building
, which

will contain property
management offices, resident and supportive services as well as communal laundry facilities, creating a gathering point for neighbors.

The site is well situated in the Highland community to allow for residents to be car -
free and still
have access to parks, a library, a grocery store, a pharmacy and access to regional needs like medical and government centers. Located at 7433 Central Avenu

e, Highland Senior Apartments
is within one mile of several amenities that will serve senior residents, including: Highland Family YMCA (0.4 miles); Cunningham Neighborhood Park (0.6 miles); Sam J. Racadio Library and Environmental Learning Center (0.5 miles); and CVS pharmacy (0.56 miles). Highland Senior Apartments is also located within a four
-
minute, 0.2
-
mile walkable flat route to an Omnitrans bus
stop (Route 3/4 with service every 20
-
30 minutes M

-
F) on Baseline at Central Avenue. An
additional four
-
mi

nute ride on the bus will take residents to Smart & Final Extra! (1.0 miles from the site) for grocery shopping. Senior bus fares are .90 one way. Omnitrans Route 3/4 also travels to medical facilities like San Bernardino County Hospital, Ballard Rehab Cen ter and St. Bernardine
Medical Center as well as the San Bernardino County Government Center, County Courts and the Transit Center where individuals can transfer to other bus and rail lines.

Page 320 of 609 ends

Both project scenarios will have units restricted for Extremely Low - Income Seniors at 30% of the Area Median Income for San Bernardino County.

These

households will be served by a Lead
Service Provider that provides Medicare
-

and Medicaid
-
covered care and services known as
Program of All

-
Inclusive Care for the Elderly (PACE). These services will include regular, free transportation to a nearby PACE ce
nter for activities or medical appointments.

Wakeland
is proposing
:

68 total parking spaces on the

site

for

the Single
-
Phase Project; and 45
total parking spaces for Phase I of the Two
-
Phase
Project
. This
proposal, regardless of the two
different executions,
represents a parking ratio of

0 .75 parking spaces for every 1 unit of housing
(0.75:1). This parking ratio is supported by the following:

•

the site is located within a brief walking distance to a bus stop and/or a short bus ride to many amenities in the community;

•

one

fourth
of the units will be served by a PACE Service Provider that will provide transportation to a PACE center for activities and/or medical appointments;

•

there is a goal to maximize affordable housing and green spaces on the site;

•

there is a requirement to efficiently maximize public funding for the development;

•

local and regional planning measures encourage public transportation and reduction of greenhouse gas emissions;

•

several other senior affordable developments in the San Bernardino County area have successfully operated with reduced parking at their sites.

Designing the site with a

0 .75 parking ratio allows for a comfortable density of 24 dwelling units per acre (
Single
-
Phase Project
)
and
32 dwelling units per acre (Phase I of the Two
-
Phase Project).

This

means less paved area and more green space for amenities such as planter beds and outdoor recreation

in either scenario
. The site will maintain a more open feeling between buildings and residents will be able to take advantage of courtyards, pathways, benches and landscaping (passive recreation spaces) rather than having buildings closer together (and possibly two -
story)
t

o accommodate more parking and impervious surfaces. Increased green space is more environmentally friendly and decreases pollutants from cars and runoff into storm drain inlets and catch basins.

The cost to build 45 additional

uncovered
parking spaces in the Single
-
Phase Project

is
approximately
$
378,000

in associated

curb, gutter, site preparation and paving
;

and
$
252,000

to
build an additional

uncovered
30 spaces in Phase I of Two
-
Phase Project, respectively

. Wakeland
maintains a goal of being a good steward of public funds and desires to spend precious dollars

on affordable housing, amenities for residents such as outdoor passive and active recreation, and

Page 321 of 609 ends

aesthetic design of the buildings, unit interiors and common spaces. While it is important to plan for independent transportation for residents, the value of an open, well -
designed community
with a variety of recreation opportunities for residents is also an important use of public funds.

Encouraging public transportation and reducing vehicle miles traveled and greenhouse gas emissions are local and regional goals for both the City of Highland and the County of San Bernardino. Program 11 of the City of Highland’s 6th Cycle Housing Element (2021 - 2029) supports regional efforts to link public transportation and housing, especially along the Baseline corridor where the project is located. In addition, the San Bernardino Green House Gas Reduction Plan, published in March

2021, includes policies

to “encourage transit

-
oriented, infill development to
make efficient use of existing land,” and “promote bus service and paratransit improvements,” such as Program 11. Reducing parking at the Highland Senior Apartments site

in either project
scenario

is in line with these policies to design this infill site efficiently with less focus on vehicles and promote use of nearby bus service that is within easy walking distance of the site.

Wakeland researched the market and located several other senior developments in San Bernardino County successfully operating with similar or lower parking -
per
-
residential

-
unit ratios
than what is being proposed at Highland Senior Apartments. The table belo w illustrates
developments in operations for up to fifteen years with as low as

0 .45:1 parking ratios.

Year
placed in
operations

Property Name

# of
Units

# of
Parking
Spaces

Parking
ratio

Location

1998 Seasons Senior Villas 104 47 0.45 Chino
2008 Ontario Senior Apartments 76 57 0.75 Ontario
2008 The Plaza at Sierra 90 68 0.75 Fontana
2012 Yucca Valley Senior
Apartments 75 48 0.64 Yucca
Valley
2016 Villa Pacifica II 60 42 0.70 Rancho
Cucamonga
2017 Beautiful Light Inn 100 64 0.64 San
Bernardino
2018 Day Creek Villas 94 66 0.70 Rancho
Cucamonga
2018 Day Creek Villas II 140 98 0.70 Rancho
Cucamonga

Page 322 of 609 ends

Furthermore, State Density Bonus Law in California allows lower vehicular parking standards if one hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit, are for lower income house holds (as defined by Section
50079.5 of the Health and Safety Code). If the development is a for -
rent housing development
for individuals 55 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code and is within one
-
half mile of a

fixed bus route service that operates at least eight times per day, the Law indicates a city or county shall not impose any vehicular parking standards.

In conclusion, the Highland Senior Apartment site is located within a short four -
minute walk to a
bus stop on Baseline that provides access to community amenities that are not already readily walkable from the site. Providing fewer paved parking spaces on the site

in either project scenario
allows for more green space and recreation areas on
-
site and directs public dollars to be spent
on items that will benefit the health and well
-
being of the residents of the community rather
than hardscape for vehicles. Encouraging public transportation ridership reduces greenhouse gas emissions and meets local and regional planning goals in the City of Highland and County of San Bernardino. Other senior projects built throughout the County have successfully operated with fewer parking spaces at approximatel

y the same parking to residential unit ratio being requested at Highland Senior Apartments. For all these reasons, Wakeland Housing and Development Corporation respectfully requests to build 68 parking spaces in the Single -
Phase Project, or 45
parking spaces in

P
hase I of the Two
-
Phase
Project
for
the development of

Highland Senior
Apartments.

Respectfully Submitted,

Cara Vereschagin

Pro
ject Manger

Wakeland Housing and Development Corporation

Dated:

February 2
4 , 2026

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Attachment 4
Conceptual Site Plan and Elevations

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Attachmen t 5
Housi

Authority

Resoluti

-
Amended Restated Wakeland DDA_AHA

Page 327 of 609 ends

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\
HA Resolution re_ Amended Restated Wakeland DDA_AHA 2

-
25 -
26 (mm).doc

A RESOLUTION OF THE

HIGHLAND

HOUSING AUTHORITY

APPROVING
(1)
A

N AMENDED AND RESTATED

DISPOSITION AND

DEVELOPMENT/AFFORDABLE HOUSING AGREEMENT AND GROUND
LEASE

WITH WAKELAND HIGHLAND, LP
,

(2)

RECONFIRMING

THE
DISBURSEMENT OF $4,577,450.00

TO WAKELAND HIGHLAND, LP
UPON THE CONDITIONS OF CLOSING BEING SATISFIED, AND (3)

MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

THE

HIGHLAND

HOUSING AUTHORITY

HEREBY FINDS, DETERMINES,
RESOLVES AND ORDERS AS FOLLOWS:

Section 1

The City of Highland (“City”)

previously activated the Redevelopment
Agency of the City of Highland, a public body, corporate and politic (the “Former Agency”).

T
he Former Agency operated under the Community Redevelopment Law, Part 1 of Division 24 of the Health and Safety Code (the “Redevelopment Law”).

Under the Redevelopment
Law, the Former Agency was authorized, among other things, to provide assistance to the development of affordable housing projects.

Pursuant to Health and Safety Code Section
34175(b), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the

Highland Redevelopment Agency

transferred to the control
of the Successor Agency to the

Highland
Redevelopment Agency (the “Successor
Agency”) by operation of law

including housing assets
.

Section
2 .

Pursuant to Health an
d Safety Code Section 34176(b)
,
the City

Council
adopted Resolution No. 2012 - 005 , elec ting for the City not to retain the housing functions previously performed by the

F
ormer Agency, and determining that all of

the assets, as
allowed by law, and all rights, powers, liabilities, dut ies, and obligations associated

with the
housing activities of the

F
ormer Agency be transferred to the Highland Housing Authority

as Housing Successor

(the “
Housing
Authority
”
).

The Housing Authority is therefore
authorized to manage remaining assets of the Former Agency and expend remaining Former Agency funds designated for the development of housing affordable for persons of low and moderate income in accordance with State law.

Section
3 .

The Former Agency acquired

a vacant parcel on Central Avenue
(Assessor Parcel Number 1192 - 431 - 05) within the Redevelopment Project Area a nd withi n the corporate limits of the City. The City Council approved, by its Resolution No. 2012

-
005
as adopted January 27, 2012, the transfer of the housing assets of the Former Agency, including without limitation

the v
acant parcel on Central Avenue (Assessor Parcel Number
1192

-
431

-
05)
,

to
the

Housing

Authority. An oversight board (the “Oversight Board”) was established, acting under the 2011 Dissolution Act, for the Successor Agency. At its meeting of Oversight Board action date transferring housing assets, by its Resolution No.

OBSARDA2012
-
017, the Oversight Board approved and affirmed the transfer of the housing assets of the Former Agency to
the Housing

Authority.

Section
4 .

Subsequently, the Housing Authority purchased the real property located at 7433 Central Avenue (Assessor Parcel Number 1192 - 431 - 04). The vacant p
arcel on Central Avenue (Assessor Parcel Number 1192

-
431
-
05)

and 7433 Central

Page 328 of 609 ends

RESOLUTION NO. HA -

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\
HA Resolution re_ Amended Restated Wakeland DDA_AHA 2

-
25 -
26 (mm).doc

Avenue shall be referred to hereinafter as “the Property ” . Together, the Property is 3.76 acres in size.

Section
5 .

On December 14, 2021, the Housing

Authority

adopted

Resolution No.

HA2021 - 002 declaring the Property to be surplus and published a notice of housing availability indicating the Property

would be made available by means of ground lease for
affordable rental housing development purposes, which notice was transmitted to all entities listed with the California Department of Housing and Community Development (HCD) as interested entities. As provided under the applicable law and regulations, a period of sixty (60) days was established for the submittal of notices of interest. Two notices were received during the designated period; of those, one proposal was withdrawn while a second submittal, a proposal by Wakeland Housing and Development Corporation, a California nonprofit public benefit corporation (“Developer Parent”) was the only proposal that was responsive to the notification and provided for rental units that would be affordable to households at eighty percent (80%) of median income or below. Wakeland Highland, LP (“Wakeland”) is a subsidiary of Developer Parent.

Section
6 .

On May 9, 2023, the
Housing Authority adopted Resolution No.

HA
2023 - 001 , a “Resolution of the Housing Authority of the City of Highland Approving a Disposition and

D
evelopment/
A
ffordable
H
ousing
A
greement

and Ground Lease

W
ith
W
akeland
H
ighland,
LP
, (2)

Authorizing
the
D
isbursement of

$4,577,450.00 to
W
akeland
H
ighland,
LP

U
pon the
C
onditions of

C
losing
B
eing
S
atisfied
, and (
3 )
M
aking a
F
inding of
E
xemption
U
nder the
C
alifornia
E
nvironmental
Q
uality
A
ct
.”

The City, Housing Authority,
and Wakeland subsequently executed the Disposition and Development/Affordable Housing Agreement (“Agreement”)

so that Wakeland could construct a 90

-
unit affordable
housing project to house seniors on the Property

that it will ground lease from the Housing
Authority. Pursuant to the Agreement, a portion of the units shall be subject to affordability restrictions.

Section
7 .

Wakeland has applied for several rounds of funding and has thus been unsuccessful in obtaining sufficient funding to construct the Project. Therefore, Wakeland proposed to amend the Agreement to allow Wakeland to either construct (1) a 90

-
unit
affordable housing project to house seniors (“Single

-
Phase Project”), or (2)

a two
-
phase
Project
with Phase 1
developed with not less than 60

-
units
,

and
Phase 2

developed with
not less than 30

-
units (“Two
-
Phase Project”).

The parties now seek to enter into an
Amended and Restated Disposition and Development/Affordable Housing Agreement (“Amended Agreement”). The Single

-
Phase Project and Two

-
Phase Project are referred to
collectively as “the Project”.

Section 8

The Housing Authority

Board

has reviewed th
e Project in compliance
with the California Environmental Quality Act (“CEQA”). The Housing Authority Board has determined that the Project is exempt from CEQA review pursuant to CEQA Guidelines Section 15194, Affordable Housing Exemption, for the following reasons.

(a) The project meets the threshold criteria set forth in CEQA Guidelines Section 15192 as the

P
roject
is

consistent with:

(1) Any applicable general plan, specific plan, or local coastal program, including any

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mitigation measures required by such plan or program, as that plan or program existed on the date that the application for the project pursuant to Section 65943 of the Governme nt
Code was deemed complete.

The P
roject is consistent with General Plan land use designation of High Density Special which allows multi

-
family dwelling units with a density of 20 to 30 dwelling units per acre. The Project proposes to construct 90 units (in either one or two phases) on 3.76 acres which is equal to 23.9 (rounded to 24) dwelling units per acre. The Project is also consistent with t
he Housing Element which designates these parcels
, “Sites 20 and 21",

on
the site inventory as “Vacant” and “Underutilized” where 90 lower income units are projected to be developed.

(2) Any applicable zoning ordinance, as that zoning ordinance existed on the date that the application for the project pursuant to Section 65943 of the Government Code was deemed complete, unless the zoning of project property is inconsistent with the general plan because the project property has not been rezoned to conform to the general plan.

The
P
roject is consistent with the zoning ordinance as the

Property is

zoned R
-
4 which allow

s
multifamily residential development.

(b) Community
-
level environmental review has been adopted or certified.

The
Property is zoned R
-
4 and has a land use designation of High Density Special.

The P
roject is within the scope of the General Plan EIR that

analyzed the impacts of having
multifamily residential development

in the High Density Special land use designation in the range of 20 to 30 dwelling units per acre

(c) The project and other projects approved prior to the approval of the project can be adequately served by existing utilities, and the project applicant has paid, or has committed to pay, all applicable in

-
lieu or development fees.

The P
roject can be served by existing utilities. In addition,

Wakeland

will be paying
all
development impact fees
, except for an inclusionary housing in lieu fee as the Project is constructing affordable housing.

(d) The site of the project:

(1) Does not contain wetlands, as defined in Section 328.3 of Title 33 of t he Code of
Federal Regulations.

(2) Does not have any value as an ecological community upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection.

(3) Does not harm any species protected by the federal Endangered S pecies Act of
1973 (
16 U.S.C. Sec. 1531 et seq.) or by the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Divisi on 3 of the
Fish and Game Code.

(4) Does not cause the destruction or removal of any species protected by a local ordinance in effect at the time the application for the project was deemed complete.

The P
roject is located in an urban area that is surrounded by other multi -
family
residential,
single family

residential
,

and public facilities.

As such, it does not contain
wetlands and does not have value as an ecological community upon which wild animals,

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birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection. In addition the Project will not harm any species protected by the federal Endangered Species Act as none of these species are present on the Project site. There are no local ordinances that protect the destruction or removal of any species.

(e) The site of the project is not included on any list of facilities and sites compiled pursuant to Section 65962.5 of the Government Code.

Staff has reviewed the list of facilities and site
s
compiled pursuant to Government
Code Section 65962.5 and has confirmed that this P
roject is not included on this list.

(f) The site of the project is subject to a preliminary endangerment assessment prepared by a registered environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity. In addition, the following steps have been taken in response to the results of this assessment:

(1) If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with

state and federal requirements.

(2) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with state and federal requirements.

A Phase I Environmental Assessment of the Project site was completed in May 2022. This study confirmed that there are not any hazardous substances on the Project site.

(g) The project does not have a significant effect on historical resources pursuant to Section 21084.1 of the Public Resources Code.

There are no historical resources on the Project site.

(h) The project site is not subject to wildland fire hazard, as determined by the Department of Forestry and Fire Protection, unless the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a wildland fire hazard.

The
P
roject site is not subject to a wildland fire hazard.

(i) The project site does not have an unusually high risk of fire or explosion from materials stored or used on nearby properties.

The
P
roject site is adjacent to an apartment project and other residential uses so there is not an unusually h

igh risk of fire or explosion f
r
om

materials that would be stored
on residentially zoned property.

(j) The project site does not present a risk of a public health exposure at a level that would exceed the standards established by any state or federal agency.

The
P
roject site does not present a risk of a public health exposure.

(k) Either the project site is not within a delineated earthquake fault zone or a seismic hazard zone, as determined pursuant to Section 2622 and 2696 of the Public Resources Code respectively, or the applicable general plan or zoning ordinance contains

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provisions to mitigate the risk of an earthquake or seismic hazard.

The P
roject site is not within a delineated earthquake fault zone.

(l) Either the project site does not present a landslide hazard, flood plain, flood way, or restriction zone, or the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a landslide or flood.

Th
e Project site does not present

a landslide hazard as it

on relatively flat land.

(m) The project site is not located on developed open space.

The Project site is not located on developed open space. The Project site is undeveloped residentially zone
d

property.

(n) The project site is not located within the boundaries of a state conservancy.

The P
roject site is not located within the boundaries of a state conservancy.

(o) The project has not been divided into smaller projects to qualify for one or more of the exemptions set forth in sections 15193 to 15195.

The P
roj
ect is the construction of a 90

-
unit senior

housing project, whether in one or
two phases. The Project

has not been divided into smaller projects.

In addition:

(b) The project meets the following size criteria: the project site is not more than five acres in area.

The project meets this criteria as it

is 3.76 acres in size.

(1) The project meets one of the following location requirements relating to population density:

(A) The project site is located within an urbanized area or within a census -
defined
place with a population density of at least

5,000 persons per square mile.

(B) If the project consists of 50 or fewer units, the project site is located within an incorporated city with a population density of at least 2,500 persons per square mile and a total populat
ion of at least 25,000 persons.

(C) The project is located within either an incorporated city or a census defined place with a population density of at least 1,000 persons per square mile and there is no reasonable possibility that the project would have a significant effect on the environment or the residents of the project due to unusual circumstances or due to the related or cumulative impacts of reasonably foreseeable projects in the vicinity of the project.

The City is 18.5 square miles in size, with a population of approximately

57,088

persons. This equates to a population density of 3,08

6 persons per square mile. There is
no reasonable possibility that the

P
roject would have a significant effect on the environment or the residents of the Project due to unusual circumstances or due to the related or cumulative impacts of reasonably foreseeable projects in the vicinity of the Project. Other than these two vacant parcels that make up the Project site, there are no other

applications
submitted for

proposed
projects in the vicinity

of the Project
.

(2) The project meets one of the following site

-
specific location requirements:

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(A) The project site has been previously developed for qualified urban uses; or (B) The parcels immediately adjacent to the project site are developed with qualified urban uses.

1. No parcel within the site has been created within 10 years prior to the pr oposed
development of the site.

2. At least 75 percent of the perimeter of the site adjoins parcels that are devel oped
with qualified urban uses.

3. The existing remaining 25 percent of the perimeter of the site adjoins parcels that have previously been developed for qualified urban uses.

One of parce

ls,
7433 Central Avenue (Assessor Parcel Number 1192
-
431

-
04)
,

was
previously improved with a
dilapidated
single family residence that was demolished. The
Project site is adjacent to an apartment complex and other single family residences which are urban uses.

(d) The project meets both of the following requirements regarding provision of affordable housing.

(1) The project consists of the construction, conversion, or use of residential housing consisting of 100 or fewer units that are affordable to low -
income households.

(2) The developer of the project provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for lower income households for a period of at least 30 years, at monthly housing costs deemed to be "affordable rent" for lower income, very low income, and extremely low income households, as determined pursuant to Section 50053 of the Health and Safety Code.

The Project will construct 90 units,

44 of which will be subject to a

Regulatory
Agreement (Grant funds) that will require that the 44 units initially be rented to lower income households for a minimum of 55 years in compliance with Health and Safety Code Section 50053

Due to other sources of potential funding, Wakeland is proposing to construct a one hundred percent affordable project. The Project will be subject to a Regulatory Agreement (Density Bonus) that will require all the units, minus the manager’s unit, be initially rented to lower income households for a minimum of 55 years in compliance with Health and Safety Code Section 50053

Section
9 .

The Housing Authority has also determined that the Project is

categorically exempt from CEQA pursuant to Section 15332 of the State CEQA Guidelines.

The
P
roject meets all five of the following criteria set forth in Section 15332 of the State CEQA Guidelines for in

-
fill development projects:

a.) The project is consistent with the applicable ge
neral plan designation and all
applicable general plan policies as well as with applicable zoning designation and regulations.

The Project is consistent with the General Plan

land use

designation of
High Density
Special

and all applicable General Plan policies.

The High Density land use designation

allows for 20 to 30 dwelling units per acre. The Project proposes 23.9 dwelling units per

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acre. In addition , the Project is consistent with the Housing Element which includes the site in its site inventory as a location where very low and low income units will be constructed.

The Project is also consistent with the R
-
4 Zoning designation which allows for multi
-
family
residential on the Project site.

b.) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

The Project site is 3.
7 6 acres in size and is substantially surrounded by urban uses.

c.) The project site has no value as habitat for endangered, rare, or threatened species.

The Project site has no value as habitat for endangered, rare, or threatened species as one parcel was previously improved with a single family residence and the other parcel is surrounded by urban uses included an apartment comple

x and single family residences.

There are no endangered, rare or threatened species on the Project site.

d.) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

The Project involves the construction of a 90
-
unit senior apartment complex

in either
one or two phases
. As the Project will be adjacent to other multi
-
family and single family
residential uses, i
t is not anticipated that this P
roject will have any significant effects related
to traffic, noise, air quality or water quality.

e.) The site can be adequately served by all required utilities and public services.

The Project site can be adequately served by required utilities and public services.

Section
10 .

Based on the information

in Sections
8 and
9 above,
the
Housing
Authority Board hereby finds that the P roject is exempt from further environmental review under CEQA

Guidelines Section 15194 and 15132

The Housing Authority Board hereby
directs the Executive Director to file a
Notice of Exemption with the County Clerk of the
Board

Section
1 1
.

On
March 10
, 202
6 , the

City
and Housing Authority held a duly noticed
joint public hearing regarding the Agreement and Ground Lease. Notice of the public hearing was given in compliance with Health and Safety Code section 33433.

Section
1 2
.

The

Housing Authority

has made available to the public through the
office of the City Clerk a copy of the Amended Agreement and Ground Lease prior to the public hearing.

In addition, a copy of the Health and Safety Code section 33433 report was made available to the public. The Health and Safety Code section 33433 report is incorporated herein by this reference.

Section
1 3
. The

Housing Authority

hereby approve

s the

Amended
Agreement and
Ground Lease and the Executive Director is hereby authorized and directed, for and in the name and on behalf of the Housing Authority
, to finalize, execute and deliver the
Agreement in substantially the form on file with the City Clerk and presented at this meeting, with such additions thereto or changes or insertions therein as may be approved

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by the Executive Director (such approval to be conclusively evidenced by such execution and delivery).

Section 1

4 .

The Housing Authority has
$3,041,000 in 2004A tax exempt bond
proceeds and $322,500 in the Housing Authority fund b alance a llocation for a total of $3,363,500 that can be used towards low income housing projects .

The City has also
transferred $1,213,950 from the City to the Housing Authority for this Project.

The Housing
Authority hereby

reconfirms that i
t will

transfer

$4,577,450

(including
$1,2

13,950

transferred from the City to the Housing Authority for this Project) to Wakeland, upon all the conditions to closing set forth in the

Amended
Agreement and Ground Lease being
satisfied.

Section 1

5 .

The
Executive Director and Chairman of the Housing Authority

are
h ereby authorized and directed, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper in order to effectuate the purposes of this Resolution and the transaction contemplated hereby; and any such actions previously taken by such officers are hereby ratified, confirmed and approved.

PASSED
, APPROVED

AND ADOPTED

this
1 0
th

day of

Ma
rch

20 2
6 by the
following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

___
______

JIMMY SALDANA , VICE CHAIRMAN

ATTEST:

________

_________________ , SECRETARY

HIGHLAND

HOUSING AUTHORITY

Page 335 of 609 ends

Attachment 6
City Council Resolution regarding Amended and Restated Wakeland DDA

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RESOLUTION NO. ____ ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND

APPROVING
(1)
A

N AMENDED AND RESTATED

DISPOSITION AND

DEVELOPME

NT/AFFORDABLE HOUSING AGREEMENT WITH

WAKELAND HIGHLAND

LP,

(
2 )

APPROVING A DENSITY BONUS, AND
(
3 )

MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

THE

HIGHLAND

CITY COUNCIL

HEREBY FINDS, DETERMINES,
RESOLVES AND ORDERS AS FOLLOWS:

Section 1

The City of Highland (“City”)

previously activated the Redevelopment
Agency of the City of Highland, a public body, corporate and politic (the “Former Agency”).

T
he Former Agency operated under the Community Redevelopment Law, Part 1 of Division 24 of the Health and Safety Code (the “Redevelopment Law”).

Under the Redevelopment
Law, the Former Agency was authorized, among other things, to provide assistance to the development of affordable housing projects.

Pursuant to Health and Safety Code Section
34175(b), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the

Highland Redevelopment Agency

transferred to the control
of the Successor Agency to the

Highland
Redevelopment Agency (the “Successor
Agency”) by operation of law including housing assets.

Section
2 .

Pursuant to Health an
d Safety Code Section 34176(b)
, the City

Council
adopted Resolution No. 2012 - 005, electing for the City not to retain the housing functions previously performed by the Former Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the

F
ormer Agency be transferred to the Highland Housing Authority

as Housing Successor

(the “
Housing
Authority
”
).

Section 3

The Former Agency acquired a vacant parcel on Central

Avenue
(Assessor Parcel Number 1192 - 431 - 05) within the Redevelopment Project Area a nd withi n the corporate limits of the City. The City Council approved, by its Resolution No. 2012

-
005
as adopted January 27, 2012, the transfer of the housing assets of the Former Agency, including without limitation

the v
acant parcel on Central Avenue (Assessor Parcel Number
1192

-
431

-
05)
,

to
the

Housing

OBSARDA2012
-
017, the Oversight Board approved and affirmed the transfer of the housing assets of the Former Agency to
the Housing

Authority.

Section
4 .

-
431
-
05)

and 7433 Central

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Avenue shall be refer r ed to hereinafter as “the Property ” . Together, the Property is 3.76 acres in size.

Section 5

On December 14, 2021, the Housing

Authority

adopted

Resolution No.

HA2021 - 002 declaring the Property to be surplus and published a notice of housing availability indicating the Property

Section 6

On May 9, 2023, the City Council adopted Resolution No. CC 2023

-
018 , a “Resolution of the City Council of the City of Highland Approving a Disposition and D
evelopment/
A
ffordable
H
ousing
A
greement
W
ith
W
akeland
H
ighland,
LP
, (2)

Authorizing
the
D
isbursement of $1,213,950 to the
H
ighland
H
ousing
A
uthority to be
U
sed
F
or the
C
onstruction of a
S
enior
H
ousing
P
roject at 7433

Central Av
enue and the
A
djacent
V
acant
P
arcel, (3)

A
pproving a

D
ensity
B
onus, and (4)

M
aking a

F
inding of

E
xemption
U
nder the
C
alifornia
E
nvironmental
Q
uality
A
ct
.”

The City, Housing Authority, and Wakeland
subsequently executed the Disposition and Development/Affordable Housing Agreement (“Agreement”)

so that Wakeland could construct a 90

-
unit affordable housing project to
house seniors on the Property.

Section
7 .

Wakeland has applied for several rounds of funding and has thus been unsuccessful in obtaining sufficient funding to construct the 90 - unit affordable housing project
. Therefore, Wakeland proposed to amend the
Agreement
to allow Wakeland to
either construct (1)

a 90
-
unit affordable housing project to house seniors (“Single

-
Phase
Project”), or (2)

a two
-
phase Project with Phase 1
developed with not less than 60

-
units
,

and
Phase 2

developed with not less than 30

-
units

to house senior

(“Two
-
Phase Project”)
.

The Single

-
Phase Project and Two
-
Phase Project are referred to collectively as “the
Project”.

The parties now seek to enter into an Amended and Restated Disposition and Development/Affordable Housing Agreement (“Amended Agreement”).

Section 8

In compliance with Health and Safety Code section 33433, the City Council hereby finds that the lease of the P roperty will assist in the elimination of blight and provide housing for low
-

or moderate

-
income persons
. In addition, the Project

is consistent
with the implementation plan adopted
by the

Former

Agency
pursuant to Section 33490.

Section
9 .

In compliance with Health and Safety Code section 33433, the City Council hereby finds that t he consideration for the Ground Lease is not less than the fair reuse value at the use and with the covenants and conditions and development

costs
authorized by the

lease. According to the Health and Safety Code section 33433 report, t
he estimated value of the

Property

to be leased, determined at the use and with the

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conditions, covenants and development costs required by the lease, is a negative value of approximately $10.6 million.

Therefore, the consideration of $1 per year is appropriate.

Section
10 .

The construction of affordable housing, particularly for seniors, is a priority for the City. The Property is designated in the City’s Housing Element site inventory as a

site for the construction of very low and low income

units
.

Resolution No.

CC 2023
-
018
authorized the City to transfer

$1,2

13,95

0 to the Highland Housing Authority who, in
turn, will transfer the funds to Wakeland upon the close of escrow on the Ground Lease so that it can be used to
wards the costs to

construct the Project.

The
$1,213,950 was
transferred to the Highland Housing Authority.

Section
1 1
.

The City Council

has reviewed th
e Project in compliance with the
California Environmental Quality Act (“CEQA”). The City Council has determined that the Project is exempt from CEQA review pursuant to CEQA Guidelines Section 15194, Affordable Housing Exemption

for the following reasons.

(a) The project meets the threshold criteria set forth in

CEQA Guidelines S
ection
15192 as the

P
roject
is

consistent with:

(1) Any applicable general plan, specific plan, or local coastal program, including any mitigation measures required by such plan or program, as that plan or program existed on the date that the application for the project pursuant to Section 65943 of the Governme nt
Code was deemed complete.

The P
roject is consistent with General Plan land use designation of High Density Special which allows multi

-
family dwelling units with a density of 20 to 30 dwelling units per acre. The Project proposes to construct 90 units

(in either one or two phases)

on 3.76
acres which is equal to 23.9 (rounded to 24) dwelling units per acre. The Project is also consistent with t
he Housing Element which designates these parcels
, “Sites 20 and 21",

on
the site invento

ry as

“Vacant” and “Underutilized” where 90

lower
income units

are
projected to be developed.

The
P
roject is consistent with the zoning ordinance as the

Property is

zoned R
-
4 which allow

s
multifamily residential development.

(b) Community
-
level environmental review has been adopted or certified.

The
Property is zoned R
-
4 and has a land use

designation

of
High Density

Special
.

The P
roject is within the scope of the General Plan EIR that

analyzed the impacts of having
multifamily residential development

in the High Density Special land use designation in the range of 20 to 30 dwelling units per acre

-
lieu or development fees.

The P
roject can be served by existing utilities. In addition,

Wakeland

will be paying

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all development impact fees , except for an i nclusionary housing in lieu fee as the Project is constructing affordable housing

(d) The site of the project:

(1) Does not contain wetlands, as defined in Section 328.3 of Title 33 of t he Code of
Federal Regulations.

(2) Does not have any value as an ecological community upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection.

(4) Does not cause the destruction or removal of any species protected by a local ordinance in effect at the time the application for the project was deemed complete.

The P
roject is located in an urban area that is surrounded by other multi -
family
residential,
single family

residential
,

and public facilities.

As such
,

it does not contain
wetlands and does not have value as an ecological community upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection. In addition the

P
roject will not harm any species protected

by
the federal
Endangered Species Act as none of these species are present on the Project site. There are no local ordinances that protect the destruction or removal of any species.

(e) The site of the project is not included on any list of facilities and sites compiled pursuant to Section 65962.5 of the Government Code.

Staff has reviewed the list of facilities and site
s
compiled pursuant to Government
Code Section 65962.5 and has confirmed that this P
roject is not included on this list.

state and federal requirements.

A Phase I Environmental Assessment

of the Project site was completed

in May
2022.

This study confirmed that there are not any hazardous substances on the Project site.

(g) The project does not have a significant effect on historical resources pursuant to Section 21084.1 of the Public Resources Code.

There are no historical resources on the Project site.

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City Resolution regarding Amended and Restated Wakeland DDA 2

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The
P
roject site is not subject to a wildland fire hazard.

(i) The project site does not have an unusually high risk of fire or explosion from materials stored or used on nearby properties.

The
P
roject site is adjacent to an apartment project and other residential uses so there is not an unusually h

igh risk of fire or explosion f
r
om

materials that would be stored
on residentially zoned property.

(j) The project site does not present a risk of a public health exposure at a level that would exceed the standards established by any state or federal agency.

The
P
roject site does not present a risk of a public health exposure.

The P
roject site is not within a delineated earthquake fault zone.

Th
e
P
roject site does not present

a landslide hazar
d

as it
on relatively flat land.

(m) The project site is not located on developed open space.

The Project site is not located on developed open space. The Project site is undeveloped residentially zone
d

property.

(n) The project site is not located within the boundaries of a state conservancy.

The P
roject site is not located within the boundaries of a state conservancy.

(o) The project has not been divided into smaller projects to qualify for one or more of the exemptions set forth in sections 15193 to 15195.

The P
roj
ect is the construction of a 90

-
unit senior housing project
, whether in one or
two phases
. The Project

has not been divided into smaller projects.

In addition:

(b) The project meets the following size criteria: the project site is not more than five acres in area.

The project meets this criteria as it

is 3.76 acres in size.

(1) The project meets one of the following location requirements relating to population density:

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(A) The project site is located within an urbanized area or within a census - defined place with a population density of at least

5,000 persons per square mile.

The City is 18.5 square miles in size, with a population of approximately

57,088

persons. This equates to a population density of 3,08

6 persons per square mile. There is
no reasonable possibility that the

applications
submitted for

proposed
projects in the vicinity

of the Project
.

(2) The project meets one of the following site

-
specific location requirements:

(A) The project site has been previously developed for qualified urban uses; or

(B) The parcels immediately adjacent to the project site are developed with qualified urban uses.

1. No parcel within the site has been created within 10 years prior to the pr oposed
development of the site.

2. At least 75 percent of the perimeter of the site adjoins parcels that are devel oped
with qualified urban uses.

3. The existing remaining 25 percent of the perimeter of the site adjoins parcels that have previously been developed for qualified urban uses.

One of parce

ls,
7433 Central Avenue (Assessor Parcel Number 1192
-
431

-
04)
,

was
previously improved

with a
dilapidated
single family residence that was demolished. The
Project site is adjacent to an apartment complex and other single family residences which are urban uses.

(d) The project meets both of the following requirements regarding provision of affordable housing.

(1) The project consists of the construction, conversion, or use of residential housing consisting of 100 or fewer units that are affordable to low -
income households.

The
P
roject will construct 90 units,

44 of which will be subject to a

Regulatory

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Agreement (Grant funds) that will require that the 4 4 units initially be rented to lower income households
for a minimum of 55 years

in compliance with Health and Safety Code Section
50053

Due to other sources of potential funding, Wakeland is proposing to construct a one hundred percent affordable project. The Project will be subject to a Regulatory Agree

ment (Density Bonus) that will require
all the units, minus the manager’s unit,
be
initially rented to lower income households for a minimum of 55 years in compliance with Health and Safety Code Section 50053

Section
1 2
.

The City has also determined that the Project is

categorically exempt
from CEQA pursuant to Section 15332 of the State CEQA Guidelines. The P roject meets all five of the following criteria set forth in Section 15332 of the State CEQA Guidelines for in

-
fill development projects:

a.) The project is consistent with the applicable ge
neral plan designation and all
applicable general plan policies as well as with applicable zoning designation and regulations.

The Project is consistent with the General Plan

land use

designation of
H
igh Density

Special

and all applicable General Plan policies.

The Hig
h Density land use designation

allows for 20 to 30

dwelling units per acre.

The
P
roject proposes 23.9 dwelling units per
acre. In addition
, the Project is consistent with the Housing Element which includes

the site
in its site inventory

as a location where very low and low income units will be constructed .