Essex’s Request to Amend the Affordable
Housing Agreement for 7 S. Linden
December 10, 2025
City Council Meeting
Government Code Section 54957.5
SB 343 Item #20 12/10/2025 REG CC
• March 2023 Planning Commission
approved the 543-unit multi-family rental
project
• Conditions of Approval require execution
of an Affordable Housing Agreement
(AHA) in compliance with SSFMC 20.380,
Inclusionary Housing Regulations, prior to
building permit issuance
• March 2025 AHA executed
• March 2025 grading permit issued
• May 2025 building permit issued
• Sept 2025 Essex requested an
amendment to the AHA
7 S. Linden Project Background
2 Area Median Income & Income Categories
3 AHA (15% affordable)
• 27 very low-income
units, rents at 50% AMI
• Eligibility up to 50%
AMI
• 54 low-income units,
rents at 60% AMI
• Eligibility up to 80%
AMI
Option 1 (15% affordable)
• 27 very low-income
units, rents at 50% AMI
• Eligibility up to 50%
AMI
• 27 low-income units,
rents at 70% AMI
• Eligibility up to 80%
AMI
• 27 moderate-income
units, rents at 110% AMI
• Eligibility up to 120%
AMI
AHA Requirements & Proposed Amendment
4 Option 2 (10% affordable)
• 54 very low-income
units, rents at 50% AMI
• Eligibility up to 50%
AMI
Rent Calculations
5 Unit Type
Developer's Rent
Assumptions
AHA
(15% Affordable)
Option 1
(15% Affordable)
Option 2
(10% Affordable)
50% AREA MEDIAN INCOME 27 units 27 units 27 units 54 units Studio $1,501 $1,501 $1,501 $1,501
1 BDRM $1,600 $1,600 $1,600 $1,600
2 BDRM $1,902 $1,902 $1,902 $1,902
60% AREA MEDIAN INCOME 54 units
Studio $1,844
1 BDRM $2,115
2 BDRM $2,343
70% AREA MEDIAN INCOME 27 units
Studio $2,186
1 BDRM $2,506
2 BDRM $2,783
80% AREA MEDIAN INCOME 54 units
Studio $2,530
1 BDRM $2,898
2 BDRM $3,223
110% AREA MEDIAN INCOME 27 units
Studio $2,992
1 BDRM $3,456
2 BDRM $4,380
Financial Analysis
6 • City engaged Economic & Planning Systems to evaluate the request • The loss in annual revenue associated with the AHA-required rents compared to what the developer originally assumed is about $525,000
• Option 1 presents a better financial position than the developer’s assumed rents, generating $650,000 more in annual revenue than the AHA requires • Option 2 represents a small reduction in annual revenue from the developer’s assumed rents, about $160,000 less in annual revenue
• Providing the units as required by the AHA represents a 2.2% reduction in the value of the project
Regional Housing Needs Allocation Progress
7 ACTUALS ESTIMATES
RHNA 2023 2024 2025 2026 2027 2028 2029 2030
Total by
Income
Total
Remaining
Very Low 871 12 14 71 65 104 36
too distant - not
estimated
302 569
Low 502 13 14 107 14 53 27 228 274
Moderate 720 15 18 33 66 654
Market Rate 1,863 14 16 1,118 643 1,791 72
Total by Year 3,956 54 62 1,329 79 800 63 2,387 1,569
NOTABLE PROJECTS
Baden
Station (A)
7 S Linden
(M)
500 Linden
(A)
1051
Mission (A)
522 Linden
(A)
410 Noor
(M)
L37 PUC Site
(M)
(M) Market Rate w/ Inclusionary
Alexa Iconn
(M)
(A) 100% Affordable 721 Airport
(A)
Council Action for Consideration
8 • This is a discretionary Council action outlined in the City’s Inclusionary Housing Regulations, SSFMC 20.380.0144(B)
• Council may consider adopting either of the two resolutions or take no action, which would leave the AHA as executed providing 27 very low-income units and 54 lowincome units calculated at 60% AMI • Item 20a. implements Option 1, resulting in 27 very low-income units, 27 low-income units calculated at 70% AMI, and 27 moderate-income units • Item 20b. implements Option 2, resulting in 54 very low-income units