HomeMy WebLinkAboutItem 08b - Inclusionary Housing Ordinance
DATE: April 1, 2025
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
SUBJECT: TEXT AMENDMENT NO. 25-01 PERTAINING TO AN INCLUSIONARY
HOUSING ORDINANCE AND ASSOCIATED IN-LIEU DEVELOPMENT
FEE
ORDINANCE NO. 2402 RELATED TO TEXT AMENDMENT NO. TA 25-01
ADDING A NEW SECTION 9103.16 TO ARTICLE IX, CHAPTER 1
(DEVELOPMENT CODE) OF THE ARCADIA MUNICIPAL CODE
PERTAINING TO AN INCLUSIONARY HOUSING ORDINANCE AND
ASSOCIATED IN-LIEU DEVELOPMENT FEE
CEQA: Exempt
Recommendation: Introduce
RESOLUTION NO. 7621 ESTABLISHING AN INCLUSIONARY HOUSING
IN-LIEU DEVELOPMENT FEE AS AN ALTERNATIVE TO PROVIDING
AFFORDABLE HOUSING UNITS REQUIRED BY THE INCLUSIONARY
HOUSING ORDINANCE; AND FINDING THAT THIS RESOLUTION IS
EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (“CEQA”)
CEQA: Exempt
Recommendation: Adopt
SUMMARY
As part of the adoption of the City’s Housing Element, the City is responsible for providing
the capacity to build affordable housing units. The Housing Element sets forth goals,
policies, and programs that address future housing needs for all income levels over a
planning period of 2021-2029, which coincides with a unit count established by the
Regional Housing Needs Assessment (“RHNA”). The RHNA is mandated by State
Housing Law as part of the periodic process of updating Housing Elements of the General
Plan, and Arcadia was allocated 3,214 housing units for the 2021-2029 planning period.
Of these units, 71% are slated to provide some level of affordability. One of the prime
strategies identified to provide the capacity for this number of affordable units is the
adoption of an Inclusionary Housing Ordinance.
Inclusionary Housing Ordinance
April 1, 2025
Page 2 of 12
Inclusionary Housing refers to policies and/or regulations that require residential
developments to include affordable housing units as part of their unit mix. This is a
common tool utilized as part of the development process to create affordable housing.
The City has prepared an Inclusionary Housing Ordinance (“IHO”), and an associated
development fee payable in-lieu of providing affordable units, as an important step in the
adoption and implementation of the Housing Element. Therefore, it is recommended that
the City Council introduce Ordinance No. 2402 approving Text Amendment No. 25-01,
adding Section 9103.16 to the Arcadia Municipal Code pertaining to an Inclusionary
Housing Ordinance, and adopt Resolution No. 7621 approving an associated in-lieu
development fee.
BACKGROUND
The City Council adopted the Housing Element Update on February 15, 2022. However,
after several iterations of review, on January 6, 2023, the State Department of Housing
and Community Development (“HCD”) determined that the City needed to adopt specific
rezoning strategies and complete other actions in order to receive certification of the
Housing Element. The rezoning strategies were adopted by the City Council on February
6, 2024, and the Housing Element Update was certified by HCD on February 9, 2024.
An important component of the Housing Element is compliance with the RHNA allocation.
The RHNA is the process by which each city is assigned a share of the region’s additional
housing units during the next Housing Element planning period (2021-2029). RHNA
allocations are determined for Arcadia by the Southern California Association of
Governments (“SCAG”) based on criteria established by State law. The City’s RHNA
allocation is in Table 1 below:
Table 1
Income Category Number of Units Percentage
Very Low-Income Units 1,102 34%
Low-Income Units 570 18%
Moderate Income Units 605 19%
Above-Moderate Income Units 937 29%
Total 3,214 100%
To be eligible for housing units in any of the affordability categories listed, applicants must
qualify for the unit based on their income. Table 2 below shows the 2024 Los Angeles
County income requirements at each level of affordability, based on family size. A wide
variety of professionals qualify for these units and most of the units can be considered
“workforce housing” as a result.
Inclusionary Housing Ordinance
April 1, 2025
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Table 2
Los Angeles County Income Limits 2024
(Based on Household Size)
1 2 3 4 5 6 7 8
Extremely
Low
29,150 33,300 37,450 41,600 44,950 48,300 51,600 54,950
Very Low
Income
48,550 55,450 62,400 69,350 74,900 80,450 86,000 91,550
Low
Income*
77,700 88,800 99,900 110,950 119,850 128,750 137,600 146,500
Median
Income
68,750 78,550 88,400 98,200 106,050 113,900 121,750 129,600
Moderate
Income
82,500 94,300 106,050 117,850 127,300 136,700 146,150 155,550
*In high-cost areas, such as Los Angeles County, HCD makes adjustments to the Low-Income limits which
may result in the Low-Income limit exceeding the Countywide median income.
As mentioned, the Housing Element must demonstrate site development capacity to
facilitate the construction of a variety of housing types for all income levels. It is important
to note that the City is not responsible for the production of these units, rather, the City is
obligated to provide adequate sites for the development of units through appropriate
General Plan land use and zoning designations, or through zoning or regulatory changes
to accommodate these units. Whether or not housing actually gets built, and what type of
housing gets built, is largely up to the property owners and the housing market.
It was determined through a review of projects within the pipeline, as well as growth
patterns in general, that the City’s allocation of “above moderate” units would be met
through existing zoning and current policy. However, in order to meet the City’s RHNA
requirement for affordable units, additional housing programs and strategies were
needed. For example, only 96 affordable units are currently in Arcadia’s pipeline without
any new policies or strategies. As a result, strategies were developed through the
Housing Element Update process that expanded high density zones, increased the
allowed density in various areas, allowed residential overlay zones in predominantly
commercial or industrial areas, and created policies to encourage affordable housing and
a range of additional housing types. In keeping with the City’s overall direction of the last
15 years or so, growth and density continues to be directed into areas with adequate
infrastructure and away from single-family neighborhoods.
Inclusionary Housing Ordinance
April 1, 2025
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All of the above policies set the framework for the provision of more affordable units, but
the most important policy provided in the Housing Element is the adoption of an
Inclusionary Housing Ordinance (“IHO”). The primary goal of an IHO is to require that a
portion of new residential developments are affordable to lower and moderate-income
households. These units are integrated into proposed residential development projects
and are essentially the same as any other multi-family unit, except they are only available
to qualifying renters or owners at various levels of affordability. Based on Arcadia’s RHNA
and the options available, an IHO is likely the only alternative available to the City that will
meaningfully provide the capacity needed for these affordable units.
In alignment with the goals of the adopted Housing Element, the City has prepared a Draft
IHO, intended to encourage and facilitate the construction of below market-rate housing
in Arcadia. The program was included in the Housing Element Implementation Plan as
Program 5-19 (Inclusionary Housing Policy). It was originally intended that the
development of an IHO would be the first action taken following the certification of the
Housing Element. However, HCD required the City to undertake a major rezoning effort
first, which was completed early in 2024. Since that time, several Study Sessions with
both the Planning Commission and City Council have been held, which have provided a
substantial amount of information to the public on this effort. This represents the last major
implementation action to effectuate the approved Housing Element for the 2021-2029
cycle.
ANALYSIS
As mentioned, Inclusionary Ordinances are a common tool to facilitate the provision of
affordable housing. There are 21 other jurisdictions throughout Los Angeles County that
have IHOs and several others that are currently working toward adoption of an Ordinance.
Each City has unique circumstances related to the built environment, land values, the
presence of city-owned properties, and unique funding opportunities that inform what
types of regulations will work best to provide housing. The adoption of an IHO is viewed
as the best way to provide affordable housing for the City of Arcadia, for the following
reasons:
• Funding Limitations. There is no other public funding source dedicated to the
provision of affordable units for the City to utilize. In the past, the City had access
to Redevelopment Funds (as part of the former Arcadia Redevelopment Agency).
Twenty percent of the funding received through Redevelopment was REQUIRED
to be used for affordable housing projects, of which Arcadia completed several.
When Redevelopment was dissolved at the State level, this important source of
funding for affordable housing was eliminated.
• Lack of City-owned land and public housing. Some cities have underutilized
publicly-owned land that can be utilized for affordable housing projects. Arcadia
does not have such property.
Inclusionary Housing Ordinance
April 1, 2025
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• Integrates Units into Larger Developments. The IHO provides a mechanism for
integrating affordable units into larger market-rate projects, creating coordinated
and cohesive developments. This approach is preferable to relying solely on 100%
affordable projects, which are extremely challenging to finance and unlikely to
occur in Arcadia without significant external subsidies.
• Provides Most “Bang for the Buck”. The IHO can work in conjunction with State
density bonus laws and other development incentives to create projects that
provide both affordable units and are financially viable for the development
community. In fact, most of the new development projects the City receives already
include some amount of affordable units, in order to take advantage of financing
and density bonus incentives that are available to developers.
Although there are similarities between all IHOs, each one is specifically tailored to
address the housing situation of the jurisdiction. The Draft IHO is included as an Exhibit
to Ordinance No. 2402 (Attachment No. 1). In developing the IHO, it is important for the
City to ensure that any regulation considered does not become overly restrictive or
otherwise limit development. It is essential to strike the right balance between providing
affordable housing units and maintaining a regulatory framework that encourages
property development and redevelopment. The Ordinance was drafted with the
assistance of long-time Housing Element consultant, Kimley Horn and Associates, to
achieve the following purposes:
• Create a structure that provides for the provision of units at all levels of housing
affordability.
• Allow for affordable units in rental (apartment) and ownership housing options.
• Create alternatives for the provisions of units. This is a State requirement for
inclusionary ordinances; tools such as in-lieu fees and off-site provision of units
must be considered.
• Provide exemptions for smaller projects that do not meet the economies of scale
necessary to provide affordable units.
• Create simple and streamlined approval, monitoring, and enforcement processes
Additionally, the Development Services Department held several Study Sessions with the
City Council and Planning Commission to obtain feedback and overall direction regarding
the Draft Ordinance.
To ensure that the Draft Ordinance met the established goals and put forward a balanced
regulation, the City contracted with Keyser Marston Associates (“KMA”) to complete an
economic analysis (Attachment No. 3). KMA based their analysis on general parameters
for IHOs that came out of a California Supreme Court Case (California Building Industry
Association v. City of San Jose), which imposed the following limitations on the
requirements of these Ordinances:
Inclusionary Housing Ordinance
April 1, 2025
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1. Inclusionary Housing requirements cannot be confiscatory; and
2. Inclusionary Housing requirements cannot deprive a property owner of a fair and
reasonable return on their investment.
The Financial Evaluation provided by Keyser Marston establishes prototype housing
projects in various zones in Arcadia to evaluate the economic reality of building affordable
units. Variables such as the size of the project, density, height, parking requirements, and
land values are included to develop representative development types in both the
Downtown Mixed Use Zone and along the Live Oak/Las Tunas corridor. Pro Formas were
then created to evaluate the land value supported by a 100% market rate project, as well
as the value enhancement that was created by the City’s recent zoning changes.
To assess whether providing affordable units is feasible, the portion of the value increase
that could reasonably go toward creating inclusionary units in a market-rate development
was determined. This is based on the determination of an “affordability gap” for each level
of affordability designated by Los Angeles County. The affordability gap can generally be
defined as the difference between the market-rate rent or sales price and the allowable
rent or sales price for affordable units.
Table 3 below provides the percentage of units within both rental and ownership projects
that can be financially supported by development projects, at various rates of affordability.
Please see Attachment No. 3 for the full methodology used to support this
recommendation.
Table 3
Notes: (1) of the total number of units in the residential project.
Proposed Affordable Unit Requirements
for Residential Projects
Total Percentage of
Affordable Units
Required (minimum)(1)
Minimum Affordability Level of Required Units
Ownership Units
5% Moderate Income Only
Rental Units
9% Very Low Income Only
11% 6% Low Income + 5% Very Low Income = 11%
14% Low Income Only
20% Moderate Income Only
Inclusionary Housing Ordinance
April 1, 2025
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The IHO recommends the sliding scale above for the number of affordable units required
within a rental project, based on the proposed level of affordability. Due to the very large
affordability gaps for ownership projects in Arcadia, the requirements for inclusionary
units in ownership projects are much lower. Developers can choose the most appropriate
option based on the economics of their site, along with any additional financial incentives
or parameters specific to their project. The proposed requirements recommended for the
City are similar to those in neighboring jurisdictions such as the Cities of Alhambra,
Burbank, El Monte, Pasadena, and South Pasadena, as well as Los Angeles County. A
full Inclusionary Housing Program Survey is included as part of Attachment No. 3.
To ensure fairness to smaller projects, the Ordinance includes exceptions for certain
situations. Recognizing that smaller projects may be more significantly impacted than
larger projects, due to fewer market units to offset the impact, the IHO will only apply to
projects with 10 or more units. Projects with nine (9) or fewer units will be exempt. This
approach is also consistent with the practices of other cities with Inclusionary Ordinances
(although some Ordinances apply to projects with as few as three units, a more common
minimum threshold is 10 or more units).
While the goal of the IHO is to build affordable units as a part of new development
projects, State law requires that IHOs must include alternatives to the provision of these
units. The most common alternatives are offsite construction and the establishment of an
in-lieu development fee. Both options are included within the Draft IHO. The offsite
construction option allows a developer to provide the required number of affordable units
at a different location within the City. While this option is unlikely to be used often, it could
be deployed in a situation where a developer owned multiple properties within the City,
or an adjacent or separate site was more suitable for the units. A far more common
alternative is the in-lieu fee. In-lieu fees are an option a developer can choose in certain
circumstances, whereby payment is made into an established Affordable Housing Trust
Fund rather than physically providing the units. The Trust Fund would be maintained by
the City and the monies within the Fund would be used to provide affordable housing
elsewhere in the City.
To establish a fair and realistic in-lieu fee, the City contracted with KMA to provide an In-
Lieu Fee Analysis (Attachment No. 4). The study quantifies the fee amounts
corresponding to the affordability gaps identified in the economic analysis described
above. The same prototype developments utilized in the economic analysis were included
to determine the appropriate in-lieu fee, and the recommended fees are based on
weighted averages between the prototypes. Table 4 below outlines the recommended in-
lieu fees based on the inclusionary housing unit recommendations. The table provides
both a per unit in-lieu fee and a per square foot fee, based on total leasable or saleable
floor area. It is recommended that the per square foot in-lieu fees be adopted, as this
methodology accounts for the varying affordability gaps that will exist based on unit size.
Inclusionary Housing Ordinance
April 1, 2025
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Table 4
Recommended Base In-Lieu Fee Payment Amounts
Residential Developments with 20 or More Units
Affordability Gap Analyses
Apartment Development
Per Inclusionary Unit $403,000
Per Square Foot of Total Leasable Area in the Development $43.80
Ownership Housing Development
Per Inclusionary Unit $701,300
Per Square Foot of Total Saleable Area in the Development $23.30
As an example of how the fee would work, one of the prototype developments is for an
apartment development in the Downtown Mixed-Use area with a density of 64 units per
acre. In this example, the developer has elected to apply the 14% Low Income affordable
requirement to a project with a total of 48 units and 45,600 square feet of leasable area.
This would require seven (7) affordable units. Using the leasable area recommendation,
the total in-lieu fee for the project would be just under $2 million (45,600sf x $43.80/sf =
$1,997,280).
Because inclusionary housing requirements can have a disproportionate impact on
smaller projects, KMA recommends a sliding scale for the in-lieu fee for rental residential
projects between 10 and 20 units. This provides a level of fairness for these projects
where the cost of the fee increase is consistent with the size of the development, as
shown in Table 5 below. The recommendation is that in-lieu fees can be provided for all
ownership projects and for those rental projects up to 20 units. Beyond that, the physical
units would need to be provided, unless the City Council authorizes in-lieu fees to be paid
for a specific project where a hardship can be proven.
Inclusionary Housing Ordinance
April 1, 2025
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Table 5
Recommended Discounted In-Lieu Fee Schedules
Measured Per Square Foot of Leasable or Saleable Area
in the Residential Development
Number of Units
Apartment
Development
Ownership
Housing
Development
10 $3.98 $2.12
11 $7.96 $4.24
12 $11.95 $6.35
13 $15.93 $8.47
14 $19.91 $10.59
15 $23.89 $12.71
16 $27.87 $14.83
17 $31.85 $16.95
18 $35.84 $19.06
19 $39.82 $21.18
20+* $43.80 $23.30
*In lieu fees are only allowed for apartment projects of more than 20 units upon specific
Council approval.
It should also be noted, the IHO includes a provision for projects that provide physical
units, that when the inclusionary housing calculation results in a fractional unit
“remainder”, the developer should be able to pay an in-lieu fee that is consistent with that
fraction of a unit, rather than the entire unit cost. Similar to the sliding scale above, the
fractional unit cost increases as the fractional requirement increases. For example, if the
mathematical calculation resulted in the requirement for 8.2 inclusionary housing units,
the developer would provide the 8 units and pay a prorated cost based on 0.2 of a unit.
This is a common approach in other IHOs and provides a level of fairness in the process.
Finally, the Ordinance includes the requirements for an Inclusionary Housing Plan, which
will be required of all eligible developments, and the enforcement actions that the City will
be authorized to take if any approved housing plan is not carried out. The Inclusionary
Housing Plan would establish rules and regulations for the development to ensure that
affordability and non-discrimination standards are maintained over time.
Overall, the proposed Ordinance achieves the desired balance of providing a method to
require affordable housing, while acknowledging the financial realities of Arcadia and
creating protections for the development community. The attached Ordinance introduces
the Inclusionary Housing Ordinance and the Resolution approves the associated in-lieu
Inclusionary Housing Ordinance
April 1, 2025
Page 10 of 12
fee. It is important to separate the fee from the Ordinance to allow the City to evaluate the
fee annually, ensuring it remains consistent with the cost of development. By approving
a separate Resolution for the fee, the fee can be changed over time more efficiently.
FINDINGS
Pursuant to Section 9108.03.060(B) of the Municipal Code, an amendment to the
Development Code may be approved only if the following findings are made:
1. The proposed Development Code amendment is consistent with the goals,
policies, and objectives of the General Plan; and any applicable specific
plan(s).
Facts to Support the Finding: The proposed Text Amendment No. TA 25-01 aligns
with the goals and policies of the General Plan Housing Element. The Text
Amendment ensures that Implementation Action No. 5-19 of the Housing Element is
met, demonstrating the City’s commitment to providing capacity for affordable
housing units within the City. To accommodate the number of affordable housing
units identified in the City’s Regional Housing Needs Allocation (“RHNA”), and meet
the specified levels of affordability, this Text Amendment is necessary. The Text
Amendment is consistent with the following General Plan Housing Element Goals
and Policies:
Housing Element
• Policy H-2.4: Maintain development standards, regulations, and design
features that are flexible to provide a variety of housing types and facilitate
housing that is appropriate for the neighborhoods in which they are located.
• Goal H-3: A range of housing choices for all social and economic segments of
the community, including housing for persons with special needs.
• Policy H-3.2: Facilitate homeownership opportunities for lower and moderate-
income households.
• Policy H-4.1: Review and modify as appropriate, development standards,
regulations, and processing procedures that may constrain housing
development, particularly housing for lower- and moderate income
households and for persons with special needs.
The proposed Text Amendment No. TA 25-01 will add a new Section to the
Development Code related to Inclusionary Housing. This amendment will be
consistent with all other portions of the adopted General Plan.
2. The proposed amendment is internally consistent with other applicable
provisions of this Development Code.
Inclusionary Housing Ordinance
April 1, 2025
Page 11 of 12
Facts to Support the Finding: The proposed Text Amendment will add a new
Section 9103.16 to the Development Code. The Inclusionary Housing Ordinance will
require a certain percentage of units in qualifying multi-family residential and mixed-
use development projects to be designated as affordable housing units. This
amendment aligns with the City's recent 2024 rezoning efforts, which included
upzoning several areas to allow for additional density and to permit residential units
in areas where they were previously not allowed. The Inclusionary Housing
Ordinance complements these zoning efforts to create the capacity necessary for
residential units, in accordance with the City’s RHNA as set forth by the State of
California. Therefore, the proposed Text Amendment is consistent with all other
sections of the Arcadia Development Code.
ENVIRONMENTAL ANALYSIS
The proposed Text Amendment is exempt from the requirements of the California
Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) because it can be
seen with certainty that it will not have a significant effect on the environment, and thus,
is not subject to CEQA review.
PUBLIC COMMENTS/NOTICE
Notice for this project was provided in multiple formats. On February 27, 2025, and on
March 20, 2025, notice was published in both the Arcadia Weekly and Pasadena Star-
News. Additionally, direct email notice was provided to all individuals on the City’s
interested party list relative to the Housing Element and all housing projects. Notice was
also provided on the City’s website and social media releases on X, Facebook, Instagram,
and WeChat. Finally, articles about the Ordinance were provided in the City’s “Hot Sheet”
and Newsletter. As of the publication of this Staff Report, several questions have been
asked and answered, but no substantive public comments have been received.
PLANNING COMMISSION
The Planning Commission held a public hearing on this item at their meeting on March
11, 2025. The Planning Commission had a variety of questions for Staff and the City’s
consultants regarding the potential impacts of an IHO on development. Specifically, the
Commission had questions on the economic analysis and how the numbers were
derived. One member of the public representing the group Creative Housing Options in
Arcadia (“CHOA”), spoke in favor of the IHO. Following discussion, the Commission
recommended that that City Council approve Text Amendment No TA 25-01 on a vote
of 4-1, with Commissioner Hui dissenting.
Inclusionary Housing Ordinance
April 1, 2025
Page 12 of 12
RECOMMENDATION
It is recommended that the City Council approve Text Amendment No. 25-01 pertaining
to an Inclusionary Housing Ordinance and associated In-Lieu Development Fee, by taking
the following actions:
Introduce Ordinance No. 2402 related to Text Amendment No. TA 25-01 adding a
new Section 9103.16 to Article IX, Chapter 1 (Development Code) of the Arcadia
Municipal Code pertaining to an Inclusionary Housing Ordinance and associated
In-Lieu Development Fee; and find this action to be exempt under the California
Environmental Quality Act (“CEQA”); and
Adopt Resolution No. 7621 establishing an Inclusionary Housing In-Lieu
Development Fee as an alternative to providing affordable housing units required
by the Inclusionary Housing Ordinance; and find that this Resolution is exempt
from the requirements of the California Environmental Quality Act (“CEQA”).
Attachment No. 1: Ordinance No. 2402, with Draft Inclusionary Housing Ordinance as
Exhibit “A”
Attachment No. 2: Resolution No. 7621, In-Lieu Development Fee
Attachment No. 3: Financial Evaluation for Inclusionary Housing, dated February 18,
2025
Attachment No. 4: Inclusionary Housing In-Lieu Fee Analysis, dated February 18, 2025
Attachment No. 5: CEQA Notice of Exemption
Attachment No. 1
Attachment No.1
Ordinance No. 2402, with Draft Inclusionary
Housing Ordinance as Exhibit “A”
1
ORDINANCE NO. 2402
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA
RELATED TO TEXT AMENDMENT NO. TA 25-01 ADDING A NEW
SECTION 9103.16 TO ARTICLE IX, CHAPTER 1 (DEVELOPMENT
CODE) OF THE ARCADIA MUNICIPAL CODE PERTAINING TO AN
INCLUSIONARY HOUSING ORDINANCE AND ASSOCIATED IN-LIEU
DEVELOPMENT FEE
WHEREAS, the Development Services Department has initiated Text Amendment
No. TA 25-01 to add a new Inclusionary Housing Ordinance as Section 9103.16 to Article
IX, Chapter 1 of the Arcadia Municipal Code (referred to as “Text Amendment”); and
WHEREAS, California State Housing Element Law establishes the requirements
for Housing Elements and California Government Code Section 65588 requires that local
government review and revise the Housing Element of their comprehensive General
Plans not less than once every eight years. Additionally, the California State Legislature
identifies overall housing goals for the State with the goal of ensuring every resident has
access to housing and suitable living environments; and
WHEREAS, the updated Housing Element was adopted by City Council on
February 15, 2022, and again, at the request of the State Department of Housing and
Community Development, on November 1, 2022, and
WHEREAS, the City is required to implement actions and policies within the
approved and certified Housing Element, including the provision of affordable housing,
and compliance with the Regional Housing Needs Allocation (“RHNA”) for the City of
Arcadia; and
WHEREAS, the proposed Text Amendment would effectuate Housing Element
Implementation Action No. 5-19 by adopting an Inclusionary Housing Ordinance as
shown in Exhibit “A” of this Ordinance; and
2
WHEREAS, on February 27, 2025, Planning Services completed an environmental
review of the proposed Text Amendment and determined that the project is exempt from
review under the California Environmental Quality Act ("CEQA") pursuant to Section
15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the Text
Amendment would not have a significant effect on the environment and, thus, is not
subject to CEQA review; and
WHEREAS, on March 11, 2025, the Planning Commission held a duly noticed
public hearing and considered the staff report, recommendations by staff, and public
testimony concerning the Text Amendment; and
WHEREAS, after considering the evidence presented, the Planning Commission
voted 4-1 to recommend to the City Council approval of Text Amendment No. TA 25-01;
and
WHEREAS, on April 1, 2025, the City Council held a duly noticed public hearing
concerning the Text Amendment, at which time all interested persons were given full
opportunity to be heard and to present evidence.
NOW, THEREFORE, the City Council of the City of Arcadia does ordain as follows:
SECTION 1. The recitals above are each incorporated by reference and adopted
as findings by the City Council.
SECTION 2. The City Council finds, based upon the entire record:
1. The proposed Development Code Amendment is consistent with the goals,
policies, and objectives of the General Plan and any applicable specific plan(s).
FACT: The proposed Text Amendment No. TA 25-01 aligns with the goals and
policies of the General Plan Housing Element. The Text Amendment ensures that
3
Implementation Action No. 5-19 of the Housing Element is met, demonstrating the City’s
commitment to providing capacity for affordable housing units within the City. To
accommodate the number of affordable housing units identified in the City’s Regional
Housing Needs Allocation (“RHNA”), and meet the specified levels of affordability, this
Text Amendment is necessary. The Text Amendment is consistent with the following
General Plan Housing Element Goals and Policies:
Housing Element
Policy H-2.4: Maintain development standards, regulations, and design features
that are flexible to provide a variety of housing types and facilitate housing that is
appropriate for the neighborhoods in which they are located.
Goal H-3: A range of housing choices for all social and economic segments of the
community, including housing for persons with special needs.
Policy H-3.2: Facilitate homeownership opportunities for lower and moderate-
income households.
Policy H-4.1: Review and modify as appropriate development standards,
regulations, and processing procedures that may constrain housing development,
particularly housing for lower- and moderate income households and for persons with
special needs.
The proposed Text Amendment No. TA 25-01 will add a new Section to the
Development Code related to Inclusionary Housing. This amendment will be consistent
with all other portions of the adopted General Plan.
2. The proposed amendment is internally consistent with other applicable
provisions of this Development Code.
4
FACT: The proposed Text Amendment will add a new Section 9103.16 to the
Development Code. The Inclusionary Housing Ordinance will require a certain
percentage of units in qualifying multi-family residential and mixed-use development
projects be designated as affordable housing units. This amendment aligns with the
City’s recent 2024 rezoning efforts, which included upzoning several areas to allow for
additional density and to permit residential units in areas where they were previously not
allowed. The Inclusionary Ordinance complements these zoning efforts to create the
capacity necessary for residential units in accordance with the City’s RHNA as set forth
by the State of California. Therefore, the proposed Text Amendment is consistent with
all other areas of the Arcadia Development Code.
SECTION 3. The City Council has determined that Text Amendment No. TA 25-
01 is exempt from review under the California Environmental Quality Act (“CEQA”)
pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen with
certainty that the Text Amendment would not have a significant effect on the environment
and, thus, is not subject to CEQA review.
SECTION 4. For the foregoing reasons, the City Council adopts this Ordinance.
Staff is authorized to correct typographical errors, spelling, formatting or codification and
to make other minor revisions to improve the reader’s comprehension of the changes
from this text amendment attached hereto under Exhibit “A” of this Ordinance, provided
that any revisions do not alter the regulatory meaning and intent.
SECTION 5. The City Council hereby directs staff to prepare, execute, and file with
the Los Angeles County Clerk a Notice of Exemption within five (5) working days of the
adoption of this Ordinance.
5
SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and shall
cause a copy of the same to be published in accordance with Resolution No. 7483. This
Ordinance shall take effect thirty-one (31) days after its adoption.
SECTION 7. The Custodian of Records for this Ordinance is the City Clerk and the
records compromising the administrative record for this Ordinance are located at Arcadia
City Hall, 240 W. Huntington Drive, Arcadia CA.
Passed, approved and adopted by the City Council this 15th day of April, 2025.
________________________
Mayor of the City of Arcadia
ATTEST:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Michael J. Maurer
City Attorney
EXHIBIT “A”
Section 9103.16 of the Development Code,
Inclusionary Housing Ordinance
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Section 9103.16 – Inclusionary Housing
Subsections:
9103.16.010 Purpose and Intent
9103.16.020 Applicability
9103.16.030 Definitions
9103.16.040 Affordable Unit Requirements
9103.16.050 Alternatives
9103.16.060 Incentives
9103.16.070 Exemptions
9103.16.080 Standards and Procedures
9103.16.090 Affordable Housing Plan and Agreement
9103.16.100 Enforcement
9103.16.110 Affordable Housing Trust Fund
9103.16.010 Purpose and Intent
The purpose of this Chapter is to require and facilitate the construction of below market-rate housing to provide a variety of housing
types and opportunities for extremely low, very low, low- and moderate-income households in Arcadia. The goal of this Chapter is
to expand the affordable housing stock in proportion with the overall increase in residential units by establishing standards and
procedures that encourage the development of extremely low to moderate-income housing and to assist in meeting the City’s
regional share of housing needs and implementing the goals and objectives of the general plan, including the Housing Element
and any applicable specific plans. 9103.16.020 Applicability
A. The requirements of this Chapter shall apply to any new mixed-use or multi-family development project or condominium
conversion projects comprised of ten or more dwelling units. All affordable units required by this Chapter shall be sold
or rented in compliance with this Chapter.
B. The total number of dwelling units shall be used to determine applicability for multi-phased residential projects and any
development project that is comprised of less than ten dwelling units but appears to be a part of a larger residential
project.
9103.16.030 Definitions
Adjusted for Household Size Appropriate for Unit. A household of one person in the case of a studio unit, two persons in the
case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five
persons in the case of a four-bedroom unit, six persons in the case of a five-bedroom unit, and seven persons in the case of a six-
bedroom unit.
Affordable Housing Costs. The maximum costs that can be paid by a qualifying household based on the requirements imposed
by California Health and Safety Code Section 50052.5 for owner-occupied housing, and the affordable rent for rental units as defined
by California Health and Safety Code Section 50053, as applicable.
Affordable Housing Trust Fund. Any in-lieu fees or equity share payment collected as a result of requirements of this Chapter
shall be deposited in the City’s Affordable Housing Trust Fund to be used exclusively to develop and retain the supply of housing
affordable to extremely low, very low, low, and moderate-income households.
Affordable Unit. A dwelling unit that will be offered for sale or rent to an extremely low-income household, a very low-income
household, a low-income household, or a moderate-income household, at an affordable housing cost, in compliance with this
Chapter.
Area Median Income (AMI). The annual median gross income adjusted for household size in Los Angeles County as determined
by the United States Department of Housing and Urban Development (HUD) and published by the California Department of Housing
& Community Development (HCD), in the California Code of Regulations, Title 25, Section 6932.
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Condominium Conversion. Converting an existing market rate condominium and apartments into affordable housing. Converted
condominiums and apartments shall be offered for sale or rent to an extremely low-income household, a very low-income household,
a low-income household, moderate-income household, or workforce household at an affordable housing cost, in compliance with
this Chapter.
Density Bonus. As defined in California Government Code Section 65915 et seq.
Equity Share Agreement. An agreement by which appreciation on the value of an inclusionary unit from the time of the original
purchase at an affordable price to the time of resale shall be shared between the purchaser of the inclusionary unit and the City.
Such an agreement shall be a condition of sale of the inclusionary unit.
Low-Income Household. As published and periodically updated by HCD pursuant to Health and Safety Code Section 50079.5.
Market Rate Unit. Dwelling unit in a residential development that can be purchased or rented at market rates. These units are not
considered to be affordable units.
Moderate-Income Household. As published and periodically updated by HCD pursuant to Health and Safety Code Section 50093.
Offsite Construction. The development of required number of affordable units at a site different than the site of the residential
project.
Phasing Plan. A detailed plan provided by a developer that outlines each segment or phase of construction including housing units
and site improvements to be developed in a new residential project.
Residential Project. A subdivision, a development project, and/or a condominium conversion project resulting in the creation of
ten (10) or more residential lots or ten (10) or more residential dwelling units.
Rehabilitation. Improvement of a unit in substandard condition to a decent, safe, and sanitary level. Units are in substandard
condition when, while they may be structurally sound, they do not provide safe and adequate shelter, and in their present condition
endanger the health, safety, or well-being of the occupants.
Total Housing Costs. The total monthly or annual recurring expenses required of a household to obtain shelter. For a rental unit,
total housing costs shall include the monthly rent payment and utilities paid by the tenant (excluding telephone and television). For
an ownership unit, total housing costs shall include the mortgage payment (principal and interest), insurance, homeowners’
association dues (if applicable), private mortgage insurance (if applicable), taxes, maintenance costs, and utilities.
Very Low-Income Household. As published and periodically updated by HCD pursuant to Health and Safety Code Section 50105.
9103.16.040 Inclusionary Unit Requirement
A. The commonly used income categories are approximately as follows, as published and periodically updated by HCD pursuant
to Health and Safety Code Sections 50105, 50079.5, and 50093, respectively. Income categories are subject to variations
for household size and other factors:
• Very low income: 30% to 50% of AMI
• Low income: 50% to 80% of AMI
• Moderate income: 80% to 120% of AMI
B. All residential projects subject to requirements of this Chapter shall provide affordable units as shown in Table 3-18.
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Notes: (1) of the total number of units in the residential project.
C. An applicant may request to deviate from the number and affordability level provisions required by this Chapter if the
proposed deviation provides the same or greater level of affordability required and the same or greater number of affordable
units required by this Chapter. Such request requires an approval of the Director subject to the provisions of Section
9103.16.040 of this Chapter.
D. When a residential development includes both ownership and rental units, the provisions of this Chapter that apply to
ownership residential development shall apply to that portion of the development that consists of ownership dwelling units,
while the provisions of this Chapter that apply to rental residential development shall apply to that portion of the development
that consists of rental dwelling units.
E. Affordable units required by this Chapter can be used to qualify for a density bonus under California Government Code
Section 65915 (State Density Bonus).
F. Notwithstanding any other provision of this Chapter, any residential project subject to this Chapter that results in the
displacement of existing affordable unit(s) shall be required to replace each displaced affordable unit at the same or greater
level of affordability of the existing unit, in addition to providing the number of affordable units required by this Chapter.
9103.16.050 Alternatives
An applicant may also satisfy the requirements of this Chapter through one of the following alternatives:
A. Offsite Construction. An applicant may satisfy the requirements of this Chapter by developing the required number of
affordable units at a site different than the site of the residential project. An applicant may develop the affordable units required
by this Chapter if they satisfy the following conditions:
1. The number of units to be developed offsite shall be consistent with the requirements of this Chapter.
2. Offsite affordable units shall contain the same number of bedrooms, square footage, overall unit mix, appearance, finished
quality, materials, and distribution as the non-affordable units in the project.
3. Offsite affordable units shall be developed concurrently with the main project and certificate of occupancy will be contingent
on final approval and inspection of the affordable units.
4. Offsite affordable units shall be located within the City.
5. Offsite affordable units shall be subject to the same requirements, standards, and procedures as onsite affordable units.
Table 3-18 Affordable Unit Requirements for Residential Projects
Total Percentage of Affordable
Units Required (minimum)(1) Minimum Affordability Level of Required Units
Ownership Units
5% All required affordable units shall be sold to moderate-income households, at a cost affordable to
such household.
Rental Units
9% All required affordable units shall be rented to very low-income households, at a cost affordable to
such household.
11%
At least 5% of the total number of units in the residential project shall be rented to very low-income
households, at a cost affordable to such household. The remaining 6% shall be rented to low-
income households, at a cost affordable to such household.
14% At least 14% of the total number of units in the residential project shall be rented to low-income
households, at a cost affordable to such household.
20% All required affordable units shall be rented to moderate-income households, at a cost affordable to
such household.
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B. In-Lieu Fees.
1. Ownership Units. Applicants with development proposals of ten (10) or more units may choose to comply with the
requirements of this Chapter through payment of a fee, in-lieu of providing the required affordable units on site.
2. Rental Units. Applicants with development proposals between ten (10) and twenty (20) units may choose to comply with
the requirements of this Chapter through payment of a fee, in-lieu of providing the required affordable units on site.
Applicants with development proposals greater than twenty (20) units must comply with the requirements of this Chapter
by providing the required affordable units on- or off-site.
3. The amount of the fee shall be calculated using the fee schedule established by resolution of the City Council.
4. One-half of the in-lieu fees shall be paid prior to the issuance of a building permit for the project with the remaining fees
due prior to the issuance of a certificate of occupancy.
5. Any fractional unit resulting from the calculation of the inclusionary requirement referenced in this Chapter will be rounded
up to the next whole number or the developer may elect to pay the appropriate in-lieu fee for the fractional unit.
6. Fees collected in-lieu of developing affordable units pursuant to this Chapter shall be placed in the City’s Affordable Housing
Trust Fund.
9103.16.060 Incentives
A. An applicant that meets the requirements of this Chapter may request the incentives identified in Table 3-19 below. The
number of incentives provided shall be at the City’s discretion.
B. If the residential project subject to this Chapter is also utilizing State Density Bonus provisions, such project is eligible to
request the number and types of incentives allowed in this Chapter and by State Density Bonus provisions.
C. At the discretion of the City Council, the City may offer a financial incentive using funds from the Affordable Housing Trust
Fund.
9103.16.070 Exemptions
The provisions of this Chapter shall not apply to the following:
A. Residential developments with nine (9) or fewer units.
B. Residential projects that obtain entitlement approvals prior to the adoption of this Chapter.
C. Reconstruction of structures which have been damaged by fire, flood, wind, earthquake, or other unforeseen force, as
determined by the Director or designee.
Table 3-19 Types of Incentives and Review Authority
Incentives Review Authority Special Provisions
Streamlined Entitlement Plan Check
Review and Building Plan Check Review Director May also include pre-application meetings.
Deferral of Developer Impact Fee
Payments Director Such deferred impact fees shall be fully paid prior to the
issuance of a certificate of occupancy.
Partial or full waiver of building permit
fees Director -
Partial or full waiver of required
development fees Planning Commission -
Reasonable alternatives Planning Commission City Council approval required if the requested alternative has
budgetary implication to the City
5
D. Residential projects that are exempt from this Chapter by State law.
E. Units approved as accessory dwelling units or junior accessory dwelling units.
9103.16.080 Standards and Procedures
The applicant of a project subject to the provisions of this Chapter must submit an Affordable Housing Plan which shall indicate the
scheduling and phasing of construction of the required affordable units. The Affordable Housing Plan requirements can be found in
Section 9103.16.090. Additionally, projects pursuant to this Chapter must comply with the following standards.
A. All affordable units in a residential project or phases of a residential project shall be constructed prior to the issuance of a
certificate of occupancy for the project or phase of the project
B. All affordable units shall be reasonably dispersed throughout the project site unless approval for an off-site location has been
granted.
C. The affordable units shall contain the same number of bedrooms and bedroom size as the market rate units in the project. The unit mix for bedroom count shall be proportional to the unit mix of market rate units in the project.
D. The materials and finished quality of the affordable units shall be comparable with the market rate units.
E. Affordable units shall have the same access to amenities as the market-rate units, including common spaces, parking, laundry
rooms, fitness centers, and other facilities in the residential development.
F. Affordable units required under this Chapter shall be retained as affordable units as follows:
1. For sale units: Cumulative forty-five (45) years or until sold or transferred with an equity share, whichever occurs first.
2. Rental units: Cumulative fifty-five (55) years.
G. The affordability period begins upon the initial sale or rental of the unit.
H. An equity share agreement for any inclusionary units that are for-sale shall be in a form approved by the Director and City Attorney in conformance with this chapter.
9103.16.090 Affordable Housing Plan and Agreement
A. Affordable Housing Plan.
1. An application for a residential development shall include an Affordable Housing Plan describing how the development will
comply with the provisions of this Chapter. The Director or their designee is the reviewing authority for reviewing and
approving an Affordable Housing Plan. No application for a residential development may be deemed complete unless an
Affordable Housing Plan is submitted in conformance with this Chapter. The City has the ability to attach conditions of
approval to an Affordable Housing Plan, if determined necessary.
2. An approved Affordable Housing Plan may be amended prior to issuance of any building permit for the residential
development or project phase. A request for a minor modification may be granted by the Director or their designee if the
modification is in substantial compliance with the original Affordable Housing Plan and conditions of approval. If significant
modifications are requested, a new Affordable Housing Plan may be required.
3. An Affordable Housing Plan shall include, but not be limited to, the following:
a. The number of affordable units proposed, with calculations;
b. The proposed location of the affordable units;
6
c. Level of affordability for affordable units;
d. The unit square footage, and number of bedrooms for market rate and affordable units and tenure (ownership
or rental);
e. Amenities and services provided, such as common spaces, parking, laundry rooms, fitness centers, and other
facilities in the residential development;
f. Construction schedule for all units;
g. Alternatives requested, if applicable;
h. Incentives requested, if applicable; and
i. Evidence to justify any requested alternative or incentive, if applicable.
B. Affordable Housing Agreement.
1. An applicant shall enter into an Affordable Housing Agreement with the City. The Affordable Housing Agreement shall be
approved by the City Attorney, and executed by the City Manager or their designee, to ensure that all the requirements of
this Chapter are satisfied. The Affordable Housing Agreement shall be recorded against the residential development prior
to final subdivision map approval, or, where a subdivision map is not being processed, prior to issuance of any building
permits, with the exception of demolition permits for such parcels or units. The agreement shall be recorded with the office
of the Los Angeles County Recorder. The Affordable Housing Agreement shall be binding on the applicant and all future
owners and successors in interest thereof.
2. The Affordable Housing Agreement shall include all information requested in the Affordable Housing Plan and any other
provisions necessary to ensure that the requirements of this Chapter are satisfied.
3. The Affordable Housing Agreement shall include the procedures for income verification of potential purchasers or renters.
9103.16.100 Enforcement
A. The Director, or their designee, may suspend, revoke, or deny any building permit or other approval upon finding a violation
of any provision of this Chapter. The provisions of this Chapter shall apply to all owners, agents, and successors of an applicant
proposing a project. No entitlement approval, grading permit, building permit or certificate of occupancy shall be issued if it is
found in noncompliance with the provisions of this Chapter.
B. Any individual or entity who sells or rents an affordable unit in violation of the provisions of this Chapter shall be required to
forfeit all monetary gains obtained through noncompliance. Recovered funds shall be deposited into the Affordable Housing
Trust Fund.
C. The City may use any appropriate legal actions or proceedings necessary to ensure compliance with this Chapter, including
but not limited to:
1. Actions to revoke, suspend, or deny any grading permit, building permit, certificate of occupancy, or discretionary approval.
2. Any other action, civil or criminal, authorized by law or by any regulatory document, restriction, or agreement in this Chapter.
D. The City shall be entitled to recover its reasonable attorney's fees and costs.
9103.16.110 Inclusionary Housing Trust Fund
Any in-lieu fees or equity share payment collected as a result of requirements of this Chapter shall be deposited in the City’s Affordable
Housing Trust Fund to be used exclusively to develop and retain the supply of housing affordable to extremely low, very low, low, and
moderate-income households. The City shall provide ongoing implementation programs utilizing funds deposited in the Affordable
Housing Trust Fund for the benefit of extremely low, very low, low, and moderate-income households.
Attachment No. 2
Attachment No. 2
Resolution No. 7621, In-Lieu Development
Fee
1
RESOLUTION NO. 7621
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, ESTABLISHING AN INCLUSIONARY HOUSING IN-LIEU
DEVELOPMENT FEE AS AN ALTERNATIVE TO PROVIDING
AFFORDABLE HOUSING UNITS REQUIRED BY THE INCLUSIONARY
HOUSING ORDINANCE; AND FINDING THAT THIS RESOLUTION IS
EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (“CEQA”)
WHEREAS, the Development Services Department has initiated Text Amendment
No. TA 25-01 to add a new Inclusionary Housing Ordinance as Section 9103.16 to Article
IX, Chapter 1 of the Arcadia Municipal Code (referred to as “Text Amendment”); and
WHEREAS, California State Housing Element Law establishes the requirements
for Housing Elements and California Government Code Section 65588 requires that local
government review and revise the Housing Element of their comprehensive General
Plans not less than once every eight years. Additionally, the California State Legislature
identifies overall housing goals for the State with the goal of ensuring every resident has
access to housing and suitable living environments; and
WHEREAS, the updated Housing Element was adopted by City Council on
February 15, 2022, and again, at the request of the State Department of Housing and
Community Development, on November 1, 2022, and
WHEREAS, the City is required to implement actions and policies within the
approved and certified Housing Element, including the provision of affordable housing,
and compliance with the Regional Housing Needs Allocation (“RHNA”) for the City of
Arcadia; and
WHEREAS, the proposed Inclusionary Housing Ordinance (City Council
Ordinance No. 2402) meets the requirements of California State housing law by providing
2
alternatives to the provision of affordable units within housing projects, including the
establishment of an Inclusionary Housing In-Lieu Development Fee as shown in Exhibit
“A” of this Resolution; and
WHEREAS, based on an Inclusionary Housing In-Lieu Fee Analysis conducted by
Keyser Marston Associates, Inc., the fees set forth in this Resolution are necessary for
the purposes set forth in this Resolution. Said fees are based on an in-depth analysis of
development costs within the City of Arcadia, and the proposed fees are deemed to be
fair and reasonable as an alternative to providing affordable housing units; and
WHEREAS, on April 1, 2025, the City Council held a duly noticed public hearing
concerning the Text Amendment, at which time all interested persons were given full
opportunity to be heard and to present evidence.
NOW, THEREFORE, the City Council of the City of Arcadia does hereby resolve
as follows:
SECTION 1. The establishment and/or adjustment of fees is statutorily exempt
from the California Environmental Quality Act (“CEQA”), pursuant to Section 15273 of the
CEQA Guidelines (Sections 21080(b)(8) and 21082, Public Resources Code).
SECTION 2. The City Council hereby adopts the Inclusionary Housing In-Lieu
Development Fee, based on the square footage of leasable and/or saleable area in the
Development, attached hereto as Exhibit “A”.
SECTION 3. The City Council directs that the Inclusionary Housing In-Lieu
Development Fee be evaluated annually to ensure the fee is appropriate and consistent
with the cost of development, and that recommended modifications to the fee be
proposed to the City Council as necessary.
3
SECTION 4. The Inclusionary Housing In-Lieu Development Fee will be imposed
and collected as of the effective date of the Inclusionary Housing Ordinance (Ordinance
No. 2402), May 15, 2025.
SECTION 5. The City Clerk shall certify the adoption of this Resolution.
Passed, approved and adopted this 1st of April, 2025.
____________________________
Mayor of the City of Arcadia
ATTEST:
___________________________
City Clerk
APPROVED AS TO FORM:
____________________________
Michael J. Maurer
City Attorney
EXHIBIT “A”
INCLUSIONARY HOUSING
IN-LIEU DEVELOPMENT FEE
1
BASE IN-LIEU PAYMENT AMOUNTS
Recommended Base In-Lieu Fee Payment Amounts
Residential Developments with 20 or More Units
Affordability Gap Analyses
Apartment Development
Per Inclusionary Unit $403,000
Per Square Foot of Total Leasable Area in the Development $43.80
Ownership Housing Development
Per Inclusionary Unit $701,300
Per Square Foot of Total Saleable Area in the Development $23.30
DISCOUNTED IN-LIEU FEE SCHEDULES
Recommended Discounted In-Lieu Fee Schedules Measured Per Square
Foot of Leasable or Saleable Area
in the Residential Development
Number of Units Apartment
Development
Ownership Housing
Development
10 $3.98 $2.12
11 $7.96 $4.24
12 $11.95 $6.35
13 $15.93 $8.47
14 $19.91 $10.59
15 $23.89 $12.71
16 $27.87 $14.83
17 $31.85 $16.95
18 $35.84 $19.06
19 $39.82 $21.18
20+ $43.80 $23.30
2
FRACTIONAL IN-LIEU FEE SCHEDULES
Recommended Fractional In-Lieu Fee Payment
Calculations Measured Per Square Foot of the
Leasable Area of One Unit in an
Apartment Development
Fraction
Fractional In-Lieu
Fee: Per Square
Foot of One Unit
Total Fractional In-Lieu
Fee: Apartment
Development
0.10 $50.00 $40,310
0.20 $100.00 $80,620
0.30 $150.00 $120,930
0.40 $200.00 $161,230
0.50 $250.00 $201,540
0.60 $299.90 $241,770
0.70 $349.90 $282,080
0.80 $399.90 $322,390
0.90 $449.90 $362,700
1.00 $499.90 $403,000
Recommended Fractional In-Lieu Fee Payment Calculations
Measured Per Square Foot of the Saleable Area of
One Unit in an Ownership Housing Development
Fraction
Fractional In-Lieu Fee: Per
Square Foot of One Unit
Total Fractional In-
Lieu Fee: Ownership
Housing Development
0.10 $47.80 $70,100
0.20 $95.70 $140,300
0.30 $143.50 $210,400
0.40 $191.40 $280,600
0.50 $239.20 $350,600
0.60 $287.00 $420,700
0.70 $334.90 $490,900
0.80 $382.70 $561,000
0.90 $430.60 $631,200
1.00 $478.40 $701,300
Attachment No. 3
Attachment No. 3
Financial Evaluation for Inclusionary
Housing, dated February 18, 2025
INCLUSIONARY HOUSING:
FINANCIAL EVALUATION
Prepared for:
City of Arcadia
Prepared by:
Keyser Marston Associates, Inc.
February 18, 2025
Inclusionary Housing: Financial Evaluation Page i
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ....................................................................................... 1
A. BACKGROUND ....................................................................................................... 1
B. PUBLIC POLICY OBJECTIVES ...................................................................................... 2
C. INCLUSIONARY HOUSING PROGRAM DESIGN .................................................................. 2
D. FINANCIAL ANALYSES .............................................................................................. 2
E. PRELIMINARY RECOMMENDATIONS .............................................................................. 5
II. INCLUSIONARY HOUSING PROGRAM CHARACTERISTICS ................................... 9
A. SURVEY OF EXISTING INCLUSIONARY HOUSING PROGRAMS ................................................ 9
B. STATE DENSITY BONUS AND INCLUSIONARY HOUSING REQUIREMENTS ................................ 11
C. STRUCTURING ISSUES ............................................................................................ 11
III. METHODOLOGY .............................................................................................. 14
A. PARAMETERS ....................................................................................................... 14
B. PROGRAM FOUNDATION ......................................................................................... 15
C. FINANCIAL EVALUATION STRUCTURE .......................................................................... 15
D. FINANCIAL ANALYSIS ORGANIZATION ......................................................................... 16
IV. APARTMENT DEVELOPMENT ANALYSIS ......................................................... 17
A. PRO FORMA ORGANIZATION AND ASSUMPTIONS ........................................................... 17
B. RESIDUAL LAND VALUE ANALYSES: MARKET RATE SCENARIOS .......................................... 20
C. FUNDS AVAILABLE FOR INCLUSIONARY HOUSING .......................................................... 20
D. SUPPORTABLE INCLUSIONARY HOUSING REQUIREMENTS ................................................. 20
V. OWNERSHIP HOUSING ANALYSES ................................................................... 23
A. PRO FORMA ORGANIZATION AND ASSUMPTIONS ........................................................... 23
B. RESIDUAL LAND VALUE ANALYSES: MARKET RATE SCENARIOS .......................................... 25
C. FUNDS AVAILABLE FOR INCLUSIONARY HOUSING .......................................................... 26
D. AFFORDABILITY GAP ANALYSES ................................................................................ 26
E. SUPPORTABLE INCLUSIONARY HOUSING REQUIREMENTS ................................................. 27
F. RECOMMENDED INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS ............................ 28
VI. FINDINGS / RECOMMENDATIONS ................................................................. 29
A. INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS.................................................. 29
B. PROGRAM RECOMMENDATIONS ................................................................................ 30
C. IMPLEMENTATION RECOMMENDATIONS ....................................................................... 32
Inclusionary Housing: Financial Evaluation Page ii
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
ATTACHMENTS
Attachment 1: Inclusionary Housing Program Surveys
Attachment 2: Property Sales Surveys
Appendix A: Vacant Land Sales
Appendix B: Sales of Improved Properties
Attachment 3: Affordable Housing Cost Calculation Methodologies
Appendix A: Affordable Rent Calculation Methodology
Appendix B: Affordable Sales Price Calculation Methodology
Attachment 4: Apartment Development
Appendix A: Rent Survey
Appendix B: Affordable Rent Calculations
Appendix C: Pro Forma Analyses – DMU Site – Large Development
Appendix D: Pro Forma Analyses – DMU Site – Small Development
Appendix E: Pro Forma Analyses – Las Tunas / Live Oak Corridor
Attachment 5: Ownership Housing Development
Appendix A: Home Sales Survey
Appendix B: Affordable Sales Price Calculations
Appendix C: Pro Forma Analyses – DMU Site: 64 Units/Acre Townhomes & Flats
Appendix D: Pro Forma Analyses – R-3 Upzone Site: 40 Units/Acre Townhomes & Flats
Appendix E: Pro Forma Analyses – C-G Residential Flex: 25 Units/Acre Townhomes
Inclusionary Housing: Financial Evaluation Page 1
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
I. EXECUTIVE SUMMARY
A. Background
The City of Arcadia (City) received California Department of Housing and Community
Development (HCD) approval of its Sixth Cycle Housing Element (Housing Element) on
February 9, 2024. 1 This approval was based in part on the fact that the City completed
rezoning activities that make adequate sites available pursuant to California Government
Code Section 65583.2 (h) and (i).
As part of the Housing Element adoption process the City began evaluating the potential
for creating an Inclusionary Housing program to assist in fulfilling a portion of the
established Regional Housing Needs Assessment (RHNA) goals. To that end the City
engaged Keyser Marston Associates, Inc. (KMA) to prepare an Inclusionary Housing:
Financial Evaluation (Financial Evaluation) to assess the viability of an Inclusionary
Housing program. KMA submitted a draft Financial Evaluation to the City on September 26,
2023. The following Financial Evaluation report provides an update to the 2023 report.
By way of background, over the past 20+ years the KMA Los Angeles office has assisted 40
jurisdictions in the Inclusionary Housing program adoption and updating processes. KMA’s
analyses reflect a real world perspective based on the firm’s core experience in real estate
development economics, real estate transactions, and developer negotiations services.
The KMA Financial Evaluation identifies supportable Inclusionary Housing program
requirements for apartment and ownership housing developments. The fundamental
purpose is to identify Inclusionary Housing requirements that balance the interests of
property owners and developers against the City’s need for affordable housing. The KMA
evaluation methodology has been continually evolving over time. Each study is tailored to
reflect the specific characteristics of the jurisdiction being evaluated.
1 The Housing Element covers the period between 2021 and 2029.
Inclusionary Housing: Financial Evaluation Page 2
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
B. Public Policy Objectives
Inclusionary Housing programs are subject to both statutory parameters imposed by the
State Legislature and the rulings in the court cases that have challenged Inclusionary
Housing programs over the past 30+ years. These statutes and court rulings are described
in Section II of this Financial Evaluation. It is important to understand the constraints and
opportunities that are created by these statutes and court rulings.
C. Inclusionary Housing Program Design
In 2015, the California Supreme Court ruled in California Building Industry Association v.
City of San Jose, 61 Cal 4th 435 (San Jose) that Inclusionary Housing programs should be
viewed as use restrictions that are a valid exercise of a jurisdiction’s zoning powers.
However, the San Jose ruling also imposed the following limitations on the requirements
that jurisdictions can impose:
1. Inclusionary Housing requirements cannot be confiscatory; and
2. Inclusionary Housing requirements cannot deprive a property owner of a fair and
reasonable return on their investment.
The court did not provide criteria under which jurisdictions can evaluate these limitations.
As a result, each jurisdiction is left to create an evaluation methodology that balances the
interests of property owners, developers and the jurisdiction’s need for affordable housing.
It is KMA’s practice to take a conservative approach in evaluating potential requirements in
order to comport with the court’s ruling.
The first step in designing an Inclusionary Housing program is to identify the factors that
will be considered in defining the program’s goals. The characteristics of the unmet need
for affordable housing in the community are commonly assessed for this purpose. The
Financial Evaluation uses information presented in the Housing Element for this purpose.
D. Financial Analyses
In analyzing the potential for adopting an Inclusionary Housing program, the Financial
Evaluation considers the following:
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1. Zoning code amendments that were enacted in defined areas within Arcadia. The
Financial Evaluation analyzes the impact the amended standards could potentially
have on the values supported by the impacted properties.
2. An Inclusionary Housing Ordinance establishes affordable housing obligations that
will be imposed on residential development. The Financial Evaluation estimates the
difference between the achievable market rate rent or sales price and the allowable
rent or sales price for each “Inclusionary Unit”. This difference Is called the
“Affordability Gap”.
Based on a review of the Housing Element and the current projects listed on the City’s
Development Services webpage, KMA created prototype apartment and ownership
housing developments. The apartment prototypes are described in the following table:
Area / Existing Use
Site Area
(Acres)Total Units
Density
(Units/Acre)
Number of
Stories
Parking
Spaces Per
Unit
DMU Site - Large Development
Improved Commercial Site
DMU Site - Small Development
Improved Commercial Site
Las Tunas / Live Oak Corridor
Vacant Residential Land
1.83
1.00 60 60 4 2.50
Project Descriptions
Apartment Development Prototypes
2.50 200 80 6 1.71
0.75 48 64 6
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The ownership prototypes are described in the following table:
The apartment and ownership housing development prototypes were used to evaluate the
impacts associated with the following development characteristics:
1. Site size;
2. Achievable density;
3. Maximum allowable height;
4. Parking requirements; and
5. Value of the development site:
a. The value supported prior to any amendment to the zoning code standards;
and
b. The value created by the amendment to the zoning code standards.
The Financial Evaluation methodology can be described as follows:
1. KMA undertook market surveys to compile information pertaining to:
a. Land and improved property sales values;
b. Common densities of apartment and ownership housing developments;
Area / Existing Use
Site Area
(Acres)Total Units
Density
(Units/Acre)
Bedroom
Mix
Parking
Spaces Per
Unit
DMU Site 1.50 96 64 2 & 3 1.83
Improved Commercial Site
R-3 Upzone Site 0.60 24 40 2 - 4 2.50
Improved Apartment Site
C-G Residential Flex 1.75 44 25 3 & 4 2.50
Vacant C-G Land
Project Descriptions
Ownership Housing Development Prototypes
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c. Unit mixes in apartment and ownership housing developments; and
d. Apartment rents and ownership housing sales prices.
2. The Housing Element identified density and height standards that would be
appropriate for application in the various rezoning areas. The impacts created by
the application of the California Government Code Section 65915 et seq. (Section
65915) density bonus were also considered in creating the standards applied in this
Financial Evaluation.
3. KMA prepared pro forma analyses to determine the following:
a. The land value supported by a 100% market rate apartment or ownership
housing development.
b. The magnitude of the value enhancement created by the identified
modifications to the zoning code standards.
c. The share of the value enhancement that can reasonably be committed to
the provision of “Inclusionary Units” within a market rate residential
development.
The Financial Evaluation is meant to assist the City in creating an Inclusionary Housing
program that provides sufficient incentives and benefits to offset the impacts created by
the affordable housing requirements being imposed. By definition, a program that is set up
in this manner is not confiscatory and it does not deprive property owners of a fair and
reasonable return on their investment.
E. Preliminary Recommendations
APARTMENT DEVELOPMENT
KMA concluded that the City could reasonably allow apartment developers to select from
the following Inclusionary Housing production options:
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OWNERSHIP HOUSING DEVELOPMENT
The KMA analysis of ownership housing developments identified Affordability Gaps that
range from $549,000 to $1.01 million per moderate income unit. Given the magnitude of
the gaps, the supportable affordable housing requirements are limited. The results of the
KMA analysis are summarized in the following table:
it is KMA’s recommendation that developers be permitted to pay a fee in lieu of producing
affordable ownership housing units. However, if the City chooses to impose an affordable
housing production requirement on ownership housing development, KMA recommends
that it be set at no higher than a 5% moderate income requirement.
Income Categories
Total
Obligation
Very Low Income Only 9%
Low Income Only 14%
Low & Very Low Income 6% + 5% = 11%
Moderate Income Only 20%
Recommended Inclusionary Housing Production Options
Apartment Development
Area
Moderate
Income Units
DMU Site 5.2%
R-3 Upzone Site 4.8%
C-G Residential Flex 9.7%
Supportable Inclusionary Housing Requirements
Ownership Housing Development
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PROGRAM RECOMMENDATIONS
Based on the results of the Financial Evaluation, and in consultation with City staff, KMA
recommends that the following program requirements be enacted:
1. Projects that consist of 10 or more units should be subject to the Inclusionary
Housing program requirements.
2. The following income and affordability covenant periods should be established:
a. Inclusionary Housing apartment units should be required to remain in place
for as long as the property is developed with a residential use, but for not
less than a 55 year period.
b. The covenant period for Inclusionary Housing ownership housing units
should be set at one cumulative 45-year period.
3. The following alternative means of fulfilling the Inclusionary Housing obligations
should be considered:
a. In-lieu fee payments should be allowed in the following situations:
i. An in-lieu fee should be allowed to be paid for any fraction of an
Inclusionary Unit that results from the production calculations.
ii. Inclusionary Housing requirements have a disproportionate impact
on smaller projects, because there are fewer market rate units
available to spread the impact created by the income and
affordability standards. KMA recommends that an in-lieu fee payment
be allowed by right for apartment developments that consist of
between 10 and 20 units.
iii. Ownership housing developments of any size should be provided with
the option to pay a fee in lieu of producing affordable units.
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iv. An in-lieu fee option should be provided to any project where the
developer can prove that the imposition of the Inclusionary Housing
requirements creates an extreme financial hardship.
b. Off-Site Production of Inclusionary Units:
i. KMA recommends that the developers of ownership housing
developments be allowed to fulfill the Inclusionary Housing obligation
in an off-site location.
ii. KMA does not recommend that an off-site production option be
offered as a fulfillment alternative for apartment developments. It is
our opinion that, from a public policy perspective, it is better to
integrate market rate and affordable rental units into the same
project.
c. The City will not receive Regional Housing Needs Assessment (RHNA) credit
for the acquisition and rehabilitation of existing units. As such, KMA
recommends against the City allowing acquisition and rehabilitation
projects to be used to fulfill Inclusionary Housing program requirements.
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II. INCLUSIONARY HOUSING PROGRAM CHARACTERISTICS
A. Survey of Existing Inclusionary Housing Programs
Nearly 200 jurisdictions in California currently include an Inclusionary Housing program as
a component in their overall affordable housing strategy. While the unifying foundation of
these programs is the objective to attract affordable housing development, the
characteristics of these programs vary widely from jurisdiction-to-jurisdiction.
To assist the City in evaluating options for creating an Inclusionary Housing program it is
useful to identify the elements that are typically included in programs being implemented
in California jurisdictions. To that end, KMA compiled information on 105 Inclusionary
Housing programs being implemented throughout California. The survey is presented in
Attachment 1.
The survey results can be summarized as follows:
1. In California, the majority of Inclusionary Housing programs include a threshold
project size below which projects are not subject to the Inclusionary Housing
requirements. Common thresholds found in the survey fall between three and 10
units, with a five unit median threshold and a seven unit average threshold.
2. The income and affordability standards imposed by Inclusionary Housing programs
vary widely throughout California. The majority of programs have established
standards in the range of 10% to 20% of the units in projects that will be subject to
the requirements. However, the following policy variations are commonly found:
a. The threshold standards are varied as a reflection of the depth of the
affordability being required.
b. Inclusionary Housing requirements have a disproportionate impact on
smaller projects, because there are fewer market rate units available to
spread the impact created by the income and affordability standards. As
shown in the survey, a sliding scale requirement is sometimes used to
mitigate these impacts.
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c. The length of the covenant period imposed on Inclusionary Units varies from
jurisdiction-to-jurisdiction. California Health and Safety Code (H&SC)
Section 33413 applies covenant periods of 55 years for apartment units and
45 years for ownership housing units. These standards are commonly used,
but both shorter and longer covenant periods are imposed throughout the
Inclusionary Housing programs in California.
Inclusionary Housing programs focus on the production of affordable housing units by
imposing specific affordable housing requirements on new development. However, an
option for projects to pay a fee in lieu of producing affordable units effectively allows
resources to be transferred to developers that have experience in constructing affordable
housing projects. This is advantageous for the following reasons:
1. Affordable housing developers have specific expertise in the development and
operation of affordable housing projects.
2. Dedicated affordable housing projects have access to state and federal funding
sources that are not available to market rate projects. These funding sources
provide a more cost-efficient way to achieve deeper affordability than can be
supported by an Inclusionary Housing requirement. A representative sample of
programs that are targeted to dedicated affordable housing projects are:
a. Funds allocated to the City by HCD under the Permanent Local Housing
Allocation (PLHA) for Senate Bill 2 (Chapter 364, Statutes of 2017);
b. County funding sources and the Section 8 rental assistance program;
c. State funding sources such as the Infill Infrastructure Grant (IIG), the
Multifamily Housing Program (MHP), the Middle Income Program (MIP), the
Affordable Housing and Sustainable Communities (AHSC) Program, and
Project Homekey; and
d. Federal and state Low-Income Housing Tax Credits (Tax Credits) offered
under Internal Revenue Code Section 42.
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B. State Density Bonus and Inclusionary Housing Requirements
A tool that is commonly used to reduce the financial impact created by the imposition of
Inclusionary Housing requirements is the Section 65915 density bonus. The City has
complied with the statutory requirement to adopt an ordinance that specifies how it will
comply with the State mandated density bonus requirements.
In July 2013, the First District Court of Appeal held that jurisdictions must agree to count
the affordable units used to fulfill Section 65915 affordable housing requirements towards
the Inclusionary Housing requirements that will be imposed on a project.2 Based on that
ruling, a developer must be allowed to use the same affordable units to fulfill both the
Inclusionary Housing requirements and the Section 65915 requirements. However, in
order to exercise this option, the developer must apply the more stringent of the two
programs’ requirements.
C. Structuring Issues
In structuring an Inclusionary Housing program it is important to understand that the
courts and the State Legislature have placed the following key limitations on the
requirements that can be imposed Inclusionary Housing programs.
SAN JOSE CASE
In the San Jose case, the California Supreme Court ruled that Inclusionary Housing
programs should be viewed as use restrictions that are a valid exercise of a jurisdiction’s
zoning powers. Specifically, the Court found that Inclusionary Housing requirements are a
planning tool rather than an exaction. This is interpreted to mean that an in-lieu fee
payment option that is included in an Inclusionary Housing program, which includes an
affordable housing production requirement, is not subject to the AB 1600 nexus
requirements imposed by California Government Code §66000 et seq.
While Inclusionary Housing programs are not subject to the Mitigation Fee Act, these
programs must comply with the following criteria:
2 Latinos Unidos del Valle de Napa y Solano v. County of Napa, 217 Cal. App. 4th 1160 (Napa).
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1. The requirements cannot be “Confiscatory”; and
2. The requirements cannot deprive a property owner of a fair and reasonable return
on their investment.
Since the court did not provide criteria under which jurisdictions can evaluate these
limitations, each jurisdiction is left to create an evaluation methodology. The objective is to
balance the interests of property owners, developers and the jurisdiction’s need for
affordable housing. It is KMA’s practice to take a conservative approach in identifying
requirements that comport with the court’s ruling.
ASSEMBLY BILL 1505
Assembly Bill (AB) 1505 amended Section 65850 of the California Government Code and
added Section 65850.01. This legislation provides jurisdictions with the ability to adopt
programs that impose Inclusionary Housing requirements on apartment developments.
Section 65850.01 does not place a cap on the percentage of units that can be subject to
income and affordability restrictions. However, Section 65850.01(a) gives HCD the
authority to review the restrictions imposed by an Inclusionary Housing program on
apartment developments if it requires that more than 15% of the units to be restricted to
households earning less than 80% of the area median income (AMI), and if one of the
following conditions applies:
1. The jurisdiction has failed to meet at least 75% of its RHNA allocation for above
moderate income units. This test is measured on a pro-rated basis over the
planning period, which is set at a minimum of five years; or
2. HCD finds that the jurisdiction has not submitted their Housing Element report for
at least two consecutive years.
The City has fulfilled the requirements imposed by both of the standards identified above.
As such, HCD does not have authority under Section 65850.01(a) to review the
Inclusionary Housing requirements the City proposes to impose on apartment
development. However, in a technical guidance memorandum dated October 21, 2019,
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HCD reaffirmed its authority to review Inclusionary Housing ordinances as part of its
review of a jurisdiction’s Housing Element.
CALIFORNIA GOVERNMENT CODE SECTION 65583(A)
California Government Code Section 65583(a) (Section 65583(a)) requires the City to
analyze potential and actual constraints being placed on the development of housing.
HCD has the discretion to require the City to demonstrate that the Inclusionary Housing
requirements do not create a constraint to housing development.
Section 65583(a) requires the City to analyze potential and actual constraints being placed
on the development of housing. Within that context, it is important to recognize that the
requirements imposed by an Inclusionary Housing program can only be expected to fulfill a
small portion of the unmet need for affordable housing in Arcadia.
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III. METHODOLOGY
The purpose of the Financial Evaluation is to evaluate the financial feasibility of imposing
Inclusionary Housing requirements on residential development in Arcadia. The financial
feasibility analysis is comprised of the following steps:
A. Parameters
As the first step in the evaluation process, it is necessary to identify the parameters that
will be applied in the analysis. One measurement is the RHNA, which is used as a tool in
the Housing Element process. The Sixth Cycle RHNA Allocation Plan covers the period
between 2021 and 2029, and the Arcadia allocations are detailed in the following table:
Sixth Cycle RHNA Allocation
October 2021 through October 2029
Income Category Total Obligation % of Total
Extremely Low / Very Low 1,102 34.3%
Low 570 17.7%
Moderate 605 18.8%
Above Moderate 937 29.2%
Totals 3,214 100%
Notable factors to be considered are:
1. Nearly 30% of the unmet need for affordable housing falls in the above moderate
income category. Based on historical development patterns it can be assumed that
these units will be produced by market rate developers without City intervention.
2. Outside financial assistance sources are widely available to affordable housing
projects targeted to extremely low and very low income households. There are
numerous nonprofit housing organizations in the region that have experience
obtaining these funding sources.
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3. There are a limited number of outside funding available to assist low income units
and effectively no outside funding sources available to assist moderate income
units.
For these reasons it is KMA’s opinion that the Inclusionary Housing Program should focus
on attracting development that serves households at the low and moderate income levels.
In addition, the Inclusionary Housing program should balance the interests of property
owners and developers against the public benefit created by the production of affordable
housing units.
B. Program Foundation
The courts have held that affordable housing is a “public benefit,” and that locally imposed
Inclusionary Housing programs are a legitimate means of providing this public benefit. The
courts have tempered this with the requirement that the Inclusionary Housing obligations
cannot be confiscatory, and they cannot deprive a property owner of a fair and reasonable
return on their investment.
Recognizing that the courts have not provided guidance for determining how these
limitations should be measured, it is left to the City to create a methodology for evaluating
the financial impacts created by proposed Inclusionary Housing requirements. It is the
City’s goal to create an Inclusionary Housing program that provides meaningful incentives
and benefits that will encourage developers to produce affordable housing units.
C. Financial Evaluation Structure
The KMA financial analyses components are described in the following sections of this
report.
DEVELOPMENT PROTOTYPES
KMA reviewed the Housing Element and compiled data pertaining to recent apartment and
ownership development that has occurred in Arcadia. This information was used to create
prototype residential developments to be evaluated. It is important to understand that the
prototypes used in the Financial Evaluation do not represent actual projects. Instead, the
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prototypes represent composites of projects that have recently been developed or
proposed for development and the results of KMA market surveys.
PRO FORMA ANALYSES
KMA prepared pro forma analyses to determine the following:
1. The land value supported by a 100% market rate apartment or ownership housing
development.
2. The magnitude of the value enhancement created by the modifications to the
zoning code standards.
3. The share of the value enhancement that can reasonably be committed to the
provision of Inclusionary Units within the residential development.
The results of the pro forma analyses were used to identify the range of Inclusionary
Housing production requirements that can be supported.
D. Financial Analysis Organization
The following sections of the Financial Evaluation describe the assumptions, analysis and
findings related to apartment and ownership housing developments. The analyses are
supported by the following Attachments:
Financial Analysis Organization
Attachment 2: Property Sales Surveys
Attachment 3: Affordable Housing Cost Calculation Methodologies
Attachment 4: Apartment Development
Attachment 5: Ownership Housing Development
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IV. APARTMENT DEVELOPMENT ANALYSIS
KMA created three prototype apartment development scenarios that were used to evaluate
the impacts created by variations in site sizes and densities of the project types
anticipated to be developed in Arcadia. The characteristics of the apartment development
prototypes are described in the following table:
A. Pro Forma Organization and Assumptions
MARKET RATE SCENARIOS
The 100% market rate apartment development prototypes are used to estimate the value
enhancement created by the proposed changes to the zoning code in the rezoning areas.
The pro forma analyses are organized as follows:
Pro Forma Analysis - 100% Market Rate Scenario
Apartment Development Prototypes
Table 1: Estimated Construction Costs
Table 2: Estimated Stabilized Net Operating Income
Table 3: Estimated Residual Land Value
Table 4: Target Residual Land Value Analysis
Area / Existing Use
Site Area
(Acres)Total Units
Density
(Units/Acre)
Number of
Stories
Parking
Spaces Per
Unit
DMU Site - Large Development
Improved Commercial Site
DMU Site - Small Development
Improved Commercial Site
Las Tunas / Live Oak Corridor
Vacant Residential Land
1.83
1.00 60 60 4 2.50
Project Descriptions
Apartment Development Prototypes
2.50 200 80 6 1.71
0.75 48 64 6
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AFFORDABLE HOUSING SCENARIOS
To assist in establishing the Inclusionary Housing production requirements that can be
supported, KMA created the following affordability scenarios:
1. A low income scenario;
2. A very low income scenario;
3. A scenario that includes a mix of low and very low income units;
4. A moderate income scenario; and
5. A Section 65915 density bonus scenario.
KMA prepared sensitivity analyses for each scenario to identify the percentage of
affordable housing units that could be supported by the enhanced value created by the
zoning code modifications. The pro forma analyses for the affordable housing scenarios
are organized as follows:
Pro Forma Analysis – Affordable Housing Scenarios
Apartment Development Prototypes
Table 1: Estimated Construction Costs
Table 2: Estimated Stabilized Net Operating Income
Table 3: Estimated Residual Land Value
DEVELOPMENT CHARACTERISTICS
The apartment development pro forma analyses are provided in Attachment 4. The primary
characteristics of the three apartment development prototypes are summarized in the
following table:
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DMU Site -
Large
Development
DMU Site -
Small
Development
Las Tunas /
Live Oak
Corridor
Site Area
Square Feet 108,900 32,670 43,560
Acres 2.5 0.8 1.0
Density (Units/Acre) 80 64 60
Number of Stories 6 6 4
Unit Mix
Studio Units 50 12
One-Bedroom Units 100 24 30
Two-Bedroom Units 50 24 18
Total Units 200 48 60
Gross Leasable Area
Square Feet 155,000 45,600 47,700
Per Unit 775 950 795
Parking Spaces Per Unit 1.71 1.83 2.50
Total $74,380,000 $20,740,000 $25,038,000
Per Unit $372,000 $432,000 $417,000
Per Square Foot of Leasable Area $480 $455 $525
Studio Units $2,440 $2,660
One-Bedroom Units $2,960 $3,010 $2,960
Two-Bedroom Units $3,900 $3,900 $3,540
Very Low
Income Rents
Low Income
Rents
Moderate
Income Rents
Studio Units $768 $1,284 $1,800
One-Bedroom Units $861 $1,450 $2,039
Two-Bedroom Units $952 $1,615 $2,278
Projected Market Rents
Affordable Rents
Development Characteristics
Apartment Development Prototypes
Prototype Descriptions
Estimated Construction Costs
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B. Residual Land Value Analyses: Market Rate Scenarios
The residual land value estimates generated by the pro forma analyses of the unrestricted
market rate apartment prototypes are presented in the following table:
C. Funds Available for Inclusionary Housing
The funds available for Inclusionary Housing are set at a percentage share of the value
enhancement estimated to be achieved by the modifications to the zoning code that are
being considered. The results of the analyses are presented in the following table:
D. Supportable Inclusionary Housing Requirements
The Inclusionary Housing requirements for apartment development that are supported by
the Financial Evaluation are presented in the following tables:
Area / Existing Use Total Per Unit Stabilized NOI Total
Per Square
Foot
DMU Site - Large Development
Improved Commercial Site
DMU Site - Small Development
Improved Commercial Site
Las Tunas / Live Oak Corridor
Vacant Residential Land
Residual Land Value
$24,840,000
$6,460,000
$4,842,000
Estimated Residual Land Values
100% Market Rate Apartment Development Prototypes
Construction Costs
$228
$198
$111
$20,740,000 $432,000 $1,360,000
$25,038,000 $417,000 $1,494,000
$74,380,000 $372,000 $4,961,000
Area / Existing Use
Market Rate
Apartments -Existing Use=
Value
Enhancement
Percentage
Share
Total
Contribution
DMU Site - Large Development
Improved Commercial Site
DMU Site - Small Development
Improved Commercial Site
Las Tunas / Live Oak Corridor
Vacant Residential Land
65%
65%
65%
Funds Available for Inclusionary Housing
Apartment Development Prototypes
Estimated Land Value
$12,524,000 = $12,316,000$24,840,000 -
Contribution
$8,005,000
$6,460,000 - $3,757,000 = $2,703,000 $1,757,000
$4,842,000 - $4,351,000 = $491,000 $319,000
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As can be seen in the preceding tables, the prototypes located in the Downtown Mixed Use
area support significantly higher Inclusionary Housing requirements than can be
supported by the Las Tunas / Live Oak Corridor prototype. The primary reason for this
difference is that projects located within the Downtown Mixed Use area are subject to
significantly lower parking ratio requirements than are imposed elsewhere within Arcadia.
The impact created by the parking requirements is further validated by the Section 65915
density bonus analyses that KMA prepared for each apartment development prototype.
The results of the Section 65915 analyses can be summarized as follows:
1. In the Downtown Mixed Use area the use of the maximum 50% Section 65915
density bonus did not enhance the project economics sufficiently to support the
requirement to allocate 15% of the base zoning units to very low income
households. However, it is possible that some developers may choose to apply a
Area
Very Low Income
Units OR
Low Income
Units OR
Moderate
Income Units
DMU Site - Large Development 11% 15% 23%
DMU Site - Small Development 9% 14% 16%
Las Tunas / Live Oak Corridor 0% 2% 3%
Supportable Inclusionry Housing Requirements
Single Income Category Analyses
Apartment Development Prototypes
Area
Low Income
Units +
Very Low
Income Units =
Total
Obligation
DMU Site - Large Development 7% + 6% = 13%
DMU Site - Small Development 6% + 5% = 11%
Las Tunas / Live Oak Corridor 2% + 0% = 2%
Supportable Inclusionry Housing Requirements
Mix of Income Categories Analyses
Apartment Development Prototypes
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lower density bonus threshold in order to obtain the incentives, concessions and
development standards waivers provided by Section 65915(d)(1) and Section
65915(e)(1).
2. The reduced parking ratios mandated by Section 65915(p) enhanced the project
economics for the Las Tunas / Live Oak Corridor sufficiently to support a 15% very
low income requirement. However, it is important to understand that a density
bonus cannot be used efficiently on all development sites. This is particularly an
issue for small development sites or for projects in which increased density would
require a more expensive construction or parking type.
Based on all the factors considered in the apartment developments evaluation, KMA
recommends that the City provide a menu of Inclusionary Housing production options
from which developers can select. The recommended array of options is presented in the
following table:
Income Categories
Total
Obligation
Very Low Income Only 9%
Low Income Only 14%
Low & Very Low Income 6% + 5% = 11%
Moderate Income Only 20%
Recommended Inclusionary Housing Production Options
Apartment Development
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V. OWNERSHIP HOUSING ANALYSES
Given the densities allowed in the rezoning areas, ownership housing development is
anticipated to be focused on townhomes and condominiums. The characteristics of the
ownership housing development prototypes are described in the following table:
A. Pro Forma Organization and Assumptions
MARKET RATE SCENARIOS
As the first step in the analysis, 100% market rate ownership development prototypes are
used to estimate the value enhancement created by the proposed changes to the zoning
code in the rezoning areas. The pro forma analyses are organized as follows:
Pro Forma Analysis - 100% Market Rate Scenario
Ownership Housing Development Prototypes
Table 1: Estimated Construction Costs
Table 2: Projected Net Sales Revenue
Table 3: Estimated Residual Land Value
Table 4: Value Enhancement Analysis
Area / Existing Use
Site Area
(Acres)Total Units
Density
(Units/Acre)
Bedroom
Mix
Parking
Spaces Per
Unit
DMU Site 1.50 96 64 2 & 3 1.83
Improved Commercial Site
R-3 Upzone Site 0.60 24 40 2 - 4 2.50
Improved Apartment Site
C-G Residential Flex 1.75 44 25 3 & 4 2.50
Vacant C-G Land
Project Descriptions
Ownership Housing Development Prototypes
Inclusionary Housing: Financial Evaluation Page 24
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
AFFORDABLE HOUSING SCENARIOS
The condominium / townhome sales prices identified in the KMA market survey range from
a low of approximately $710,000 for two-bedroom units to a high of approximately $1.65
million for four-bedroom units. The cost to a developer of providing affordable units is
equal to the Affordability Gap between the achievable market rate price and the defined
affordable price.
For context purposes, the following table summarizes the current “Affordable Sales
Prices” for moderate and low income ownership housing units:3
Given the magnitude of the differences in the Affordable Sales Prices, KMA recommends
that the Inclusionary Housing requirement be set at the moderate income level. This will
maximize the number of affordable ownership housing units that are produced, while
minimizing the Affordability Gaps between the market rate sales prices and the Affordable
Sales Prices. The Affordability Gap analyses are presented in Exhibit II of Appendices C – E
of Attachment 5.
DEVELOPMENT CHARACTERISTICS
The ownership housing development pro forma analyses are provided in Attachment 5. The
primary characteristics of the three ownership housing development prototypes are
summarized in the following table:
3 The Affordable Sales Price calculation methodology is described in Attachment 3: Appendix B and the
Affordable Sales Price calculations are detailed in Attachment 5: Appendix B.
Moderate
Income Units
Low Income
Units
Two-Bedroom Units $313,200 $135,800
Three-Bedroom Units $345,300 $148,100
Four-Bedroom Units $366,600 $153,700
Affordable Sales Prices
Ownership Housing Development
Inclusionary Housing: Financial Evaluation Page 25
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
B. Residual Land Value Analyses: Market Rate Scenarios
The residual land values generated by the market rate ownership housing developments
are:
DMU Site R-3 Upzone Site
C-G Residential
Flex
Site Area
Square Feet 65,340 26,136 76,230
Acres 1.5 0.6 1.8
Density (Units/Acre) 64 40 25
Unit Mix
Two-Bedroom Units 48 4 0
Three-Bedroom Units 48 14 22
Four-Bedroom Units 0 6 22
Total Units 96 24 44
Gross Saleable Area
Square Feet 120,000 39,000 81,400
Per Unit 1,250 1,625 1,850
Parking Spaces Per Unit 1.83 2.50 2.50
Total $58,393,000 $18,115,000 $35,301,000
Per Unit $608,000 $755,000 $802,000
Per Sf of Gross Saleable Area $487 $464 $434
Market Rate Sales Price Per Unit
Two-Bedroom Units $707,000 $836,000
Three-Bedroom Units $1,049,000 $1,199,000 $1,274,000
Four-Bedroom Units $1,384,000 $1,457,000
Moderate Income Sales Prices
Two-Bedroom Units $313,200
Three-Bedroom Units $345,300
Four-Bedroom Units $366,600
Net Revenue $79,652,000 $26,870,000 $56,778,000
Development Characteristics
Ownership Housing Development Prototypes
Prototype Descriptions
Estimated Construction Costs
Projected Sales Prices
Inclusionary Housing: Financial Evaluation Page 26
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
C. Funds Available for Inclusionary Housing
The funds available for Inclusionary Housing are set at a percentage share of the value
enhancement estimated to be achieved by the modifications to the zoning code that are
being considered. The results of the analyses are presented in the following table:
D. Affordability Gap Analyses
The weighted average Affordability Gaps exhibited by the ownership housing development
prototypes are presented in the following table:
Area / Existing Use Total Per Unit
Average Sales
Price Per Unit Total
Per Square
Foot
DMU Site
Improved Commercial Site
R-3 Upzone Site
Improved Apartment Site
C-G Residential Flex
Vacant C-G Land
Estimated Residual Land Values
100% Market Rate Ownership Housing Development Prototypes
Construction Costs Residual Land Value
$58,393,000
$18,115,000
$35,301,000
$608,000
$755,000
$802,000
$878,000
$1,185,000
$1,366,000
$11,701,000
$6,068,000
$15,799,000
$179
$232
$207
Area / Existing Use
Market Rate
Units -Existing Use=
Value
Enhancement
Percentage
Share
Total
Contribution
DMU Site
Improved Commercial Site
R-3 Upzone Site
Improved Apartment Site
C-G Residential Flex
Vacant C-G Land
Funds Available for Inclusionary Housing
Ownership Housing Development Prototypes
Estimated Land Value Contribution
$6,068,000 - $4,574,000 = $1,494,000 65% $971,000
$15,799,000 - $9,148,000 $6,651,000 65% $4,323,000
65% $2,722,000$11,701,000 - $7,514,000 = $4,187,000
=
Inclusionary Housing: Financial Evaluation Page 27
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
As shown in the preceding table, the gaps between the average market rate prices for new
condominium / townhome development and the designated Affordable Sales Prices range
from $549,000 to $1.01 million per unit. Affordability Gaps of this magnitude severely limit
the percentage of units that can be required to be sold to moderate income households.
E. Supportable Inclusionary Housing Requirements
The preceding section of the Financial Evaluation used pro forma analyses of prototype
ownership housing developments to assist in identifying the Inclusionary Housing
requirements that can currently be supported. The resulting supportable requirements are
summarized in the following table:
Area / Existing Use
Average Sales
Price Per Unit -
Average
Moderate
Income Price =
Affordability
Gap
DMU Site
Improved Commercial Site
R-3 Upzone Site
Improved Apartment Site
C-G Residential Flex
Vacant C-G Land $1,010,000
$549,000
$1,185,000 - $345,000 = $840,000
$878,000 - $329,000 =
$1,366,000 - $356,000 =
Weighted Average Affordability Gap Per Unit
Ownership Housing Development
Area
Moderate
Income Units
DMU Site 5.2%
R-3 Upzone Site 4.8%
C-G Residential Flex 9.7%
Supportable Inclusionary Housing Requirements
Ownership Housing Development
Inclusionary Housing: Financial Evaluation Page 28
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F. Recommended Inclusionary Housing Production Requirements
Given the magnitude of the Affordability Gaps associated with new ownership housing
units it is KMA’s recommendation that developers be permitted to pay a fee in lieu of
producing affordable housing units. However, if the City chooses to impose an affordable
housing production requirement on ownership housing development, KMA recommends
that it be set at no higher than a 5% moderate income requirement.
Inclusionary Housing: Financial Evaluation Page 29
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
VI. FINDINGS / RECOMMENDATIONS
This section of the report summarizes the results of the Financial Evaluation. KMA used the
analysis findings to assist in developing a recommended package of requirements to be
imposed by the Inclusionary Housing program.
A. Inclusionary Housing Production Requirements
APARTMENT DEVELOPMENT
Based on the results of the Financial evaluation, KMA recommends that following menu of
Inclusionary Housing production options be offered to apartment developers:
OWNERSHIP HOUSING DEVELOPMENT
The results of the Financial Evaluation indicate that a 5% moderate income production
requirement could reasonably be imposed on ownership housing developments. However,
KMA recommends that developers be permitted to pay a fee in lieu of producing affordable
housing units. The revenues generated by the in-lieu fee could be used to assist developers
that produce affordable rental units using available outside public assistance sources.
Income Categories
Total
Obligation
Very Low Income Only 9%
Low Income Only 14%
Low & Very Low Income 6% + 5% = 11%
Moderate Income Only 20%
Recommended Inclusionary Housing Production Options
Apartment Development
Inclusionary Housing: Financial Evaluation Page 30
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
B. Program Recommendations
THRESHOLD PROJECT SIZES
The KMA survey of Inclusionary Housing programs being implemented throughout
California indicates that common thresholds fall between three and 10 units. Based on the
supportable Inclusionary Housing production requirements identified in this Financial
Evaluation, KMA recommends that the City set the threshold project size at 10 units.
COVENANT PERIODS
KMA recommends that the following covenant period requirements be imposed:
1. Inclusionary Housing apartment units should be required to remain in place for as
long as the property is developed with a residential use, but for not less than a 55
year period.
2. The covenant period for affordable ownership housing units should be set at one
cumulative 45-year period.
ALTERNATIVE MEANS OF FULFILLING INCLUSIONARY HOUSING OBLIGATIONS
AB 1505 includes a provision that requires jurisdictions to provide alternative means of
complying with the income and affordability requirements imposed by an Inclusionary
Housing program. 4 In collaboration with City staff, KMA offers the following
recommendations pertaining to alternative means of fulfilling the Inclusionary Housing
program obligations.
In-Lieu Fee Payment
Some form of an in-lieu fee payment option is offered in nearly all Inclusionary Housing
programs. KMA recommends that the following alternatives be considered:
4 AB 1505 only applies the restrictions imposed on apartment development. However, the provision of
alternative means of compliance is a best practice and is commonly provided to ownership housing
development as well.
Inclusionary Housing: Financial Evaluation Page 31
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
1. An in-lieu fee should be allowed to be paid for any fraction of an Inclusionary Unit
that results from the production calculations.
2. The following in-lieu fee payment options should be offered to proposed apartment
development:
a. Inclusionary Housing requirements have a disproportionate impact on
smaller projects, because there are fewer market rate units available to
spread the impact created by the income and affordability standards. KMA
recommends that an in-lieu fee payment be allowed by right for apartment
developments that consist of between 10 and 20 units.
b. As a baseline, apartment developments with more than 20 units should be
required to produce the requisite number of Inclusionary Units. However, the
City Council should be provided with the discretion to allow an in-lieu fee to
be paid for apartment projects with more than 20 units if the developer can
prove that the obligation creates an extreme financial hardship.
3. Ownership housing developments of any size should be provided with the option to
pay a fee in lieu of producing affordable units.
Offsite Production of Inclusionary Units
1. KMA recommends that the developers of ownership housing developments be
allowed to fulfill the Inclusionary Housing obligation in an off-site location. The off-
site location should be in close proximity to the development that is subject to the
Inclusionary Housing requirement.
2. KMA recommends against allowing an off-site production option to be offered as a
fulfillment alternative for apartment developments. It is our opinion that, from a
public policy perspective, it is better to integrate market rate and affordable rental
units into the same project.
Inclusionary Housing: Financial Evaluation Page 32
Keyser Marston Associates, Inc. 2502014.ARC / 10200.008.001 February 18, 2025
Acquisition and Rehabilitation of Existing Units
Acquisition and rehabilitation projects must be identified in a jurisdiction’s Housing
Element in order to receive RHNA credit. Since no acquisition and rehabilitation projects
were identified in the City’s Housing Element, it will not be possible for the City to obtain
RHNA credit for this type of project during the sixth cycle, which runs through 2029.
C. Implementation Recommendations
As part of the implementation process for the Inclusionary Housing program KMA
recommends that the City take the following actions:
AFFORDABLE HOUSING REGULATIONS
The following Inclusionary Housing Ordinance regulations documents should be created:
1. Affordable Apartment Regulations; and
2. Affordable Ownership Housing Regulations: Developer Requirements.
INCLUSIONARY HOUSING PROGRAM UPDATES
The Inclusionary Housing program should be updated at regular intervals:
1. The entire program should be re-evaluated at least every five years. The City may
wish to consider a shorter period for the first program re-evaluation.
2. To allow in-lieu fees to keep pace with changes in the market place during the
intervening periods, the in-lieu fees should continue to be adjusted each year based
on the percentage change in new home prices in Los Angeles County.
STAFFING PLAN
A staffing plan should be created for managing the development process and the ongoing
monitoring of the affordable units once they are built.
ATTACHMENT 1
INCLUSIONARY HOUSING PROGRAM SURVEYS
ARCADIA, CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey Page 1 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
I. Inclusionary Requirements: Both Rental and Ownership Projects
Agoura Hills
Create on-site units; pay an in-lieu fee for the required Low
and/or Moderate Income Units. In-lieu fee cannot be paid to
fulfill the very low income requirement.
15% No 10
7% @ VL + 4% @
Low + 4% @ mod 55 10
7% @ VL + 4% @
Low + 4% @ mod 45
Alameda Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 5
4% @ VL + 4% @
Low + 7% @ Mod 59 5
4% @ VL + 4% @
Low + 7% @ Mod 59
Albany Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% Yes 5 Perpetual 5 Perpetual
Alhambra
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
6% at 120% AMI+
9% at 80% AMI 5 6% at 120% AMI+
9% at 80% AMI
Avalon Create on-site units; create off-site units; pay in-lieu fee. Full sch 20% No 4
Decided per
project 55 4
Decided per
project 55
Berkeley Create on-site units; pay in-lieu fee. 20% No 5
80% unless
subsidies are
available
Life of the
Building 5 80%
Life of the
Building
Brea
On-site units; pay in-lieu fee; land dedication; acquisition and
conversion of other units within city. City provides incentives
to mitigate the impact of the requirement.
10% Yes 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
55 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
45
Burbank
Create on-site units; create off-site units through new
construction, substantial rehabilitation, or adaptive reuse;
donate land; pay in-lieu fee.
15% No 5
5% @ Very Low +
10% @ Low
> of 55 years
or as long as
resid use
5Mod
> of 55 years
or as long as
resid use
Calabasas Create on-site units; create off-site units; convert market rate
units; preserve or rehab existing housing; pay in-lieu fee.20% No 5
20% @ 110%; 15%
@ 90%; 10% @
75%; or 5% at 50%
5
20% @ 110%; 15%
@ 90%; 10% @
75%; or 5% at 50%
of AMI
Campbell Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% No 10
6% @ VL + 9% @
Low 55 10 120% 45
Capitola Create on-site units; pay in-lieu fee. 15% Yes 7 120% Life of Bldg
Carlsbad
Create units; pay in-lieu fee. Reduced requirement is
provided if the affordable units are set at very low or extremely
low income.
15% No 1 Low 55 1 Low 30
Rental Development Ownership Development
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 2 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Chula Vista
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area
west of I-805 identified as "Area of Low/Moderate Income
Concentration".
10% No 20
5% @ Low + 5% @
Mod Life of Bldg 20
5% @ Low + 5% @
Mod Life of Bldg
Colma Create on-site units; pay in-lieu fee. 20% No 5
5% @ VL + 5% @
Low + 10% @ Mod 55 5
5% @ VL + 5% @
Low + 10% @ Mod 45
Concord Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee.10% Yes 5 55 5 45
Contra Costa County
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
3% @ VL + 12% @
Lower 53
Coronado
Create units; pay in-lieu fee. Reduced requirement is
provided if the affordable units are set at very low or extremely
low income.
20% No 2 Low 2 Mod
Cupertino 1-7 units pays in-lieu fee. Create on-site units; create off-site
units; pay impact/linkage fee; donate land.15% No 7 50% / 80% 99 7 50% /120% 99
Davis Create on-site units; preserve or rehab existing housing; pay
in-lieu fee; donate land.10% - 25% No 5-19 , 20+
5-19: 15% @ 80%
or 10% @ 50%.
20+: 25% @ 80%
or 10% @ 50%
Perpetual 5 120% Perpetual
Del Mar Create on-site units. In-lieu fee option provided for
subdivisions that create new lots.15% - 20% No 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55
Downey Create on-site units; create off-site units; pay in-lieu fee in the
case of extreme hardship for apartments.11%/10% No Mod
> of 55 years
or as long as
resid use
Mod 45
Dublin
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
12.5% No 20
50% @ 120% +
20% @ 80% + 30%
@ 50%
55 20
5% @ 80% + 7.5%
@ 120%55
Emeryville Create on-site units; pay impact/linkage fee. 12%/20% No
4% @ VL + 8% @
Low 55 10 55
Encinitas Create on-site units; create off-site units; create ADU's;
preserve at-risk units; pay in-lieu fee; donate land.15%/20% No 7
15% @ VL or 20%
@ Low Perpetual 7
15% VL or 20% @
Low Perpetual
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 3 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Fillmore Create on-site units; create off-site units; pay in-lieu fee;
donate land.15% No 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
55 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
45
Fremont Has a production option, but the in-lieu fee option is more
cost effective.15% No 2 10% @ Low 2
5% @ Mod + 10%
@ Low
Fort Bragg Create on-site units 10% to 20% 5 80% / 120% 5 100% /120% 15
Goleta
Create on-site units; create off-site units; donate land; pay in-
lieu fee; acquisition/rehabilitation. Income/Affordability trade
off of extremley low and very low income units to low and
moderate income units in demonstrated extreme hardship.
20% -
reduced to
15% with
public
benefit
No 5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
Hayward Create on-site units; create off-site units; pay in-lieu fee; pay
impact/linkage fee; donate land.
6% / 7.5% -
10%No 2
3% @ 50% + 3% @
60%55 2 Mod 45
Huntington Beach Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 3 Low 55 3 Mod 45
Irvine
Projects with fewer than 50 units can create on-site units;
convert market rate housing to affordable housing; extend the
term of an existing affordable project; pay in-lieu fee; transfer
units to a nonpfot housing agency; create off-site units;
donate land. Projects with 50+ units must produce the
affordable units on site.
15% No
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30 50
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Jurupa Valley
Create on-site units; create off-site units; pay in-lieu fee;
convert market rate units to affordable units; preserve at-risk
housing; donate land.
7% No 1
25% Mod + 25%
Low + 50% VL 55 1
25% Mod + 25%
Low + 50% VL 45
Laguna Beach Create on-site units; pay in-lieu fee. 25% No
2-subdivision
3-other Low and Moderate 2-subdivision
3-other Low and Moderate
Laguna Woods
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
7.5% @ VL + 7.5%
@ Low 45 5
10% @ Low + 5%
@ Mod 45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 4 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
La Habra Create on-site units; create off-site units; pay in-lieu fee;
acquisition/rehabilitation.
Rental: 9%
or 6% /
Own: 15%
No 10
9% @ Mod or 6%
@ VL & Low 55 10 110% 45
Long Beach Create on-site units; pay in-lieu fee; donate land. 11%/10% No 10 50%
> of 55 years
or as long as
resid use
10 110%
> of 55 years
or as long as
resid use
Los Altos Create on-site units; create off-site units. Program
requirements are only imposed in designated areas.
Rental: 5-9
@ 15% &
10+ @ 30%.
Ownership
@ 15%
No 5
5-9: 15% @ Mod,
10+: 5% @ Low +
15% @ Mod
30 10
7.5% @ Mod, 7.5%
@ Low 30
Los Angeles County Create on-site units; create off-site units. Program
requirements vary by subarea.
5%-20%
depending
on project
size &
income
standard
No 5
Averages:
<40% AMI: 10% or
5% - sm proj
<65% AMI: 15% or
7% - sm proj
<80% AMI: 20% or
10% sm proj
55 or
Perpetual 5
Mod/Middle Inc:
Avg 135% AMI:
Coastal SLA, SLA
(exc condos), &
ELA: 20% or 10% -
sm proj
SG Valley: 15% or
7% - sm proj
Santa Clarita &
Antelope Valleys
(exc condos): 5%
Equity share
on first sale
Menlo Park Create on-site units; create off-site units; pay in-lieu fee. Full sch 10% Yes 5 80% /120% 5 80% /120%
Mill Valley Create on-site units. 25% Yes 4 120% Perpetual 4 120% Perpetual
Mission Viejo Create on-stie units; create off-site units; pay in-lieu fee;
donate land.15% No
1 /
Projects with 9
or fewer units
produce 1
ADU
7.5% VL + 7.5%
Low 55
1 /
Projects with
9 or fewer
units
produce 1
ADU
10% Mod + 5%
Low 45
Nevada County Create on-site units; create off-site units Program
requirements are only applied in designated areas.No 20 30 20 30
Norco Create on-site units; create off-site units; pay in-lieu fee for
projects with 20 or fewer units; donate land.15% No 5
6% Mod+9% Low
Credits for deeper
affordability
Perpetual 5
6% Mod+9% Low
Credits for deeper
affordability
45%
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 5 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Oceanside
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land; purchase
credits from another project.
15% No 10 Low 55 10 Low or Mod 55
Oxnard Create on-site units; create off-site units; pay in-lieu fee in
limited circumstances.10% No 10
5% @ VL + 5%
Low 55 10 Low 20
Pacifica
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 8
6% @ VL + 4.5% @
Low + 4.5% @
Mod
55 8 45
Pasadena
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area
west of I-805 identified as "Area of Low/Moderate Income
Concentration".
20% No 10
5% @ 50% + 5% @
80% + 10% @
120%
Perpetual 10 110% 45
Petaluma Create on-site units; pay in-lieu fee; donate land 15% No 5
7.5% @ VL; 7.5%
@ Low 45 5
7.5% @ Low +
7.5% @ Mod 55
Pleasanton
Create on-site units; create off-site units; pay in-lieu fee;
donate land; credit transfers; other alternate methods of
compliance
15% Yes 15 50% to 80% 15 50% to 120% Perpetual
Pomona
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
13% / 7%-
11%Yes 3 120%
> of 55 years
or as long as
resid use
3 120% 45
Poway
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
15% / 15%-
20%No 1 Very Low 55 1
15% @ Low or
20% @ Mod 45
Redwood City Create on-site units; create off-site units; preserve or rehab
units; pay impact/linkage fee; donate land 20% / 15% No 20
10% @ Mod + 5%
@ Low + 5% @ VL 30 5 Moderate 30
Sacramento County Has a production option, but the in-lieu fee option is more
cost effective.10% No 1 80% 1 80%
San Bruno Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area 15% No 10
6% VL + 4.5% Low
+ 4.5% Mod 55 10 6% Low + 9% Mod 45
San Buenaventura Create on-site units; create off-site units; pay in-lieu fee;
preserve or rehab existing housing; donate land.15% / 10% No 7 Low 55 7 Mod 45
San Clemente Create on-site units; create off-site units, pay in-lieu fee;
donate land.4% No 6 Very Low 30 6 Very Low 30
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 6 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
San Diego
Create on-site units; create off-site units; rehabilitate existing
units, SRO hotel rooms, or conversion of guest rooms; pay in-
lieu fee; donate land.
5% to 20%
depending
on location
No 10
Outside FUA: 10%
@ 60%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
55 10
Outside FUA: 10%
@ 100% or
15% @120%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
15
San Francisco
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
15% to 20%
/ 15% to
26%
Yes 10 55% to 110% 10 80% to 130%
San Jose
Create on-site units; create off-site units; preserve or rehab
units; in-lieu fee; donate land; credit transfers; reduction for
deeper affordability.
15% Yes 10
5% @50% + 5% @
60% + 5% @ 100%99 10 120% 99
San Juan Capistrano Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 2 55 2 120% 55
San Luis Oblspo (City)Create on-site units; pay an in-lieu fee to fulfill the entire
oblgiation and pay an in-lieu fee for fractional unit obligations.6% / 10% No 1
5% Very Low +
5% Low 55 1
5% Low +
5% Moderate 45
San Marcos
Create on-site, create off-site units for ownership housing
projects; pay an in-lieu fee for six or fewer rental unit projects
and for all ownership housing projects.
15% No 1
Hhld income set
by the City.
<=25% of the
affordable units
may be Mod.
55 1
Requirement is
set by the City on
a project by
project basis
55
San Mateo County Create on-site units, pay in-lieu fee. 20% Yes 5
10% @ ELI + 10%
@ Low Life of Bldg 11
10% @ Low + 10%
@ Mod 45
San Rafael Create on-site units; pay in-lieu fee. City provides incentives
to mitigate the impact of the requirement.10% No 2 2 120%
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 7 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Santa Ana
Only applies to changes in land use and zoning designations.
Create on-site units; off-site units; substantially rehab
existing units; pay in-lieu fee.
Rental: 5% -
15% & Own:
5%
No 5
15% @ Low or
10% @ VL or 5% @
ELI or 5% Low +
3% VL +2% ELI
55 5 120% 55
Santa Barbara (City)Create on-site units; create off-site units; pay in-lieu fee for 1
to 9 & fractional units; donate land.10% / 15% No 5 Mod 90 1 120% to 200%
90 / restarts
on each
resale
Santa Clara (City)Create on-site units; create off-site units; dedicate land; pay
an in-lieu fee for fractional unit obligations.15% No 10
Mix of ELI, VL, Low
& Mod. Must
average less than
100% of AMI
55 10
Mix of ELI, VL, Low
& Mod. Must
average less than
100% of AMI
20
Santa Clara County
(Excludes Unincorp
Areas and Stanford
Community Plan Area)
Create on-site units; create off-site units; in-lieu fee
payments for projects with six or fewer units and for fractional
unit obligations; conversion of existing market rate units.
16% No 4 Lower 55 4 Moderate 55
Santa Cruz
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
20% Yes 2
50% for SRO's
80% all other Perpetual 2 120% Perpetual
Santa Monica
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% Yes 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55
Santa Paula
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
10% to 17% Yes 10
15% Low or 10%
VL 55 10
15% Low or 10%
VL 45
Santa Rosa Has a production option, but the in-lieu fee option is more
cost effective.
5% to 8% /
10%No 1
5% @ 50% or 8%
@ 60%2 110%
Solana Beach
Create on-site units; create off-site units; create rental units
to fulfill an ownership housing development requirement;
preservation or conversion of existing units; payment of the
Affordable Housing Impact Fee.
15% No 5 VL or Low 99 5 VL or Low 99
Sonoma Create on-site units. 20% Yes 5 120% 55 5 120% 55
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 8 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Sonoma County
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
10% or 15%
/ 20%Yes 1
7.5% @ VL + 7.5%
@ Low, or 5% @
ELI + 5% @ VL
55 1
10% @ Low + 10%
@ Mod 30
South San Francisco Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee 20% No 4 55 4 55
South Pasadena
Create on-site units; create off-site units; pay in-lieu fee for 3
or 4 rental unit projects, ownership for any size project, &
fractional units; rehab existing market rate units; donate land.
20% No 3
10 or fewer units:
multiple options
11 or more units:
10% ELI or VL +
10% Low
55 3 Moderate 55
Sunnyvale Create on-site units; create off-site units; pay in-lieu fee;
donate land, unit conversion, other proposals.15.0% No 7
5% @ 50% + 10%
@ 60%55 7 100% 30
Thousand Oaks Create on-site units; rental units to fulfill ownership
requirement; in-lieu fee; donate land.
10% / 5% to
10%Yes 10 Low
> of 55 years
or as long as
resid use
10 SFH: 5% Mod
Condo: 10% Mod 45
Tiburon Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 3
5% @ Low + 10%
@ Mod Perpetual 3
5% @ Low + 10%
@ Mod Perpetual
Union City Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 7
4.5% @ VL +
10.5% @ Low 7
1.5% @ Low +
4.5% @ 100% +
9% @ 120%
Vista Create on-site units; pay in-lieu fee 9% No 20
5% Low or lower +
4% Mod or lower
5% Low or lower +
4% Mod or lower
West Sacramento Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 5
5% @ 50% + 5% @
60%55 5 70% 45
West Hollywood Create on-site units; create off-site units; pay in-lieu fee for 2-
10 unit projects.20% No 2 Low / Mod
> of 55 years
or as long as
resid use
2Low / Mod
> of 55 years
or as long as
resid use
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 9 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
II. Inclusionary Requirements: Ownership Projects Only
Carpinteria Create on-site units; pay in-lieu fee in limited circumstances. 12% No 5 200% 30
Danville Create on-site units; pay in-lieu fee. 10% Yes 7 110% 20
Folsom Create on-site units; create off-site units; pay in-lieu fee;
donate land; acq/rehab; other proposals.10% No 10
3% @ VL + 7% @
Low
Lafayette Create on-site units; create off-site units. 15% No 2
9% @ Mod + 6% @
VL 45
Monterey Create on-site units; donate land. 20% No 6 Perpetual
Mountain View Create on-site units; pay in-lieu fee. 15% No 3 100% 55
Rohnert Park Create on-site units; create off-site units; pay in-lieu fee. 15% No 50 55
San Leandro Create on-site units; pay in-lieu fee. 15% Yes 2
9% @ Mod + 6% @
Low 55
San Mateo County Create on-site units; create off-site units; pay in-lieu fee;
donate land.20% No 5
10% @ Low + 10%
@ Mod 55
5-19: 1 Mod. 20+:
South Coast: 2.5%
VL + 2.5% Low +
5% Mod + 5%
Workforce
45 - restarts
up to 90
Santa Ynez: No
Workforce
Santa Maria &
Lompoc: 2.5% VL
+ 2.5 Low
Santa Barbara County Create on-site units; create off-site units in the coastal zone;
pay in-lieu fee for certain unit types.5% - 15% Yes 5
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 10 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
III. Inclusionary for Ownership Projects & Impact Fee for Rental Projects
Fontana Create on-site units; pay in-lieu fee; develop a reduced
percentage at deeper affordability.10% No 5
4% @ VL + 4% @
Low + 2% @ Mod 55
Palo Alto
Create on-site units; create off-site units; in-lieu for fractional
unit; convert market rate units to affordable units; preserve at-
risk housing; donate land.
15% < 5 /
20% 5 acres
+
Yes $22.69/sf Impact
Fee 1 67% @ 80-100%
33% @ 100-120%99
San Carlos Create on-site units; create off-site units; pay impact/linkage
fee.15% Yes 55 2
10% @ Mod + 5%
@ Low 45
Truckee
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; pay impact/linkage fee;
donate land. Requirements vary by zones, neighborhoods or
districts.
15% No 7 Perpetual 7 Perpetual
IV. Mandatory Inclusionary for Ownership Projects & Voluntary Inclusionary for Rental Projects
Pittsburg Create on-site units; pay in-lieu fee. 15%/20% Yes 5
9% @ Mod + 6% @
Low, or 20% @
Mod
Salinas Create on-site units; create off-site units; donate land. 20% No 10 30
San Juan Bautista Create on-site units; pay impact/linkage fee. 6% 6 80%
San Luis Obispo Create on-site units; pay in-lieu fee; donate land. 3% or 5% Yes 55 5
3% low
or 5% Moderate 45
San Marcos Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% No 55 120% 55
Solana Beach Create on-site units; create off-site units; preserve or rehab
existing housing; pay impact/linkage fee.15% No 5 55 5 45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 11 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
V. Rental Projects Only
Costa Mesa
Applies only to: properties located in areas for which the City
has completed a Zone Change and/or General Plan
Amendment that allows for residential development; and
properties that receive City approval of a General Plan
Amendment, Zone Change, or other discretionary approval.
Create on-site units; create off-site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% Low
Properties at less
than 60 units per
acre: 4% VL or 6%
Low
55
Fullerton Applies only to the Transportation Specific Plan area. Create
on-site units.15% No
5% @ VL + 5% @
Low + 5% @ Mod 55
Glendale Create on-site units; create off-site units; pay in-lieu fee;
donate land; acquisition/rehabilitation.15% No 8 60% 55
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 12 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
I. Inclusionary Requirements: Both Rental and Ownership Projects
Agoura Hills
Create on-site units; pay an in-
lieu fee for the required Low
and/or Moderate Income
Units. In-lieu fee cannot be
paid to fulfill the very low
income requirement.
15% N/A 10
7% @ VL + 4% @
Low + 4% @ mod 55 10
7% @ VL + 4% @
Low + 4% @ mod 45
Set in 2018 to be consistent with the
Affordability gap. $285,336 per VL
apartment unit, $262,541 per low
income condominium unit, and $427,002
per moderate income single family
home.
Alhambra On-site or pay in-lieu fee. 15% No 5
6% at 120% AMI+
9% at 80% AMI 5 6% at 120% AMI+
9% at 80% AMI
Fee Schedule: 5 -20 units.
Rental: $0.89 - $14.30/SF; Ownership:
$1.88 - $30.00/SF
Brea
On-site units; pay in-lieu fee;
land dedication; acquisition
and conversion of other units
within city. City provides
incentives to mitigate the
impact of the requirement.
10% No 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
55 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
45 Calculated per project. Based on the
Affordability Gap.
Burbank
Create on-site units; create off-
site units through new
construction, substantial
rehabilitation, or adaptive
reuse; donate land; pay in-lieu
fee.
15%No 5 5% @ 50% + 10%
@ 80%
> of 55 years
or as long as
resid use
5Mod
> of 55 years
or as long as
resid use
Sliding scale by project size:
Rental: $5.75 - $10.27/SF
Ownership: $11.24 - $20.07/SF.
Carlsbad
Create units; pay in-lieu fee.
Reduced requirement is
provided if the affordable units
are set at very low or extremely
low income.
15% No 1 Low 1 Low
Available up to 6 units.$18.00/SF for 2-6
unit projects.
Chula Vista
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land. Excludes
area west of I-805 identified as
"Area of Low/Moderate Income
Concentration".
10% No 20
5% @ Low + 5% @
Mod Life of Bldg 20
5% @ Low + 5% @
Mod Life of Bldg In-lieu fee is based on the median home
price minus the affordable home price.
Rental Development Ownership Development
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 13 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Coronado
Create units; pay in-lieu fee.
Reduced requirement is
provided if the affordable units
are set at very low or extremely
low income.
20% No 2 Low 2 Mod
In-lieu fee paid by right. $7,000 per
market rate unit.
Costa Mesa
Applies only to: properties
located in areas for which the
City has completed a Zone
Change and/or General Plan
Amendment that allows for
residential development; and
properties that receive City
approval of a General Plan
Amendment, Zone Change, or
other discretionary approval.
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% L
Properties at less
than 60 units per
acre: 4% VL or 6%
L
55 NA NA NA
In-Lieu fee paid by right. $10 per square
foot of leasable area in the market rate
project.
Del Mar
Create on-site units. In-lieu fee
option provided for
subdivisions that create new
lots.
15% - 20% No 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 Available to subdivisions that create new
lots. $27,500 per lot created.
Downey Create on-site units; create off-
site units; pay in-lieu fee.11%/10%No 10 Mod
>55 or as
long as
resid
10 Mod 45
Rental: $23.50/SF - only allowed under
extreme hardship. Ownership: $15.90/SF
payable based on City Council criteria.
Encinitas
Create on-site units; create off-
site units; create ADU's;
preserve at-risk units; pay in-
lieu fee; donate land.
15%/20%No 7 15% VL or 20%
Low Perpetual 7
15% VL or 20%
Low 45 One to 6 unit projects and fractional
units. $24.08/SF.
Fillmore
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15%No 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
55 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 14 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Goleta
Create on-site units; create off-
site units; donate land, pay in-
lieu fee;
acquisition/rehabilitation.
Income/Affordability trade off
of extremley low and very low
income units to low and
moderate income units in
demonstrated extreme
hardship.
20% -
reduced to
15% with
public
benefit
No 5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally 55
years, but not
less than 30
years
Equal to the Affordability Gap associated
with providing the requisite number of
affordable units on site within the market
rate project.
Huntington Beach
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land.
10%No 3Low553Moderate45
Sliding Scale: 3 to 30 units. In-Lieu Fee
allowed for projects up to 100 units.
Rental: $3.58 to $35.80/SF Ownership:
$2.54 to $25.36/SF. The per SF
measurement caps at 2,000 SF.
Irvine
Projects with fewer than 50
units can create on-site units;
convert market rate housing to
affordable housing; extend the
term of an existing affordable
project; pay in-lieu fee;
transfer units to a nonprofit
housing agency; create off-site
units; donate land. Projects
with 50+ units must produce
the affordable units on site.
15% No
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Calculated per project. The calculation
methodology is based on the average
land value in Irvine, the average density
of housing in Irvine, and a defined
predevelopment cost allowance.
Formula:
[(Land Value ÷ Density) +
Predevelopment Allowance] x
Percentage Share of Cost related to
affordable units not being produced.
Jurupa Valley
Create on-site units; create off-
site units; pay in-lieu fee;
convert market rate units to
affordable units; preserve at-
risk housing; donate land.
7%No 1
25% Mod + 25%
Low + 50% VL 55 1 25% Mod + 25%
Low + 50% VL 45 $2.50 per net square foot of living area
including garages.
Laguna Beach Create on-site; pay in-lieu fee. 25% No
2-subdivision
3-other Low and Moderate 2-subdivision
3-other Low and Moderate
$247,317 per affordable rental unit.
$348,197 per affordable ownership unit
or lot.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 15 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Laguna Woods
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15% No 5
7.5% @ VL + 7.5%
@ Low 45 5
10% @ Low + 5%
@ Mod 45
In-lieu fee is allowed for ownership
housing developments that can prove to
the City Council's satisfaction that
including affordable units is financially
infeasible.
The fee is calculated based on: the
median price of homes sold in Laguna
Woods during the last quarter of the
previous calendar year minus the
affordable price for a 2-bedroom unit.
La Habra
Create on-site units; create off-
site units; pay in-lieu fee;
acquisition/rehabilitation.
Rental: 9%
or 6% /
Own: 15%
No 10
9% Mod or 6% VL
& Low 55 10 110%45 $6.50 per square foot of total building
area.
Long Beach Create on-site units; pay in-
lieu fee; donate land.11%/10% No 10 50%
> of 55 yrs or
as long as
resid
10 120%
> of 55 yrs or
as long as
resid
Rental @ $38.00/SF; Ownership @
$29.10/SF
Mission Viejo
Create on-stie units; create off-
site units; pay in-lieu fee;
donate land.
15%No
1 /
Projects with 9
or fewer units
produce 1
ADU
7.5% VL + 7.5%
Low 55
1 /
Projects with 9
or fewer units
produce 1
ADU
10% Mod + 5%
Low 45
In-lieu fee is allowed for rental
developments with fewer than 20 units,
and for all ownership housing
developments.
Rental: $41.90/SF
Ownership $58.20/SF
Norco
Create on-site units; create off-
site units; pay in-lieu fee for
projects with 20 or fewer units;
donate land.
15%No 5
6% Mod+9% Low
Credits for deeper
affordability
Perpetual 5
6% Mod+9% Low
Credits for deeper
affordability
45%
Sliding scale based on square feet of
leasable/saleable area:
Rental: $1.34 - $21.50
Ownership: $2.91 - $46.50
Oceanside
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land; purchase
credits from another project.
15%No 10 Low 55 10 Mod 55
In-lieu fee paid by right. $20/SF in 2024.
Administratively adjusted annually
based on change to the ENR CCI index.
Oxnard
Create on-site units; create off-
site units; pay in-lieu fee in
limited circumstances.
10% No 10
5% @ VL + 5%
Low 55 10 Low 20
Fee charged per total unit in the project.
In 2022: SFH $36,000; MF Ownership
$35,000; Rental $28,000.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 16 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Pasadena
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land.
20%No 10
5% @50% + 5% @
80% + 10% @
120%
Perpetual 10 110% 45
Sliding scale by sub-area & project size:
Rental: $1.23 - $34.98/SF
Ownership: $17.47 - $66.20/SF.
Pomona
Create on-site units; create off-
site units; pay in-lieu fee;
donate land
13% / 7%-
11%Yes 3 120% Perpetual 3 120% 45
Rental @ $9.30/SF; SFH @ $11.40/SF
Condominiums @ $9.30/SF
Poway Create on-site units; create off-
site units; pay in-lieu fee.
15% / 15%-
20%No 1 Very Low 55 1
15% @ Low or
20% @ Mod 45
In-lieu fee is payable by right and is set at
maximum of $500 per unit for both rental
and ownership housing.
San Buenaventura
Create on-site units; create off-
site units; pay in-lieu fee;
preserve or rehab existing
housing; donate land.
15% / 10% No 7 Low 55 7 Mod 45
Ownership @ $29.80 - $66.30/SF;
Apartments @ $20.30 - $48.90/SF
San Clemente
Create on-site units; create off-
site units, pay in-lieu fee;
donate land.
4% No 6 Very Low 30 6 Very Low 30
Based on the greater of 1% of
construction costs as determined by the
Building Division or 2% of the
affordability gap determined by the
formula in the Housing Element.
San Diego
Create on-site units; create off-
site units; rehabilitate existing
units, SRO hotel rooms, or
conversion of guest rooms; pay
in-lieu fee; donate land.
5% to 20%
depending
on location
No 10
Outside FUA: 10%
@ 60%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
55
Outside FUA: 10%
@ 100% or
15% @120%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
15
In-lieu fee paid by right in each area
except inside FIA. Base in-lieu fee a
$25/SF. Alternative compliance in-lieu
fee at $50/SF.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 17 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
San Juan Capistrano
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land. Excludes
area west of I-805 identified as
"Area of Low/Moderate Income
Concentration".
10% No 2 55 2 55
Based on 90% of the Affordability Gap,
which is updated monthly based on
benchmark market prices.
San Marcos
Create on-site, create off-site
units for ownership housing
projects; pay an in-lieu fee for
six or fewer rental unit projects
and for all ownership housing
projects.
15% No 1
Target hhld
income set by the
City.
No more than 25%
of the affordable
units may be Mod.
55 1
Requirement is set
by the City on a
project by project
basis
55
In-lieu fee paid by right for apartment
projects with six or fewer units and for all
ownership housing developments. In-
Lieu Fee @ $15/SF.
Santa Ana
Only applies to changes in land
use and zoning designations.
Create on-site units; off-site
units; pay in-lieu fee.
Rental: 5% /
15% & Own:
5%
No 5
15% @ Low or
10% @ VL or 5% @
ELI or 5% Low +
3% VL +2% ELI
55 5 120% 55
Fee charged per sf of habitable area: 5-9:
$6.00; 10-14: $9.00; 15-19: $12; 20+:
$15. Discounts for use of skilled and
trained labor force.
Santa Barbara (City)
Create on-site units; create off-
site units; pay in-lieu fee for 1
to 9 & fractional units; donate
land.
10% / 15% No 5 Mod 90 1 120% to 200%
90 / restarts
on each
resale
In 2020 the in-lieu fee for rental projects
was set at $25 per SF. Adjusted annually
by the Engineering News Record (ENR)
Building Cost Index for Los Angeles. In-
lieu fee for ownership units is calculated
based on the median price for 2-
bedroom condos, a low income
standard, and the estimated production
cost (sales price - 15% profit). A discount
schedule is provided from small units.
Santa Monica
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15%Yes 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 Rental @ $41.39/SF Ownership @
$48.35/SF
Santa Paula Create on-site units; create off-
site units; pay in-lieu fee.10% to 17% Yes 10
15% Low or 10%
VL 55 10 45
In-Lieu Fee is set on a project-by-project
basis.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 18 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Solana Beach
Create on-site units; create off-
site units; create rental units to
fulfill an ownership housing
development requirement;
preservation or conversion of
existing units; payment of the
Affordable Housing Impact
Fee.
15%No 5 VL or Low 99 5 VL or Low 99 Affordable Housing Impact Fee @
$25.91.
South Pasadena
Create on-site units; create off-
site units; pay in-lieu fee for 3
or 4 rental unit projects,
ownership for any size project,
& fractional units; rehab
existing market rate units;
donate land.
20% No 3
10 or fewer units:
multiple options
11 or more units:
10% ELI or VL +
10% Low
55 3 Mod 55
The in-lieu fee will be set by the City
Council. Until that occurs, the fee will be
calculated on a project-by-project basis.
Thousand Oaks
Create on-site units; rental
units to fulfill ownership
requirement; in-lieu fee;
donate land.
10% / 5% to
10%No 10 Low
> of 55 yrs or
as long as
resid
10 SFH: 5% Mod
Condo: 10% Mod 45
In-lieu fee is allowed for rental
developments with fewer than 20 units,
and for all ownership housing
developments.
Rental: $25.70/SF
Ownership $14.60 - $16.80/SF
Vista Create on-site units; pay in-
lieu fee 9% No 20
5% Low or lower +
4% Mod or lower 20 5% Low or lower +
4% Mod or lower
In-lieu fee paid by right and is set at
$17.56/SF
West Hollywood
Create on-site units; create off-
site units; pay in-lieu fee for 2-
10 units projects.
20% No 2 Low / Mod
> of 55 yrs or
as long as
resid
2Low / Mod
> of 55 yrs or
as long as
resid
Sliding scale: 2 Units @ $13.63/SF - 10
Units @ $29.23/SF
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 19 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
II. Inclusionary Requirements: Ownership Projects Only
Carpinteria
Create on-site units; pay in-
lieu fee in limited
circumstances.
12% No 5 200% 30
In-lieu fee allowed if infeasibility can be
proved. The fee is based on the
difference between the median sales
price of condominiums and/or single
family homes and the affordable price at
121% of AMI with 30% of income
dedicated to housing expenses.
5-19: 1 Mod. 20+:
South Coast: 2.5%
VL + 2.5% Low +
5% Mod + 5%
Workforce
45 - restarts
up to 90
In-Lieu fee is measured per affordable
unit. Varies by HMA & income /
affordability level. Fee: Very Low & Low
are based on the estimated cost for the
County to subsidize very low & low
income units. Cost of Construction Fee:
Moderate & Workforce are based on the
median condo sales prices minus 15% of
the median price of condos.
Santa Ynez: No
Workforce
2020 Very Low & Low Fees: South Coast
$176,000; Santa Maria $96,600; Santa
Ynez $146,200; Lompoc $99,500
Santa Maria &
Lompoc: 2.5% VL
+ 2.5 Low
2020 Mod & Workforce Fees: South
Coast $658,000; Santa Maria $248,000;
Santa Ynez $431,600; Lompoc $227,600
Santa Barbara County
Create on-site units; create off-
site units in the coastal zone;
pay in-lieu fee for certain unit
types.
5% - 15% Yes 5
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 20 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
III. Inclusionary Requirements: Rental Projects Only
Costa Mesa
Applies only to: properties
located in areas for which the
City has completed a Zone
Change and/or General Plan
Amendment that allows for
residential development; and
properties that receive City
approval of a General Plan
Amendment, Zone Change, or
other discretionary approval.
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% L
Properties at less
than 60 units per
acre: 4% VL or 6%
L
55
In-Lieu fee paid by right. $10 per square
foot of leasable area in the market rate
project.
Glendale
Create on-site units; create off-
site units; pay in-lieu fee;
donate land; acquisition /
rehabilitation.
15%No 8 60% 55
Sliding scale: 8 Units @ $28.71/SF - 21
Units @ $55/SF
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 21 of 21
ATTACHMENT 2
PROPERTY SALES SURVEYS
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; ATT 2 TITLE Page 1 of 3
ATTACHMENT 2: APPENDIX A
VACANT LAND SALES 1
PROPERTY SALES SURVEYS
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Address City Sale Date
Site Size
(SF) Zoning Total Per SF
1022 La Cadena Ave Arcadia 4/21 20,848 ARR3YY / MF $2,860,000 $137
501 N Santa Anita Ave Arcadia 11/15 46,173 ARR310000 / MF $7,100,000 $154
901 W Duarte Rd Arcadia 8/20 29,621 R-3 $3,200,000 $108
1027 Arcadia Ave 2 Arcadia 10/20 11,326 R3YY $1,570,000 $139
845 S Baldwin Blvd Arcadia 5/23 22,002 C-G $2,650,000 $120
4217 E Live Oak Ave Arcadia 11/22 21,780 LCC3YY $2,600,000 $119
4241 E Live Oak Ave Arcadia 6/23 499,198 PID $45,000,000 $90
122-128 E Live Oak Ave Arcadia 9/19 17,860 ARC2YY / MU $1,825,000 $102
Minimum 11,326 $1,570,000 $90
Maximum 499,198 $45,000,000 $154
Weighted Average 83,601 $8,350,625 $100
1 Source: CoStar, February 2025. The sites were all purchased for subsequent residential or mixed use development.
2 The site was purchased entitled for the development of six condominiums.
Sales Price
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt Page 2 of 3
ATTACHMENT 2: APPENDIX B
SALES OF IMPROVED PROPERTIES 1
PROPERTY SALES SURVEYS
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Address City Sale Date Zoning
Site Area
(SF)Total
Per SF Land
Area
I. Retail / Office
147-153 Duarte Rd Arcadia 8/21 ARC2 11,988 $2,000,000 $167
518-524 S 1st Ave Arcadia 2/22 MU 13,273 $2,600,000 $196
521 N First Ave Arcadia 3/22 CG 14,654 $2,225,000 $152
501 S 1st Ave Arcadia 12/24 MU 14,998 $2,900,000 $193
181 Colorado Pl Arcadia 10/20 CG 26,136 $2,900,000 $111
117 E Live Oak Arcadia 10/24 R3YY,A-R 27,434 $2,600,000 $95
333 N Santa Anita Arcadia 3/23 ARCM 43,560 $8,150,000 $187
610 Las Tunas Dr Arcadia 12/23 CG 71,861 $4,604,500 $64
17 Las Tunas Dr Arcadia 2018 ARC2 / MU 217,785 $22,600,000 $104
Minimum 11,988 $2,000,000 $64
Maximum 217,785 $22,600,000 $196
Weighted Average 49,077 $5,619,944 $115
II. Apartment Development
2
433 S Baldwin Ave Arcadia 9/21 ARR1 10,973 $2,068,000 $188
1116 W Duarte Rd Arcadia 8/23 R3 16,087 $2,880,000 $179
833 W Duarte Rd Arcadia 1/21 R3 16,483 $3,617,000 $219
727 Southview Rd Arcadia 12/24 R3 16,605 $3,950,000 $238
5741-5749 Baldwin Ave Arcadia 1/22 R3 17,860 $2,755,000 $154
521 E Live Oak Ave Arcadia 6/21 ARR3YY 17,977 $3,805,000 $212
815 Fairview Ave Arcadia 4/22 ARR3YY 18,840 $3,730,000 $198
829 1/2 Huntington Dr Arcadia 6/21 ARR3YY 19,380 $3,250,000 $168
503 Fairview Ave Arcadia 9/21 R3 19,602 $3,855,000 $197
475 Fairview Ave Arcadia 5/22 ARR3YY 19,606 $3,700,000 $189
1015 Sunset Blvd Arcadia 6/24 LAC2 21,310 $3,375,000 $158
1119 Arcadia Ave Arcadia 1/23 R3 21,906 $4,800,000 $219
309-311 Baldwin Ave Arcadia 12/24 ARR1YY 21,998 $3,100,000 $141
10522 E Live Oak Ave Arcadia 5/21 TCR172 29,185 $2,650,000 $91
922 Duarte Rd Arcadia 4/22 ARR3YY 33,715 $6,550,000 $194
1125 Arcadia Ave Arcadia 1/23 ARR3 37,884 $8,800,000 $232
1018 Arcadia Ave Arcadia 5/23 R3 56,214 $6,785,000 $121
Minimum 10,973 $2,068,000 $91
Maximum 56,214 $8,800,000 $238
Weighted Average 23,272 $4,098,235 $176
1 Source: CoStar, February 2024.
2 The survey is limited to projects with fewer than 20 units on lots of at least 10,000 square feet of land area.
Sales Price
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt Page 3 of 3
ATTACHMENT 3
AFFORDABLE HOUSING COST CALCULATION METHODOLOGIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Affordable Housing Cost Calculation Methodologies Page 1
Inclusionary Housing: Financial Evaluation February 18, 2025
APPENDIX A
AFFORDABLE RENT CALCULATION METHODOLOGY
ASSUMPTIONS
The Affordable Rent calculations are presented in Attachment 4 – Appendix B. The calculations
are based on the following assumptions:
1. The household income information used in the calculations is based on 2024 income
statistics for Los Angeles County as a whole:
a. The household incomes for very low and low income households are produced by
United States Department of Housing and Urban Development (HUD) and
distributed by the California Department of Housing and Community Development
(HCD).
b. The household incomes for moderate income households are produced and
distributed annually by HCD.
2. The household size appropriate for the unit is based on the California Health and Safety
Code (H&SC) Section 50052.5 standard of the number of bedrooms in the home plus one.1
H&SC Section 50052.5 refers to this as “the family size appropriate for the unit.” This is a
benchmark that is used for calculation purposes only. It is neither an occupancy minimum
nor a maximum.
3. The benchmark household incomes used in the Affordable Rent analyses are based on the
following standards:
a. The very low income rents are based on 50% of area median income (AMI). This
percentage of AMI is based on the standard imposed in H&SC Section 50053.
b. The low income rents are based on 80% of AMI. This percentage of AMI is based on
the standard imposed by Assembly Bill 1505.
c. The moderate income rents are based on 110% of AMI, which is the standard
imposed by H&SC Section 50053.
1 For example, the imputed household size for a one-bedroom unit is two persons.
Affordable Housing Cost Calculation Methodologies Page 2
Inclusionary Housing: Financial Evaluation February 18, 2025
4. Thirty percent (30%) of defined household income is allocated to housing-related
expenses.
5. The following monthly utilities allowances were applied in this analysis.2
Utility Allowances
Apartment Development
Prototypes
Number of
Bedrooms
Monthly
Utilities
Allowances
Studio $91
1 $121
2 $153
AFFORDABLE RENTS
The resulting affordable rents are presented in the following table:
Affordable Rents
Apartment Development Prototypes
Number of
Bedrooms
Very Low
Income
Low Income
Moderate
Income
Studio $768 $1,284 $1,800
1 $861 $1,450 $2,039
2 $952 $1,615 $2,278
2 Utilities allowances are based on utilities costs comprised of electric heating, cooking and water heating; and basic
electric, and air conditioning. The allowances are based on the Los Angeles County Development Authority
Multifamily All Electric Schedule effective as of July 1, 2024.
Affordable Housing Cost Calculation Methodologies Page 3
Inclusionary Housing: Financial Evaluation February 18, 2025
APPENDIX B
AFFORDABLE SALES PRICE CALCULATION METHODOLOGY
ASSUMPTIONS
The Affordable Sales Price calculations are presented in Attachment 5 – Appendix B. The
calculations are based on the following assumptions:
1. The household income information used in the calculations is based on 2024 income
statistics for Los Angeles County as a whole:
a. The household incomes for low income households are produced by HUD and
distributed by HCD.
b. The household incomes for moderate income households are produced and
distributed annually by HCD.
2. The Affordable Sales Price estimates are based on the calculation methodology imposed
by H&SC Section 50052.5.
The elements included in the Affordable Sales Price calculations are described in the following
sections of this Attachment.
Household Size
For the sole purposes of calculating Affordable Sales Prices, H&SC Section 50052.5 sets
household sizes based on the number of bedrooms in the home plus one. As discussed
previously, this is not an occupancy minimum or maximum. Rather, it is a benchmark that
creates a consistent Affordable Sales Price calculation methodology.
Household Income
For calculation purposes only, H&SC Section 50052.5 applies benchmark household incomes as
the standard for determining the Affordable Sales Prices. These benchmarks are based on the
following percentages of the Los Angeles County AMI:
Affordable Housing Cost Calculation Methodologies Page 4
Inclusionary Housing: Financial Evaluation February 18, 2025
Income Category % of AMI
Moderate 110%
Low 70%
The identified benchmark percentages of AMI are not income caps. The household income
qualification standards are set at the upper limits presented in the HCD and are based on the
actual size of the homebuyer’s household.
Income Allocated to Housing-Related Expenses
H&SC Section 50052.5 allocates the following percentages of the benchmark household incomes
to the payment of housing-related expenses:
Income Category
% of Benchmark
Income
Moderate 35%
Low 30%
Housing-Related Expenses
Based on research undertaken by KMA, the variable housing related expense assumptions used in
this analysis are presented in the following table:
Variable Housing Related Expenses
Ownership Housing Development Prototypes
Number of
Bedrooms
Monthly
Utilities
Allowances 3
Monthly HOA,
Insurance &
Maintenance
2 $260 $300
3 $317 $325
4 $389 $350
3Utilities allowances are based on utilities costs comprised of electric heating, cooking and water heating; basic
electric; and water, sewer and trash services. The allowances are based on the Los Angeles County Development
Authority Single-Family Schedule effective as of July 1, 2024.
Affordable Housing Cost Calculation Methodologies Page 5
Inclusionary Housing: Financial Evaluation February 18, 2025
The property tax expense estimates are based on 1.15% of the defined Affordable Sales Prices.
This assumes that the City will require the homes to be resold on an Affordable Sales Price
throughout one cumulative 45-year covenant period.
Supportable Mortgage Amount
The mortgage amounts used in the Affordable Sales Price calculations are estimated using the
income available after the other housing-related expenses are paid. The mortgage terms used in
this Financial Evaluation were based on a 30-year fully amortizing loan at a 6.98% interest rate. 4
Benchmark Down Payment
KMA set the benchmark down payment at 5% of the estimated Affordable Sales Price. A down
payment of this magnitude is commonly allowed by affordable housing programs.
AFFORDABLE SALES PRICES
The resulting Affordable Sales Prices are estimated as follows:
Affordable Sales Prices
Ownership Housing Development Prototypes
Number of
Bedrooms
Moderate
Income
Low Income
2 $313,200 $136,800
3 $345,300 $148,100
4 $366,600 $153,700
4 Based on a 25 basis points premium applied to the Freddie Mac monthly average, between February 2024 and
January 2025, for a fixed-interest rate loan with a 30-year amortization period.
ATTACHMENT 4
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; ATT 4 TITLE Page 1 of 85
ATTACHMENT 4: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; App A Apt Titles Page 2 of 85
ATTACHMENT 4: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Name Address # of Units
Unit Size
(SF)Total Per SF Year Built
I.
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 21 491 $2,363 $4.81 2024
Luxe 1769 E Walnut St Pasadena 91106 20 514 $2,514 $4.89 2016
Aston at Gateway 10568 Gateway Promenade El Monte 91731 45 531 $2,340 $4.41 2023
Areum Apts 1110 S 5th Ave Monrovia 91016 7 574 $2,344 $4.08 2017
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 61 585 $2,543 $4.35 2022
The RinRose 3768 E Colorado Blvd Pasadena 91107 14 590 $2,850 $4.83 2023
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 4 602 $2,608 $4.33 2016
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 2 620 $2,054 $3.31 2018
The Huntington 1413 Huntington Dr Duarte 91010 24 640 $2,509 $3.92 2022
Minimum 491 $2,054 $3.31
Maximum 640 $2,850 $4.89
Weighted Average 563 $2,482 $4.43
Average Effective Rent
Studio Units
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File name: 2 18 25 Arcadia Apt Page 3 of 85
ATTACHMENT 4: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Name Address # of Units
Unit Size
(SF)Total Per SF Year Built
Average Effective Rent
II.
Luxe 1769 E Walnut St Pasadena 91106 71 637 $2,740 $4.30
Aston at Gateway 10568 Gateway Promenade El Monte 91731 89 684 $2,905 $4.25
Begonia Place 5570 Rosemead Blvd Temple City 91780 2 696 $3,928 $5.64 2024
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 183 707 $2,838 $4.01
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 161 724 $2,535 $3.50
The RinRose 3768 E Colorado Blvd Pasadena 91107 62 728 $3,417 $4.69
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 274 738 $2,726 $3.69
Areum Apts 1110 S 5th Ave Monrovia 91016 91 747 $2,537 $3.40
Avalon Monrovia 825 S Myrtle Ave Monrovia 91016 46 771 $2,903 $3.77 2021
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 165 792 $2,741 $3.46
The Huntington 1413 Huntington Dr Duarte 91010 88 797 $2,722 $3.42
57 Wheeler 57 Wheeler Ave Arcadia 91006 15 1,056 $2,728 $2.58 2020
Minimum 637 $2,535 $2.58
Maximum 1,056 $3,928 $5.64
Weighted Average 738 $2,762 $3.76
One-Bedroom Units
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ATTACHMENT 4: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Name Address # of Units
Unit Size
(SF)Total Per SF Year Built
Average Effective Rent
III.
Luxe 1769 E Walnut St Pasadena 91106 40 934 $3,513 $3.76
Begonia Place 5570 Rosemead Blvd Temple City 91780 68 952 $4,233 $4.45
Aston at Gateway 10568 Gateway Promenade El Monte 91731 74 956 $3,362 $3.52
The RinRose 3768 E Colorado Blvd Pasadena 91107 24 1,011 $4,120 $4.08
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 79 1,038 $3,678 $3.54
Avalon Monrovia 825 S Myrtle Ave Monrovia 91016 69 1,042 $3,664 $3.52
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 98 1,059 $2,960 $2.80
Areum Apts 1110 S 5th Ave Monrovia 91016 56 1,081 $3,226 $2.98
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 134 1,109 $3,714 $3.35
The Huntington 1413 Huntington Dr Duarte 91010 49 1,131 $3,241 $2.87
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 43 1,168 $3,618 $3.10
57 Wheeler 57 Wheeler Ave Arcadia 91006 23 1,332 $3,409 $2.56
The Residence at Mission View 109 S Alanmay Ave San Gabriel 91776 6 1,345 $4,331 $3.22
Minimum 934 $2,960 $2.56
Maximum 1,345 $4,331 $4.45
Weighted Average 1,059 $3,547 $3.37
1 Source: CoStar, January 2025. Projects built in the past 10 years within 5 miles of Arcadia City Hall. The survey excludes affordable projects, three extraordinarily large studio units in
the Avalon Monrovia, and five extraordinarily large one-bedroom unit in the Residences.
Two-Bedroom Units
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File name: 2 18 25 Arcadia Apt Page 5 of 85
ATTACHMENT 4: APPENDIX B
APARTMENT DEVELOPMENT
AFFORDABLE RENT CALCULATIONS
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; App B Apt Titles Page 6 of 85
ATTACHMENT 4: APPENDIX B
AFFORDABLE RENT CALCULATIONS
2024 INCOME STANDARDS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Studio Units
One-Bedroom
Units
Two-Bedroom
Units
I. General Assumptions
Bechmark Household Size 1 123
Area Median Income (AMI)2 $68,750 $78,550 $88,400
Monthly Utilities Allowance 3 $91 $121 $153
II. Affordable Rent Calculations
A. Very Low Income - Rent Based on 50% AMI
4
Benchmark Annual Household Income $34,375 $39,275 $44,200
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $10,313 $11,783 $13,260
Monthly Income Available for Housing Expenses $859 $982 $1,105
(Less) Monthly Utilities Allowance (91) (121) (153)
Maximum Allowable Rent $768 $861 $952
B. Low Income - Rent Based on 80% AMI
5
Benchmark Annual Household Income $55,000 $62,840 $70,720
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $16,500 $18,852 $21,216
Monthly Income Available for Housing Expenses $1,375 $1,571 $1,768
(Less) Monthly Utilities Allowance (91) (121) (153)
Maximum Allowable Rent $1,284 $1,450 $1,615
C. Moderate Income - Rent Based on 110% AMI
6
Benchmark Annual Household Income $75,625 $86,405 $97,240
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $22,688 $25,922 $29,172
Monthly Income Available for Housing Expenses $1,891 $2,160 $2,431
(Less) Monthly Utilities Allowance (91) (121) (153)
Maximum Allowable Rent $1,800 $2,039 $2,278
1
2
3
4 Based on 50% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053.
5 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505.
6 Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053.
Based on the Los Angeles County Development Authority (LACDA) Multifamily All Electric Schedule effective as of July 1, 2024.
Assumes: Electric Heating, Electric Cooking, and Electric Water Heater; and Basic Electric.
For the purposes of calculating the Affordable Rents, Health & Safety Code Section 50052.5 sets the benchmark household sizes
at the number of bedrooms in the unit plus one. This is neither an occupancy cap nor a floor.
Based on the 2024 Los Angeles County household incomes published by the California Department of Housing & Community
Development (HCD).
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt; Aff Rent Page 7 of 85
ATTACHMENT 4: APPENDIX C
PRO FORMA ANALYSES
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
DMU SITE - LARGE DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; App C DMU Lg Title Page 8 of 85
MARKET RATE SCENARIO
ATTACHMENT 4: APPENDIX C - EXHIBIT I
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
PRO FORMA ANALYSIS
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Mkt Page 9 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTION COSTS
MARKET RATE SCENARIO
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 67 Spaces $5,000 /Space 335,000
Podium Spaces 275 Spaces $20,000 /Space 5,500,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 155,000 Sf of GLA $230 /Sf of GLA 35,650,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 9,168,000
Total Direct Costs 155,000 Sf of GLA $355 /Sf of GLA $55,009,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $3,301,000
Public Permits & Fees 4 200 Units $19,000 /Unit 3,800,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,100,000
Marketing 200 Units $2,500 /Unit 500,000
Developer Fee 5% Direct Costs 2,750,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 573,000
Total Indirect Costs $12,024,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $24,840,000 Cost 6.2% Avg Rate $2,310,000
Construction 6 $74,280,000 Cost 6.2% Avg Rate 4,145,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 892,000
Total Financing Costs $7,347,000
IV. Total Construction Cost 200 Units $372,000 /Unit $74,380,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
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File name: 2 18 25 Arcadia Apt; PF DMU Lg Mkt Page 10 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
MARKET RATE SCENARIO
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 50 Units @ $2,440 /Unit/Month $1,464,000
One-Bedroom Units 100 Units @ $2,960 /Unit/Month 3,552,000
Two-Bedroom Units 50 Units @ $3,900 /Unit/Month 2,340,000
B. Miscellaneous Income 200 Units @ $75 /Unit/Month 180,000
Total Gross Income $7,536,000
Vacancy & Collection Allowance 5% Gross Income (377,000)
II. Effective Gross Income $7,159,000
III. Operating Expenses
General Operating Expenses 200 Units @ $4,500 /Unit $900,000
Property Taxes 2 200 Units @ $6,300 /Unit 1,268,000
Replacement Reserve Deposits 200 Units @ $150 /Unit 30,000
Total Operating Expenses ($2,198,000)
IV. Stabilized Net Operating Income $4,961,000
1
2 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.95 per square
foot of leasable area.
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File name: 2 18 25 Arcadia Apt; PF DMU Lg Mkt Page 11 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
MARKET RATE SCENARIO
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 2 $4,961,000
Capitalization Rate 4.50%
Estimated Project Value $110,244,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 1 $74,380,000
Threshold Developer Profit 10% of Value 11,024,000
Total Project Cost ($85,404,000)
III. Estimated Residual Land Value 108,900 Sf of Land $228 /Sf of Land $24,840,000
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File name: 2 18 25 Arcadia Apt; PF DMU Lg Mkt Page 12 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 4
TARGET RESIDUAL LAND VALUE ANALYSIS
MARKET RATE SCENARIO
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
DMU Site - Large Development See ATTACHMENT 4: APPENDIX C - EXHIBIT I - TABLE 3 $24,840,000
Improved Commercial Site 1 108,900 Sf of Land $115 /Sf of Land 12,524,000
Estimated Value Enhancement $12,316,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $12,316,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $8,005,000
III. Target Residual Land Value
Estimated Land Value: DMU Site - Large Development $24,840,000
Minus Value Enhancement Funds Available for Inclusionary Housing (8,005,000)
Target Residual Land Value $16,835,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
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File name: 2 18 25 Arcadia Apt; PF DMU Lg Mkt Page 13 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT II
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 11% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg VL Page 14 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT II - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 11% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 67 Spaces $5,000 /Space 335,000
Podium Spaces 275 Spaces $20,000 /Space 5,500,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 155,000 Sf of GLA $230 /Sf of GLA 35,650,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 9,168,000
Total Direct Costs 155,000 Sf of GLA $355 /Sf of GLA $55,009,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $3,301,000
Public Permits & Fees 5 200 Units $19,000 /Unit 3,800,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,100,000
Marketing 200 Units $2,500 /Unit 500,000
Developer Fee 5% Direct Costs 2,750,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 573,000
Total Indirect Costs $12,024,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $16,989,000 Cost 6.2% Avg Rate $1,580,000
Construction 5 $73,531,000 Cost 6.2% Avg Rate 4,103,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 815,000
Total Financing Costs $6,498,000
IV. Total Construction Cost 200 Units $368,000 /Unit $73,531,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg VL Page 15 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT II - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 11% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 44 Units @ $2,440 /Unit/Month $1,288,000
One-Bedroom Units 89 Units @ $2,960 /Unit/Month 3,161,000
Two-Bedroom Units 45 Units @ $3,900 /Unit/Month 2,106,000
B. Very Low Income Units
2
Studio Units 6 Units @ $768 /Unit/Month 55,000
One-Bedroom Units 11 Units @ $861 /Unit/Month 114,000
Two-Bedroom Units 5 Units @ $952 /Unit/Month 57,000
C. Miscellaneous Income 200 Units @ $75 /Unit/Month 180,000
Total Gross Income $6,961,000
Vacancy & Collection Allowance 5% Gross Income (348,000)
II. Effective Gross Income $6,613,000
III. Operating Expenses
General Operating Expenses 200 Units @ $4,500 /Unit $900,000
Property Taxes 3 200 Units @ $5,800 /Unit 1,157,000
Replacement Reserve Deposits 200 Units @ $150 /Unit 30,000
Total Operating Expenses 200 Units @ $10,435 /Unit ($2,087,000)
IV. Stabilized Net Operating Income $4,526,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.95 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
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ATTACHMENT 4: APPENDIX C - EXHIBIT II - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 11% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT II - TABLE 2 $4,526,000
Capitalization Rate 4.50%
Estimated Project Value $100,578,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT II - TABLE 1 $73,531,000
Threshold Developer Profit 10% of Value 10,058,000
Total Project Cost ($83,589,000)
III. Estimated Residual Land Value 108,900 Sf of Land $156 /Sf of Land $16,989,000
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ATTACHMENT 4: APPENDIX C - EXHIBIT III
SUPPORTABLE REQUIREMENT: 15% LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
PRO FORMA ANALYSIS
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Low Page 18 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT III - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 15% LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 67 Spaces $5,000 /Space 335,000
Podium Spaces 275 Spaces $20,000 /Space 5,500,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 155,000 Sf of GLA $230 /Sf of GLA 35,650,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 9,168,000
Total Direct Costs 155,000 Sf of GLA $355 /Sf of GLA $55,009,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $3,301,000
Public Permits & Fees 5 200 Units $19,000 /Unit 3,800,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,100,000
Marketing 200 Units $2,500 /Unit 500,000
Developer Fee 5% Direct Costs 2,750,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 573,000
Total Indirect Costs $12,024,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $16,989,000 Cost 6.2% Avg Rate $1,580,000
Construction 5 $73,531,000 Cost 6.2% Avg Rate 4,103,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 815,000
Total Financing Costs $6,498,000
IV. Total Construction Cost 200 Units $368,000 /Unit $73,531,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Low Page 19 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT III - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 15% LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 42 Units @ $2,440 /Unit/Month $1,230,000
One-Bedroom Units 85 Units @ $2,960 /Unit/Month 3,019,000
Two-Bedroom Units 43 Units @ $3,900 /Unit/Month 2,012,000
B. Low Income Units
2
Studio Units 8 Units @ $1,284 /Unit/Month 123,000
One-Bedroom Units 15 Units @ $1,450 /Unit/Month 261,000
Two-Bedroom Units 7 Units @ $1,615 /Unit/Month 136,000
C. Miscellaneous Income 200 Units @ $75 /Unit/Month 180,000
Total Gross Income $6,961,000
Vacancy & Collection Allowance 5% Gross Income (348,000)
II. Effective Gross Income $6,613,000
III. Operating Expenses
General Operating Expenses 200 Units @ $4,500 /Unit $900,000
Property Taxes 3 200 Units @ $5,800 /Unit 1,157,000
Replacement Reserve Deposits 200 Units @ $150 /Unit 30,000
Total Operating Expenses 200 Units @ $10,435 /Unit ($2,087,000)
IV. Stabilized Net Operating Income $4,526,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.95 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Low Page 20 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT III - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 15% LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT III - TABLE 2 $4,526,000
Capitalization Rate 4.50%
Estimated Project Value $100,578,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT III - TABLE 1 $73,531,000
Threshold Developer Profit 10% of Value 10,058,000
Total Project Cost ($83,589,000)
III. Estimated Residual Land Value 108,900 Sf of Land $156 /Sf of Land $16,989,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Low Page 21 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT:
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
7% LOW INCOME UNITS + 6% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg L VL Page 22 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 7% LOW INCOME UNITS + 6% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 67 Spaces $5,000 /Space 335,000
Podium Spaces 275 Spaces $20,000 /Space 5,500,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 155,000 Sf of GLA $230 /Sf of GLA 35,650,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 9,168,000
Total Direct Costs 155,000 Sf of GLA $355 /Sf of GLA $55,009,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $3,301,000
Public Permits & Fees 5 200 Units $19,000 /Unit 3,800,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,100,000
Marketing 200 Units $2,500 /Unit 500,000
Developer Fee 5% Direct Costs 2,750,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 573,000
Total Indirect Costs $12,024,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $16,701,000 Cost 6.2% Avg Rate $1,553,000
Construction 5 $73,499,000 Cost 6.2% Avg Rate 4,101,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 812,000
Total Financing Costs $6,466,000
IV. Total Construction Cost 200 Units $367,000 /Unit $73,499,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg L VL Page 23 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 7% LOW INCOME UNITS + 6% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 44 Units @ $2,440 /Unit/Month $1,288,000
One-Bedroom Units 87 Units @ $2,960 /Unit/Month 3,090,000
Two-Bedroom Units 43 Units @ $3,900 /Unit/Month 2,012,000
B. Low Income Units
2
Studio Units 3 Units @ $1,284 /Unit/Month 46,000
One-Bedroom Units 7 Units @ $1,450 /Unit/Month 122,000
Two-Bedroom Units 4 Units @ $1,615 /Unit/Month 78,000
B. Very Low Income Units
3
Studio Units 3 Units @ $768 /Unit/Month 28,000
One-Bedroom Units 6 Units @ $861 /Unit/Month 62,000
Two-Bedroom Units 3 Units @ $952 /Unit/Month 34,000
C. Miscellaneous Income 200 Units @ $75 /Unit/Month 180,000
Total Gross Income $6,940,000
Vacancy & Collection Allowance 5% Gross Income (347,000)
II. Effective Gross Income $6,593,000
III. Operating Expenses
General Operating Expenses 200 Units @ $4,500 /Unit $900,000
Property Taxes 4 200 Units @ $5,800 /Unit 1,153,000
Replacement Reserve Deposits 200 Units @ $150 /Unit 30,000
Total Operating Expenses 200 Units @ $10,415 /Unit ($2,083,000)
IV. Stabilized Net Operating Income $4,510,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3
4 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.96 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg L VL Page 24 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 7% LOW INCOME UNITS + 6% VERY LOW INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2 $4,510,000
Capitalization Rate 4.50%
Estimated Project Value $100,222,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1 $73,499,000
Threshold Developer Profit 10% of Value 10,022,000
Total Project Cost ($83,521,000)
III. Estimated Residual Land Value 108,900 Sf of Land $153 /Sf of Land $16,701,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg L VL Page 25 of 85
ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX C - EXHIBIT V
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 23% MODERATE INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Mod Page 26 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT V - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 23% MODERATE INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 67 Spaces $5,000 /Space 335,000
Podium Spaces 275 Spaces $20,000 /Space 5,500,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 155,000 Sf of GLA $230 /Sf of GLA 35,650,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 9,168,000
Total Direct Costs 155,000 Sf of GLA $355 /Sf of GLA $55,009,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $3,301,000
Public Permits & Fees 5 200 Units $19,000 /Unit 3,800,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,100,000
Marketing 200 Units $2,500 /Unit 500,000
Developer Fee 5% Direct Costs 2,750,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 573,000
Total Indirect Costs $12,024,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $17,044,000 Cost 6.2% Avg Rate $1,585,000
Construction 5 $73,536,000 Cost 6.2% Avg Rate 4,103,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 815,000
Total Financing Costs $6,503,000
IV. Total Construction Cost 200 Units $368,000 /Unit $73,536,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Mod Page 27 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT V - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 23% MODERATE INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 39 Units @ $2,440 /Unit/Month $1,142,000
One-Bedroom Units 77 Units @ $2,960 /Unit/Month 2,735,000
Two-Bedroom Units 38 Units @ $3,900 /Unit/Month 1,778,000
B. Moderate Income Units
2
Studio Units 11 Units @ $1,800 /Unit/Month 238,000
One-Bedroom Units 23 Units @ $2,039 /Unit/Month 563,000
Two-Bedroom Units 12 Units @ $2,278 /Unit/Month 328,000
C. Miscellaneous Income 200 Units @ $75 /Unit/Month 180,000
Total Gross Income $6,964,000
Vacancy & Collection Allowance 5% Gross Income (348,000)
II. Effective Gross Income $6,616,000
III. Operating Expenses
General Operating Expenses 200 Units @ $4,500 /Unit $900,000
Property Taxes 3 200 Units @ $5,800 /Unit 1,157,000
Replacement Reserve Deposits 200 Units @ $150 /Unit 30,000
Total Operating Expenses 200 Units @ $10,435 /Unit ($2,087,000)
IV. Stabilized Net Operating Income $4,529,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.96 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Mod Page 28 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT V - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 23% MODERATE INCOME UNITS
DMU SITE - LARGE DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT V - TABLE 2 $4,529,000
Capitalization Rate 4.50%
Estimated Project Value $100,644,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT V - TABLE 1 $73,536,000
Threshold Developer Profit 10% of Value 10,064,000
Total Project Cost ($83,600,000)
III. Estimated Residual Land Value 108,900 Sf of Land $157 /Sf of Land $17,044,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg Mod Page 29 of 85
ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX C - EXHIBIT VI
PRO FORMA ANALYSIS
50% §65915 DENSITY BONUS: 120 UNITS/ACRE
DMU SITE - LARGE DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg 15% VL DB Page 30 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT VI - TABLE 1
ESTIMATED CONSTRUCTION COSTS
50% §65915 DENSITY BONUS: 120 UNITS/ACRE
DMU SITE - LARGE DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 108,900 Sf of Land $40 /Sf of Land $4,356,000
Parking 2
At-Grade Spaces 0 Spaces $5,000 /Space 0
Podium Spaces 0 Spaces $20,000 /Space 0
1st Level Subterranean Spaces 272 Spaces $40,000 /Space 10,880,000
2nd Level Subterranean Spaces 66 Spaces $50,000 /Space 3,300,000
Building Costs 232,500 Sf of GLA $250 /Sf of GLA 58,125,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 15,332,000
Total Direct Costs 232,500 Sf of GLA $396 /Sf of GLA $91,993,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $5,520,000
Public Permits & Fees 4 300 Units $19,000 /Unit 5,700,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 1,840,000
Marketing 300 Units $2,500 /Unit 750,000
Developer Fee 5% Direct Costs 4,600,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 921,000
Total Indirect Costs $19,331,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $16,142,000 Cost 6.2% Avg Rate $1,501,000
Construction 6 ########### Cost 6.2% Avg Rate 6,741,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 1,232,000
Total Financing Costs $9,474,000
IV. Total Construction Cost 300 Units $403,000 /Unit $120,798,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 65915 (p) requires jurisdictions to allow projects to meet the following statutorily established parking standards. 1.0 space per Studio
Unit; 1.0 space per One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; and 1.5 spaces per Three-Bedroom Unit. No guest spaces are
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File name: 2 18 25 Arcadia Apt; PF DMU Lg 15% VL DB Page 31 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT VI - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
50% §65915 DENSITY BONUS: 120 UNITS/ACRE
DMU SITE - LARGE DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 67 Units @ $2,440 /Unit/Month $1,962,000
One-Bedroom Units 135 Units @ $2,960 /Unit/Month 4,795,000
Two-Bedroom Units 68 Units @ $3,900 /Unit/Month 3,182,000
B. Density Bonus Very Low Income Units
2
Studio Units 8 Units @ $768 /Unit/Month 74,000
One-Bedroom Units 15 Units @ $861 /Unit/Month 155,000
Two-Bedroom Units 7 Units @ $952 /Unit/Month 80,000
C. Miscellaneous Income 300 Units @ $75 /Unit/Month 270,000
Total Gross Income $10,518,000
Vacancy & Collection Allowance 5% Gross Income (526,000)
II. Effective Gross Income $9,992,000
III. Operating Expenses
General Operating Expenses 300 Units @ $4,500 /Unit $1,350,000
Property Taxes 3 300 Units @ $5,800 /Unit 1,750,000
Replacement Reserve Deposits 300 Units @ $150 /Unit 45,000
Total Operating Expenses 300 Units @ $10,483 /Unit ($3,145,000)
IV. Stabilized Net Operating Income $6,847,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Section 65915 (c) (1) (B) (i) calculates very low income rents based on household income based on 110% of AMI. This represents the standard
identified in California Health & Safety Code Section 50503. See ATTACHMENT 4: APPENDIX B.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.95 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg 15% VL DB Page 32 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT VI - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
50% §65915 DENSITY BONUS: 120 UNITS/ACRE
DMU SITE - LARGE DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT VI - TABLE 2 $6,847,000
Capitalization Rate 4.50%
Estimated Project Value $152,156,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT VI - TABLE 1 $120,798,000
Threshold Developer Profit 10% of Value 15,216,000
Total Project Cost ($136,014,000)
III. Estimated Residual Land Value 108,900 Sf of Land $148 /Sf of Land $16,142,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Lg 15% VL DB Page 33 of 85
ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX D
PRO FORMA ANALYSES
DMU SITE - SMALL DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; App D DMU Sm Title Page 34 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT I
PRO FORMA ANALYSIS
MARKET RATE SCENARIO
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mkt Page 35 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTION COSTS
MARKET RATE SCENARIO
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 16 Spaces $5,000 /Space 80,000
Podium Spaces 72 Spaces $20,000 /Space 1,440,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 45,600 Sf of GLA $220 /Sf of GLA 10,032,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,572,000
Total Direct Costs 45,600 Sf of GLA $338 /Sf of GLA $15,431,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $926,000
Public Permits & Fees 4 48 Units $21,300 /Unit 1,022,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 309,000
Marketing 48 Units $2,500 /Unit 120,000
Developer Fee 5% Direct Costs 772,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 157,000
Total Indirect Costs $3,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $6,460,000 Cost 6.2% Avg Rate $601,000
Construction 6 $20,740,000 Cost 6.2% Avg Rate 1,157,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 245,000
Total Financing Costs $2,003,000
IV. Total Construction Cost 48 Units $432,000 /Unit $20,740,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mkt Page 36 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
MARKET RATE SCENARIO
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 24 Units @ $3,010 /Unit/Month 867,000
Two-Bedroom Units 24 Units @ $3,900 /Unit/Month 1,123,000
B. Miscellaneous Income 48 Units @ $75 /Unit/Month 43,000
Total Gross Income $2,033,000
Vacancy & Collection Allowance 5% Gross Income (102,000)
II. Effective Gross Income $1,931,000
III. Operating Expenses
General Operating Expenses 48 Units @ $4,500 /Unit $216,000
Property Taxes 2 48 Units @ $7,300 /Unit 348,000
Replacement Reserve Deposits 48 Units @ $150 /Unit 7,000
Total Operating Expenses ($571,000)
IV. Stabilized Net Operating Income $1,360,000
1
2 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.64 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mkt Page 37 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
MARKET RATE SCENARIO
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 2 $1,360,000
Capitalization Rate 4.50%
Estimated Project Value $30,222,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 1 $20,740,000
Threshold Developer Profit 10% of Value 3,022,000
Total Project Cost ($23,762,000)
III. Estimated Residual Land Value 32,670 Sf of Land $198 /Sf of Land $6,460,000
Prepared by: Keyser Marston Associates, Inc.
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ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 4
TARGET RESIDUAL LAND VALUE ANALYSIS
MARKET RATE SCENARIO
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
DMU Site - Small Development See ATTACHMENT 4: APPENDIX D - EXHIBIT I - TABLE 3 $6,460,000
Improved Commercial Site 1 32,670 Sf of Land $115 /Sf of Land 3,757,000
Estimated Value Enhancement $2,703,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $2,703,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $1,757,000
III. Target Residual Land Value
Estimated Land Value: DMU Site - Small Development $6,460,000
Minus Value Enhancement Funds Available for Inclusionary Housing (1,757,000)
Target Residual Land Value $4,703,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
2 Based on the Value Enhancement Funds Available for Inclusionary Housing.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mkt Page 39 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT II
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 9% VERY LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm VL Page 40 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT II - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 9% VERY LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 16 Spaces $5,000 /Space 80,000
Podium Spaces 72 Spaces $20,000 /Space 1,440,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 45,600 Sf of GLA $220 /Sf of GLA 10,032,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,572,000
Total Direct Costs 45,600 Sf of GLA $338 /Sf of GLA $15,431,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $926,000
Public Permits & Fees 5 48 Units $21,300 /Unit 1,022,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 309,000
Marketing 48 Units $2,500 /Unit 120,000
Developer Fee 5% Direct Costs 772,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 157,000
Total Indirect Costs $3,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,820,000 Cost 6.2% Avg Rate $448,000
Construction 5 $20,560,000 Cost 6.2% Avg Rate 1,147,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 228,000
Total Financing Costs $1,823,000
IV. Total Construction Cost 48 Units $428,000 /Unit $20,560,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm VL Page 41 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT II - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 9% VERY LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 22 Units @ $3,010 /Unit/Month 795,000
Two-Bedroom Units 22 Units @ $3,900 /Unit/Month 1,030,000
B. Very Low Income Units
2
Studio Units 0 Units @ $768 /Unit/Month 0
One-Bedroom Units 2 Units @ $861 /Unit/Month 21,000
Two-Bedroom Units 2 Units @ $952 /Unit/Month 23,000
C. Miscellaneous Income 48 Units @ $75 /Unit/Month 43,000
Total Gross Income $1,912,000
Vacancy & Collection Allowance 5% Gross Income (96,000)
II. Effective Gross Income $1,816,000
III. Operating Expenses
General Operating Expenses 48 Units @ $4,500 /Unit $216,000
Property Taxes 3 48 Units @ $6,800 /Unit 324,000
Replacement Reserve Deposits 48 Units @ $150 /Unit 7,000
Total Operating Expenses 48 Units @ $11,396 /Unit ($547,000)
IV. Stabilized Net Operating Income $1,269,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.64 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm VL Page 42 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT II - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 9% VERY LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX D - EXHIBIT II - TABLE 2 $1,269,000
Capitalization Rate 4.50%
Estimated Project Value $28,200,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX D - EXHIBIT II - TABLE 1 $20,560,000
Threshold Developer Profit 10% of Value 2,820,000
Total Project Cost ($23,380,000)
III. Estimated Residual Land Value 32,670 Sf of Land $148 /Sf of Land $4,820,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm VL Page 43 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT III
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 14% LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Low Page 44 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT III - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 14% LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 16 Spaces $5,000 /Space 80,000
Podium Spaces 72 Spaces $20,000 /Space 1,440,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 45,600 Sf of GLA $220 /Sf of GLA 10,032,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,572,000
Total Direct Costs 45,600 Sf of GLA $338 /Sf of GLA $15,431,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $926,000
Public Permits & Fees 5 48 Units $21,300 /Unit 1,022,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 309,000
Marketing 48 Units $2,500 /Unit 120,000
Developer Fee 5% Direct Costs 772,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 157,000
Total Indirect Costs $3,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,585,000 Cost 6.2% Avg Rate $426,000
Construction 5 $20,535,000 Cost 6.2% Avg Rate 1,146,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 226,000
Total Financing Costs $1,798,000
IV. Total Construction Cost 48 Units $428,000 /Unit $20,535,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Low Page 45 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT III - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 14% LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 21 Units @ $3,010 /Unit/Month 759,000
Two-Bedroom Units 21 Units @ $3,900 /Unit/Month 983,000
B. Low Income Units
2
Studio Units 0 Units @ $1,284 /Unit/Month 0
One-Bedroom Units 3 Units @ $1,450 /Unit/Month 52,000
Two-Bedroom Units 3 Units @ $1,615 /Unit/Month 58,000
C. Miscellaneous Income 48 Units @ $75 /Unit/Month 43,000
Total Gross Income $1,895,000
Vacancy & Collection Allowance 5% Gross Income (95,000)
II. Effective Gross Income $1,800,000
III. Operating Expenses
General Operating Expenses 48 Units @ $4,500 /Unit $216,000
Property Taxes 3 48 Units @ $6,700 /Unit 321,000
Replacement Reserve Deposits 48 Units @ $150 /Unit 7,000
Total Operating Expenses 48 Units @ $11,333 /Unit ($544,000)
IV. Stabilized Net Operating Income $1,256,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.64 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Low Page 46 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT III - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 14% LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX D - EXHIBIT III - TABLE 2 $1,256,000
Capitalization Rate 4.50%
Estimated Project Value $27,911,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX D - EXHIBIT III - TABLE 1 $20,535,000
Threshold Developer Profit 10% of Value 2,791,000
Total Project Cost ($23,326,000)
III. Estimated Residual Land Value 32,670 Sf of Land $140 /Sf of Land $4,585,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Low Page 47 of 85
ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX C - EXHIBIT IV
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT:
6% LOW INCOME UNITS + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm L VL Page 48 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 6% LOW INCOME UNITS + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 16 Spaces $5,000 /Space 80,000
Podium Spaces 72 Spaces $20,000 /Space 1,440,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 45,600 Sf of GLA $220 /Sf of GLA 10,032,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,572,000
Total Direct Costs 45,600 Sf of GLA $338 /Sf of GLA $15,431,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $926,000
Public Permits & Fees 5 48 Units $21,300 /Unit 1,022,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 309,000
Marketing 48 Units $2,500 /Unit 120,000
Developer Fee 5% Direct Costs 772,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 157,000
Total Indirect Costs $3,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,765,000 Cost 6.2% Avg Rate $443,000
Construction 5 $20,555,000 Cost 6.2% Avg Rate 1,147,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 228,000
Total Financing Costs $1,818,000
IV. Total Construction Cost 48 Units $428,000 /Unit $20,555,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm L VL Page 49 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 6% LOW INCOME UNITS + 5% VERY LOW INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 21 Units @ $3,010 /Unit/Month 759,000
Two-Bedroom Units 22 Units @ $3,900 /Unit/Month 1,030,000
B. Low Income Units
2
Studio Units 0 Units @ $1,284 /Unit/Month 0
One-Bedroom Units 2 Units @ $1,450 /Unit/Month 35,000
Two-Bedroom Units 1 Unit @ $1,615 /Unit/Month 19,000
B. Very Low Income Units
3
Studio Units 0 Units @ $768 /Unit/Month 0
One-Bedroom Units 1 Unit @ $861 /Unit/Month 10,000
Two-Bedroom Units 1 Unit @ $952 /Unit/Month 11,000
C. Miscellaneous Income 48 Units @ $75 /Unit/Month 43,000
Total Gross Income $1,907,000
Vacancy & Collection Allowance 5% Gross Income (95,000)
II. Effective Gross Income $1,812,000
III. Operating Expenses
General Operating Expenses 48 Units @ $4,500 /Unit $216,000
Property Taxes 4 48 Units @ $6,700 /Unit 323,000
Replacement Reserve Deposits 48 Units @ $150 /Unit 7,000
Total Operating Expenses 48 Units @ $11,375 /Unit ($546,000)
IV. Stabilized Net Operating Income $1,266,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3
4 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.63 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm L VL Page 50 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 6% LOW INCOME UNITS + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 80 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2 $1,266,000
Capitalization Rate 4.50%
Estimated Project Value $28,133,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1 $20,555,000
Threshold Developer Profit 10% of Value 2,813,000
Total Project Cost ($23,368,000)
III. Estimated Residual Land Value 32,670 Sf of Land $146 /Sf of Land $4,765,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm L VL Page 51 of 85
ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX D - EXHIBIT V
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 16% MODERATE INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mod Page 52 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT V - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 16% MODERATE INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 16 Spaces $5,000 /Space 80,000
Podium Spaces 72 Spaces $20,000 /Space 1,440,000
1st Level Subterranean Spaces 0 Spaces $40,000 /Space 0
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 45,600 Sf of GLA $220 /Sf of GLA 10,032,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,572,000
Total Direct Costs 45,600 Sf of GLA $338 /Sf of GLA $15,431,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $926,000
Public Permits & Fees 5 48 Units $21,300 /Unit 1,022,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 309,000
Marketing 48 Units $2,500 /Unit 120,000
Developer Fee 5% Direct Costs 772,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 157,000
Total Indirect Costs $3,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,765,000 Cost 6.2% Avg Rate $443,000
Construction 5 $20,555,000 Cost 6.2% Avg Rate 1,147,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 228,000
Total Financing Costs $1,818,000
IV. Total Construction Cost 48 Units $428,000 /Unit $20,555,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 18 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 18 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.0 space per Studio Unit; 1.5 spaces per
One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; 1.5 spaces per Three-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mod Page 53 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT V - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 16% MODERATE INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 20 Units @ $3,010 /Unit/Month 722,000
Two-Bedroom Units 20 Units @ $3,900 /Unit/Month 936,000
B. Moderate Income Units
2
Studio Units 0 Units @ $1,800 /Unit/Month 0
One-Bedroom Units 4 Units @ $2,039 /Unit/Month 98,000
Two-Bedroom Units 4 Units @ $2,278 /Unit/Month 109,000
C. Miscellaneous Income 48 Units @ $75 /Unit/Month 43,000
Total Gross Income $1,908,000
Vacancy & Collection Allowance 5% Gross Income (95,000)
II. Effective Gross Income $1,813,000
III. Operating Expenses
General Operating Expenses 48 Units @ $4,500 /Unit $216,000
Property Taxes 3 48 Units @ $6,800 /Unit 324,000
Replacement Reserve Deposits 48 Units @ $150 /Unit 7,000
Total Operating Expenses 48 Units @ $11,396 /Unit ($547,000)
IV. Stabilized Net Operating Income $1,266,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.64 per square
foot of leasable area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mod Page 54 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT V - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 16% MODERATE INCOME UNITS
DMU SITE - SMALL DEVELOPMENT: BASE ZONING: 64 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX D - EXHIBIT V - TABLE 2 $1,266,000
Capitalization Rate 4.50%
Estimated Project Value $28,133,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX D - EXHIBIT V - TABLE 1 $20,555,000
Threshold Developer Profit 10% of Value 2,813,000
Total Project Cost ($23,368,000)
III. Estimated Residual Land Value 32,670 Sf of Land $146 /Sf of Land $4,765,000
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm Mod Page 55 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT VI
PRO FORMA ANALYSIS
50% §65915 DENSITY BONUS: 96 UNITS/ACRE
DMU SITE - SMALL DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF DMU Sm 15% VL DB Page 56 of 85
ATTACHMENT 4: APPENDIX D - EXHIBIT VI - TABLE 1
ESTIMATED CONSTRUCTION COSTS
50% §65915 DENSITY BONUS: 96 UNITS/ACRE
DMU SITE - SMALL DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 32,670 Sf of Land $40 /Sf of Land $1,307,000
Parking 2
At-Grade Spaces 0 Spaces $5,000 /Space 0
Podium Spaces 0 Spaces $20,000 /Space 0
1st Level Subterranean Spaces 82 Spaces $40,000 /Space 3,280,000
2nd Level Subterranean Spaces 8 Spaces $50,000 /Space 400,000
Building Costs 68,400 Sf of GLA $240 /Sf of GLA 16,416,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 4,281,000
Total Direct Costs 68,400 Sf of GLA $375 /Sf of GLA $25,684,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,541,000
Public Permits & Fees 4 72 Units $21,300 /Unit 1,534,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 514,000
Marketing 72 Units $2,500 /Unit 180,000
Developer Fee 5% Direct Costs 1,284,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 253,000
Total Indirect Costs $5,306,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $3,947,000 Cost 6.2% Avg Rate $306,000
Construction 6 $33,173,000 Cost 6.2% Avg Rate 1,543,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 334,000
Total Financing Costs $2,183,000
IV. Total Construction Cost 72 Units $461,000 /Unit $33,173,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 65915 (p) requires jurisdictions to allow projects to meet the following statutorily established parking standards. 1.0 space per Studio
Unit; 1.0 space per One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; and 1.5 spaces per Three-Bedroom Unit. No guest spaces are
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ATTACHMENT 4: APPENDIX D - EXHIBIT VI - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
50% §65915 DENSITY BONUS: 96 UNITS/ACRE
DMU SITE - SMALL DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 0 Units @ $0 /Unit/Month $0
One-Bedroom Units 32 Units @ $3,010 /Unit/Month 1,156,000
Two-Bedroom Units 32 Units @ $3,900 /Unit/Month 1,498,000
B. Density Bonus Very Low Income Units
2
Studio Units 0 Units @ $768 /Unit/Month 0
One-Bedroom Units 4 Units @ $861 /Unit/Month 41,000
Two-Bedroom Units 4 Units @ $952 /Unit/Month 46,000
C. Miscellaneous Income 72 Units @ $75 /Unit/Month 65,000
Total Gross Income $2,806,000
Vacancy & Collection Allowance 5% Gross Income (140,000)
II. Effective Gross Income $2,666,000
III. Operating Expenses
General Operating Expenses 72 Units @ $4,500 /Unit $324,000
Property Taxes 3 72 Units @ $6,600 /Unit 475,000
Replacement Reserve Deposits 72 Units @ $150 /Unit 11,000
Total Operating Expenses 72 Units @ $11,250 /Unit ($810,000)
IV. Stabilized Net Operating Income $1,856,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.64 per square
foot of leasable area.
Section 65915 (c) (1) (B) (i) calculates very low income rents based on household income based on 110% of AMI. This represents the standard
identified in California Health & Safety Code Section 50503. See ATTACHMENT 4: APPENDIX B.
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ATTACHMENT 4: APPENDIX D - EXHIBIT VI - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
50% §65915 DENSITY BONUS: 96 UNITS/ACRE
DMU SITE - SMALL DEVELOPMENT
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX D - EXHIBIT VI - TABLE 2 $1,856,000
Capitalization Rate 4.50%
Estimated Project Value $41,244,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX D - EXHIBIT VI - TABLE 1 $33,173,000
Threshold Developer Profit 10% of Value 4,124,000
Total Project Cost ($37,297,000)
III. Estimated Residual Land Value 32,670 Sf of Land $121 /Sf of Land $3,947,000
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ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX E
PRO FORMA ANALYSES
LAS TUNAS / LIVE OAK CORRIDOR
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
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File name: 2 18 25 Arcadia Apt; App E LT LO Title Page 60 of 85
ATTACHMENT 4: APPENDIX E - EXHIBIT I
PRO FORMA ANALYSIS
MARKET RATE SCENARIO
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
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ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTION COSTS
MARKET RATE SCENARIO
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 30 Spaces $5,000 /Space 150,000
Podium Spaces 58 Spaces $20,000 /Space 1,160,000
1st Level Subterranean Spaces 62 Spaces $40,000 /Space 2,480,000
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 47,700 Sf of GLA $220 /Sf of GLA 10,494,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 3,205,000
Total Direct Costs 47,700 Sf of GLA $403 /Sf of GLA $19,231,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,154,000
Public Permits & Fees 4 60 Units $19,300 /Unit 1,158,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 385,000
Marketing 60 Units $2,500 /Unit 150,000
Developer Fee 5% Direct Costs 962,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 190,000
Total Indirect Costs $3,999,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $4,842,000 Cost 6.2% Avg Rate $375,000
Construction 6 $25,038,000 Cost 6.2% Avg Rate 1,164,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 269,000
Total Financing Costs $1,808,000
IV. Total Construction Cost 60 Units $417,000 /Unit $25,038,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 space per Studio Unit; 2.0 spaces per One-
Bedroom Unit; 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per Three-Bedroom Unit; and 0.50 guest spaces per unit.
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ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
MARKET RATE SCENARIO
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 12 Units @ $2,660 /Unit/Month $383,000
One-Bedroom Units 30 Units @ $2,960 /Unit/Month 1,066,000
Two-Bedroom Units 18 Units @ $3,540 /Unit/Month 765,000
B. Miscellaneous Income 60 Units @ $75 /Unit/Month 54,000
Total Gross Income $2,268,000
Vacancy & Collection Allowance 5% Gross Income (113,000)
II. Effective Gross Income $2,155,000
III. Operating Expenses
General Operating Expenses 60 Units @ $4,500 /Unit $270,000
Property Taxes 2 60 Units @ $6,400 /Unit 382,000
Replacement Reserve Deposits 60 Units @ $150 /Unit 9,000
Total Operating Expenses ($661,000)
IV. Stabilized Net Operating Income $1,494,000
1
2 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
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ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
MARKET RATE SCENARIO
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 2 $1,494,000
Capitalization Rate 4.50%
Estimated Project Value $33,200,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 1 $25,038,000
Threshold Developer Profit 10% of Value 3,320,000
Total Project Cost ($28,358,000)
III. Estimated Residual Land Value 43,560 Sf of Land $111 /Sf of Land $4,842,000
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ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 4
TARGET RESIDUAL LAND VALUE ANALYSIS
MARKET RATE SCENARIO
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
Las Tunas / Live Oak Corridor See ATTACHMENT 4: APPENDIX E - EXHIBIT I - TABLE 3 $4,842,000
Vacant Residential Land 1 43,560 Sf of Land $100 /Sf of Land 4,351,000
Estimated Value Enhancement $491,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $491,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $319,000
III. Target Residual Land Value
Estimated Land Value: Las Tunas / Live Oak Corridor $4,842,000
Minus Value Enhancement Funds Available for Inclusionary Housing (319,000)
Target Residual Land Value $4,523,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
2 Based on the Value Enhancement Funds Available for Inclusionary Housing.
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ATTACHMENT 4: APPENDIX E - EXHIBIT II
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
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File name: 2 18 25 Arcadia Apt; PF LT LO VL Page 66 of 85
ATTACHMENT 4: APPENDIX E - EXHIBIT II - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 30 Spaces $5,000 /Space 150,000
Podium Spaces 58 Spaces $20,000 /Space 1,160,000
1st Level Subterranean Spaces 62 Spaces $40,000 /Space 2,480,000
Building Costs 47,700 Sf of GLA $220 /Sf of GLA 10,494,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 3,205,000
Total Direct Costs 47,700 Sf of GLA $403 /Sf of GLA $19,231,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,154,000
Public Permits & Fees 5 60 Units $19,300 /Unit 1,158,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 385,000
Marketing 60 Units $2,500 /Unit 150,000
Developer Fee 5% Direct Costs 962,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 190,000
Total Indirect Costs $3,999,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,844,000 Cost 6.2% Avg Rate $375,000
Construction 5 $25,036,000 Cost 6.2% Avg Rate 1,164,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 267,000
Total Financing Costs $1,806,000
IV. Total Construction Cost 60 Units $417,000 /Unit $25,036,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 space per Studio Unit; 2.0 spaces per One-
Bedroom Unit; 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per Three-Bedroom Unit; and 0.50 guest spaces per unit.
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ATTACHMENT 4: APPENDIX E - EXHIBIT II - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 12 Units @ $2,660 /Unit/Month $383,000
One-Bedroom Units 30 Units @ $2,960 /Unit/Month 1,066,000
Two-Bedroom Units 18 Units @ $3,540 /Unit/Month 765,000
B. Very Low Income Units
2
Studio Units 0 Units @ $768 /Unit/Month 0
One-Bedroom Units 0 Units @ $861 /Unit/Month 0
Two-Bedroom Units 0 Units @ $952 /Unit/Month 0
C. Miscellaneous Income 60 Units @ $75 /Unit/Month 54,000
Total Gross Income $2,268,000
Vacancy & Collection Allowance 5% Gross Income (113,000)
II. Effective Gross Income $2,155,000
III. Operating Expenses
General Operating Expenses 60 Units @ $4,500 /Unit $270,000
Property Taxes 3 60 Units @ $6,400 /Unit 382,000
Replacement Reserve Deposits 60 Units @ $150 /Unit 9,000
Total Operating Expenses 60 Units @ $11,017 /Unit ($661,000)
IV. Stabilized Net Operating Income $1,494,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
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ATTACHMENT 4: APPENDIX E - EXHIBIT II - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX E - EXHIBIT II - TABLE 2 $1,494,000
Capitalization Rate 4.50%
Estimated Project Value $33,200,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX E - EXHIBIT II - TABLE 1 $25,036,000
Threshold Developer Profit 10% of Value 3,320,000
Total Project Cost ($28,356,000)
III. Estimated Residual Land Value 43,560 Sf of Land $111 /Sf of Land $4,844,000
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ATTACHMENT 4: APPENDIX E - EXHIBIT III
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
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ATTACHMENT 4: APPENDIX E - EXHIBIT III - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 30 Spaces $5,000 /Space 150,000
Podium Spaces 58 Spaces $20,000 /Space 1,160,000
1st Level Subterranean Spaces 62 Spaces $40,000 /Space 2,480,000
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 47,700 Sf of GLA $220 /Sf of GLA 10,494,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 3,205,000
Total Direct Costs 47,700 Sf of GLA $403 /Sf of GLA $19,231,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,154,000
Public Permits & Fees 5 60 Units $19,300 /Unit 1,158,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 385,000
Marketing 60 Units $2,500 /Unit 150,000
Developer Fee 5% Direct Costs 962,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 190,000
Total Indirect Costs $3,999,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,586,000 Cost 6.2% Avg Rate $355,000
Construction 5 $25,014,000 Cost 6.2% Avg Rate 1,163,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 266,000
Total Financing Costs $1,784,000
IV. Total Construction Cost 60 Units $417,000 /Unit $25,014,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 space per Studio Unit; 2.0 spaces per One-
Bedroom Unit; 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per Three-Bedroom Unit; and 0.50 guest spaces per unit.
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ATTACHMENT 4: APPENDIX E - EXHIBIT III - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 12 Units @ $2,660 /Unit/Month $383,000
One-Bedroom Units 29 Units @ $2,960 /Unit/Month 1,030,000
Two-Bedroom Units 18 Units @ $3,540 /Unit/Month 765,000
B. Low Income Units
2
Studio Units 0 Units @ $1,284 /Unit/Month 0
One-Bedroom Units 1 Unit @ $1,450 /Unit/Month 17,000
Two-Bedroom Units 0 Units @ $1,615 /Unit/Month 0
C. Miscellaneous Income 60 Units @ $75 /Unit/Month 54,000
Total Gross Income $2,249,000
Vacancy & Collection Allowance 5% Gross Income (112,000)
II. Effective Gross Income $2,137,000
III. Operating Expenses
General Operating Expenses 60 Units @ $4,500 /Unit $270,000
Property Taxes 3 60 Units @ $6,300 /Unit 378,000
Replacement Reserve Deposits 60 Units @ $150 /Unit 9,000
Total Operating Expenses 60 Units @ $10,950 /Unit ($657,000)
IV. Stabilized Net Operating Income $1,480,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
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ATTACHMENT 4: APPENDIX E - EXHIBIT III - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX E - EXHIBIT III - TABLE 2 $1,480,000
Capitalization Rate 4.50%
Estimated Project Value $32,889,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX E - EXHIBIT III - TABLE 1 $25,014,000
Threshold Developer Profit 10% of Value 3,289,000
Total Project Cost ($28,303,000)
III. Estimated Residual Land Value 43,560 Sf of Land $105 /Sf of Land $4,586,000
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INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
ATTACHMENT 4: APPENDIX C - EXHIBIT IV
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT:
2% LOW INCOME UNITS + 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
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ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS + 0% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 30 Spaces $5,000 /Space 150,000
Podium Spaces 58 Spaces $20,000 /Space 1,160,000
1st Level Subterranean Spaces 62 Spaces $40,000 /Space 2,480,000
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 47,700 Sf of GLA $220 /Sf of GLA 10,494,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 3,205,000
Total Direct Costs 47,700 Sf of GLA $403 /Sf of GLA $19,231,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,154,000
Public Permits & Fees 5 60 Units $19,300 /Unit 1,158,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 385,000
Marketing 60 Units $2,500 /Unit 150,000
Developer Fee 5% Direct Costs 962,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 190,000
Total Indirect Costs $3,999,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,586,000 Cost 6.2% Avg Rate $355,000
Construction 5 $25,014,000 Cost 6.2% Avg Rate 1,163,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 266,000
Total Financing Costs $1,784,000
IV. Total Construction Cost 60 Units $417,000 /Unit $25,014,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 space per Studio Unit; 2.0 spaces per One-
Bedroom Unit; 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per Three-Bedroom Unit; and 0.50 guest spaces per unit.
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File name: 2 18 25 Arcadia Apt; PF LT LO Sm L VL Page 75 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS + 0% VERY LOW INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 12 Units @ $2,660 /Unit/Month $383,000
One-Bedroom Units 29 Units @ $2,960 /Unit/Month 1,030,000
Two-Bedroom Units 18 Units @ $3,540 /Unit/Month 765,000
B. Low Income Units
2
Studio Units 0 Units @ $1,284 /Unit/Month 0
One-Bedroom Units 1 Unit @ $1,450 /Unit/Month 17,000
Two-Bedroom Units 0 Units @ $1,615 /Unit/Month 0
B. Very Low Income Units
3
Studio Units 0 Units @ $768 /Unit/Month 0
One-Bedroom Units 0 Units @ $861 /Unit/Month 0
Two-Bedroom Units 0 Units @ $952 /Unit/Month 0
C. Miscellaneous Income 60 Units @ $75 /Unit/Month 54,000
Total Gross Income $2,249,000
Vacancy & Collection Allowance 5% Gross Income (112,000)
II. Effective Gross Income $2,137,000
III. Operating Expenses
General Operating Expenses 60 Units @ $4,500 /Unit $270,000
Property Taxes 4 60 Units @ $6,300 /Unit 378,000
Replacement Reserve Deposits 60 Units @ $150 /Unit 9,000
Total Operating Expenses 60 Units @ $10,950 /Unit ($657,000)
IV. Stabilized Net Operating Income $1,480,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3
4 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053. See ATTACHMENT
4: APPENDIX B.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF LT LO Sm L VL Page 76 of 85
ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 2% LOW INCOME UNITS + 0% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 2 $1,480,000
Capitalization Rate 4.50%
Estimated Project Value $32,889,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX C - EXHIBIT IV - TABLE 1 $25,014,000
Threshold Developer Profit 10% of Value 3,289,000
Total Project Cost ($28,303,000)
III. Estimated Residual Land Value 43,560 Sf of Land $105 /Sf of Land $4,586,000
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ARCADIA, CALIFORNIA
ATTACHMENT 4: APPENDIX E - EXHIBIT V
PRO FORMA ANALYSIS
SUPPORTABLE REQUIREMENT: 3% MODERATE INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF LT LO Mod Page 78 of 85
ATTACHMENT 4: APPENDIX E - EXHIBIT V - TABLE 1
ESTIMATED CONSTRUCTION COSTS
SUPPORTABLE REQUIREMENT: 3% MODERATE INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 30 Spaces $5,000 /Space 150,000
Podium Spaces 58 Spaces $20,000 /Space 1,160,000
1st Level Subterranean Spaces 62 Spaces $40,000 /Space 2,480,000
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 47,700 Sf of GLA $220 /Sf of GLA 10,494,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 3,205,000
Total Direct Costs 47,700 Sf of GLA $403 /Sf of GLA $19,231,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,154,000
Public Permits & Fees 5 60 Units $19,300 /Unit 1,158,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 385,000
Marketing 60 Units $2,500 /Unit 150,000
Developer Fee 5% Direct Costs 962,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 190,000
Total Indirect Costs $3,999,000
III. Financing Costs
Interest During Construction
Land Acquisition 4 $4,457,000 Cost 6.2% Avg Rate $345,000
Construction 5 $25,003,000 Cost 6.2% Avg Rate 1,163,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 265,000
Total Financing Costs $1,773,000
IV. Total Construction Cost 60 Units $417,000 /Unit $25,003,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 space per Studio Unit; 2.0 spaces per One-
Bedroom Unit; 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per Three-Bedroom Unit; and 0.50 guest spaces per unit.
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ATTACHMENT 4: APPENDIX E - EXHIBIT V - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
SUPPORTABLE REQUIREMENT: 3% MODERATE INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 12 Units @ $2,660 /Unit/Month $383,000
One-Bedroom Units 29 Units @ $2,960 /Unit/Month 1,030,000
Two-Bedroom Units 17 Units @ $3,540 /Unit/Month 722,000
B. Moderate Income Units
2
Studio Units 0 Units @ $1,800 /Unit/Month 0
One-Bedroom Units 1 Unit @ $2,039 /Unit/Month 24,000
Two-Bedroom Units 1 Unit @ $2,278 /Unit/Month 27,000
C. Miscellaneous Income 60 Units @ $75 /Unit/Month 54,000
Total Gross Income $2,240,000
Vacancy & Collection Allowance 5% Gross Income (112,000)
II. Effective Gross Income $2,128,000
III. Operating Expenses
General Operating Expenses 60 Units @ $4,500 /Unit $270,000
Property Taxes 3 60 Units @ $6,300 /Unit 376,000
Replacement Reserve Deposits 60 Units @ $150 /Unit 9,000
Total Operating Expenses 60 Units @ $10,917 /Unit ($655,000)
IV. Stabilized Net Operating Income $1,473,000
1
2 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505. See ATTACHMENT 4: APPENDIX B.
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
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ATTACHMENT 4: APPENDIX E - EXHIBIT V - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
SUPPORTABLE REQUIREMENT: 3% MODERATE INCOME UNITS
LAS TUNAS / LIVE OAK CORRIDOR: BASE ZONING: 60 UNITS/ACRE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX E - EXHIBIT V - TABLE 2 $1,473,000
Capitalization Rate 4.50%
Estimated Project Value $32,733,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX E - EXHIBIT V - TABLE 1 $25,003,000
Threshold Developer Profit 10% of Value 3,273,000
Total Project Cost ($28,276,000)
III. Estimated Residual Land Value 43,560 Sf of Land $102 /Sf of Land $4,457,000
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ATTACHMENT 4: APPENDIX E - EXHIBIT VI
PRO FORMA ANALYSIS
50% §65915 DENSITY BONUS: 90 UNITS/ACRE
LAS TUNAS / LIVE OAK CORRIDOR
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
APARTMENT DEVELOPMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt; PF LT LO 15% VL DB Page 82 of 85
ATTACHMENT 4: APPENDIX E - EXHIBIT VI - TABLE 1
ESTIMATED CONSTRUCTION COSTS
50% §65915 DENSITY BONUS: 90 UNITS/ACRE
LAS TUNAS / LIVE OAK CORRIDOR
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Direct Costs
1
On-Site Improvements / Landscaping 43,560 Sf of Land $40 /Sf of Land $1,742,000
Parking 2
At-Grade Spaces 0 Spaces $5,000 /Space 0
Podium Spaces 0 Spaces $20,000 /Space 0
1st Level Subterranean Spaces 104 Spaces $40,000 /Space 4,160,000
2nd Level Subterranean Spaces 0 Spaces $50,000 /Space 0
Building Costs 71,550 Sf of GLA $240 /Sf of GLA 17,172,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 4,615,000
Total Direct Costs 71,550 Sf of GLA $387 /Sf of GLA $27,689,000
II. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,661,000
Public Permits & Fees 4 90 Units $19,200 /Unit 1,728,000
Taxes, Insurance, Legal & Accounting 2% Direct Costs 554,000
Marketing 90 Units $2,500 /Unit 225,000
Developer Fee 5% Direct Costs 1,384,000
Soft Cost Contingency Allowance 5% Other Indirect Costs 278,000
Total Indirect Costs $5,830,000
III. Financing Costs
Interest During Construction
Land Acquisition 5 $4,866,000 Cost 6.2% Avg Rate $377,000
Construction 6 $35,934,000 Cost 6.2% Avg Rate 1,671,000
Loan Origination Fees 60% Loan to Cost 1.5 Points 367,000
Total Financing Costs $2,415,000
IV. Total Construction Cost 90 Units $399,000 /Unit $35,934,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Based on an 15 month construction period following receipt of entitlements, and a 100% average outstanding loan balance.
6 Based on an 15 month construction period following receipt of entitlements, and a 60% average outstanding loan balance.
Section 65915 (p) requires jurisdictions to allow projects to meet the following statutorily established parking standards. 1.0 space per Studio
Unit; 1.0 space per One-Bedroom Unit; 1.5 spaces per Two-Bedroom Unit; and 1.5 spaces per Three-Bedroom Unit. No guest spaces are
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ATTACHMENT 4: APPENDIX E - EXHIBIT VI - TABLE 2
ESTIMATED STABILIZED NET OPERATING INCOME
50% §65915 DENSITY BONUS: 90 UNITS/ACRE
LAS TUNAS / LIVE OAK CORRIDOR
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Income
A. Market Rate Units
1
Studio Units 16 Units @ $2,660 /Unit/Month $511,000
One-Bedroom Units 40 Units @ $2,960 /Unit/Month 1,421,000
Two-Bedroom Units 24 Units @ $3,540 /Unit/Month 1,020,000
B. Density Bonus Very Low Income Units
2
Studio Units 2 Units @ $768 /Unit/Month 18,000
One-Bedroom Units 5 Units @ $861 /Unit/Month 52,000
Two-Bedroom Units 3 Units @ $952 /Unit/Month 34,000
C. Miscellaneous Income 90 Units @ $75 /Unit/Month 81,000
Total Gross Income $3,137,000
Vacancy & Collection Allowance 5% Gross Income (157,000)
II. Effective Gross Income $2,980,000
III. Operating Expenses
General Operating Expenses 90 Units @ $4,500 /Unit $405,000
Property Taxes 3 90 Units @ $5,800 /Unit 521,000
Replacement Reserve Deposits 90 Units @ $150 /Unit 14,000
Total Operating Expenses 90 Units @ $10,444 /Unit ($940,000)
IV. Stabilized Net Operating Income $2,040,000
1
2
3 The assessed value is estimated based on a 4.50% capitalization rate. The property tax rate is set at 1.15%.
Based in part on the rent survey presented in ATTACHMENT 4: APPENDIX A. The weighted average monthly rent equates to $3.87 per square
foot of leasable area.
Section 65915 (c) (1) (B) (i) calculates very low income rents based on household income based on 110% of AMI. This represents the standard
identified in California Health & Safety Code Section 50503. See ATTACHMENT 4: APPENDIX B.
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ATTACHMENT 4: APPENDIX E - EXHIBIT VI - TABLE 3
ESTIMATED STABILIZED RETURN ON TOTAL INVESTMENT
50% §65915 DENSITY BONUS: 90 UNITS/ACRE
LAS TUNAS / LIVE OAK CORRIDOR
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Project Value
Stabilized Net Operating Income See ATTACHMENT 4: APPENDIX E - EXHIBIT VI - TABLE 2 $2,040,000
Capitalization Rate 4.50%
Estimated Project Value $45,333,000
II. Total Project Cost
Total Construction Cost See ATTACHMENT 4: APPENDIX E - EXHIBIT VI - TABLE 1 $35,934,000
Threshold Developer Profit 10% of Value 4,533,000
Total Project Cost ($40,467,000)
III. Estimated Residual Land Value 43,560 Sf of Land $112 /Sf of Land $4,866,000
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ATTACHMENT 5
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Att 5 Title Page 1 of 27
ATTACHMENT 5: APPENDIX A
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
HOME SALES SURVEY
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; App A HS Page 2 of 27
ATTACHMENT 5: APPENDIX A
RESALE HOME SALES SURVEY 1
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
1128 W Duarte Rd Unit F Arcadia 91007 1,300 $710,000 $546 2006
2966 Grand Oak Way Arcadia 91006 1,312 $775,055 $591 2024
2955 Grand Oak Way Arcadia 91006 1,312 $779,990 $595 2024
2959 Grand Oak Way Arcadia 91006 1,312 $793,983 $605 2024
56 E Duarte Rd #410 Arcadia 91006 1,460 $938,960 $643 2019
Minimum 1,300 $710,000 $546 2006
Maximum 1,460 $938,960 $643 2024
Average 1,339 $799,600 $597 2019
138 Alice St Unit B Arcadia 91006 1,208 $840,000 $695 2006
2607 Winston Ct Arcadia 91007 1,490 $1,048,800 $704 2021
138 El Dorado St Unit A Arcadia 91006 1,501 $1,000,000 $666 2006
413 California St Unit D Arcadia 91006 1,561 $1,050,000 $673 2019
411 california St Unit D Arcadia 91006 1,561 $1,075,000 $689 2019
415 California St Unit B Arcadia 91006 1,561 $1,060,000 $679 2019
409 California St Unit C Arcadia 91006 1,565 $1,066,000 $681 2019
129 El Dorado St Unit A Arcadia 91006 1,579 $1,210,000 $766 2018
511 N Santa Anita Ave Unit A Arcadia 91006 1,600 $1,060,000 $663 2020
1058 Sunset Blvd Unit A Arcadia 91007 1,620 $1,098,000 $678 2014
409 California St Unit B Arcadia 91006 1,625 $1,060,000 $652 2019
923 Fairview Ave Unit B Arcadia 91007 1,630 $1,100,000 $675 2014
22 E Colorado Blvd Unit C Arcadia 91006 1,640 $1,133,000 $691 2020
921 Fairview Ave Unit C Arcadia 91007 1,660 $1,140,000 $687 2014
1022 La Cadena Ave Unit I Arcadia 91007 1,664 $1,298,000 $780 2024
1068 Sunset Blvd Unit A Arcadia 91007 1,670 $1,103,000 $660 2014
39 Fano St Unit A Arcadia 91006 1,731 $1,120,000 $647 2002
129 El Dorado St Unit B Arcadia 91006 1,737 $1,250,000 $720 2018
656 W Huntington Dr Unit A-2 Arcadia 91007 1,770 $1,141,000 $645 2013
656 W Huntington Dr Unit B2 Arcadia 91007 1,770 $1,280,000 $723 2013
656 W Huntington Dr Unit N1 Arcadia 91007 1,770 $1,210,000 $684 2013
1116 W Huntington Dr Unit C Arcadia 91007 1,876 $937,400 $500 2002
1112 Fairview Ave Arcadia 91007 1,880 $1,170,000 $622 2000
507 Santa Anita N Unit B Arcadia 91006 1,887 $1,280,000 $678 2020
901 W Duarte Rd Unit B Arcadia 91007 1,903 $1,550,000 $815 2024
1343 JACARANDA Cir Arcadia 91006 1,908 $998,000 $523 2002
418 W Fairview Ave Unit B Arcadia 91007 1,913 $1,268,000 $663 2022
721 S Arcadia Ave Unit A Arcadia 91007 1,918 $1,090,000 $568 2003
623 Fairview Ave Unit C Arcadia 91007 1,987 $1,285,000 $647 2019
618 Arcadia Ave Unit A Arcadia 91007 1,990 $1,138,000 $572 2000
503 N Santa Anita Ave Unit F Arcadia 91006 2,009 $1,335,000 $665 2020
462 W Duarte Rd Unit C Arcadia 91007 2,013 $1,080,000 $537 2005
721 S 3rd Ave Unit A Arcadia 91006 2,048 $1,399,000 $683 2007
Sales Price
Address
Two-Bedroom Units
Three-Bedroom Units
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ATTACHMENT 5: APPENDIX A
RESALE HOME SALES SURVEY 1
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
Sales Price
Address
721 S 3rd Ave Unit B Arcadia 91006 2,052 $1,399,000 $682 2007
800 W Huntington Dr Unit A Arcadia 91007 2,085 $1,180,000 $566 2006
1122 Arcadia Ave Unit C Arcadia 91007 2,101 $1,060,888 $505 2000
455 Fairview Ave Arcadia 91007 2,118 $1,102,000 $520 2003
829 La Cadena Ave Unit A Arcadia 91007 2,147 $1,100,000 $512 2004
1112 S Golden West Ave #104 Arcadia 91007 2,269 $1,010,000 $445 2003
425 El Dorado St Unit A Arcadia 91006 2,473 $1,488,000 $602 2003
414 S 2nd Ave Unit E Arcadia 91006 2,739 $1,900,000 $694 2023
Minimum 1,208 $840,000 $445 2000
Maximum 2,739 $1,900,000 $815 2024
Average 1,835 $1,173,500 $640 2012
36 Bedford Ct Arcadia 91007 1,570 $1,180,000 $752 2021
16 Bedford Ct Arcadia 91007 1,580 $1,105,000 $699 2021
1022 La Cadena Ave Unit H Arcadia 91007 1,614 $1,150,000 $713 2024
1027 Arcadia Ave Unit F Arcadia 91007 1,761 $1,350,000 $767 2023
1022 La Cadena Ave Unit D Arcadia 91007 1,771 $1,310,000 $740 2024
1027 Arcadia Ave Unit D Arcadia 91007 1,773 $1,225,000 $691 2023
1022 La Cadena Ave Unit G Arcadia 91007 1,797 $1,338,000 $745 2024
1510 S Baldwin Ave Unit E Arcadia 91007 1,803 $1,060,000 $588 2005
1027 Arcadia Ave Unit E Arcadia 91007 1,824 $1,250,000 $685 2023
1022 La Cadena Ave Unit C Arcadia 91007 1,824 $1,338,000 $734 2024
509 N Santa Anita Ave Arcadia 91006 1,871 $1,350,000 $722 2020
4372 Alamo Ln Arcadia 91006 1,970 $980,071 $497 2023
656 W Huntington Dr Unit N2 Arcadia 91007 2,040 $1,272,600 $624 2013
151 Alicec St Unit C Arcadia 91006 2,100 $1,600,000 $762 2023
151 Alice St Unit B Arcadia 91006 2,200 $1,580,000 $718 2023
2950 Sycamore Ln Arcadia 91006 2,268 $1,100,000 $485 2002
925 Duarte Rd W Unit A Arcadia 91007 2,302 $1,320,000 $573 2002
418 Genoa Arcadia 91006 2,343 $1,650,000 $704 2023
516 S 2nd Ave Arcadia 91006 2,470 $1,580,000 $640 2015
Minimum 1,570 $980,071 $485 2002
Maximum 2,470 $1,650,000 $767 2024
Average 1,941 $1,302,000 $671 2019
1 Source: Redfin, January 2025. The survey includes sales that occurred between January 2024 and January 2025. The survey is
limited to home constructed since 2000.
Four-Bedroom Units
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ATTACHMENT 5: APPENDIX B
AFFORDABLE SALES PRICE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; App B ASP Page 5 of 27
ATTACHMENT 5: APPENDIX B
AFFORDABLE SALES PRICE CALCULATIONS 1
2024 INCOME STANDARDS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Two-Bedroom
Units
Three-Bedroom
Units
Four-Bedroom
Units
General Assumptions
Benchmark Household Size 2 345
Area Median Income 3 $88,400 $98,200 $106,050
Annual Utilities Allowance 4 $3,120 $3,804 $4,668
HOA, Maintenance & Insurance 5 $3,600 $3,900 $4,200
I. Moderate Income Units
A. Income Allotted to Housing Based on 110% AMI
Benchmark Annual Household Income $97,240 $108,020 $116,655
Income Allotted to Housing @ 35% of Income $34,030 $37,810 $40,830
B. Property Taxes @ 1.15% of Affordable Sales Price $3,600 $3,970 $4,210
C. Income Available for Mortgage Debt Service
6 $23,710 $26,136 $27,752
D. Affordable Sales Price
Supportable Mtg @ 6.98% Interest 7 $297,500 $328,000 $348,300
Home Buyer Down Payment @ 5% of ASP 15,700 17,300 18,300
Affordable Sales Price $313,200 $345,300 $366,600
II. Low Income Units
A. Income Allotted to Housing Based on 70% AMI
Benchmark Annual Household Income $61,880 $68,740 $74,235
Income Allotted to Housing @ 30% of Income $18,560 $20,620 $22,270
B. Property Taxes @ 1.15% of Affordable Sales Price $1,560 $1,700 $1,770
C. Income Available for Mortgage Debt Service
6 $10,280 $11,216 $11,632
D. Affordable Sales Price
Supportable Mtg @ 6.98% Interest 7 $129,000 $140,700 $146,000
Home Buyer Down Payment @ 5% of ASP 6,800 7,400 7,700
Affordable Sales Price $135,800 $148,100 $153,700
1 Based on the California Health & Safety Code Section 50052.5 calculation methodology.
2
3
4
5 Based in part on information derived from the home resales survey presented in ATTACHMENT 5: APPENDIX A.
6
7
For the purposes of calculating the Affordable Sales Prices, California Health & Safety Code Section 50052.5 sets the benchmark
household sizes at the number of bedrooms in the unit plus one. This is neither an occupancy cap nor a floor.
Based on the 2024 Los Angeles County household incomes published by the California Department of Housing & Community
Development (HCD).
Utilities allowances are based on the Los Angeles County Development Authority (LACDA) Single-Family utility allowance
schedule effective as of July 1, 2024. Assumes: Electric Heating, Electric Cooking, Electric Water Heater, Basic Electric, Air
Based on the Income Allotted to Housing minus the following: Annual Utilities Allowance; HOA, Maintenance & Insurance; and
Property Taxes @ 1.15% of Affordable Sales Price.
Based on a 25 basis points premium applied to the Freddie Mac monthly average, between February 2024 and January 2025, for a
fixed-interest rate loan with a 30-year amortization period.
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File name: 2 18 25 Arcadia Own; ASP Page 6 of 27
ARCADIA, CALIFORNIA
ATTACHMENT 5: APPENDIX C
PRO FORMA ANALYSES
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own; APP C Title DMU Page 7 of 27
ARCADIA, CALIFORNIA
ATTACHMENT 5: APPENDIX C - EXHIBIT I
PRO FORMA ANALYSIS
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV DMU Page 8 of 27
ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTIONS COSTS
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
IDirect Costs 1
On-Site Improvements/Landscaping 65,340 Sf of Land $30 /Sf of Land $1,960,000
Parking 2
Attached Garage 0 Spaces $0 /Space 0
At-Grade Parking Spaces 32 Spaces $5,000 /Space 160,000
Podium Spaces 144 Spaces $20,000 /Space 2,880,000
Building Costs 120,000 Sf of GSA $255 /Sf of GSA 30,600,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 7,120,000
Total Direct Costs $42,720,000
II. Indirect Costs
Architecture, Engineering & Consulting 6.0% Direct Costs $2,563,000
Public Permits & Fees 4 96 Units $23,800 /Unit 2,285,000
Taxes, Insurance, Legal & Accounting 1.5% Direct Costs 641,000
Marketing 96 Units $5,000 /Unit 480,000
Developer Fee 3.0% Gross Sales Revenue 2,529,000
Soft Cost Contingency Allowance 5.0% Other Indirect Costs 425,000
Total Indirect Costs $8,923,000
III. Financing Costs
Interest During Construction 5 $6,180,000
Loan Origination Fees 60.0% Loan to Cost 1.5 Points 570,000
Total Financing Costs $6,750,000
IV. Total Construction Cost 96 Units $608,000 /Unit $58,393,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5 Assumes a 7.0% interest cost for debt; an 18 month construction period after receipt of entitlements; an 16 month absorption period; 10% of
the units are presold and close during first month after completion; and 1.5 points for loan origination fees.
Section 9103.07.050 imposes the following parking requirements on sites with Mixed Use Zoning: 1.5 spaces per Two-Bedroom Unit; 1.5
spaces per Three-Bedroom Unit; 1.5 spaces per Four-Bedroom Unit; and 0.33 guest spaces per unit.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV DMU Page 9 of 27
ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 2
PROJECTED NET SALES REVENUE
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Sales Revenue
1
Two-Bedroom Units 48 Units @ $707,000 /Unit $33,936,000
Three-Bedroom Units 48 Units @ $1,049,000 /Unit 50,352,000
Four-Bedroom Units 0 Units @ $0 /Unit 0
Total Gross Sales Revenue $84,288,000
II. Cost of Sales
Commissions 3.0% Gross Sales Revenue $2,529,000
Closing 2.0% Gross Sales Revenue 1,686,000
Warranty 0.5% Gross Sales Revenue 421,000
Total Cost of Sales ($4,636,000)
III. Net Revenue $79,652,000
1 Based in part on a survey of homes in Arcadia that were constructed after 2000 and resold between September 2022 and September 2023.
See ATTACHMENT 5: APPENDIX A. The weighted average sales price equates to $702 per square foot of saleable area.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV DMU Page 10 of 27
ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Net Revenue See ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 2 $79,652,000
II. Project Costs
Total Construction Cost See ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 1 $58,393,000
Threshold Developer Profit 12% Net Revenue 9,558,000
Total Project Costs $67,951,000
III. Estimated Residual Land Value 65,340 Sf of Land $179 /Sf of Land $11,701,000
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV DMU Page 11 of 27
ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 4
VALUE ENHANCEMENT ANALYSIS
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
DMU Site See ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 3 $11,701,000
Improved Commercial Site 1 65,340 Sf of Land $115 /Sf of Land 7,514,000
Estimated Value Enhancement $4,187,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $4,187,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $2,722,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV DMU Page 12 of 27
ATTACHMENT 5: APPENDIX C - EXHIBIT II
SUPPORTABLE INCLUSIONARY HOUSING REQUIREMENTS
DMU SITE: 64 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Two-Bedroom
Units
Three-
Bedroom Units
Four-Bedroom
Units
I. Affordability Gap Calculation
Market Rate Sales Price 1 $707,000 $1,049,000 $0
Affordable Sales Price 2 313,200 345,300 0
Affordability Gap Per Inclusionary Unit $393,800 $703,700 $0
II. Number of Inclusionary Units
Unit Allocation 1 48 48 0
Supportable Inclusionary Housing Percentage 5.20% 5.20% 5.20%
Total Number of Inclusionary Units 2.5 2.5 0.0
III. Total Affordability Gap by Bedroom Type $982,920 $1,756,440 $0
IV. Crosscheck
Value Enhancement Funds Available for Inclusionary Housing $2,722,000
Total Affordability Gap / Impact of The Inclusionary Requirement 3 2,739,360
Requirement is Higher than the Supportable Percentage ($17,360)
V. Supportable In-Lieu Fee
Value Enhancement Funds Available for Inclusionary Housing $2,722,000
Gross Saleable Area 4 120,000 Square Feet
Supportable In-Lieu Fee $23 /Sf of GSA
1 See ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 2.
2 See ATTACHMENT 5: APPENDIX B.
3
4 See ATTACHMENT 5: APPENDIX C - EXHIBIT I - TABLE 1
The Total Affordability Gap / Impact of The Inclusionary Requirement is equal to the sum of the Affordability Gap exhibited by each
bedroom type.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; INC_ILF DMU Page 13 of 27
ARCADIA, CALIFORNIA
ATTACHMENT 5: APPENDIX D
PRO FORMA ANALYSES
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own; APP D Title R3 Page 14 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT I
PRO FORMA ANALYSIS
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV R3 Page 15 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTIONS COSTS
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
IDirect Costs 1
On-Site Improvements/Landscaping 26,136 Sf of Land $30 /Sf of Land $784,000
Parking 2
Attached Garage 0Spaces $0 /Space 0
At-Grade Parking Spaces 0Spaces $5,000 /Space 0
Podium Spaces 60 Spaces $20,000 /Space 1,200,000
Building Costs 39,000 Sf of GSA $235 /Sf of GSA 9,165,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 2,230,000
Total Direct Costs $13,379,000
II. Indirect Costs
Architecture, Engineering & Consulting 6.0%Direct Costs $803,000
Public Permits & Fees 4 24 Units $27,050 /Unit 649,000
Taxes, Insurance, Legal & Accounting 1.5%Direct Costs 201,000
Marketing 24 Units $5,000 /Unit 120,000
Developer Fee 3.0% Gross Sales Revenue 853,000
Soft Cost Contingency Allowance 5.0% Other Indirect Costs 131,000
Total Indirect Costs $2,757,000
III. Financing Costs
Interest During Construction 5 $1,779,000
Loan Origination Fees 60.0%Loan to Cost 1.5 Points 200,000
Total Financing Costs $1,979,000
IV. Total Construction Cost 24 Units $755,000 /Unit $18,115,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per
Three-Bedroom Unit; 2.0 spaces per Four-Bedroom Unit; and 0.50 guest spaces per unit.
Assumes a 7.0% interest cost for debt; an 18 month construction period after receipt of entitlements; an 5 month absorption period; 10% of the units
are presold and close during first month after completion; and 1.5 points for loan origination fees.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV R3 Page 16 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 2
PROJECTED NET SALES REVENUE
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Sales Revenue
1
Two-Bedroom Units 4 Units @ $836,000 /Unit $3,344,000
Three-Bedroom Units 14 Units @ $1,199,000 /Unit 16,786,000
Four-Bedroom Units 6 Units @ $1,384,000 /Unit 8,304,000
Total Gross Sales Revenue $28,434,000
II. Cost of Sales
Commissions 3.0% Gross Sales Revenue $853,000
Closing 2.0% Gross Sales Revenue 569,000
Warranty 0.5% Gross Sales Revenue 142,000
Total Cost of Sales ($1,564,000)
III.Net Revenue $26,870,000
1 Based in part on a survey of homes in Arcadia that were constructed after 2000 and resold between September 2022 and September 2023.
See ATTACHMENT 5: APPENDIX A. The weighted average sales price equates to $729 per square foot of saleable area.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV R3 Page 17 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Net Revenue See ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 2 $26,870,000
II. Project Costs
Total Construction Cost See ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 1 $18,115,000
Threshold Developer Profit 10% Net Revenue 2,687,000
Total Project Costs $20,802,000
III. Estimated Residual Land Value 26,136 Sf of Land $232 /Sf of Land $6,068,000
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV R3 Page 18 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 4
VALUE ENHANCEMENT ANALYSIS
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
R-3 Upzone Site See ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 3 $6,068,000
Improved Apartment Site 1 26,136 Sf of Land $175 /Sf of Land 4,574,000
Estimated Value Enhancement $1,494,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $1,494,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $971,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV R3 Page 19 of 27
ATTACHMENT 5: APPENDIX D - EXHIBIT II
SUPPORTABLE INCLUSIONARY HOUSING REQUIREMENTS
R-3 UPZONE SITE: 40 UNITS/ACRE TOWNHOMES & FLATS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Two-Bedroom
Units
Three-
Bedroom Units
Four-Bedroom
Units
I. Affordability Gap Calculation
Market Rate Sales Price 1 $836,000 $1,199,000 $1,384,000
Affordable Sales Price 2 313,200 345,300 366,600
Affordability Gap Per Inclusionary Unit $522,800 $853,700 $1,017,400
II. Number of Inclusionary Units
Unit Allocation 1 414 6
Supportable Inclusionary Housing Percentage 4.8% 4.8% 4.8%
Total Number of Inclusionary Units 0.2 0.7 0.3
III. Total Affordability Gap by Bedroom Type $100,800 $576,080 $294,230
IV. Crosscheck
Value Enhancement Funds Available for Inclusionary Housing $971,000
Total Affordability Gap / Impact of The Inclusionary Requirement 3 971,110
Requirement is Higher than the Supportable Percentage ($110)
V. Supportable In-Lieu Fee
Value Enhancement Funds Available for Inclusionary Housing $971,000
Gross Saleable Area 4 39,000 Square Feet
Supportable In-Lieu Fee $25 /Sf of GSA
1 See ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 2.
2 See ATTACHMENT 5: APPENDIX B.
3
4 See ATTACHMENT 5: APPENDIX D - EXHIBIT I - TABLE 1
The Total Affordability Gap / Impact of The Inclusionary Requirement is equal to the sum of the Affordability Gap exhibited by each
bedroom type.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; INC_ILF R3 Page 20 of 27
ARCADIA, CALIFORNIA
ATTACHMENT 5: APPENDIX E
PRO FORMA ANALYSES
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own; APP E Title CG Page 21 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT I
PRO FORMA ANALYSIS
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV CG Page 22 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 1
ESTIMATED CONSTRUCTIONS COSTS
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
IDirect Costs 1
On-Site Improvements/Landscaping 76,230 Sf of Land $30 /Sf of Land $2,287,000
Parking 2
Attached Garage 88 Spaces $0 /Space 0
At-Grade Parking Spaces 22 Spaces $5,000 /Space 110,000
Podium Spaces 0 Spaces $20,000 /Space 0
Building Costs 81,400 Sf of GSA $230 /Sf of GSA 18,722,000
Contractor/DC Contingency Allow 3 20% Other Direct Costs 4,224,000
Total Direct Costs $25,343,000
II. Indirect Costs
Architecture, Engineering & Consulting 6.0% Direct Costs $1,521,000
Public Permits & Fees 4 44 Units $26,470 /Unit 1,165,000
Taxes, Insurance, Legal & Accounting 1.5% Direct Costs 380,000
Marketing 44 Units $5,000 /Unit 220,000
Developer Fee 3.0% Gross Sales Revenue 1,802,000
Soft Cost Contingency Allowance 5.0% Other Indirect Costs 254,000
Total Indirect Costs $5,342,000
III. Financing Costs
Interest During Construction 5 $4,198,000
Loan Origination Fees 60.0% Loan to Cost 1.5 Points 418,000
Total Financing Costs $4,616,000
IV. Total Construction Cost 44 Units $802,000 /Unit $35,301,000
1 Direct costs assume that prevailing wage requirements will NOT be imposed on the Project.
2
3 Includes contractors' fees, general requirements, builder's risk insurance and a direct cost contingency allowance.
4 Based on information provided to KMA by the City and a review of the Sixth Cycle Housing Element.
5
Section 9103.07.050 imposes the following parking requirements on sites with R-3 Zoning: 2.0 spaces per Two-Bedroom Unit; 2.0 spaces per
Three-Bedroom Unit; 2.0 spaces per Four-Bedroom Unit; and 0.50 guest spaces per unit.
Assumes a 7.0% interest cost for debt; an 18 month construction period after receipt of entitlements; an 8 month absorption period; 10% of
the units are presold and close during first month after completion; and 1.5 points for loan origination fees.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV CG Page 23 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 2
PROJECTED NET SALES REVENUE
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Gross Sales Revenue
1
Two-Bedroom Units 0 Units @ $0 /Unit $0
Three-Bedroom Units 22 Units @ $1,274,000 /Unit 28,028,000
Four-Bedroom Units 22 Units @ $1,457,000 /Unit 32,054,000
Total Gross Sales Revenue $60,082,000
II. Cost of Sales
Commissions 3.0% Gross Sales Revenue $1,802,000
Closing 2.0% Gross Sales Revenue 1,202,000
Warranty 0.5% Gross Sales Revenue 300,000
Total Cost of Sales ($3,304,000)
III. Net Revenue $56,778,000
1 Based in part on a survey of homes in Arcadia that were constructed after 2000 and resold between September 2022 and September 2023.
See ATTACHMENT 5: APPENDIX A. The weighted average sales price equates to $738 per square foot of saleable area.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV CG Page 24 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 3
ESTIMATED RESIDUAL LAND VALUE
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Net Revenue See ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 2 $56,778,000
II. Project Costs
Total Construction Cost See ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 1 $35,301,000
Threshold Developer Profit 10% Net Revenue 5,678,000
Total Project Costs $40,979,000
III. Estimated Residual Land Value 76,230 Sf of Land $207 /Sf of Land $15,799,000
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV CG Page 25 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 4
VALUE ENHANCEMENT ANALYSIS
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
I. Estimated Land Value
C-G Residential Flex See ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 3 $15,799,000
Vacant C-G Land 1 76,230 Sf of Land $120 /Sf of Land 9,148,000
Estimated Value Enhancement $6,651,000
II. Value Enhancement Funds Available for Inclusionary Housing
Estimated Value Enhancement $6,651,000
Share Allocated to Inclusionary Housing 65%
Value Enhancement Funds Available for Inclusionary Housing $4,323,000
1 See ATTACHMENT 2: PROPERTY SALES SURVEYS.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; Pf RLV CG Page 26 of 27
ATTACHMENT 5: APPENDIX E - EXHIBIT II
SUPPORTABLE INCLUSIONARY HOUSING REQUIREMENTS
C-G RESIDENTIAL FLEX: 25 UNITS/ACRE TOWNHOMES
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: FINANCIAL EVALUATION
ARCADIA, CALIFORNIA
Two-Bedroom
Units
Three-
Bedroom Units
Four-Bedroom
Units
I. Affordability Gap Calculation
Market Rate Sales Price 1 $0 $1,274,000 $1,457,000
Affordable Sales Price 2 0 345,300 366,600
Affordability Gap Per Inclusionary Unit $0 $928,700 $1,090,400
II. Number of Inclusionary Units
Unit Allocation 1 02222
Supportable Inclusionary Housing Percentage 9.7% 9.7% 9.7%
Total Number of Inclusionary Units 0.0 2.1 2.1
III. Total Affordability Gap by Bedroom Type $0 $1,987,980 $2,334,110
IV. Crosscheck
Value Enhancement Funds Available for Inclusionary Housing $4,323,000
Total Affordability Gap / Impact of The Inclusionary Requirement 3 4,322,090
Requirement is Lower than the Supportable Percentage $910
V. Supportable In-Lieu Fee
Value Enhancement Funds Available for Inclusionary Housing $4,323,000
Gross Saleable Area 4 81,400 Square Feet
Supportable In-Lieu Fee $53 /Sf of GSA
1 See ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 2.
2 See ATTACHMENT 5: APPENDIX B.
3
4 See ATTACHMENT 5: APPENDIX E - EXHIBIT I - TABLE 1
The Total Affordability Gap / Impact of The Inclusionary Requirement is equal to the sum of the Affordability Gap exhibited by each
bedroom type.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own; INC_ILF CG Page 27 of 27
Attachment No. 4
Attachment No. 4
Inclusionary Housing In-Lieu Fee Analysis,
dated February 18, 2025
INCLUSIONARY HOUSING:
IN-LIEU FEE ANALYSIS
Prepared for:
City of Arcadia
Prepared by:
Keyser Marston Associates, Inc.
February 18, 2025
Inclusionary Housing: In-Lieu Fee Analysis Page i
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY........................................................................................ 1
A. BACKGROUND ....................................................................................................... 1
B. FINDINGS ............................................................................................................. 3
II. APPROACH ........................................................................................................ 7
A. AFFORDABILITY GAPS............................................................................................... 7
B. DEVELOPMENT PROTOTYPES ...................................................................................... 7
C. ANALYSIS ORGANIZATION ......................................................................................... 7
III. APARTMENT DEVELOPMENT ANALYSIS ............................................................... 9
A. APARTMENT DEVELOPMENT PROTOTYPES ...................................................................... 9
B. RENT ESTIMATES .................................................................................................. 10
C. ESTIMATED AFFORDABILITY GAPS – APARTMENT DEVELOPMENT ......................................... 11
D. IN-LIEU FEE CALCULATIONS – APARTMENT DEVELOPMENT ............................................... 12
IV. OWNERSHIP HOUSING DEVELOPMENT ANALYSIS ............................................ 15
A. OWNERSHIP HOUSING DEVELOPMENT PROTOTYPES ...................................................... 15
B. SALES PRICE ESTIMATES ......................................................................................... 16
C. ESTIMATED AFFORDABILITY GAPS – OWNERSHIP HOUSING DEVELOPMENT ........................... 17
D. IN-LIEU FEE CALCULATIONS – OWNERSHIP HOUSING DEVELOPMENT ................................. 17
V. INCLUSIONARY HOUSING PROGRAM SURVEYS ................................................ 20
VI. CONCLUSIONS / RECOMMENDATIONS ............................................................. 22
A. IN-LIEU FEE PAYMENT AMOUNTS .............................................................................. 22
B. IN-LIEU FEE PAYMENT UPDATES ............................................................................... 24
Inclusionary Housing: In-Lieu Fee Analysis Page ii
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
ATTACHMENTS
Attachment 1: Affordable Housing Cost Calculation Methodologies
Appendix A: Affordable Rent Calculation Methodology
Appendix B: Affordable Sales Price Calculation Methodology
Attachment 2: Apartment Development
Appendix A: Rent Survey: 4+ Star Properties
Appendix B: Affordable Rent Calculations
Appendix C: In-Lieu Fee Calculations – DMU Site: 80 Unit Per Acre Density Prototype
Appendix D: In-Lieu Fee Calculations – DMU Site: 64 Unit per Acre Density Prototype
Appendix E: In-Lieu Fee Calculations - Las Tunas / Live Oak Corridor
Attachment 3: Ownership Housing Development
Appendix A: Resale Home Sales Survey
Appendix B: Affordable Sales Price Calculations
Appendix C: In-Lieu Fee Calculations
Attachment 4: Inclusionary Housing Program Surveys
Appendix A: California – Statewide
Appendix B: Los Angeles, Orange, San Diego, Ventura & Santa Barbara Counties
Inclusionary Housing: In-Lieu Fee Analysis Page 1
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
I. EXECUTIVE SUMMARY
A. Background
The City of Arcadia (City) received California Department of Housing and Community
Development (HCD) approval of its Sixth Cycle Housing Element (Housing Element) on
February 9, 2024. 1 This approval was based in part on the fact that the City completed
rezoning activities that make adequate sites available pursuant to California Government
Code Section 65583.2 (h) and (i).
As part of the Housing Element adoption process the City began evaluating the potential
for creating an Inclusionary Housing program to assist in fulfilling a portion of the
established Regional Housing Needs Assessment (RHNA) goals. To that end the City
engaged Keyser Marston Associates, Inc. (KMA) to prepare an Inclusionary Housing:
Financial Evaluation (Financial Evaluation) to assess the viability of an Inclusionary
Housing program. KMA is submitting the Financial Evaluation concurrently with this
Inclusionary Housing In-Lieu Fee Analysis (In-Lieu Fee Analysis).
The Financial Evaluation recommendations that are pertinent to the In-Lieu Fee Analysis
can be summarized as follows:
1. Projects that consist of 10 or more units should be subject to the Inclusionary
Housing program requirements.
2. The income and affordability requirements imposed by the Inclusionary Housing
program should be set as follows:
a. Developers should be allowed to select from one of the following standards
for apartment developments:
i. 14% low income units; or
ii. 9% very low income units; or
1 The Housing Element covers the period between 2021 and 2029.
Inclusionary Housing: In-Lieu Fee Analysis Page 2
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
iii. 6% low Income plus 5% very low income units; or
iv. 20% moderate income units.
b. A 5% moderate income requirement should be imposed on ownership
housing developments.
3. Developers should be allowed to pay a fee in lieu of producing affordable units
under the following circumstances:
a. An in-lieu fee should be allowed to be paid for any fraction of an Inclusionary
Unit that results from the production calculations.
b. Inclusionary Housing requirements have a disproportionate impact on
smaller projects, because there are fewer market rate units available to
spread the impact created by the income and affordability standards. KMA
recommends that an in-lieu fee payment be allowed by right for apartment
developments that consist of between 10 and 20 units.
c. Ownership housing developments of any size should be provided with the
option to pay a fee in lieu of producing affordable units.
d. An in-lieu fee option should be provided to any project where the developer
can prove that the imposition of the Inclusionary Housing requirements
creates an extreme financial hardship.
The City engaged KMA to quantify the in-lieu fee amounts that correspond with the
Affordability Gaps exhibited by the recommended income and affordability standards. The
Affordability Gap can generally be defined as difference between the achievable market
rate rent or sales price and the allowable rent or sales price for each “Inclusionary Unit”.
This In-Lieu Fee Analysis is based on the development prototypes that are included in the
Financial Evaluation. The following assumptions were updated for use in this report:
1. The following surveys were undertaken in January 2025:
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a. A CoStar search for 4+ star apartment developments within five miles of
Arcadia City Hall; and
b. Resales of townhomes and condominiums that were constructed after 2000
and sold within the past year.
2. The Affordable Housing Cost calculations are based on the following information:
a. The household incomes published by HCD on May 9, 2024.
b. The utilities allowances published by the Los Angeles County Development
Authority (LACDA) on July 1, 2024.
B. Findings
The results of the KMA In-Lieu Fee Analysis are summarized in the following text and
tables.
BASE IN-LIEU PAYMENT AMOUNTS
Based on the recommended Inclusionary Housing requirements, KMA estimated the
associated in-lieu fee payment amounts as follows:2
Recommended Base In-Lieu Fee Payment Amounts
Residential Developments with 20 or More Units
Affordability Gap Analyses
Apartment Development
Per Inclusionary Unit $403,000
Per Square Foot of Total Leasable Area in the Development $43.80
Ownership Housing Development
Per Inclusionary Unit $701,300
Per Square Foot of Total Saleable Area in the Development $23.30
2 The in-lieu fee payment amounts identified throughout this report are presented in 2025 dollars.
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KMA recommends that the City base the in-lieu fee payment obligations on the leasable
area for apartment developments and the saleable area for ownership housing
developments. This methodology accounts for the fact that the Affordability Gaps tend to
vary based on the unit sizes included in the development.
DISCOUNTED IN-LIEU FEE SCHEDULES
Inclusionary housing requirements have a disproportionate impact on smaller projects,
because there are fewer market rate units available to spread the impact created by the
income and affordability standards. To reflect this, KMA recommends that City impose the
in-lieu fee on a sliding scale basis for residential projects that consist of between 10 and 20
units.
KMA recommends that the in-lieu payment schedules presented in the following table be
applied.
Number of Units
Apartment
Development
Ownership
Housing
Development
10 $3.98 $2.12
11 $7.96 $4.24
12 $11.95 $6.35
13 $15.93 $8.47
14 $19.91 $10.59
15 $23.89 $12.71
16 $27.87 $14.83
17 $31.85 $16.95
18 $35.84 $19.06
19 $39.82 $21.18
20+ $43.80 $23.30
in the Residential Development
Recommended Discounted In-Lieu Fee Schedules
Measured Per Square Foot of Leasable or Saleable Area
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FRACTIONAL IN-LIEU FEE SCHEDULES
When the Inclusionary Housing calculation results in a fractional unit obligation, the
developer should be allowed to pay a fee in-lieu of producing an additional Inclusionary
Unit. The fractional in-lieu fee payment amounts that correlate to the identified
Affordability Gaps are presented in the following tables:
Fraction
Fractional In-Lieu Fee:
Per Square Foot of One Unit
Total Fractional In-Lieu Fee:
Apartment Development
0.10 $50.00 $40,310
0.20 $100.00 $80,620
0.30 $150.00 $120,930
0.40 $200.00 $161,230
0.50 $250.00 $201,540
0.60 $299.90 $241,770
0.70 $349.90 $282,080
0.80 $399.90 $322,390
0.90 $449.90 $362,700
1.00 $499.90 $403,000
Apartment Development
Recommended Fractional In-Lieu Fee Payment Calculations
Measured Per Square Foot of the Leasable Area of One Unit in an
Fraction
Fractional In-Lieu Fee:
Per Square Foot of One Unit
Total Fractional In-Lieu Fee:
Ownership Housing
Development
0.10 $47.80 $70,100
0.20 $95.70 $140,300
0.30 $143.50 $210,400
0.40 $191.40 $280,600
0.50 $239.20 $350,600
0.60 $287.00 $420,700
0.70 $334.90 $490,900
0.80 $382.70 $561,000
0.90 $430.60 $631,200
1.00 $478.40 $701,300
Ownership Housing Development
Measured Per Square Foot of the Saleable Area of One Unit in an
Recommended Fractional In-Lieu Fee Payment Calculations
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IN-LIEU FEE PAYMENT UPDATES
The in-lieu fee payment amounts should be re-evaluated at least every five years. To allow
in-lieu fees to keep pace with changes in the marketplace during the intervening periods,
the in-lieu fees should continue to be adjusted each year based on an index such as the
year-to-year percentage change in new home prices in Los Angeles County.
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II. APPROACH
The purpose of this analysis is to estimate the in-lieu fee payment amounts that can be
supported by apartment and ownership housing development projects. The KMA analysis
is based on the Inclusionary Housing requirements were recommended in the Financial
Evaluation.
A. Affordability Gaps
The foundational premise of this analysis is that an in-lieu fee will correlate to the
Affordability Gap associated with producing the Inclusionary Units required by the
Inclusionary Housing program. The Affordability Gap can generally be defined as the
difference between the achievable market rate rents or sales prices and the allowable
rents or sales prices for the designated Inclusionary Units.
B. Development Prototypes
The financial analyses that KMA prepared are based on the prototype apartment and
ownership housing developments that were analyzed in the Financial Evaluation. The
prototypes represent composites of recently proposed or developed projects that were
identified as part of the analysis process.
C. Analysis Organization
The KMA analysis is supported by the following Attachments, Appendices, and Exhibits:
ATTACHMENT 1: AFFORDABLE HOUSING COST CALCULATION METHODOLOGIES
Appendix A: Affordable Rent Calculation Methodology
Appendix B: Affordable Sales Price Calculation Methodology
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ATTACHMENT 2: APARTMENT DEVELOPMENT
Appendix A: Rent Survey: 4+ Star Properties
Appendix B: Affordable Rent Calculations
Appendix C: In-Lieu Fee Calculations – DMU Site: 80 Unit Per Acre Density Prototype
Appendix D: In-Lieu Fee Calculations – DMU Site: 64 Unit Per Acre Density Prototype
Appendix E: In-Lieu Fee Calculations - Las Tunas / Live Oak Corridor
Each of the preceding appendices include the following Exhibits:
Exhibit I 9% Very Low Income Units
Exhibit II 14% Low Income Units
Exhibit III 6% Low Income Units + 5% Very Low Income Units
Exhibit IV 20% Moderate Income Units
ATTACHMENT 3: OWNERSHIP HOUSING DEVELOPMENT
Appendix A: Resale Home Sales Survey
Appendix B: Affordable Sales Price Calculations
Appendix C: In-Lieu Fee Calculations
ATTACHMENT 4: INCLUSIONARY HOUSING PROGRAM SURVEYS
Appendix A: California – Statewide
Appendix B: Orange, Los Angeles, San Diego,
Ventura and Santa Barbara Counties
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III. APARTMENT DEVELOPMENT ANALYSIS
A. Apartment Development Prototypes
The apartment development prototypes embody the following characteristics:
The information KMA used in the in-lieu fee analysis for apartment development follows:
1. KMA undertook a survey of apartment developments in the Arcadia market area that
were constructed within the past 10 years. The survey results are presented in
Attachment 2 – Appendix A.
2. KMA prepared “Affordable Rent” calculations for the prototype apartment projects.
The calculation methodology is described in Attachment 1 – Appendix A.
Based on the preceding information, KMA prepared Affordability Gap analyses to estimate
the in-lieu fee amounts that are equivalent to the financial impact associated with fulfilling
the Inclusionary Housing program requirements on site within market rate apartment
developments.
DMU Site: 80
Unit/Acre Density
Prototype
DMU Site: 64
Unit/Acre Density
Prototype
Las Tunas/Live Oak
Corridor: 60
Unit/Acre Density
Prototype
Site Area (Acres) 2.5 0.8 1.0
Total Units 200 48 60
Studio Units 25% 20%
One-Bedroom Units 50% 50% 50%
Two-Bedroom Units 25% 50% 30%
Total Number of Units 100% 100% 100%
Studio Units 500 600
One-Bedroom Units 750 800 750
Two-Bedroom Units 1,100 1,100 1,000
Weighted Averages 775 950 795
Prototype Characteristics - Apartment Development
Bedroom Mix
Unit Sizes (Square Feet)
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B. Rent Estimates
MARKET RATE RENTS
In January 2025, KMA surveyed apartment projects that received 4+ stars in the CoStar
quality ranking system. Based in part on this survey, the projected market rate apartment
rents are presented in the following table:
AFFORDABLE RENTS
The Affordable Rent calculations are presented in Attachment 2 – Appendix A. The results
are summarized in the following table:
DMU Site: 80
Unit/Acre Density
Prototype
DMU Site: 64
Unit/Acre Density
Prototype
Las Tunas/Live Oak
Corridor: 60
Unit/Acre Density
Prototype
Number of Bedrooms
Studio Units $2,440 $2,660
One-Bedroom Units $2,960 $3,010 $2,960
Two-Bedroom Units $3,900 $3,900 $3,540
Weighted Average
Rent Per Square Foot
of Leasable Area
$3.95 $3.64 $3.87
Projected Market Rate Rents - Apartment Development
Monthly Rents
Number of Bedrooms
Very Low Income
Units
Low Income
Units
Moderate
Income Units
Studio Units $768 $1,284 $1,800
One-Bedroom Units $861 $1,450 $2,039
Two-Bedroom Units $952 $1,615 $2,278
Affordable Rents - Apartment Development
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C. Estimated Affordability Gaps – Apartment Development
KMA estimated the Affordability Gaps associated with the prototype apartment
developments using the following calculation methodology:
1. The differences between the estimated achievable market rate rents and the
defined Affordable Rents were calculated for studio, one-bedroom, and two-
bedroom apartment units.
2. KMA assumed that the property taxes for projects that include designated
Inclusionary Units would be based on a lower assessed value due to the reduction
in net operating income that would be generated by the project. KMA deducted this
lower property tax expense from the estimated rent difference.
3. The estimated “Net Annual Rent Difference Per Inclusionary Unit” represents the
annual rent difference minus the estimated property tax savings.
4. The “Affordability Gap Per Inclusionary Unit” is estimated by capitalizing the Net
Annual Difference Per Inclusionary Unit at a market rate stabilized return on total
investment.
The Affordability Gap calculations are provided in Attachment 2 – Appendices C, D and E.
The results are summarized in the following table:
DMU Site: 80
Unit/Acre Density
Prototype
DMU Site: 64
Unit/Acre Density
Prototype
Las Tunas/Live Oak
Corridor: 60
Unit/Acre Density
Prototype
Very Low Income Units $393,900 $455,300 $393,800
Low Income Units $288,700 $343,400 $287,200
Moderate Income Units $183,200 $231,500 $180,700
Estimated Affordability Gaps Per Inclusionary Unit
Apartment Development
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D. In-Lieu Fee Calculations – Apartment Development
The Affordability Gaps Per Inclusionary Unit were converted into the in-lieu fee payments
that would be required to fulfill the Inclusionary Housing requirements on site within a
proposed market rate apartment development. The methodology used to convert the
Affordability Gaps into in-lieu fee payment amounts can be described as follows:
1. Affordability Gap analyses were prepared for each of the following affordability
requirements:
a. 9% very low income units;
b. 14% low income units;
c. 6% low income units plus 5% very low income units; and
d. 20% moderate income units.
2. As proposed, developers would have the option to select among the four
affordability mixes. For the purposes of this analysis, KMA assumed that developers
would choose the alternative that generates the smallest reduction in net operating
income.
3. In each development prototype the 9% very low income unit requirement generated
the smallest impact on the net operating income (See Attachment 2 – Appendices
C, D, and E: Exhibits I, II and III).
The resulting in-lieu fee payment amounts for the three development prototypes are
presented in the following table:
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As discussed previously, KMA is recommending that the City provide a discounted in-lieu
fee schedule for projects that consist of between 10 and 20 units. The recommended in-
lieu fee schedule is presented in the following table:
Affordability Gap Per
Inclusionary Unit
In-Lieu Fee Per
Square Foot of Total
Leasable Area
DMU Site: 80 Unit/Acre Density Prototype $393,900 $45.70
DMU Site: 64 Unit/Acre Density Prototype $455,300 $39.90
Las Tunas/Live Oak Corridor: 60 Unit/Acre
Density Prototype $393,800 $41.30
Weighted Average In-Lieu Fee Per Square
Foot of Total Leasable Area $43.80
In-Lieu Fee Payment Supported Based on the Affordability Gap Analysis
Inclusionary Housing Percentage: 9.0% Very Low Income Units
Apartment Development
Number of Units In-Lieu Fee
10 $3.98
11 $7.96
12 $11.95
13 $15.93
14 $19.91
15 $23.89
16 $27.87
17 $31.85
18 $35.84
19 $39.82
20+ $43.80
in the Apartment Development
Recommended In-Lieu Fee Schedule
Measured Per Square Foot of Leasable Area
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Some developers may choose to pay a fee in lieu of fulfilling an obligation to produce a
fraction of an Inclusionary Unit. The following table provides a recommended schedule of
fractional in-lieu fee payments for apartment developments:
Fraction
Fractional In-Lieu Fee:
Per Square Foot of One Unit
Total Fractional In-Lieu Fee:
Apartment Development
0.10 $50.00 $40,310
0.20 $100.00 $80,620
0.30 $150.00 $120,930
0.40 $200.00 $161,230
0.50 $250.00 $201,540
0.60 $299.90 $241,770
0.70 $349.90 $282,080
0.80 $399.90 $322,390
0.90 $449.90 $362,700
1.00 $499.90 $403,000
Apartment Development
Recommended Fractional In-Lieu Fee Payment Calculations
Measured Per Square Foot of the Leasable Area of One Unit in an
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IV. OWNERSHIP HOUSING DEVELOPMENT ANALYSIS
A. Ownership Housing Development Prototypes
The ownership housing development prototypes embody the following characteristics:
The information KMA used in the ownership housing development analysis can be
described as follows:
1. KMA undertook a survey to identify the sales prices being achieved by market rate
townhomes and condominiums constructed in Arcadia since 2000. The survey
results are presented in Attachment 3 – Appendix A.
2. KMA prepared “Affordable Sales Price” calculations for the two-bedroom, three-
bedroom, and four-bedroom ownership housing units. The calculation methodology
is described in Attachment 1 – Appendix B.
DMU Site: 64
Unit/Acre
Density THs &
Flats Prototype
R-3 Upzone Site:
40 Unit/Acre
Density THs &
Flats Prototype
Las Tunas / Live Oak
Corridor: 25
Unit/Acre Density TH
Prototype
Site Area (Acres) 1.5 0.6 1.8
Total Units 96 24 44
Two-Bedroom Units 50% 15%
Three-Bedroom Units 50% 60% 50%
Four-Bedroom Units 25% 50%
Total Number of Units 100% 100% 100%
Two-Bedroom Units 1,100 1,300
Three-Bedroom Units 1,400 1,600 1,700
Four-Bedroom Units 1,900 2,000
Weighted Averages 1,250 1,625 1,850
Prototype Characteristics - Ownership Housing Development
Bedroom Mix
Unit Sizes (Square Feet)
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Based on the preceding information, KMA prepared Affordability Gap analyses to estimate
the in-lieu fee amounts that are equivalent to the financial impact associated with fulfilling
the Inclusionary Housing program requirements on site within market rate ownership
housing development projects.
B. Sales Price Estimates
MARKET RATE SALES PRICES
In January 2025, KMA compiled a survey of townhomes and condominiums in Arcadia that
were sold during the past year. The purpose of this survey was to assist in estimating the
currently achievable market rate sales prices for the ownership housing development
prototypes being analyzed. Based in part on this survey, the projected market rate sales
prices are presented in the following table:
AFFORDABLE SALES PRICE CALCULATIONS
The Affordable Sales Price calculations are presented in Attachment 3 – Appendix B. The
results are summarized in the following table:
DMU Site: 64
Unit/Acre
Density THs &
Flats Prototype
R-3 Upzone Site:
40 Unit/Acre
Density THs &
Flats Prototype
Las Tunas / Live Oak
Corridor: 25
Unit/Acre Density TH
Prototype
Number of Bedrooms
Two-Bedroom Units $707,000 $836,000
Three-Bedroom Units $1,049,000 $1,199,000 $1,274,000
Four-Bedroom Units $1,384,000 $1,457,000
Weighted Average Sales
Price Per Square Foot of
Saleable Area
$702 $729 $738
Projected Market Rate Sales Prices - Ownership Housing Development
Sales Prices
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C. Estimated Affordability Gaps – Ownership Housing Development
The Affordability Gaps that were derived from the KMA analysis of the ownership housing
development prototypes are presented in the following table:
D. In-Lieu Fee Calculations – Ownership Housing Development
As can be seen in the preceding table, the gaps between the average market rate price and
the designated Affordable Sales Prices range from $549,000 to $1.01 million per moderate
income unit. The weighted average Affordability Gap among the three development
prototypes is estimated at $701,300 per moderate income unit.
Number of Bedrooms
DMU Site: 64
Unit/Acre
Density THs &
Flats Prototype
R-3 Upzone Site:
40 Unit/Acre
Density THs &
Flats Prototype
Las Tunas / Live Oak
Corridor: 25
Unit/Acre Density TH
Prototype
Two-Bedroom Units $313,200 $313,200
Three-Bedroom Units $345,300 $345,300 $345,300
Four-Bedroom Units $366,600 $366,600
Affordable Sales Prices: Moderate Income Units
Ownership Housing Development
Weighted Averages
DMU Site: 64
Unit/Acre
Density THs &
Flats Prototype
R-3 Upzone Site:
40 Unit/Acre
Density THs &
Flats Prototype
Las Tunas / Live Oak
Corridor: 25
Unit/Acre Density TH
Prototype
Market Price $878,000 $1,191,000 $1,366,000
Moderate Income Price 329,000 346,000 356,000
Affordability Gap $549,000 $845,000 $1,010,000
Affordabilty Gaps: Moderate Income Units
Ownership Housing Development
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As shown in Attachment 3 – Appendix C, the Affordability Gaps are translated into the in-
lieu fee payments that would be required to fulfill the Inclusionary Housing requirements
on site within a proposed market rate ownership housing development. The resulting in-
lieu fee payment amounts for the three development prototypes are presented in the
following table:
KMA is recommending that the City provide a discounted in-lieu fee schedule for projects
that consist of between 10 and 20 units. The recommended in-lieu fee schedule is
presented in the following table:
Affordability Gap
Per Inclusionary
Unit
In-Lieu Fee Per
Square Foot of
Saleable Area
DMU Site: 64 Unit/Acre Density THs &
Flats Prototype $549,000 $22.90
R-3 Upzone Site: 40 Unit/Acre Density
THs & Flats Prototype $845,000 $21.70
Las Tunas / Live Oak Corridor: 25
Unit/Acre Density TH Prototype $1,010,000 $24.80
Weighted Average In-Lieu Fee Per
Square Foot of Saleable Area $23.30
In-Lieu Fee Payment Based on the Affordability Gap Analysis
Inclusionary Housing Percentage: 5% Moderate Income
Ownership Housing Development
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The following table provides an in-lieu fee payment schedule for developers that choose
this option for fulfilling an obligation to produce a fraction of an Inclusionary Unit:
Number of Units In-Lieu Fee
10 $2.12
11 $4.24
12 $6.35
13 $8.47
14 $10.59
15 $12.71
16 $14.83
17 $16.95
18 $19.06
19 $21.18
20+ $23.30
Recommended In-Lieu Fee Schedule
Measured Per Square Foot of Saleable Area
in the Ownership Housing Development
Fraction
Fractional In-Lieu Fee:
Per Square Foot of One Unit
Total Fractional In-Lieu Fee:
Ownership Housing
Development
0.10 $47.80 $70,100
0.20 $95.70 $140,300
0.30 $143.50 $210,400
0.40 $191.40 $280,600
0.50 $239.20 $350,600
0.60 $287.00 $420,700
0.70 $334.90 $490,900
0.80 $382.70 $561,000
0.90 $430.60 $631,200
1.00 $478.40 $701,300
Ownership Housing Development
Measured Per Square Foot of the Saleable Area of One Unit in an
Recommended Fractional In-Lieu Fee Payment Calculations
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V. INCLUSIONARY HOUSING PROGRAM SURVEYS
As a crosscheck to the preceding financial analysis, KMA undertook a survey of California
jurisdictions that impose Inclusionary Housing requirements on residential development.
KMA also narrowed the survey to illustrate the in-lieu fees being assessed by Southern
California jurisdictions. The surveys are presented in Attachment 4.
As can be seen in the survey, the Southern California jurisdictions apply a variety of
different methodologies to the establishment of in-lieu fee payment amounts. These
variances can be attributed to a number of different considerations such as:
1. The program goals;
2. Project size thresholds;
3. Varying treatments of apartment versus ownership housing development;
4. The community’s view on density; and
5. The level of responsibility the jurisdiction wishes to take in implementing affordable
housing developments.
The responses to these considerations guide the use of one of the following approaches to
setting in-lieu fee payment amounts:
1. An Affordability Gap methodology, which sets the in-lieu fee payments at amounts
that are sufficient to fulfill the Inclusionary Housing requirements on site within the
market rate development that triggered the obligation;
2. A discounted payment amount to encourage payment of the in-lieu fee; and/or
3. A schedule that provides reduced in-lieu fees for small projects.
KMA recommends that the City permit developers of the following project types to pay a
fee in lieu of producing some or all of the affordable housing units required by the
Inclusionary Housing program:
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1. Apartment developments that include between 10 and 20 units; and
2. All ownership housing developments that are subject to the Inclusionary Housing
program requirements.
The KMA analysis is based on in-lieu fee payment amounts that are equivalent to the cost
that would be incurred to provide the Inclusionary Units on site with the market rate project
that triggered the affordable housing obligations. This is the Affordability Gap calculation
methodology.
Twenty-six (26) out of the 44 Southern California surveyed jurisdictions use some form of
an Affordability Gap calculation in setting the in-lieu fee payment amounts. This represents
approximately 60% of the surveyed jurisdictions.
It is KMA’s opinion that using an Affordability Gap methodology for setting the in-lieu fees
in Arcadia is consistent with common practice. However, several jurisdictions wish to
encourage in-lieu fee payment and so they set the in-lieu fees at discounted amounts as
an incentive.
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VI. CONCLUSIONS / RECOMMENDATIONS
A. In-Lieu Fee Payment Amounts
BASE IN-LIEU FEE PAYMENT AMOUNTS
The in-lieu fees presented in this analysis represent the amounts that would need to be
charged to provide the City with sufficient funds to produce the same number of affordable
units in similar locations and product types as the market rate residential projects that
would be subject to the proposed Inclusionary Housing program requirements. Based on
this assumption, KMA recommends that the base in-lieu fees be set as follows:
Recommended Base In-Lieu Fee Payment Amounts
Per Square Foot of Leasable or Saleable Area in
Residential Developments with 20 or More Units
Affordability Gap Analyses
Apartment Development $43.80
Ownership Housing Development $23.30
It is KMA’s opinion that an in-lieu fee measured against the square footages of the units
corresponds more closely to the Affordability Gap than an in-lieu fee that is measured by
the number of units in the development. As such, KMA recommends that the in-lieu fee be
based on the leasable area for apartment developments and the saleable area for
ownership housing developments.
DISCOUNTED IN-LIEU FEE SCHEDULES
Recognizing that Inclusionary housing requirements have a disproportionate impact on
smaller projects, KMA recommends that City provide a discounted in-lieu fee schedules
for residential projects that consist of between 10 and 20 units. KMA recommends that the
following schedules be applied.
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FRACTIONAL IN-LIEU FEE SCHEDULES
When the Inclusionary Housing calculation results in a fractional unit obligation, KMA
recommends that the developer be allowed to pay a fee in-lieu of producing an additional
Inclusionary Unit. The fractional in-lieu fee payment amounts that correlate to the
Affordability Gaps identified in this analysis are presented in the following tables:
Number of Units
Apartment
Development
Ownership
Housing
Development
10 $3.98 $2.12
11 $7.96 $4.24
12 $11.95 $6.35
13 $15.93 $8.47
14 $19.91 $10.59
15 $23.89 $12.71
16 $27.87 $14.83
17 $31.85 $16.95
18 $35.84 $19.06
19 $39.82 $21.18
20+ $43.80 $23.30
in the Residential Development
Recommended Discounted In-Lieu Fee Schedules
Measured Per Square Foot of Leasable or Saleable Area
Inclusionary Housing: In-Lieu Fee Analysis Page 24
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
B. In-Lieu Fee Payment Updates
The in-lieu fee payment amounts should be updated at regular intervals:
Inclusionary Housing: In-Lieu Fee Analysis Page 25
Keyser Marston Associates, Inc. 2502002.ARC / 10200.009.001 February 18, 2025
1. A full evaluation should be undertaken at least every five years.
2. To allow in-lieu fees to keep pace with changes in the market place during the
intervening periods, the in-lieu fees should continue to be adjusted each year based
on the following process:
a. Median sales value information for “All New Residential Development” in
Los Angeles County should be compiled annually. The Redfin Corporation
currently produces and publishes this information.
b. The increase or decrease in the in-lieu fee should be based on the year-to-
year percentage change in the median new home sales price.
ATTACHMENT 1
AFFORDABLE HOUSING COST CALCULATION METHODOLOGIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Affordable Housing Cost Calculation Methodologies Page 1
Inclusionary Housing: In-Lieu Analysis February 18, 2025
APPENDIX A
AFFORDABLE RENT CALCULATION METHODOLOGY
ASSUMPTIONS
The Affordable Rent calculations are presented in Attachment 4 – Appendix B. The calculations
are based on the following assumptions:
1. The household income information used in the calculations is based on 2024 income
statistics for Los Angeles County as a whole:
a. The household incomes for very low and low income households are produced by
United States Department of Housing and Urban Development (HUD) and
distributed by the California Department of Housing and Community Development
(HCD).
b. The household incomes for moderate income households are produced and
distributed annually by HCD.
2. The household size appropriate for the unit is based on the California Health and Safety
Code (H&SC) Section 50052.5 standard of the number of bedrooms in the home plus one.1
H&SC Section 50052.5 refers to this as “the family size appropriate for the unit.” This is a
benchmark that is used for calculation purposes only. It is neither an occupancy minimum
nor a maximum.
3. The benchmark household incomes used in the Affordable Rent analyses are based on the
following standards:
a. The very low income rents are based on 50% of area median income (AMI). This
percentage of AMI is based on the standard imposed in H&SC Section 50053.
b. The low income rents are based on 80% of AMI. This percentage of AMI is based on
the standard imposed by Assembly Bill 1505.
c. The moderate income rents are based on 110% of AMI, which is the standard
imposed by H&SC Section 50053.
1 For example, the imputed household size for a one-bedroom unit is two persons.
Affordable Housing Cost Calculation Methodologies Page 2
Inclusionary Housing: In-Lieu Analysis February 18, 2025
4. Thirty percent (30%) of defined household income is allocated to housing-related
expenses.
5. The following monthly utilities allowances were applied in this analysis.2
Utility Allowances
Apartment Development
Prototypes
Number of
Bedrooms
Monthly
Utilities
Allowances
Studio $91
1 $121
2 $153
AFFORDABLE RENTS
The resulting affordable rents are presented in the following table:
Affordable Rents
Apartment Development Prototypes
Number of
Bedrooms
Very Low
Income
Low Income
Moderate
Income
Studio $768 $1,284 $1,800
1 $861 $1,450 $2,039
2 $952 $1,615 $2,278
2 Utilities allowances are based on utilities costs comprised of electric heating, cooking and water heating; and basic
electric, and air conditioning. The allowances are based on the Los Angeles County Development Authority
Multifamily All Electric Schedule effective as of July 1, 2024.
Affordable Housing Cost Calculation Methodologies Page 3
Inclusionary Housing: In-Lieu Analysis February 18, 2025
APPENDIX B
AFFORDABLE SALES PRICE CALCULATION METHODOLOGY
ASSUMPTIONS
The Affordable Sales Price calculations are presented in Attachment 5 – Appendix B. The
calculations are based on the following assumptions:
1. The household income information used in the calculations is based on 2024 income
statistics for Los Angeles County as a whole:
a. The household incomes for low income households are produced by HUD and
distributed by HCD.
b. The household incomes for moderate income households are produced and
distributed annually by HCD.
2. The Affordable Sales Price estimates are based on the calculation methodology imposed
by H&SC Section 50052.5.
The elements included in the Affordable Sales Price calculations are described in the following
sections of this Attachment.
Household Size
For the sole purposes of calculating Affordable Sales Prices, H&SC Section 50052.5 sets
household sizes based on the number of bedrooms in the home plus one. As discussed
previously, this is not an occupancy minimum or maximum. Rather, it is a benchmark that
creates a consistent Affordable Sales Price calculation methodology.
Household Income
For calculation purposes only, H&SC Section 50052.5 applies benchmark household incomes as
the standard for determining the Affordable Sales Prices. These benchmarks are based on the
following percentages of the Los Angeles County AMI:
Affordable Housing Cost Calculation Methodologies Page 4
Inclusionary Housing: In-Lieu Analysis February 18, 2025
Income Category % of AMI
Moderate 110%
Low 70%
The identified benchmark percentages of AMI are not income caps. The household income
qualification standards are set at the upper limits presented in the HCD and are based on the
actual size of the homebuyer’s household.
Income Allocated to Housing-Related Expenses
H&SC Section 50052.5 allocates the following percentages of the benchmark household incomes
to the payment of housing-related expenses:
Income Category
% of Benchmark
Income
Moderate 35%
Low 30%
Housing-Related Expenses
Based on research undertaken by KMA, the variable housing related expense assumptions used in
this analysis are presented in the following table:
Variable Housing Related Expenses
Ownership Housing Development Prototypes
Number of
Bedrooms
Monthly
Utilities
Allowances 3
Monthly HOA,
Insurance &
Maintenance
2 $260 $300
3 $317 $325
4 $389 $350
3Utilities allowances are based on utilities costs comprised of electric heating, cooking and water heating; basic
electric; and water, sewer and trash services. The allowances are based on the Los Angeles County Development
Authority Single-Family Schedule effective as of July 1, 2024.
Affordable Housing Cost Calculation Methodologies Page 5
Inclusionary Housing: In-Lieu Analysis February 18, 2025
The property tax expense estimates are based on 1.15% of the defined Affordable Sales Prices.
This assumes that the City will require the homes to be resold on an Affordable Sales Price
throughout one cumulative 45-year covenant period.
Supportable Mortgage Amount
The mortgage amounts used in the Affordable Sales Price calculations are estimated using the
income available after the other housing-related expenses are paid. The mortgage terms used in
this Financial Evaluation were based on a 30-year fully amortizing loan at a 6.98% interest rate. 4
Benchmark Down Payment
KMA set the benchmark down payment at 5% of the estimated Affordable Sales Price. A down
payment of this magnitude is commonly allowed by affordable housing programs.
AFFORDABLE SALES PRICES
The resulting Affordable Sales Prices are estimated as follows:
Affordable Sales Prices
Ownership Housing Development Prototypes
Number of
Bedrooms
Moderate
Income
Low Income
2 $313,200 $136,800
3 $345,300 $148,100
4 $366,600 $153,700
4 Based on a 25 basis points premium applied to the Freddie Mac monthly average, between February 2024 and
January 2025, for a fixed-interest rate loan with a 30-year amortization period.
ATTACHMENT 2
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; Att 2 Apt Page 1 of 22
ATTACHMENT 2: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; App A RS Page 2 of 22
ATTACHMENT 2: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES 1
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Name # of Units
Unit Size
(SF)Total Per SF
I.
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 21 491 $2,363 $4.81
Luxe 1769 E Walnut St Pasadena 91106 20 514 $2,514 $4.89
Aston at Gateway 10568 Gateway Promenade El Monte 91731 45 531 $2,340 $4.41
Areum Apts 1110 S 5th Ave Monrovia 91016 7 574 $2,344 $4.08
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 61 585 $2,543 $4.35
The RinRose 3768 E Colorado Blvd Pasadena 91107 14 590 $2,850 $4.83
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 4 602 $2,608 $4.33
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 2 620 $2,054 $3.31
The Huntington 1413 Huntington Dr Duarte 91010 24 640 $2,509 $3.92
Minimum 491 $2,054 $3.31
Maximum 640 $2,850 $4.89
Weighted Average 563 $2,482 $4.43
Average Effective Rent
Studio Units
Address
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF Page 3 of 22
ATTACHMENT 2: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES 1
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Name # of Units
Unit Size
(SF)Total Per SF
Average Effective Rent
Address
II.
Luxe 1769 E Walnut St Pasadena 91106 71 637 $2,740 $4.30
Aston at Gateway 10568 Gateway Promenade El Monte 91731 89 684 $2,905 $4.25
Begonia Place 5570 Rosemead Blvd Temple City 91780 2 696 $3,928 $5.64
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 183 707 $2,838 $4.01
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 161 724 $2,535 $3.50
The RinRose 3768 E Colorado Blvd Pasadena 91107 62 728 $3,417 $4.69
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 274 738 $2,726 $3.69
Areum Apts 1110 S 5th Ave Monrovia 91016 91 747 $2,537 $3.40
Avalon Monrovia 825 S Myrtle Ave Monrovia 91016 46 771 $2,903 $3.77
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 165 792 $2,741 $3.46
The Huntington 1413 Huntington Dr Duarte 91010 88 797 $2,722 $3.42
57 Wheeler 57 Wheeler Ave Arcadia 91006 15 1,056 $2,728 $2.58
Minimum 637 $2,535 $2.58
Maximum 1,056 $3,928 $5.64
Weighted Average 738 $2,762 $3.76
One-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF Page 4 of 22
ATTACHMENT 2: APPENDIX A
RENT SURVEY: 4+ STAR PROPERTIES 1
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Name # of Units
Unit Size
(SF)Total Per SF
Average Effective Rent
Address
III.
Luxe 1769 E Walnut St Pasadena 91106 40 934 $3,513 $3.76
Begonia Place 5570 Rosemead Blvd Temple City 91780 68 952 $4,233 $4.45
Aston at Gateway 10568 Gateway Promenade El Monte 91731 74 956 $3,362 $3.52
The RinRose 3768 E Colorado Blvd Pasadena 91107 24 1,011 $4,120 $4.08
Esperanza at Duarte Station 1700 Fasana Rd Duarte 91010 79 1,038 $3,678 $3.54
Avalon Monrovia 825 S Myrtle Ave Monrovia 91016 69 1,042 $3,664 $3.52
MODA at Monrovia Station 228 W Pomona Ave Monrovia 91016 98 1,059 $2,960 $2.80
Areum Apts 1110 S 5th Ave Monrovia 91016 56 1,081 $3,226 $2.98
Alexan Marmont 1625 S Magnolia Ave Monrovia 91016 134 1,109 $3,714 $3.35
The Huntington 1413 Huntington Dr Duarte 91010 49 1,131 $3,241 $2.87
Bell Pasadena 3330 E Foothill Blvd Pasadena 91107 43 1,168 $3,618 $3.10
57 Wheeler 57 Wheeler Ave Arcadia 91006 23 1,332 $3,409 $2.56
The Residence at Mission View 109 S Alanmay Ave San Gabriel 91776 6 1,345 $4,331 $3.22
Minimum 934 $2,960 $2.56
Maximum 1,345 $4,331 $4.45
Weighted Average 1,059 $3,547 $3.37
1 Source: CoStar, January 2025. Projects built in the past 10 years within 5 miles of Arcadia City Hall. The survey excludes affordable projects, three extraordinarily large
studio units in the Avalon Monrovia, and five extraordinarily large one-bedroom unit in the Residences.
Two-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF Page 5 of 22
ATTACHMENT 2: APPENDIX B
AFFORDABLE RENT CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; App B Aff Rent Page 6 of 22
ATTACHMENT 2: APPENDIX B
AFFORDABLE RENT CALCULATIONS
2024 INCOME STANDARDS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Studio Units
One-Bedroom
Units
Two-Bedroom
Units
General Assumptions
Bechmark Household Size 1 123
Area Median Income 2 $68,750 $78,550 $88,400
Monthly Utilities Allowance 3 $91 $121 $153
II. Affordable Rent Calculations
A. Very Low Income - Rent Based on 50% AMI
4
Benchmark Annual Household Income $34,375 $39,275 $44,200
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $10,313 $11,783 $13,260
Monthly Income Available for Housing Expenses $859 $982 $1,105
(Less) Monthly Utilities Allowance ($91) ($121) ($153)
Maximum Allowable Rent $768 $861 $952
B. Low Income - Rent Based on 80% AMI
5
Benchmark Annual Household Income $55,000 $62,840 $70,720
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $16,500 $18,852 $21,216
Monthly Income Available for Housing Expenses $1,375 $1,571 $1,768
(Less) Monthly Utilities Allowance ($91) ($121) ($153)
Maximum Allowable Rent $1,284 $1,450 $1,615
C. Moderate Income - Rent Based on 110% AMI
6
Benchmark Annual Household Income $75,625 $86,405 $97,240
Percentage of Income Allotted to Housing Expenses 30% 30% 30%
Annual Income Available for Housing Expenses $22,688 $25,922 $29,172
Monthly Income Available for Housing Expenses $1,891 $2,160 $2,431
(Less) Monthly Utilities Allowance ($91) ($121) ($153)
Maximum Allowable Rent $1,800 $2,039 $2,278
1
2
3
4 Based on 50% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053.
5 Based on 80% of AMI. This percentage of AMI is based on the standard identified in AB 1505.
6 Based on 110% of AMI. This percentage of AMI is based on the standard identified in Health & Safety Code Section 50053.
For the purposes of calculating the Affordable Rents, Health & Safety Code Section 50052.5 sets the benchmark household sizes
at the number of bedrooms in the unit plus one. This is neither an occupancy cap nor a floor.
Based on the 2024 Los Angeles County household incomes published by the California Department of Housing & Community
Development (HCD).
Based on the Los Angeles County Development Authority (LACDA) Multifamily All Electric Schedule effective as of July 1, 2024.
Assumes: Electric Heating, Electric Cooking, and Electric Water Heater; Basic Electric; and Air Conditioning.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; Aff Rent Page 7 of 22
ATTACHMENT 2: APPENDIX C
IN-LIEU FEE CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
DMU SITE: 80 UNIT/ACRE DENSITY PROTOTYPE
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; App C ILF DMU 80 Page 4 of 22
ATTACHMENT 2: APPENDIX C - EXHIBIT I
IN-LIEU FEE CALCULATIONS
DMU SITE: 80 UNIT/ACRE DENSITY PROTOTYPE - 9% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,440
Affordable Rent 2 768
Difference $1,672
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 861
Difference $2,099
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 952
Difference $2,948
II. Distribution of Total Units
3
Studio Units 25%
One-Bedroom Units 50%
Two-Bedroom Units 25%
III. Annual Rent Difference Per Inclusionary Unit $26,454
Less: Property Tax Difference 4 (6,760)
Net Annual Rent Difference Per Inclusionary Unit $19,694
IV. Assumptions
Total Units 200
Total Leasable Area 155,000
Weighted Avg Unit Size (Sf) 775
Inclusionary Housing Percentage 9%
Inclusionary Units 18
Affordability Gap Per Inclusionary Unit 5 $393,900
V. In-Lieu Fee
Total In-Lieu Fee $7,090,200
Per Total Unit in the Project $35,450
Per Square Foot of Total Leasable Area $45.70
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 80 VL Page 5 of 22
ATTACHMENT 2: APPENDIX C - EXHIBIT II
IN-LIEU FEE CALCULATIONS
DMU SITE: 80 UNIT/ACRE DENSITY PROTOTYPE - 14% LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,440
Affordable Rent 2 1,284
Difference $1,156
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 1,450
Difference $1,510
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 1,615
Difference $2,285
II. Distribution of Total Units
3
Studio Units 25%
One-Bedroom Units 50%
Two-Bedroom Units 25%
III. Annual Rent Difference Per Inclusionary Unit $19,383
Less: Property Tax Difference 4 (4,950)
Net Annual Rent Difference Per Inclusionary Unit $14,433
IV. Assumptions
Total Units 200
Total Leasable Area 155,000
Weighted Avg Unit Size (Sf) 775
Inclusionary Housing Percentage 14%
Inclusionary Units 28
Affordability Gap Per Inclusionary Unit 5 $288,700
V. In-Lieu Fee
Total In-Lieu Fee $8,083,600
Per Total Unit in the Project $40,420
Per Square Foot of Total Leasable Area $52.20
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 80 L Page 6 of 22
ATTACHMENT 2: APPENDIX C - EXHIBIT III
IN-LIEU FEE CALCULATIONS
DMU SITE: 80 UNIT/ACRE DENSITY PROTOTYPE - 6% LOW INCOME + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Low Income Very Low Income
I. Rent Difference
A. Studio Units
Market Rents 1 $2,440 $2,440
Affordable Rent 2 1,284 768
Difference $1,156 $1,672
B. One-Bedroom Units
Market Rents 1 $2,960 $2,960
Affordable Rent 2 1,450 861
Difference $1,510 $2,099
C. Two-Bedroom Units
Market Rents 1 $3,900 $3,900
Affordable Rent 2 1,615 952
Difference $2,285 $2,948
II. Distribution of Total Units
3
Studio Units 25% 25%
One-Bedroom Units 50% 50%
Two-Bedroom Units 25% 25%
III. Annual Rent Difference Per Inclusionary Unit $19,383 $26,454
Less: Property Tax Difference 4 (4,950) (6,760)
Net Annual Rent Difference Per Inclusionary Unit $14,433 $19,694
IV. Assumptions
Total Units 200 200
Total Leasable Area 155,000 155,000
Weighted Avg Unit Size (Sf) 775 775
Inclusionary Housing Percentage 6% 5%
Inclusionary Units 12 10
Affordability Gap Per Inclusionary Unit 5 $288,700 $393,900
V. In-Lieu Fee Totals
Total In-Lieu Fee $3,464,400 $3,939,000 $7,403,400
Per Total Unit in the Project $17,320 $19,700 $37,020
Per Square Foot of Total Leasable Area $22.40 $25.40 $47.80
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 80 L VL Page 7 of 22
ATTACHMENT 2: APPENDIX C - EXHIBIT IV
IN-LIEU FEE CALCULATIONS
DMU SITE: 80 UNIT/ACRE DENSITY PROTOTYPE - 20% MODERATE INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,440
Affordable Rent 2 1,800
Difference $640
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 2,039
Difference $921
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 2,278
Difference $1,622
II. Distribution of Total Units
3
Studio Units 25%
One-Bedroom Units 50%
Two-Bedroom Units 25%
III. Annual Rent Difference Per Inclusionary Unit $12,312
Less: Property Tax Difference 4 (3,150)
Net Annual Rent Difference Per Inclusionary Unit $9,162
IV. Assumptions
Total Units 200
Total Leasable Area 155,000
Weighted Avg Unit Size (Sf) 775
Inclusionary Housing Percentage 20%
Inclusionary Units 40
Affordability Gap Per Inclusionary Unit 5 $183,200
V. In-Lieu Fee
Total In-Lieu Fee $7,328,000
Per Total Unit in the Project $36,640
Per Square Foot of Total Leasable Area $47.30
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 80 M Page 8 of 22
ATTACHMENT 2: APPENDIX D
IN-LIEU FEE CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
DMU SITE: 64 UNIT/ACRE DENSITY PROTOTYPE
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; App D ILF DMU 64 Page 4 of 22
ATTACHMENT 2: APPENDIX D - EXHIBIT I
IN-LIEU FEE CALCULATIONS
DMU SITE: 64 UNIT/ACRE DENSITY PROTOTYPE - 9% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents
Affordable Rent
Difference
B. One-Bedroom Units
Market Rents 1 $3,010
Affordable Rent 2 861
Difference $2,149
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 952
Difference $2,948
II. Distribution of Total Units
3
Studio Units 0%
One-Bedroom Units 50%
Two-Bedroom Units 50%
III. Annual Rent Difference Per Inclusionary Unit $30,583
Less: Property Tax Difference 4 (7,820)
Net Annual Rent Difference Per Inclusionary Unit $22,763
IV. Assumptions
Total Units 48
Total Leasable Area 45,600
Weighted Avg Unit Size (Sf) 950
Inclusionary Housing Percentage 9%
Inclusionary Units 4
Affordability Gap Per Inclusionary Unit 5 $455,300
V. In-Lieu Fee
Total In-Lieu Fee $1,821,200
Per Total Unit in the Project $37,940
Per Square Foot of Total Leasable Area $39.90
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 64 VL Page 5 of 22
ATTACHMENT 2: APPENDIX D - EXHIBIT II
IN-LIEU FEE CALCULATIONS
DMU SITE: 64 UNIT/ACRE DENSITY PROTOTYPE - 14% LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents
Affordable Rent
Difference
B. One-Bedroom Units
Market Rents 1 $3,010
Affordable Rent 2 1,450
Difference $1,560
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 1,615
Difference $2,285
II. Distribution of Total Units
3
Studio Units 0%
One-Bedroom Units 50%
Two-Bedroom Units 50%
III. Annual Rent Difference Per Inclusionary Unit $23,070
Less: Property Tax Difference 4 (5,900)
Net Annual Rent Difference Per Inclusionary Unit $17,170
IV. Assumptions
Total Units 48
Total Leasable Area 45,600
Weighted Avg Unit Size (Sf) 950
Inclusionary Housing Percentage 14%
Inclusionary Units 7
Affordability Gap Per Inclusionary Unit 5 $343,400
V. In-Lieu Fee
Total In-Lieu Fee $2,403,800
Per Total Unit in the Project $50,080
Per Square Foot of Total Leasable Area $52.70
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 64 L Page 6 of 22
ATTACHMENT 2: APPENDIX D - EXHIBIT III
IN-LIEU FEE CALCULATIONS
DMU SITE: 64 UNIT/ACRE DENSITY PROTOTYPE - 6% LOW INCOME + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Low Income Very Low Income
I. Rent Difference
A. Studio Units
Market Rents
Affordable Rent
Difference
B. One-Bedroom Units
Market Rents 1 $3,010 $3,010
Affordable Rent 2 1,450 861
Difference $1,560 $2,149
C. Two-Bedroom Units
Market Rents 1 $3,900 $3,900
Affordable Rent 2 1,615 952
Difference $2,285 $2,948
II. Distribution of Total Units
3
Studio Units 0% 0%
One-Bedroom Units 50% 50%
Two-Bedroom Units 50% 50%
III. Annual Rent Difference Per Inclusionary Unit $23,070 $30,583
Less: Property Tax Difference 4 (5,900) (7,820)
Net Annual Rent Difference Per Inclusionary Unit $17,170 $22,763
IV. Assumptions
Total Units 48 48
Total Leasable Area 45,600 45,600
Weighted Avg Unit Size (Sf) 950 950
Inclusionary Housing Percentage 6% 5%
Inclusionary Units 3 2
Affordability Gap Per Inclusionary Unit 5 $343,400 $455,300
V. In-Lieu Fee Totals
Total In-Lieu Fee $1,030,200 $910,600 $1,940,800
Per Total Unit in the Project $21,460 $18,970 $40,430
Per Square Foot of Total Leasable Area $22.60 $20.00 $42.60
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 64 L VL Page 7 of 22
ATTACHMENT 2: APPENDIX D - EXHIBIT IV
IN-LIEU FEE CALCULATIONS
DMU SITE: 64 UNIT/ACRE DENSITY PROTOTYPE - 20% MODERATE INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents
Affordable Rent
Difference
B. One-Bedroom Units
Market Rents 1 $3,010
Affordable Rent 2 2,039
Difference $971
C. Two-Bedroom Units
Market Rents 1 $3,900
Affordable Rent 2 2,278
Difference $1,622
II. Distribution of Total Units
3
Studio Units 0%
One-Bedroom Units 50%
Two-Bedroom Units 50%
III. Annual Rent Difference Per Inclusionary Unit $15,557
Less: Property Tax Difference 4 (3,980)
Net Annual Rent Difference Per Inclusionary Unit $11,577
IV. Assumptions
Total Units 48
Total Leasable Area 45,600
Weighted Avg Unit Size (Sf) 950
Inclusionary Housing Percentage 20%
Inclusionary Units 10
Affordability Gap Per Inclusionary Unit 5 $231,500
V. In-Lieu Fee
Total In-Lieu Fee $2,315,000
Per Total Unit in the Project $48,230
Per Square Foot of Total Leasable Area $50.80
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU 64 M Page 8 of 22
ARCADIA, CALIFORNIA
ATTACHMENT 2: APPENDIX E
IN-LIEU FEE CALCULATIONS
LAS TUNAS/LIVE OAK CORRIDOR: 60 UNIT/ACRE DENSITY PROTOTYPE
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Apt ILF; App E ILF LTLO 60 Page 4 of 22
ATTACHMENT 2: APPENDIX E - EXHIBIT I
IN-LIEU FEE CALCULATIONS
LAS TUNAS/LIVE OAK CORRIDOR: 60 UNIT/ACRE DENSITY PROTOTYPE - 9% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,660
Affordable Rent 2 768
Difference $1,892
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 861
Difference $2,099
C. Two-Bedroom Units
Market Rents 1 $3,540
Affordable Rent 2 952
Difference $2,588
II. Distribution of Total Units
3
Studio Units 20%
One-Bedroom Units 50%
Two-Bedroom Units 30%
III. Annual Rent Difference Per Inclusionary Unit $26,451
Less: Property Tax Difference 4 (6,760)
Net Annual Rent Difference Per Inclusionary Unit $19,691
IV. Assumptions
Total Units 60
Total Leasable Area 47,700
Weighted Avg Unit Size (Sf) 795
Inclusionary Housing Percentage 9%
Inclusionary Units 5
Affordability Gap Per Inclusionary Unit 5 $393,800
V. In-Lieu Fee
Total In-Lieu Fee $1,969,000
Per Total Unit in the Project $32,820
Per Square Foot of Total Leasable Area $41.30
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; LTLO 60 VL Page 5 of 22
ATTACHMENT 2: APPENDIX E - EXHIBIT II
IN-LIEU FEE CALCULATIONS
LAS TUNAS/LIVE OAK CORRIDOR: 60 UNIT/ACRE DENSITY PROTOTYPE - 14% LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,660
Affordable Rent 2 1,284
Difference $1,376
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 1,450
Difference $1,510
C. Two-Bedroom Units
Market Rents 1 $3,540
Affordable Rent 2 1,615
Difference $1,925
II. Distribution of Total Units
3
Studio Units 20%
One-Bedroom Units 50%
Two-Bedroom Units 30%
III. Annual Rent Difference Per Inclusionary Unit $19,292
Less: Property Tax Difference 4 (4,930)
Net Annual Rent Difference Per Inclusionary Unit $14,362
IV. Assumptions
Total Units 60
Total Leasable Area 47,700
Weighted Avg Unit Size (Sf) 795
Inclusionary Housing Percentage 14%
Inclusionary Units 8
Affordability Gap Per Inclusionary Unit 5 $287,200
V. In-Lieu Fee
Total In-Lieu Fee $2,297,600
Per Total Unit in the Project $38,290
Per Square Foot of Total Leasable Area $48.20
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU LTLO 60 L Page 6 of 22
ATTACHMENT 2: APPENDIX E - EXHIBIT III
IN-LIEU FEE CALCULATIONS
LAS TUNAS/LIVE OAK CORRIDOR: 60 UNIT/ACRE DENSITY PROTOTYPE - 6% LOW INCOME + 5% VERY LOW INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Low Income Very Low Income
I. Rent Difference
A. Studio Units
Market Rents 1 $2,660 $2,660
Affordable Rent 2 1,284 768
Difference $1,376 $1,892
B. One-Bedroom Units
Market Rents 1 $2,960 $2,960
Affordable Rent 2 1,450 861
Difference $1,510 $2,099
C. Two-Bedroom Units
Market Rents 1 $3,540 $3,540
Affordable Rent 2 1,615 952
Difference $1,925 $2,588
II. Distribution of Total Units
3
Studio Units 20% 20%
One-Bedroom Units 50% 50%
Two-Bedroom Units 30% 30%
III. Annual Rent Difference Per Inclusionary Unit $19,292 $26,451
Less: Property Tax Difference 4 (4,930) (6,760)
Net Annual Rent Difference Per Inclusionary Unit $14,362 $19,691
IV. Assumptions
Total Units 60 60
Total Leasable Area 47,700 47,700
Weighted Avg Unit Size (Sf) 795 795
Inclusionary Housing Percentage 6% 5%
Inclusionary Units 4 3
Affordability Gap Per Inclusionary Unit 5 $287,200 $393,800
V. In-Lieu Fee Totals
Total In-Lieu Fee $1,148,800 $1,181,400 $2,330,200
Per Total Unit in the Project $19,150 $19,690 $38,840
Per Square Foot of Total Leasable Area $24.10 $24.80 $48.90
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; LTLO 60 L VL Page 7 of 22
ATTACHMENT 2: APPENDIX E - EXHIBIT II
IN-LIEU FEE CALCULATIONS
LAS TUNAS/LIVE OAK CORRIDOR: 60 UNIT/ACRE DENSITY PROTOTYPE - 20% MODERATE INCOME UNITS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
I. Rent Difference
A. Studio Units
Market Rents 1 $2,660
Affordable Rent 2 1,800
Difference $860
B. One-Bedroom Units
Market Rents 1 $2,960
Affordable Rent 2 2,039
Difference $921
C. Two-Bedroom Units
Market Rents 1 $3,540
Affordable Rent 2 2,278
Difference $1,262
II. Distribution of Total Units
3
Studio Units 20%
One-Bedroom Units 50%
Two-Bedroom Units 30%
III. Annual Rent Difference Per Inclusionary Unit $12,133
Less: Property Tax Difference 4 (3,100)
Net Annual Rent Difference Per Inclusionary Unit $9,033
IV. Assumptions
Total Units 60
Total Leasable Area 47,700
Weighted Avg Unit Size (Sf) 795
Inclusionary Housing Percentage 20%
Inclusionary Units 12
Affordability Gap Per Inclusionary Unit 5 $180,700
V. In-Lieu Fee
Total In-Lieu Fee $2,168,400
Per Total Unit in the Project $36,140
Per Square Foot of Total Leasable Area $45.50
1 The market rate rents are estimated in part based on the survey presented in ATTACHMENT 2: APPENDIX A.
2 See ATTACHMENT 2: APPENDIX B.
3 The unit mix distribution is based on the prototype included in the February 2024 Financial Evaluation.
4 Based on the rent differential capitalized at a 4.50% rate to establish the value, and a 1.15% property tax rate.
5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Market Rate Stabilized Return on
Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Apt ILF; DMU LTLO 60 M Page 8 of 22
ATTACHMENT 3
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
5% MODERATE INCOME UNIT REQUIREMENT
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own ILF; Att 3 Own Page 1 of 8
ATTACHMENT 3: APPENDIX A
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
RESALE HOME SALES SURVEY
5% MODERATE INCOME UNIT REQUIREMENT
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own ILF; App A HS Page 2 of 8
ATTACHMENT 3: APPENDIX A
RESALE HOME SALES SURVEY 1
OWNERSHIP HOUSING DEVELOPMENT
5% MODERATE INCOME UNIT REQUIREMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
1128 W Duarte Rd Unit F Arcadia 91007 1,300 $710,000 $546 2006
2966 Grand Oak Way Arcadia 91006 1,312 $775,055 $591 2024
2955 Grand Oak Way Arcadia 91006 1,312 $779,990 $595 2024
2959 Grand Oak Way Arcadia 91006 1,312 $793,983 $605 2024
56 E Duarte Rd #410 Arcadia 91006 1,460 $938,960 $643 2019
Minimum 1,300 $710,000 $546 2006
Maximum 1,460 $938,960 $643 2024
Average 1,339 $799,600 $597 2019
138 Alice St Unit B Arcadia 91006 1,208 $840,000 $695 2006
2607 Winston Ct Arcadia 91007 1,490 $1,048,800 $704 2021
138 El Dorado St Unit A Arcadia 91006 1,501 $1,000,000 $666 2006
413 California St Unit D Arcadia 91006 1,561 $1,050,000 $673 2019
411 california St Unit D Arcadia 91006 1,561 $1,075,000 $689 2019
415 California St Unit B Arcadia 91006 1,561 $1,060,000 $679 2019
409 California St Unit C Arcadia 91006 1,565 $1,066,000 $681 2019
129 El Dorado St Unit A Arcadia 91006 1,579 $1,210,000 $766 2018
511 N Santa Anita Ave Unit A Arcadia 91006 1,600 $1,060,000 $663 2020
1058 Sunset Blvd Unit A Arcadia 91007 1,620 $1,098,000 $678 2014
409 California St Unit B Arcadia 91006 1,625 $1,060,000 $652 2019
923 Fairview Ave Unit B Arcadia 91007 1,630 $1,100,000 $675 2014
22 E Colorado Blvd Unit C Arcadia 91006 1,640 $1,133,000 $691 2020
921 Fairview Ave Unit C Arcadia 91007 1,660 $1,140,000 $687 2014
1022 La Cadena Ave Unit I Arcadia 91007 1,664 $1,298,000 $780 2024
1068 Sunset Blvd Unit A Arcadia 91007 1,670 $1,103,000 $660 2014
39 Fano St Unit A Arcadia 91006 1,731 $1,120,000 $647 2002
129 El Dorado St Unit B Arcadia 91006 1,737 $1,250,000 $720 2018
656 W Huntington Dr Unit A-2 Arcadia 91007 1,770 $1,141,000 $645 2013
656 W Huntington Dr Unit B2 Arcadia 91007 1,770 $1,280,000 $723 2013
656 W Huntington Dr Unit N1 Arcadia 91007 1,770 $1,210,000 $684 2013
1116 W Huntington Dr Unit C Arcadia 91007 1,876 $937,400 $500 2002
1112 Fairview Ave Arcadia 91007 1,880 $1,170,000 $622 2000
507 Santa Anita N Unit B Arcadia 91006 1,887 $1,280,000 $678 2020
901 W Duarte Rd Unit B Arcadia 91007 1,903 $1,550,000 $815 2024
1343 JACARANDA Cir Arcadia 91006 1,908 $998,000 $523 2002
418 W Fairview Ave Unit B Arcadia 91007 1,913 $1,268,000 $663 2022
721 S Arcadia Ave Unit A Arcadia 91007 1,918 $1,090,000 $568 2003
623 Fairview Ave Unit C Arcadia 91007 1,987 $1,285,000 $647 2019
618 Arcadia Ave Unit A Arcadia 91007 1,990 $1,138,000 $572 2000
503 N Santa Anita Ave Unit F Arcadia 91006 2,009 $1,335,000 $665 2020
462 W Duarte Rd Unit C Arcadia 91007 2,013 $1,080,000 $537 2005
Sales Price
Address
Two-Bedroom Units
Three-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own ILF; Home Resales Page 3 of 8
ATTACHMENT 3: APPENDIX A
RESALE HOME SALES SURVEY 1
OWNERSHIP HOUSING DEVELOPMENT
5% MODERATE INCOME UNIT REQUIREMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
Sales Price
Address
721 S 3rd Ave Unit A Arcadia 91006 2,048 $1,399,000 $683 2007
721 S 3rd Ave Unit B Arcadia 91006 2,052 $1,399,000 $682 2007
800 W Huntington Dr Unit A Arcadia 91007 2,085 $1,180,000 $566 2006
1122 Arcadia Ave Unit C Arcadia 91007 2,101 $1,060,888 $505 2000
455 Fairview Ave Arcadia 91007 2,118 $1,102,000 $520 2003
829 La Cadena Ave Unit A Arcadia 91007 2,147 $1,100,000 $512 2004
1112 S Golden West Ave #104 Arcadia 91007 2,269 $1,010,000 $445 2003
425 El Dorado St Unit A Arcadia 91006 2,473 $1,488,000 $602 2003
414 S 2nd Ave Unit E Arcadia 91006 2,739 $1,900,000 $694 2023
Minimum 1,208 $840,000 $445 2000
Maximum 2,739 $1,900,000 $815 2024
Average 1,835 $1,173,500 $640 2012
36 Bedford Ct Arcadia 91007 1,570 $1,180,000 $752 2021
16 Bedford Ct Arcadia 91007 1,580 $1,105,000 $699 2021
1022 La Cadena Ave Unit H Arcadia 91007 1,614 $1,150,000 $713 2024
1027 Arcadia Ave Unit F Arcadia 91007 1,761 $1,350,000 $767 2023
1022 La Cadena Ave Unit D Arcadia 91007 1,771 $1,310,000 $740 2024
1027 Arcadia Ave Unit D Arcadia 91007 1,773 $1,225,000 $691 2023
1022 La Cadena Ave Unit G Arcadia 91007 1,797 $1,338,000 $745 2024
1510 S Baldwin Ave Unit E Arcadia 91007 1,803 $1,060,000 $588 2005
1027 Arcadia Ave Unit E Arcadia 91007 1,824 $1,250,000 $685 2023
1022 La Cadena Ave Unit C Arcadia 91007 1,824 $1,338,000 $734 2024
509 N Santa Anita Ave Arcadia 91006 1,871 $1,350,000 $722 2020
4372 Alamo Ln Arcadia 91006 1,970 $980,071 $497 2023
656 W Huntington Dr Unit N2 Arcadia 91007 2,040 $1,272,600 $624 2013
151 Alicec St Unit C Arcadia 91006 2,100 $1,600,000 $762 2023
151 Alice St Unit B Arcadia 91006 2,200 $1,580,000 $718 2023
2950 Sycamore Ln Arcadia 91006 2,268 $1,100,000 $485 2002
925 Duarte Rd W Unit A Arcadia 91007 2,302 $1,320,000 $573 2002
418 Genoa Arcadia 91006 2,343 $1,650,000 $704 2023
516 S 2nd Ave Arcadia 91006 2,470 $1,580,000 $640 2015
Minimum 1,570 $980,071 $485 2002
Maximum 2,470 $1,650,000 $767 2024
Average 1,941 $1,302,000 $671 2019
1 Source: Redfin, January 2025. The survey includes sales that occurred between January 2024 and January 2025. The survey is
limited to home constructed since 2000.
Four-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own ILF; Home Resales Page 4 of 8
ATTACHMENT 3: APPENDIX B
AFFORDABLE SALES PRICE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
5% MODERATE INCOME UNIT REQUIREMENT
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own ILF; App B ASP Page 5 of 8
ATTACHMENT 3: APPENDIX B
AFFORDABLE SALES PRICE CALCULATIONS 1
2024 INCOME STANDARDS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Two-Bedroom
Units
Three-Bedroom
Units
Four-Bedroom
Units
General Assumptions
Benchmark Household Size 2 345
Area Median Income $88,400 $98,200 $106,050
Annual Utilities Allowance 3 $3,120 $3,804 $4,668
HOA, Maintenance & Insurance 4 $3,600 $3,900 $4,200
I. Affordable Sales Price Based on 110% AMI
Benchmark Annual Household Income $97,240 $108,020 $116,655
Income Allotted to Housing @ 35% of Income $34,030 $37,810 $40,830
II. Property Taxes @ 1.15% of Affordable Sales Price $3,600 $3,970 $4,210
III. Income Available for Mortgage
5 $23,710 $26,136 $27,752
IV. Affordable Sales Price
Supportable Mtg @ 6.98% Interest 6 $297,500 $328,000 $348,300
Home Buyer Down Payment @ 5% of ASP 15,700 17,300 18,300
Affordable Sales Price $313,200 $345,300 $366,600
1
2
3
4 Based in part on information derived from the home resales survey presented in ATTACHMENT 3: APPENDIX A.
5
6
Based on Los Angeles County household incomes published by the California Housing & Community Development Department (HCD).
The Affordable Sales Price calculations are based on the California Health and Safety Code Section 50052.5 methodology.
Utilities allowances are based on the Los Angeles County Development Authority (LACDA) Single-Family utility allowance schedule effective as of
July 1, 2024. Assumes: Electric Heating, Electric Cooking, Electric Water Heater, Basic Electric, Air Conditioning, Water and Trash.
Based on the Income Allotted to Housing minus the following: Annual Utilities Allowance; HOA, Maintenance & Insurance; and Property
Taxes @ 1.15% of Affordable Sales Price.
Based on a 25 basis points premium applied to the Freddie Mac monthly average, between February 2024 and January 2025, for a fixed-
interest rate loan with a 30-year amortization period.
Under the California Health & Safety Code Section 50052.5 calculation methodology, the benchmark household size is set at the number
of bedrooms in the unit plus one. This benchmark is used solely for the purposes of calculating the Affordable Sales Price. It is neither an
occupancy cap nor a floor.
Prepared by: Keyser Marston Associates
File name: 2 18 25 Arcadia Own ILF; ASP Page 6 of 8
ATTACHMENT 3: APPENDIX C
IN-LIEU FEE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
5% MODERATE INCOME UNIT REQUIREMENT
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Arcadia Own ILF; App C ILF Page 7 of 8
ATTACHMENT 3: APPENDIX C
IN-LIEU FEE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
5% MODERATE INCOME UNIT REQUIREMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
DMU Site: 64
Unit/Acre Density THs
& Flats Prototype
R-3 Upzone Site: 40
Unit/Acre Density THs
& Flats Prototype
Las Tunas / Live Oak
Corridor: 25 Unit/Acre
Density TH Prototype
I. Sales Price Difference
A. Two-Bedroom Units
Market Price 1 $707,000 $836,000
Affordable Sales Price 2 313,200 313,200
Difference $393,800 $522,800
B. Three-Bedroom Units
Market Price 1 $1,049,000 $1,199,000 $1,274,000
Affordable Sales Price 2 345,300 345,300 345,300
Difference $703,700 $853,700 $928,700
C. Four-Bedroom Units
Market Price 1 $1,384,000 $1,457,000
Affordable Sales Price 2 366,600 366,600
Difference $1,017,400 $1,090,400
II. Distribution of Total Units
1
Two-Bedroom Units 50% 15% 0%
Three-Bedroom Units 50% 60% 50%
Four-Bedroom Units 0% 25% 50%
III. Assumptions
Total Units 96 24 44
Total Saleable Area 120,000 39,000 81,400
Weighted Avg Unit Size (Sf) 1,250 1,630 1,850
Inclusionary Housing Percentage 5% 5% 5%
Inclusionary Units 5 1 2
Affordability Gap Per Inclusionary Unit 3 $549,000 $845,000 $1,010,000
IV. In-Lieu Fee
Total In-Lieu Fee $2,745,000 $845,000 $2,020,000
Per Total Unit in the Project $28,600 $35,200 $45,900
Per Square Foot of Saleable Area $22.90 $21.70 $24.80
1 Based in part on a sales survey undertaken by KMA in January 2025. See ATTACHMENT 3: APPENDIX A.
2 See ATTACHMENT 3: APPENDIX B.
3 Based on the weighted average difference between the market rate prices and the Affordable Sales Prices.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 18 25 Arcadia Own ILF; ILF 5%Page 8 of 8
ATTACHMENT 4
INCLUSIONARY HOUSING PROGRAM SURVEYS
ARCADIA, CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey Page 1 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
I. Inclusionary Requirements: Both Rental and Ownership Projects
Agoura Hills
Create on-site units; pay an in-lieu fee for the required Low
and/or Moderate Income Units. In-lieu fee cannot be paid to
fulfill the very low income requirement.
15% No 10
7% @ VL + 4% @
Low + 4% @ mod 55 10
7% @ VL + 4% @
Low + 4% @ mod 45
Alameda Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 5
4% @ VL + 4% @
Low + 7% @ Mod 59 5
4% @ VL + 4% @
Low + 7% @ Mod 59
Albany Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% Yes 5 Perpetual 5 Perpetual
Alhambra
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
6% at 120% AMI+
9% at 80% AMI 5 6% at 120% AMI+
9% at 80% AMI
Avalon Create on-site units; create off-site units; pay in-lieu fee. Full sch 20% No 4
Decided per
project 55 4
Decided per
project 55
Berkeley Create on-site units; pay in-lieu fee. 20% No 5
80% unless
subsidies are
available
Life of the
Building 5 80%
Life of the
Building
Brea
On-site units; pay in-lieu fee; land dedication; acquisition and
conversion of other units within city. City provides incentives
to mitigate the impact of the requirement.
10% Yes 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
55 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
45
Burbank
Create on-site units; create off-site units through new
construction, substantial rehabilitation, or adaptive reuse;
donate land; pay in-lieu fee.
15% No 5
5% @ Very Low +
10% @ Low
> of 55 years
or as long as
resid use
5Mod
> of 55 years
or as long as
resid use
Calabasas Create on-site units; create off-site units; convert market rate
units; preserve or rehab existing housing; pay in-lieu fee.20% No 5
20% @ 110%; 15%
@ 90%; 10% @
75%; or 5% at 50%
5
20% @ 110%; 15%
@ 90%; 10% @
75%; or 5% at 50%
of AMI
Campbell Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% No 10
6% @ VL + 9% @
Low 55 10 120% 45
Capitola Create on-site units; pay in-lieu fee. 15% Yes 7 120% Life of Bldg
Carlsbad
Create units; pay in-lieu fee. Reduced requirement is
provided if the affordable units are set at very low or extremely
low income.
15% No 1 Low 55 1 Low 30
Rental Development Ownership Development
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 2 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Chula Vista
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area
west of I-805 identified as "Area of Low/Moderate Income
Concentration".
10% No 20
5% @ Low + 5% @
Mod Life of Bldg 20
5% @ Low + 5% @
Mod Life of Bldg
Colma Create on-site units; pay in-lieu fee. 20% No 5
5% @ VL + 5% @
Low + 10% @ Mod 55 5
5% @ VL + 5% @
Low + 10% @ Mod 45
Concord Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee.10% Yes 5 55 5 45
Contra Costa County
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
3% @ VL + 12% @
Lower 53
Coronado
Create units; pay in-lieu fee. Reduced requirement is
provided if the affordable units are set at very low or extremely
low income.
20% No 2 Low 2 Mod
Cupertino 1-7 units pays in-lieu fee. Create on-site units; create off-site
units; pay impact/linkage fee; donate land.15% No 7 50% / 80% 99 7 50% /120% 99
Davis Create on-site units; preserve or rehab existing housing; pay
in-lieu fee; donate land.10% - 25% No 5-19 , 20+
5-19: 15% @ 80%
or 10% @ 50%.
20+: 25% @ 80%
or 10% @ 50%
Perpetual 5 120% Perpetual
Del Mar Create on-site units. In-lieu fee option provided for
subdivisions that create new lots.15% - 20% No 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55
Downey Create on-site units; create off-site units; pay in-lieu fee in the
case of extreme hardship for apartments.11%/10% No Mod
> of 55 years
or as long as
resid use
Mod 45
Dublin
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
12.5% No 20
50% @ 120% +
20% @ 80% + 30%
@ 50%
55 20
5% @ 80% + 7.5%
@ 120%55
Emeryville Create on-site units; pay impact/linkage fee. 12%/20% No
4% @ VL + 8% @
Low 55 10 55
Encinitas Create on-site units; create off-site units; create ADU's;
preserve at-risk units; pay in-lieu fee; donate land.15%/20% No 7
15% @ VL or 20%
@ Low Perpetual 7
15% VL or 20% @
Low Perpetual
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 3 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Fillmore Create on-site units; create off-site units; pay in-lieu fee;
donate land.15% No 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
55 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
45
Fremont Has a production option, but the in-lieu fee option is more
cost effective.15% No 2 10% @ Low 2
5% @ Mod + 10%
@ Low
Fort Bragg Create on-site units 10% to 20% 5 80% / 120% 5 100% /120% 15
Goleta
Create on-site units; create off-site units; donate land; pay in-
lieu fee; acquisition/rehabilitation. Income/Affordability trade
off of extremley low and very low income units to low and
moderate income units in demonstrated extreme hardship.
20% -
reduced to
15% with
public
benefit
No 5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
Hayward Create on-site units; create off-site units; pay in-lieu fee; pay
impact/linkage fee; donate land.
6% / 7.5% -
10%No 2
3% @ 50% + 3% @
60%55 2 Mod 45
Huntington Beach Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 3 Low 55 3 Mod 45
Irvine
Projects with fewer than 50 units can create on-site units;
convert market rate housing to affordable housing; extend the
term of an existing affordable project; pay in-lieu fee; transfer
units to a nonpfot housing agency; create off-site units;
donate land. Projects with 50+ units must produce the
affordable units on site.
15% No
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30 50
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Jurupa Valley
Create on-site units; create off-site units; pay in-lieu fee;
convert market rate units to affordable units; preserve at-risk
housing; donate land.
7% No 1
25% Mod + 25%
Low + 50% VL 55 1
25% Mod + 25%
Low + 50% VL 45
Laguna Beach Create on-site units; pay in-lieu fee. 25% No
2-subdivision
3-other Low and Moderate 2-subdivision
3-other Low and Moderate
Laguna Woods
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 5
7.5% @ VL + 7.5%
@ Low 45 5
10% @ Low + 5%
@ Mod 45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 4 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
La Habra Create on-site units; create off-site units; pay in-lieu fee;
acquisition/rehabilitation.
Rental: 9%
or 6% /
Own: 15%
No 10
9% @ Mod or 6%
@ VL & Low 55 10 110% 45
Long Beach Create on-site units; pay in-lieu fee; donate land. 11%/10% No 10 50%
> of 55 years
or as long as
resid use
10 110%
> of 55 years
or as long as
resid use
Los Altos Create on-site units; create off-site units. Program
requirements are only imposed in designated areas.
Rental: 5-9
@ 15% &
10+ @ 30%.
Ownership
@ 15%
No 5
5-9: 15% @ Mod,
10+: 5% @ Low +
15% @ Mod
30 10
7.5% @ Mod, 7.5%
@ Low 30
Los Angeles County Create on-site units; create off-site units. Program
requirements vary by subarea.
5%-20%
depending
on project
size &
income
standard
No 5
Averages:
<40% AMI: 10% or
5% - sm proj
<65% AMI: 15% or
7% - sm proj
<80% AMI: 20% or
10% sm proj
55 or
Perpetual 5
Mod/Middle Inc:
Avg 135% AMI:
Coastal SLA, SLA
(exc condos), &
ELA: 20% or 10% -
sm proj
SG Valley: 15% or
7% - sm proj
Santa Clarita &
Antelope Valleys
(exc condos): 5%
Equity share
on first sale
Menlo Park Create on-site units; create off-site units; pay in-lieu fee. Full sch 10% Yes 5 80% /120% 5 80% /120%
Mill Valley Create on-site units. 25% Yes 4 120% Perpetual 4 120% Perpetual
Mission Viejo Create on-stie units; create off-site units; pay in-lieu fee;
donate land.15% No
1 /
Projects with 9
or fewer units
produce 1
ADU
7.5% VL + 7.5%
Low 55
1 /
Projects with
9 or fewer
units
produce 1
ADU
10% Mod + 5%
Low 45
Nevada County Create on-site units; create off-site units Program
requirements are only applied in designated areas.No 20 30 20 30
Norco Create on-site units; create off-site units; pay in-lieu fee for
projects with 20 or fewer units; donate land.15% No 5
6% Mod+9% Low
Credits for deeper
affordability
Perpetual 5
6% Mod+9% Low
Credits for deeper
affordability
45%
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 5 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Oceanside
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land; purchase
credits from another project.
15% No 10 Low 55 10 Low or Mod 55
Oxnard Create on-site units; create off-site units; pay in-lieu fee in
limited circumstances.10% No 10
5% @ VL + 5%
Low 55 10 Low 20
Pacifica
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% No 8
6% @ VL + 4.5% @
Low + 4.5% @
Mod
55 8 45
Pasadena
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area
west of I-805 identified as "Area of Low/Moderate Income
Concentration".
20% No 10
5% @ 50% + 5% @
80% + 10% @
120%
Perpetual 10 110% 45
Petaluma Create on-site units; pay in-lieu fee; donate land 15% No 5
7.5% @ VL; 7.5%
@ Low 45 5
7.5% @ Low +
7.5% @ Mod 55
Pleasanton
Create on-site units; create off-site units; pay in-lieu fee;
donate land; credit transfers; other alternate methods of
compliance
15% Yes 15 50% to 80% 15 50% to 120% Perpetual
Pomona
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
13% / 7%-
11%Yes 3 120%
> of 55 years
or as long as
resid use
3 120% 45
Poway
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
15% / 15%-
20%No 1 Very Low 55 1
15% @ Low or
20% @ Mod 45
Redwood City Create on-site units; create off-site units; preserve or rehab
units; pay impact/linkage fee; donate land 20% / 15% No 20
10% @ Mod + 5%
@ Low + 5% @ VL 30 5 Moderate 30
Sacramento County Has a production option, but the in-lieu fee option is more
cost effective.10% No 1 80% 1 80%
San Bruno Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land. Excludes area 15% No 10
6% VL + 4.5% Low
+ 4.5% Mod 55 10 6% Low + 9% Mod 45
San Buenaventura Create on-site units; create off-site units; pay in-lieu fee;
preserve or rehab existing housing; donate land.15% / 10% No 7 Low 55 7 Mod 45
San Clemente Create on-site units; create off-site units, pay in-lieu fee;
donate land.4% No 6 Very Low 30 6 Very Low 30
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 6 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
San Diego
Create on-site units; create off-site units; rehabilitate existing
units, SRO hotel rooms, or conversion of guest rooms; pay in-
lieu fee; donate land.
5% to 20%
depending
on location
No 10
Outside FUA: 10%
@ 60%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
55 10
Outside FUA: 10%
@ 100% or
15% @120%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
15
San Francisco
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
15% to 20%
/ 15% to
26%
Yes 10 55% to 110% 10 80% to 130%
San Jose
Create on-site units; create off-site units; preserve or rehab
units; in-lieu fee; donate land; credit transfers; reduction for
deeper affordability.
15% Yes 10
5% @50% + 5% @
60% + 5% @ 100%99 10 120% 99
San Juan Capistrano Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 2 55 2 120% 55
San Luis Oblspo (City)Create on-site units; pay an in-lieu fee to fulfill the entire
oblgiation and pay an in-lieu fee for fractional unit obligations.6% / 10% No 1
5% Very Low +
5% Low 55 1
5% Low +
5% Moderate 45
San Marcos
Create on-site, create off-site units for ownership housing
projects; pay an in-lieu fee for six or fewer rental unit projects
and for all ownership housing projects.
15% No 1
Hhld income set
by the City.
<=25% of the
affordable units
may be Mod.
55 1
Requirement is
set by the City on
a project by
project basis
55
San Mateo County Create on-site units, pay in-lieu fee. 20% Yes 5
10% @ ELI + 10%
@ Low Life of Bldg 11
10% @ Low + 10%
@ Mod 45
San Rafael Create on-site units; pay in-lieu fee. City provides incentives
to mitigate the impact of the requirement.10% No 2 2 120%
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 7 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Santa Ana
Only applies to changes in land use and zoning designations.
Create on-site units; off-site units; substantially rehab
existing units; pay in-lieu fee.
Rental: 5% -
15% & Own:
5%
No 5
15% @ Low or
10% @ VL or 5% @
ELI or 5% Low +
3% VL +2% ELI
55 5 120% 55
Santa Barbara (City)Create on-site units; create off-site units; pay in-lieu fee for 1
to 9 & fractional units; donate land.10% / 15% No 5 Mod 90 1 120% to 200%
90 / restarts
on each
resale
Santa Clara (City)Create on-site units; create off-site units; dedicate land; pay
an in-lieu fee for fractional unit obligations.15% No 10
Mix of ELI, VL, Low
& Mod. Must
average less than
100% of AMI
55 10
Mix of ELI, VL, Low
& Mod. Must
average less than
100% of AMI
20
Santa Clara County
(Excludes Unincorp
Areas and Stanford
Community Plan Area)
Create on-site units; create off-site units; in-lieu fee
payments for projects with six or fewer units and for fractional
unit obligations; conversion of existing market rate units.
16% No 4 Lower 55 4 Moderate 55
Santa Cruz
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
20% Yes 2
50% for SRO's
80% all other Perpetual 2 120% Perpetual
Santa Monica
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
15% Yes 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55
Santa Paula
Create on-site units; create off-site units; pay in-lieu fee. Full
schedule goes into effect in 2023 for rental and 2025 for
ownership.
10% to 17% Yes 10
15% Low or 10%
VL 55 10
15% Low or 10%
VL 45
Santa Rosa Has a production option, but the in-lieu fee option is more
cost effective.
5% to 8% /
10%No 1
5% @ 50% or 8%
@ 60%2 110%
Solana Beach
Create on-site units; create off-site units; create rental units
to fulfill an ownership housing development requirement;
preservation or conversion of existing units; payment of the
Affordable Housing Impact Fee.
15% No 5 VL or Low 99 5 VL or Low 99
Sonoma Create on-site units. 20% Yes 5 120% 55 5 120% 55
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 8 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
Sonoma County
Create on-site units; create off-site units; pay in-lieu fee;
donate land. Program requirements are only applied in
designated areas.
10% or 15%
/ 20%Yes 1
7.5% @ VL + 7.5%
@ Low, or 5% @
ELI + 5% @ VL
55 1
10% @ Low + 10%
@ Mod 30
South San Francisco Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee 20% No 4 55 4 55
South Pasadena
Create on-site units; create off-site units; pay in-lieu fee for 3
or 4 rental unit projects, ownership for any size project, &
fractional units; rehab existing market rate units; donate land.
20% No 3
10 or fewer units:
multiple options
11 or more units:
10% ELI or VL +
10% Low
55 3 Moderate 55
Sunnyvale Create on-site units; create off-site units; pay in-lieu fee;
donate land, unit conversion, other proposals.15.0% No 7
5% @ 50% + 10%
@ 60%55 7 100% 30
Thousand Oaks Create on-site units; rental units to fulfill ownership
requirement; in-lieu fee; donate land.
10% / 5% to
10%Yes 10 Low
> of 55 years
or as long as
resid use
10 SFH: 5% Mod
Condo: 10% Mod 45
Tiburon Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 3
5% @ Low + 10%
@ Mod Perpetual 3
5% @ Low + 10%
@ Mod Perpetual
Union City Create on-site units; create off-site units; pay in-lieu fee. Full sch 15% No 7
4.5% @ VL +
10.5% @ Low 7
1.5% @ Low +
4.5% @ 100% +
9% @ 120%
Vista Create on-site units; pay in-lieu fee 9% No 20
5% Low or lower +
4% Mod or lower
5% Low or lower +
4% Mod or lower
West Sacramento Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.10% No 5
5% @ 50% + 5% @
60%55 5 70% 45
West Hollywood Create on-site units; create off-site units; pay in-lieu fee for 2-
10 unit projects.20% No 2 Low / Mod
> of 55 years
or as long as
resid use
2Low / Mod
> of 55 years
or as long as
resid use
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 9 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
II. Inclusionary Requirements: Ownership Projects Only
Carpinteria Create on-site units; pay in-lieu fee in limited circumstances. 12% No 5 200% 30
Danville Create on-site units; pay in-lieu fee. 10% Yes 7 110% 20
Folsom Create on-site units; create off-site units; pay in-lieu fee;
donate land; acq/rehab; other proposals.10% No 10
3% @ VL + 7% @
Low
Lafayette Create on-site units; create off-site units. 15% No 2
9% @ Mod + 6% @
VL 45
Monterey Create on-site units; donate land. 20% No 6 Perpetual
Mountain View Create on-site units; pay in-lieu fee. 15% No 3 100% 55
Rohnert Park Create on-site units; create off-site units; pay in-lieu fee. 15% No 50 55
San Leandro Create on-site units; pay in-lieu fee. 15% Yes 2
9% @ Mod + 6% @
Low 55
San Mateo County Create on-site units; create off-site units; pay in-lieu fee;
donate land.20% No 5
10% @ Low + 10%
@ Mod 55
5-19: 1 Mod. 20+:
South Coast: 2.5%
VL + 2.5% Low +
5% Mod + 5%
Workforce
45 - restarts
up to 90
Santa Ynez: No
Workforce
Santa Maria &
Lompoc: 2.5% VL
+ 2.5 Low
Santa Barbara County Create on-site units; create off-site units in the coastal zone;
pay in-lieu fee for certain unit types.5% - 15% Yes 5
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 10 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
III. Inclusionary for Ownership Projects & Impact Fee for Rental Projects
Fontana Create on-site units; pay in-lieu fee; develop a reduced
percentage at deeper affordability.10% No 5
4% @ VL + 4% @
Low + 2% @ Mod 55
Palo Alto
Create on-site units; create off-site units; in-lieu for fractional
unit; convert market rate units to affordable units; preserve at-
risk housing; donate land.
15% < 5 /
20% 5 acres
+
Yes $22.69/sf Impact
Fee 1 67% @ 80-100%
33% @ 100-120%99
San Carlos Create on-site units; create off-site units; pay impact/linkage
fee.15% Yes 55 2
10% @ Mod + 5%
@ Low 45
Truckee
Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; pay impact/linkage fee;
donate land. Requirements vary by zones, neighborhoods or
districts.
15% No 7 Perpetual 7 Perpetual
IV. Mandatory Inclusionary for Ownership Projects & Voluntary Inclusionary for Rental Projects
Pittsburg Create on-site units; pay in-lieu fee. 15%/20% Yes 5
9% @ Mod + 6% @
Low, or 20% @
Mod
Salinas Create on-site units; create off-site units; donate land. 20% No 10 30
San Juan Bautista Create on-site units; pay impact/linkage fee. 6% 6 80%
San Luis Obispo Create on-site units; pay in-lieu fee; donate land. 3% or 5% Yes 55 5
3% low
or 5% Moderate 45
San Marcos Create on-site units; create off-site units; preserve or rehab
existing housing; pay in-lieu fee; donate land.15% No 55 120% 55
Solana Beach Create on-site units; create off-site units; preserve or rehab
existing housing; pay impact/linkage fee.15% No 5 55 5 45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 11 of 21
APPENDIX A
INCLUSIONARY HOUSING PROGRAM SURVEYS - CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period
Rental Development Ownership Development
V. Rental Projects Only
Costa Mesa
Applies only to: properties located in areas for which the City
has completed a Zone Change and/or General Plan
Amendment that allows for residential development; and
properties that receive City approval of a General Plan
Amendment, Zone Change, or other discretionary approval.
Create on-site units; create off-site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% Low
Properties at less
than 60 units per
acre: 4% VL or 6%
Low
55
Fullerton Applies only to the Transportation Specific Plan area. Create
on-site units.15% No
5% @ VL + 5% @
Low + 5% @ Mod 55
Glendale Create on-site units; create off-site units; pay in-lieu fee;
donate land; acquisition/rehabilitation.15% No 8 60% 55
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; Incl Survey Page 12 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
I. Inclusionary Requirements: Both Rental and Ownership Projects
Agoura Hills
Create on-site units; pay an in-
lieu fee for the required Low
and/or Moderate Income
Units. In-lieu fee cannot be
paid to fulfill the very low
income requirement.
15% N/A 10
7% @ VL + 4% @
Low + 4% @ mod 55 10
7% @ VL + 4% @
Low + 4% @ mod 45
Set in 2018 to be consistent with the
Affordability gap. $285,336 per VL
apartment unit, $262,541 per low
income condominium unit, and $427,002
per moderate income single family
home.
Alhambra On-site or pay in-lieu fee. 15% No 5
6% at 120% AMI+
9% at 80% AMI 5 6% at 120% AMI+
9% at 80% AMI
Fee Schedule: 5 -20 units.
Rental: $0.89 - $14.30/SF; Ownership:
$1.88 - $30.00/SF
Brea
On-site units; pay in-lieu fee;
land dedication; acquisition
and conversion of other units
within city. City provides
incentives to mitigate the
impact of the requirement.
10% No 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
55 10
5% ELI; or
7% VLI + 3% up to
140% AMI; or
10% LI +5% up to
140% AMI; or
20% 120% AMI; or
30% 140% AMI
45 Calculated per project. Based on the
Affordability Gap.
Burbank
Create on-site units; create off-
site units through new
construction, substantial
rehabilitation, or adaptive
reuse; donate land; pay in-lieu
fee.
15%No 5 5% @ 50% + 10%
@ 80%
> of 55 years
or as long as
resid use
5Mod
> of 55 years
or as long as
resid use
Sliding scale by project size:
Rental: $5.75 - $10.27/SF
Ownership: $11.24 - $20.07/SF.
Carlsbad
Create units; pay in-lieu fee.
Reduced requirement is
provided if the affordable units
are set at very low or extremely
low income.
15% No 1 Low 1 Low
Available up to 6 units.$18.00/SF for 2-6
unit projects.
Chula Vista
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land. Excludes
area west of I-805 identified as
"Area of Low/Moderate Income
Concentration".
10% No 20
5% @ Low + 5% @
Mod Life of Bldg 20
5% @ Low + 5% @
Mod Life of Bldg In-lieu fee is based on the median home
price minus the affordable home price.
Rental Development Ownership Development
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 13 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Coronado
Create units; pay in-lieu fee.
Reduced requirement is
provided if the affordable units
are set at very low or extremely
low income.
20% No 2 Low 2 Mod
In-lieu fee paid by right. $7,000 per
market rate unit.
Costa Mesa
Applies only to: properties
located in areas for which the
City has completed a Zone
Change and/or General Plan
Amendment that allows for
residential development; and
properties that receive City
approval of a General Plan
Amendment, Zone Change, or
other discretionary approval.
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% L
Properties at less
than 60 units per
acre: 4% VL or 6%
L
55 NA NA NA
In-Lieu fee paid by right. $10 per square
foot of leasable area in the market rate
project.
Del Mar
Create on-site units. In-lieu fee
option provided for
subdivisions that create new
lots.
15% - 20% No 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 2
2-30: 15% @ ELI,
VL, or Low
30-49: 20% @ ELI,
VL, or Low
50+: 20% @ ELI,
VL, or Low - At
least 20% ELI
55 Available to subdivisions that create new
lots. $27,500 per lot created.
Downey Create on-site units; create off-
site units; pay in-lieu fee.11%/10%No 10 Mod
>55 or as
long as
resid
10 Mod 45
Rental: $23.50/SF - only allowed under
extreme hardship. Ownership: $15.90/SF
payable based on City Council criteria.
Encinitas
Create on-site units; create off-
site units; create ADU's;
preserve at-risk units; pay in-
lieu fee; donate land.
15%/20%No 7 15% VL or 20%
Low Perpetual 7
15% VL or 20%
Low 45 One to 6 unit projects and fractional
units. $24.08/SF.
Fillmore
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15%No 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
55 5
20+: 5% ELI or VL
& 10% Low
17-19: 2 Low + one
ELI or VL; 10-16: 2
Low;
5-9: 1 Low
45
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 14 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Goleta
Create on-site units; create off-
site units; donate land, pay in-
lieu fee;
acquisition/rehabilitation.
Income/Affordability trade off
of extremley low and very low
income units to low and
moderate income units in
demonstrated extreme
hardship.
20% -
reduced to
15% with
public
benefit
No 5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally
55 years,
but not less
than 30
years
5
2.5% @ ELI + 2.5%
@ VL+ 5% @ Low
+ 5% @ Mod + 5%
at Above Mod
Generally 55
years, but not
less than 30
years
Equal to the Affordability Gap associated
with providing the requisite number of
affordable units on site within the market
rate project.
Huntington Beach
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land.
10%No 3Low553Moderate45
Sliding Scale: 3 to 30 units. In-Lieu Fee
allowed for projects up to 100 units.
Rental: $3.58 to $35.80/SF Ownership:
$2.54 to $25.36/SF. The per SF
measurement caps at 2,000 SF.
Irvine
Projects with fewer than 50
units can create on-site units;
convert market rate housing to
affordable housing; extend the
term of an existing affordable
project; pay in-lieu fee;
transfer units to a nonprofit
housing agency; create off-site
units; donate land. Projects
with 50+ units must produce
the affordable units on site.
15% No
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Ordinance
applies to all
housing
projects.
50 unit
threshold for
the production
requirement
5% @ 50% +
5% @ 80% +
5% @ 120%.
Defined credits for
deeper
affordability & # of
bedrooms.
30
Calculated per project. The calculation
methodology is based on the average
land value in Irvine, the average density
of housing in Irvine, and a defined
predevelopment cost allowance.
Formula:
[(Land Value ÷ Density) +
Predevelopment Allowance] x
Percentage Share of Cost related to
affordable units not being produced.
Jurupa Valley
Create on-site units; create off-
site units; pay in-lieu fee;
convert market rate units to
affordable units; preserve at-
risk housing; donate land.
7%No 1
25% Mod + 25%
Low + 50% VL 55 1 25% Mod + 25%
Low + 50% VL 45 $2.50 per net square foot of living area
including garages.
Laguna Beach Create on-site; pay in-lieu fee. 25% No
2-subdivision
3-other Low and Moderate 2-subdivision
3-other Low and Moderate
$247,317 per affordable rental unit.
$348,197 per affordable ownership unit
or lot.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 15 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Laguna Woods
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15% No 5
7.5% @ VL + 7.5%
@ Low 45 5
10% @ Low + 5%
@ Mod 45
In-lieu fee is allowed for ownership
housing developments that can prove to
the City Council's satisfaction that
including affordable units is financially
infeasible.
The fee is calculated based on: the
median price of homes sold in Laguna
Woods during the last quarter of the
previous calendar year minus the
affordable price for a 2-bedroom unit.
La Habra
Create on-site units; create off-
site units; pay in-lieu fee;
acquisition/rehabilitation.
Rental: 9%
or 6% /
Own: 15%
No 10
9% Mod or 6% VL
& Low 55 10 110%45 $6.50 per square foot of total building
area.
Long Beach Create on-site units; pay in-
lieu fee; donate land.11%/10% No 10 50%
> of 55 yrs or
as long as
resid
10 120%
> of 55 yrs or
as long as
resid
Rental @ $38.00/SF; Ownership @
$29.10/SF
Mission Viejo
Create on-stie units; create off-
site units; pay in-lieu fee;
donate land.
15%No
1 /
Projects with 9
or fewer units
produce 1
ADU
7.5% VL + 7.5%
Low 55
1 /
Projects with 9
or fewer units
produce 1
ADU
10% Mod + 5%
Low 45
In-lieu fee is allowed for rental
developments with fewer than 20 units,
and for all ownership housing
developments.
Rental: $41.90/SF
Ownership $58.20/SF
Norco
Create on-site units; create off-
site units; pay in-lieu fee for
projects with 20 or fewer units;
donate land.
15%No 5
6% Mod+9% Low
Credits for deeper
affordability
Perpetual 5
6% Mod+9% Low
Credits for deeper
affordability
45%
Sliding scale based on square feet of
leasable/saleable area:
Rental: $1.34 - $21.50
Ownership: $2.91 - $46.50
Oceanside
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land; purchase
credits from another project.
15%No 10 Low 55 10 Mod 55
In-lieu fee paid by right. $20/SF in 2024.
Administratively adjusted annually
based on change to the ENR CCI index.
Oxnard
Create on-site units; create off-
site units; pay in-lieu fee in
limited circumstances.
10% No 10
5% @ VL + 5%
Low 55 10 Low 20
Fee charged per total unit in the project.
In 2022: SFH $36,000; MF Ownership
$35,000; Rental $28,000.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 16 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Pasadena
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land.
20%No 10
5% @50% + 5% @
80% + 10% @
120%
Perpetual 10 110% 45
Sliding scale by sub-area & project size:
Rental: $1.23 - $34.98/SF
Ownership: $17.47 - $66.20/SF.
Pomona
Create on-site units; create off-
site units; pay in-lieu fee;
donate land
13% / 7%-
11%Yes 3 120% Perpetual 3 120% 45
Rental @ $9.30/SF; SFH @ $11.40/SF
Condominiums @ $9.30/SF
Poway Create on-site units; create off-
site units; pay in-lieu fee.
15% / 15%-
20%No 1 Very Low 55 1
15% @ Low or
20% @ Mod 45
In-lieu fee is payable by right and is set at
maximum of $500 per unit for both rental
and ownership housing.
San Buenaventura
Create on-site units; create off-
site units; pay in-lieu fee;
preserve or rehab existing
housing; donate land.
15% / 10% No 7 Low 55 7 Mod 45
Ownership @ $29.80 - $66.30/SF;
Apartments @ $20.30 - $48.90/SF
San Clemente
Create on-site units; create off-
site units, pay in-lieu fee;
donate land.
4% No 6 Very Low 30 6 Very Low 30
Based on the greater of 1% of
construction costs as determined by the
Building Division or 2% of the
affordability gap determined by the
formula in the Housing Element.
San Diego
Create on-site units; create off-
site units; rehabilitate existing
units, SRO hotel rooms, or
conversion of guest rooms; pay
in-lieu fee; donate land.
5% to 20%
depending
on location
No 10
Outside FUA: 10%
@ 60%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
55
Outside FUA: 10%
@ 100% or
15% @120%
Inside FUA: 20%
@ 65%
Barrio Logan: 15%
VL and Low
University
Community Plan:
10% @ 60% or
5% @ 80% + Fee
or
10% @ 120% +Fee
15
In-lieu fee paid by right in each area
except inside FIA. Base in-lieu fee a
$25/SF. Alternative compliance in-lieu
fee at $50/SF.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 17 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
San Juan Capistrano
Create on-site units; create off-
site units; preserve or rehab
existing housing; pay in-lieu
fee; donate land. Excludes
area west of I-805 identified as
"Area of Low/Moderate Income
Concentration".
10% No 2 55 2 55
Based on 90% of the Affordability Gap,
which is updated monthly based on
benchmark market prices.
San Marcos
Create on-site, create off-site
units for ownership housing
projects; pay an in-lieu fee for
six or fewer rental unit projects
and for all ownership housing
projects.
15% No 1
Target hhld
income set by the
City.
No more than 25%
of the affordable
units may be Mod.
55 1
Requirement is set
by the City on a
project by project
basis
55
In-lieu fee paid by right for apartment
projects with six or fewer units and for all
ownership housing developments. In-
Lieu Fee @ $15/SF.
Santa Ana
Only applies to changes in land
use and zoning designations.
Create on-site units; off-site
units; pay in-lieu fee.
Rental: 5% /
15% & Own:
5%
No 5
15% @ Low or
10% @ VL or 5% @
ELI or 5% Low +
3% VL +2% ELI
55 5 120% 55
Fee charged per sf of habitable area: 5-9:
$6.00; 10-14: $9.00; 15-19: $12; 20+:
$15. Discounts for use of skilled and
trained labor force.
Santa Barbara (City)
Create on-site units; create off-
site units; pay in-lieu fee for 1
to 9 & fractional units; donate
land.
10% / 15% No 5 Mod 90 1 120% to 200%
90 / restarts
on each
resale
In 2020 the in-lieu fee for rental projects
was set at $25 per SF. Adjusted annually
by the Engineering News Record (ENR)
Building Cost Index for Los Angeles. In-
lieu fee for ownership units is calculated
based on the median price for 2-
bedroom condos, a low income
standard, and the estimated production
cost (sales price - 15% profit). A discount
schedule is provided from small units.
Santa Monica
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
15%Yes 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 2
20+ units: 15%
equally divided
among 50%, 80%,
110%
<20 units: 15% at
80% AMI
55 Rental @ $41.39/SF Ownership @
$48.35/SF
Santa Paula Create on-site units; create off-
site units; pay in-lieu fee.10% to 17% Yes 10
15% Low or 10%
VL 55 10 45
In-Lieu Fee is set on a project-by-project
basis.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 18 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
Solana Beach
Create on-site units; create off-
site units; create rental units to
fulfill an ownership housing
development requirement;
preservation or conversion of
existing units; payment of the
Affordable Housing Impact
Fee.
15%No 5 VL or Low 99 5 VL or Low 99 Affordable Housing Impact Fee @
$25.91.
South Pasadena
Create on-site units; create off-
site units; pay in-lieu fee for 3
or 4 rental unit projects,
ownership for any size project,
& fractional units; rehab
existing market rate units;
donate land.
20% No 3
10 or fewer units:
multiple options
11 or more units:
10% ELI or VL +
10% Low
55 3 Mod 55
The in-lieu fee will be set by the City
Council. Until that occurs, the fee will be
calculated on a project-by-project basis.
Thousand Oaks
Create on-site units; rental
units to fulfill ownership
requirement; in-lieu fee;
donate land.
10% / 5% to
10%No 10 Low
> of 55 yrs or
as long as
resid
10 SFH: 5% Mod
Condo: 10% Mod 45
In-lieu fee is allowed for rental
developments with fewer than 20 units,
and for all ownership housing
developments.
Rental: $25.70/SF
Ownership $14.60 - $16.80/SF
Vista Create on-site units; pay in-
lieu fee 9% No 20
5% Low or lower +
4% Mod or lower 20 5% Low or lower +
4% Mod or lower
In-lieu fee paid by right and is set at
$17.56/SF
West Hollywood
Create on-site units; create off-
site units; pay in-lieu fee for 2-
10 units projects.
20% No 2 Low / Mod
> of 55 yrs or
as long as
resid
2Low / Mod
> of 55 yrs or
as long as
resid
Sliding scale: 2 Units @ $13.63/SF - 10
Units @ $29.23/SF
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 19 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
II. Inclusionary Requirements: Ownership Projects Only
Carpinteria
Create on-site units; pay in-
lieu fee in limited
circumstances.
12% No 5 200% 30
In-lieu fee allowed if infeasibility can be
proved. The fee is based on the
difference between the median sales
price of condominiums and/or single
family homes and the affordable price at
121% of AMI with 30% of income
dedicated to housing expenses.
5-19: 1 Mod. 20+:
South Coast: 2.5%
VL + 2.5% Low +
5% Mod + 5%
Workforce
45 - restarts
up to 90
In-Lieu fee is measured per affordable
unit. Varies by HMA & income /
affordability level. Fee: Very Low & Low
are based on the estimated cost for the
County to subsidize very low & low
income units. Cost of Construction Fee:
Moderate & Workforce are based on the
median condo sales prices minus 15% of
the median price of condos.
Santa Ynez: No
Workforce
2020 Very Low & Low Fees: South Coast
$176,000; Santa Maria $96,600; Santa
Ynez $146,200; Lompoc $99,500
Santa Maria &
Lompoc: 2.5% VL
+ 2.5 Low
2020 Mod & Workforce Fees: South
Coast $658,000; Santa Maria $248,000;
Santa Ynez $431,600; Lompoc $227,600
Santa Barbara County
Create on-site units; create off-
site units in the coastal zone;
pay in-lieu fee for certain unit
types.
5% - 15% Yes 5
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 20 of 21
APPENDIX B
INCLUSIONARY HOUSING PROGRAM SURVEYS - ORANGE, LOS ANGELES, SAN DIEGO, VENTURA & SANTA BARBARA COUNTIES
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
ARCADIA, CALIFORNIA
Jurisdiction Compliance Options Set Aside %
On-site %
Varies
Threshold
Project Size Affordability
Covenant
Period
Threshold
Project Size Affordability
Covenant
Period In-Lieu Fee
Rental Development Ownership Development
III. Inclusionary Requirements: Rental Projects Only
Costa Mesa
Applies only to: properties
located in areas for which the
City has completed a Zone
Change and/or General Plan
Amendment that allows for
residential development; and
properties that receive City
approval of a General Plan
Amendment, Zone Change, or
other discretionary approval.
Create on-site units; create off-
site units; pay in-lieu fee;
donate land.
5% or 10% &
4% or 6%No 50
Projects at 60+
units per acre: 5%
VL or 10% L
Properties at less
than 60 units per
acre: 4% VL or 6%
L
55
In-Lieu fee paid by right. $10 per square
foot of leasable area in the market rate
project.
Glendale
Create on-site units; create off-
site units; pay in-lieu fee;
donate land; acquisition /
rehabilitation.
15%No 8 60% 55
Sliding scale: 8 Units @ $28.71/SF - 21
Units @ $55/SF
Prepared by: Keyser Marston Associates, Inc.
File name: 2 18 25 Inclusionary Survey; LA Orange SD Ven SB Page 21 of 21
Attachment No. 5
Attachment No. 5
CEQA Notice of Exemption
Preliminary Exemption Assessment FORM “A”
PRELIMINARY EXEMPTION ASSESSMENT
1. Name or description of project: Text Amendment No. 25-01 - Adding Section 9103.16 to Article
IX, Chapter 1 (Development Code) of the Arcadia Municipal
Code pertaining to a new Inclusionary Housing Ordinance and
associated In-Lieu Development Fee.
2. Project Location – Identify street
address and cross streets or
attach a map showing project
site (preferably a USGS 15’ or 7
1/2’ topographical map identified
by quadrangle name):
City of Arcadia - Citywide
3. Entity or person undertaking
project:
A. City of Arcadia – Development Services Department
B. Other (Private)
(1) Name
(2) Address
4. Staff Determination:
The Lead Agency’s Staff, having undertaken and completed a preliminary review of this project in
accordance with the Lead Agency's "Local Guidelines for Implementing the California
Environmental Quality Act (CEQA)" has concluded that this project does not require further
environmental assessment because:
a. The proposed action does not constitute a project under CEQA.
b. The project is a Ministerial Project.
c. The project is an Emergency Project.
d. The project constitutes a feasibility or planning study.
e. The project is categorically exempt.
Applicable Exemption Class:
f. The project is statutorily exempt.
Applicable Exemption:
g. The project is otherwise
exempt on the following
basis:
The proposed addition of an Inclusionary Housing
Ordinance is exempt from the requirements of CEQA
pursuant to CEQA Guidelines Section 15061(b)(3)
because it can be seen with certainty that the
Ordinance itself would not have a significant effect on
the environment and, thus, is not subject to review. The
establishment of the in-lieu fee is statutorily exempt.
h. The project involves another public agency which constitutes the Lead Agency.
Name of Lead Agency:
Date:
February 27, 2025
Staff:
Jason Kruckeberg, Asst. City Manager/DSD