Role: Land Use and Deal Attorney for a real estate developer...

Prompt

Role: Land Use and Deal Attorney for a real estate developer. Task: You have a 4.3 acre site with zoning density of 0-4 units/acre. You want to maximize the profitability of the project and leverage state density bonus. The housing and community development HCD may provide letters and clues for ways to stack and optimize the state density bonus while minimizing the impact/cost of providing the required affordable units. You want to consider using ADU's to meet the base density requirement and then evaluate the bonus units. You want to build detached homes on the property and you have the following margins to consider in your evaluation. For-Sale market rate homes will produce a net margin of 800k, where as affordable homes (very-low) will have a net cost of $800k, ADU's would be roughly 1/2 this cost (400k).