yes, I have a brief staff report then we'll take public comment so the council is going to be considering Two retroactive time extensions, one for the Cottage Among the Flowers project which would extend a prior set of approvals that date back to 2007 with several extensions through the years most recently considered by the Planning Commission in 2019. The project consists of 10 units.
There are eight existing units at the cottages those eight would be rehabilitated and two more units would be built. The proposal is to extend Existing or past permits for further validity period second the Mallory Way bungalows project also Considered previously approved back in 2012 extensions through the years per state law last considered by the Planning Commission in 2019 Which extension was recommended both of those 2019 Planning Commission approvals were One was called up for review. The other was appealed to the City Council and The City Council in 2019 directed staff to work with the developer on a development agreement solution to those two projects and the other projects. That resulted in a development agreement that was approved by the City Council about a year ago, that was subjected to referendum Then the developer withdrew the referendum and withdrew the request for the project in August of this year, August of 23.
So the council has now set the underlying extension applications for consideration and as noted we're very pleased to report that we've reached tentative agreement on a settlement that will take care of all of the projects and result in significant new de-restricted affordable housing for the city. So I'll walk through that agreement, we are finalizing the text as i speak it covers four projects and I'll in part summarize the cottages project the 10 units would be extended and two more 55-year deed restricted affordable units would be added, one very low income and one low income.
The Montgomery that's at Cottage is at 312 West Aliso Street. The Montgomery project at 304 South Montgomery would be built with 15 new units, 12 moderate income, 55 year deed restriction and three low income, 55 year deed restriction 510 East Ojai, which was not in the development agreement is added now would be 13 units of which two very low income 55 year deed restriction. Two low-income 55 year deed restriction and one moderate income 55 year deed restriction. And then one too very low too low one moderate income for 510 East Ojai all 55 year deed restrictions and then for the Mallory project All 25 existing bungalows would be preserved and rehabilitated, not demolished. Four of them could be moved on site but still preserved.
And the rehabilitation would occur only as the existing tenants move out or are offered a unit that meets their existing rent level in another of the projects. The same tenant protection will be provided for cottages, no existing tenant would be required to move out involuntarily unless there is another unit at their current rent level in one of the other projects. So it protects all existing tenants at cottages and Mallory And then their rental unit they move into would be the same rent they pay now. and then subjected to the city's Rent Stabilization Ordinance limiting increases thereafter.
Mallory would have 10 deed-restricted affordable units, five very low income for 55 years and five moderate income for 55 years. All of the units at Mallory would have to be 500 to 600 square feet in size so small equivalent to the size that is there now with similar design materials and character maintaining the current sort of rule Bungalows type character with the oak trees that exist now preserved to the maximum extent possible We don't have a precise number of oak trees to be preserved because the site plan is not developed yet but that'll be worked through with staff and a maximum of two stories All of that is in contrast to what would be allowed if we did not have a settlement agreement If we did not have a settlement agreement Mallory would be The same 10 affordable but 48 market rate.
All of the bungalows could be knocked down and demolished, and it could be three or four stories or even higher by state law without any of the preservation for size in the existing character and without any of the tenant protections subject to state law first tenant protections for those who are truly low income or lower income. The cottages project would be 10 plus 280 U's was zero affordable units.
Montgomery would be one low income and one moderate income instead of three low and 12 moderate, so 13 more market rate units and 510 East Ojai that would be the same. In total the settlement as reached provides for 65 new units 63 new units of which 31 are affordable units, 18 moderate income 55 year de-destruction. Six low income, 55 year de-destruction. Seven very low income, 55 year de-destruction and 25 of the existing Mallory Way bungalows preserved for rehabilitation as tenants leave or are offered an alternative unit at their rent level at one of the other sites so only truly 42 new market rate units All of the Mallory Way bungalows units kept at the 506 square foot size, no three stories. The other piece is that all of this is in return for putting on the table and allowing the developer to take advantage of an unapproved right-of-way adjacent to the Mallory Way bungalows.
That unapproved right-of way is about 50 feet wide that would be a lot would be Conveyed to the developer after compliance with the Surplus Land Act and the street right-of-way vacation laws, and would allow the low spread out character to be maintained. The developer would be required to build a dirt or decomposed granite trail in maintaining the unimproved trail that exists in that right of way now And last piece on the tenant protections, again to emphasize all existing tenants at Cottages and Mallory would not have to move out as units rehabilitated unless they are offered a unit at one of the other projects that matches their current rent level. Not income level, the current rent level which would then be subject to the Rent Stabilization Ordinance and generally capping it at 4% per year in increases or state law whichever is lower.
A $2,000 up to $2000 moving allowance for tenants as they are required to move last. The developer will apply for the landmark status for the Mallory Bungalows once that project goes through Paired with Mills Act status, which would allow for their continued preservation even if this developer sells to a new developer. The landmark status would serve to preserve the Mallory bungalows and last there's an agreed upon above the city's ordinance requirement for local preference for local Ojai residents to be first preference for tenants in any of the projects, any of these units And the World University site is not a part as that the developer is in consultations with another developer to sell that separately. So the four sites are cottages among the flowers, Mallory Way bungalows, Montgomery Street affordable housing and 510 East Ojai with a net of 31 new 55 year D restricted affordable units.
Oh, and lastly, the Lastly, the project together with the Cabrillo Project as approved last week would meet the city's RHNA in full. RHNA is the Regional Housing Needs Allocation. It's a state requirement that the city zone for a certain amount of affordable housing. Our requirement is to zone over the next eight years and eventually build or convince developers to build 13 very low-income units 9 low income 10 moderate income and 21 above moderate. And with the Cabrillo project plus this project, we've met that with 15 very low-income units, 47 low-income units, 18 moderate income units, and then 43 standard above moderate units plus the 25 smaller preserved Mallory Way bungalows.
Staff's available for any questions. The mechanics of this would be to approve the time extension for the cottages, for those 10 units subject to the settlement agreement being executed. If the settlement agreement is not executed, the approval is void and to take no action on the Mallory Way time extension because their developer will apply for a different project, for the modified project as modified through the settlement agreement and then to approve the settlement agreement.
And we have resolutions prepared to that effect that will pass out now.
