(b) In addition to the requirements specified in subdivision (a), all of the following apply:

1. (1) The project shall include the replacement, on at least a one-to-one basis, of all existing public housing units. The replacement dwelling units shall be affordable to, and occupied by, extremely low, very low, and lower income households as defined in Sections 50079.5, 50105, and 50106, at the same or lower income level as the household displaced from the public housing units, for at least 55 years.

2. (2) The replacement dwelling units may be either publicly or privately owned and shall meet all of the following requirements:

   1. (A) Be located either inside the project area, or within a five-mile radius of the parcel containing the public housing that is being replaced.
   2. (B) Shall be, for each income level described in paragraph (1), a unit type and size as required by the displaced household. The required size shall conform to the principles for a public housing policy on occupancy, contained in the “Public Housing Occupancy Guidebook,” published by the United States Department of Housing and Urban Development.
   3. (C) Shall be affordable to each displaced household that chooses to relocate to a replacement unit, such that the rent does not exceed 30 percent of the income of that household.

(d) The project may include both of the following:

1. (1) The development of additional privately owned housing units that will be available to and occupied by persons and families of low or moderate income, as defined in Section 50093, including very low income households, as defined in Section 50105, at an affordable housing cost, as defined in Section 50052.5.
2. (2) Workforce market-rate housing units, retail services, commercial, industrial, educational, recreational, and other uses as may be appropriate to serve the residents of the area, and public improvements inside or adjacent to the project area.