Construction Alternatives

• conversion to affordable housing
• credit transfer
• in-lieu fee
• land dedication
• off-site construction

In-Lieu Fee Structure: formula

1. Fees to be Set. The required in-lieu shall be set based on an inclusionary housing requirement of twelve (12) percent of the on-site market-rate units. If a proposed residential project proposes both single-family detached development and condominium units, the in-lieu fee shall be calculated based on twelve (12) percent of each proposed unit type. The in-lieu fee amount for a proposed housing development shall be set as of the date of city council approval for the tentative subdivision map. 2. Calculation for Condominium Projects. The in-lieu fee shall be sufficient to make up the monetary difference between the following: a. The median sales price of a condominium unit in the city, and b. The sales price of a condominium unit affordable to an above-moderate income household earning one hundred twenty one (121) percent of the area median income calculated according to the procedure specified in the city’s Affordable Housing Policies and Procedures. 3. Calculation for Single-Family Detached Residential Projects. The in-lieu fee shall be sufficient to make up the monetary difference between the following: a. The median sales price of single-family residences in the city, and b. The sales price of a single-family residence affordable to an above-moderate income household earning one hundred twenty-one (121) percent of the area median income calculated according to the procedure specified in the city’s Affordable Housing Policies and Procedures.