Construction Alternatives

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

In-Lieu Fee Structure: fixed per-unit fee

The amount of the in-lieu fee to be collected for any given project is based on a ratio of three quarters (3/4) of the gap betweeb the actual market rate price for a unit and the allowble unit price based on the housing cost limit dictated for a specified income classification. The in-lieu calculation is as follows:Example: (Market rate unit price - allowable affordabe unit price) x. 75 = in lieu fee "For-Sale units". For rental projects is similar to the above noted formula but, for rental units, the affordablility gap is calculated based on the difference between the market rate rent stream necessary to pay the cost of development and maintenance of the rental project over its useful life, and the rent stream that could be expected from a project charging affordable rents.