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A. General Requirements. All nonexempt residential development projects shall include inclusionary units as required by this chapter. If the calculated number of units results in a fraction, the number shall be rounded as described in Section 17.138.080(A).

1. Construct the required number of inclusionary units for residential or mixed-use projects;

2. Pay an in-lieu fee for residential or mixed-use projects; or

3. Pay a commercial linkage fee (see Chapter 4.60) for new nonresidential or nonresidential portions of mixed-use project(s).

B. Residential Requirements.

1. Ownership Dwelling Units. Ten percent of the dwelling units (see Section 17.138.080(A)) shall be made available for sale to eligible households with five percent for low-income households (fractional units may be rounded down to the next whole number) and five percent for moderate-income households (fractional units may be rounded up to the next whole number). See Section 17.138.080(A) for more information regarding fractional numbers.

2. Rental Dwelling Units. Six percent of the dwelling units (see Section 17.138.080(A), Fractional Numbers) shall be made available for rent to eligible households with three percent for very low-income households (fractional units may be rounded down to the next whole number) and three percent for low-income households (fractional units may be rounded up to the next whole number).

3. In-Lieu Housing Fees. An applicant may pay in-lieu fees to the city rather than construct inclusionary units on site for residential projects (see Section 17.138.060, In-Lieu Housing Fee).

C. Nonresidential Requirements.

1. Commercial, Office, Service, Hotel, Retail, Industrial, and Institutional Uses. An applicant shall pay a commercial linkage fee based on the gross square footage of the nonresidential space in accordance with Chapter 4.60.

D. Mixed-Use Development Requirements.

1. Dwelling Units and Commercial Space. For mixed-use development, the inclusionary housing requirement is determined in accordance with subsection B of this section for all dwelling units in addition to subsection C of this section for all new commercial square footage within the development project. For example, a for-rent mixed-use project includes twenty residential units and five thousand square feet of commercial space: the inclusionary requirement would be two affordable units (twenty times six percent equals one and one-fifth rounded to two) and a commercial linkage fee would be applied to the five thousand square feet of commercial space. (Ord. 1719 § 3, 2022)