A. Payment of In-Lieu Fee. The developer may, at their discretion, choose to pay a fee, as established by a resolution of the city council, to the city in lieu of constructing affordable units to meet their inclusionary housing requirement.

B. In-Lieu Fee Calculation. In-lieu fees shall be calculated using the new habitable square footage, as defined by California Building Code, included within the residential development project.

C. Affordable Housing Fund. All in-lieu fees collected shall be deposited into the affordable housing fund. The fund shall be administered by the finance director and shall be used exclusively to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the council.

D. Timing. In-lieu fees shall be paid prior to building permit issuance. For projects constructed in phases, in-lieu fees shall be paid in the proportion that the phase bears to the overall project. (Ord. 1719 § 3, 2022)