17.138.080 Procedures.
A. Fractional Numbers. In determining the number of dwellings that are required to be built pursuant to Section 17.138.040(B), if the number of required inclusionary dwellings results in a fractional unit, an applicant may pay the in-lieu fee for the fractional unit or provide an additional affordable unit in the project (based on the unit affordability for the type of project). The in-lieu fee for fractional units shall be calculated as described in Table 8-1 (Fractional Inclusionary Requirement Scenarios):
Table 8-1: Fractional Inclusionary Requirement Scenarios | ||||
|---|---|---|---|---|
Example Project: 25 Units (i.e., 1,000 sq. ft. per unit) | Inclusionary Housing Requirement | Option 1 | Option 2 | Option 3 |
For-Sale (10%)1 | 2.5 units1 | 2 Moderate | Pay in-lieu fee3 | 1 Moderate |
For-Rent (6%)2 | 1.5 units2 | 1 Low | Pay in-lieu fee3 | 1 Low |
Notes:
1Five percent for low-income households (rounded down to the next whole number) and five percent for moderate-income households (rounded up).
2Three percent for very low-income households (rounded down) and three percent for low-income households (rounded up).
3In-lieu fee is calculated by the habitable area of the project multiplied by the in-lieu fee as established by the city’s comprehensive fee schedule.
4Fractional in-lieu fee amount is calculated by the remaining fractional inclusionary requirement (i.e., 0.5) multiplied by the in-lieu fee cost per square foot, and then multiplied by the habitable area of the project (excluding the area of any inclusionary units that are provided in the project).
(For-Sale Example: (0.5 x in-lieu fee) x 23,000 sq. ft. = Fractional in-lieu fee amount)
B. Affordable Housing Agreement. The applicant shall complete and sign an affordable housing agreement.
1. Submittal of an Affordable Housing Agreement. Applicants of residential development projects subject to this chapter shall submit an affordable housing agreement on forms provided by the city and pay a processing and recordation fee.
2. Timing. All building permits for inclusionary units in a residential development project shall be issued concurrently with, or prior to, issuance of building permits for the market rate units.
3. Construction Schedule. The inclusionary units shall be constructed concurrently with, or prior to, construction of the market rate units, unless otherwise stipulated by the applicable review authority of the residential development project. Occupancy permits and final inspections for inclusionary units in a residential development shall be approved concurrently with, or prior to, approval of occupancy permits and final inspections for the market rate units.
4. Review and Approval. The draft agreement shall be reviewed by the director and city attorney for compliance with project approvals, city policies and standards, and applicable codes. Following approval and signing of the agreement by the parties, the final agreement shall be recorded, and relevant terms and conditions shall be recorded as a deed restriction on those lots or affordable units subject to affordability requirements. The affordable housing agreement shall be binding to all future owners and successors in interest.
5. Term. The affordable housing agreement shall ensure that affordability is maintained for the longest period allowed or required by state law, but not less than forty-five years for ownership and fifty-five years for rental.
6. Exemption for In-Lieu Fee Payment. An affordable housing agreement shall not be required for projects which meet their inclusionary housing requirement through the payment of in-lieu fees. (Ord. 1719 § 3, 2022)