Not yet decided. The proposal would let builders of for-sale projects of any size pay a city fee by right instead of building affordable homes on site. The City Council decides after the Planning Commission’s October 20 recommendation.
What the city is deciding
The Planning Commission is asked to recommend a change to the Inclusionary Housing Ordinance, a rule that new housing projects include homes priced for lower income households. An in-lieu fee is money a builder pays the city instead. By right means allowed automatically, without a special approval or hearing.
Where and who it affects
- Builders of for-sale projects of seven or more homes, who now need City Council approval to pay the fee.
- Buyers who qualify for income-restricted homes: the city’s stated aim is to shift more projects toward paying the fee.
- Rental projects: unchanged.
- Owners of existing market rate homes: the documents describe no direct change.
What it could mean for your property
Today, covered for-sale projects must offer 5 of every 100 homes to low income buyers and 10 of every 100 to moderate income buyers. Projects of five or six homes can already pay the fee by right. Larger ones must prove that building the homes on site would cause an unreasonable and unavoidable economic hardship. The amendment drops that test for for-sale projects.
Builders could still build the affordable homes on site, or offer land with Council approval. A builder who meets the whole obligation with the fee does not qualify for a state density bonus on that basis. Projects pending when the ordinance takes effect could choose the fee by filing a new inclusionary housing plan.
The ownership fee runs $3 to $48 per square foot, by project size. This item does not change it; a new fee study is under way. No certificate of occupancy is issued until the fee is paid.
Fee money goes to the Inclusionary Housing Fund, which can pay for rental assistance and ADU grants and loans. The city expects $1,717,400 from the Taylor Morrison Park View development.
Questions to ask before you buy or build
- Will this project pay the fee or provide affordable homes on site?
- Which fee schedule applies to the project?
- Does an income-restricted home in the project come with a city equity share agreement?
What happens next
The Commission’s recommendation is due October 20. A City Council hearing is expected in November 2026; the documents give no date. Copies: [email protected].