The following are alternative means of fulfilling inclusionary housing obligations:
(A) Payment of housing in-lieu fee. As an alternative to constructing inclusionary units as required by this chapter, all or a portion of the inclusionary housing requirement may be fulfilled through the payment of a housing in-lieu fee pursuant to an in-lieu fee schedule adopted by the town pursuant to this chapter, subject to the following:
(1) For-sale and rental units may pay a housing in-lieu fee.
(2) The housing in-lieu fee shall be paid at the time that the first building permit is obtained for the residential development.
(3) All in-lieu fees collected under this chapter shall be deposited in the Inclusionary Housing Fund established pursuant to this chapter.
(B) Off-site development of affordable units. As an alternative to constructing inclusionary units on site, all or a portion of the inclusionary housing requirement may be fulfilled through the offsite construction of the unit pursuant to this chapter, subject to the following:
(1) Off-site development of the required affordable units is permitted provided the off-site units are located within one-half mile of the market-rate development that is the subject of the inclusionary housing requirement.
(2) The off-site units shall not create an over-concentration of deed-restricted affordable dwelling units in any one neighborhood. For purposes of this chapter, “over concentration” is defined as more than 50 deed restricted very low or low-income dwelling units within one-quarter mile of the site of the proposed inclusionary units, or more than 200 of such units within one-half mile of the site of the proposed inclusionary units.
(C) Land dedication. As an alternative to constructing inclusionary units as required by this chapter, all or a portion of the inclusionary housing requirement may be fulfilled through the dedication of land to the town or a non-profit at no cost, subject to the following:
(1) The land dedicated shall be zoned to allow residential use;
(2) The land shall be of sufficient size to accommodate the required units;
(3) The applicant shall provide evidence satisfactory to the town that the property does not contain any hazardous materials at the time of conveyance; shall disclose whether any hazardous materials were previously found on the property; and if hazardous materials were previously remediated from the property, the applicant shall provide evidence satisfactory to the town that such hazardous materials were remediated in accordance with all applicable laws and regulations;
(4) The land shall be fully improved with access infrastructure, adjacent utilities, and grading; and
(5) A non-profit shall enter into an agreement with the town to construct the units within an agreed upon time period and the units constructed shall be subject to the affordability covenant as set forth in § 17.140.050.
(D) The alternative means of compliance set forth herein are intended to implement the town's authority to promote the development of affordable housing, in accordance with Cal. Gov’t Code § 65850(g), and shall not be considered or construed as an ad hoc exaction, a mandated fee required to develop a specific property, or a fee imposed to offset the development impacts of a specific project.
(Ord. 884, passed 11-1-2023)