(A) For both on-site and off-site construction, unless an exemption is approved by the Board of Supervisors pursuant to division (C) below, the applicant shall be required to build the whole number of inclusionary units as determined in division (C) below. The Director of Resource Management Agency or his or her designee shall calculate and update the in-lieu fees on an annual basis based on the annual increase in the Residential Construction Cost Index to adjust the in-lieu fee annually as part of the Master Fee Schedule.
(B) Fractions of units. Residential developments required to construct fractions of a unit under this chapter shall pay an in-lieu fee if the fraction is less than 0.7 in an amount corresponding to the fractional unit, computed by multiplying the in-lieu fee amount determined under division (C) below by the fraction. All fractions of 0.7 or greater are required to round to the nearest whole number resulting in an additional unit.
(C) Qualification for in-lieu payment. The developer of a residential development containing 11 or more units may apply to pay a fee in lieu of providing some or all of the required inclusionary units if the developer demonstrates, based on evidence in the record, in connection with the approval for the residential development, that specific characteristics of the development site, including at least one of the following: (1) septic systems or individual wells that are not connected to a public agency or regulated water purveyor, (2) zoning which requires large lot development, or (3) is not within ten miles of an incorporated city, make the site unsuitable for households at the required income levels. The evidence must be reviewed by the Housing Advisory Committee and the Planning Commission and the qualification for an in-lieu payment must be approved by the Board of Supervisors.
(D) Payment amount. Inclusionary fees shall be reviewed by the Housing Advisory Committee and set forth by resolution of the Board of Supervisors and shall reflect the findings found in § 21.03.001(G).
(E) Time of payment. Payment of in-lieu fees shall be made in full to the county prior to issuance of a certificate of occupancy and final inspection, unless an affordable housing agreement otherwise provides.
(F) Alternative compliance mechanisms should be used only when they will lead to the production of more affordable units than would otherwise be provided on-site, while still being consistent with the chapter’s other goals. Also, alternatives should be made available where on-site production of units is less feasible, rather than as a default option for all developments. Examples of alternative mechanisms include (but are not limited to) the following: land donation, construction of rental units adjacent to for-sale projects, and provision of subsidies to non-profit developers for affordable rental housing.
(Ord. 951, § 1(part), 2016; Ord. 1,014, § 9, 2020; Ord. 1052, § 2, 2023)