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Redlands Inclusionary Housing In-Lieu Fee
The Redlands City Council voted last month to adopt an Affordable Housing In-Lieu fee at a reduced rate of $9.10 sf on for-sale residential projects. The original city staff in-lieu fee proposal of $15 sf was reduced by approximately 40% following the review of a BIA fee analysis. The new fee is effective immediately.
As noted in the city staff report, at the June 20, 2023 meeting, the City Council adopted an Inclusionary Housing Ordinance (Attachment B) Click here that requires a certain percentage of affordable housing units be provided. The ordinance authorizes an alternative means of compliance whereby a developer may pay an in-lieu fee if the housing development consists of for-sale or rental units, and for any fractional unit that is determined when calculating the total number of inclusionary units required. Details on the Inclusionary Housing Ordinance can be found in the Agenda Report for the June 20, 2023 meeting (Attachment C).
Payment of an In-lieu fee is one of the alternative means of compliance provided for by the Inclusionary Ordinance. For-sale developments and rental developments of less than 23 units have the option of paying an in-lieu fee by-right. For a rental housing development with greater than 22 units, the Inclusionary Housing Ordinance requires City Council approval of a developer’s request to pay an in-lieu fee, and to approve such a request the City Council must find that providing the affordable units in the development would create an unreasonable economic hardship due to such factors as project size, site constraints, and/or excessively large affordability gaps.
For more information on BIA Government Affairs priorities please email Carlos Rodriguez a at carlos@biabuild.com.
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