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(a) On -site units. The primary means of complying with the inclusionary requirements <br />of this article shall be the provision of on -site inclusionary units in accordance with <br />section 41-1901, above. A developer may only satisfy the requirements of this <br />article by means of an alternative to on -site inclusionary units in accordance with <br />the requirements and procedures of this section. <br />(b) Off -site units. <br />1. New units. The developer may satisfy the inclusionary unit requirements for the <br />project, in whole or in part by constructing the required new inclusionary <br />housing at a different location within the city borders at the ratio of one square <br />foot of habitable inclusionary unit space for each required habitable square foot. <br />While the total habitable square footage area of the required new inclusionary <br />units must be the same as the sum -total of the number of habitable square feet <br />for the project as directed by this ordinance, the number of units and bedrooms <br />associated with the off -site units may be approved by the review authority of the <br />city, consistent with the type of affordable housing needed at the time of project <br />review. <br />2. Rehabilitated units outside a designated target area. The developer may satisfy <br />the inclusionary unit requirements for the project, in whole or in part by <br />substantially rehabilitating existing housing units elsewhere within the borders <br />of the city at a rate of one and one-half (1 %) habitable square feet per each <br />required habitable square foot of inclusionary units. <br />3. Rehabilitated units within a designated target area. Upon application, the <br />developer may satisfy the inclusionary unit requirements for the project, in <br />whole or in part by substantially rehabilitating existing housing units elsewhere <br />within the borders of the city at a rate of one habitable square foot per each <br />required habitable square foot of affordable inclusionary units. <br />(c) In -lieu fee. <br />(1) More than 20 units. A Residential Project comprised of more than twenty (20) <br />residential lots or residential units, the developer may elect to satisfy the <br />Inclusionary Unit requirements for the Project, in whole or in part, by payment of <br />a fee in lieu of constructing some or all of the required units. The amount of the <br />fee allowed by this section shall be five dollars per square foot ($5.00/ft. 2 ) of <br />the sum total of the number of habitable square feet within the entire Project, as <br />measured from the exterior walls of the residential units. This calculation does <br />not include exterior hallways, common areas, landscape, open space or exterior <br />stairways. <br />(2) Entitled Residential Projects. The applicant(s) of an Entitled Residential <br />Project (see Exhibit A) may either construct the inclusionary units or pay an in <br />lieu fee as follows: <br />(i) Twenty (20) or fewer units. In the case of an Entitled Residential Project <br />containing between five (5) and twenty (20) residential lots or residential <br />units, the Developer may elect to satisfy the Inclusionary Unit requirements <br />for the Project, in whole or in part, by payment of a fee in lieu of constructing <br />11 C-9 <br />