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(e) Rounding of quantities in calculations. In calculating the required number of <br />inclusionary units, fractional units shall be rounded -up to the next whole unit. The <br />developer may choose to pay an in -lieu fee set forth in section 41-1904(c) for the <br />fractional units, which shall be calculated based on the number of habitable square feet <br />applicable in each case. <br />(f) Displacement of existing inclusionary units. Notwithstanding any other <br />provision of this article, any residential project subject to this article that results in the <br />displacement of very low and/or low-income household(s) shall be required to provide <br />on -site inclusionary units as required by this article. <br />(g) Compliance with article. All inclusionary units required by this article shall <br />be sold or rented in compliance with this article. <br />Section 7. Section 41-1903 of Chapter 41 of the Santa Ana Municipal Code is <br />hereby amended to read in its entirety as follows: <br />Sec. 41-1903. - Exempt projects. <br />The following are exempt from the requirements of this article: <br />(a) Applications deemed complete. Applications that include a residential <br />project for which a development application has been deemed complete prior to <br />November 28, 2011. <br />(b) Development agreements. A residential project that is the subject of a <br />development agreement under applicable provisions of the California Government Code <br />that expressly provides for an exclusion to this article, provides for a different amount of <br />inclusionary units, or provides for a different specified method for determining the in -lieu <br />fee provisions of this ordinance, such as the timing of payment or the point in time for <br />determining the applicable in -lieu fee amount, to satisfy the inclusionary units from that <br />specified by this article. <br />(c) Project with regulatory agreement. A residential project for which a <br />regulatory agreement has been approved, provided that the regulatory agreement is <br />effective at the time the residential project would otherwise be required to comply with <br />the requirements of this article, and there is no uncured breach of the regulatory <br />agreement before issuance of a certificate of occupancy for the project. This may <br />include a residential project that has obtained a density bonus under article XVI.I of the <br />Santa Ana Municipal Code. Such projects cannot be used to satisfy the inclusionary <br />requirement for another project. <br />(d) Adaptive Reuse. Adaptive reuse development projects pursuant to Chapter <br />41, Article XVI.II - Adaptive Reuse. <br />Ordinance No. NS-XXX <br />Page 6 of 14 <br />City Council 1-6 7/26/2021 <br />