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Draft Provision: <br />◦41-1904. In Lieu Fee: Draft Ordinance revises the in-lieu fee and changes the timing of payment as follows: <br />◦increase the in-lieu fee from $5 per habitable square foot to establish a sliding scale with a $6 -$15 range per <br />habitable square foot. <br />◦Prior to considering increasing the bottom step of the sliding scale and reducing the differential between each step <br />in the draft Ordinance, additional analysis is recommended to evaluate the constructability of a project in the 5-19 <br />unit categories. It is challenging for small infill projects to construct affordable units onsite. If the in-lieu fee <br />amount is not aligned with the market gap, these smaller projects may not be feasible. <br />◦41-1904. Timing of payment. The draft extends the timing of payment from issuance of the building permit to issuance <br />of the certificate of occupancy, allowing a developer the option to pay after the project is developed in order to make the <br />larger fee more reasonable and to help reduce carrying costs during construction. <br />◦PC discussed the need to provide clarity on the timing of payment when the City approves a phased development <br />project. For consistency, timing payment should be proportional to each phase consistent with the timing of <br />construction of affordable units which is also proportional with each phase (Section 41-1906(b)) of a project. This <br />change would meet the intent of reducing the carrying cost during the project construction phase. <br />◦Planning Commission recommended increasing each income category by 5% Prior to considering <br />9CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY <br />20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 <br />Units Fee Per Square Foot of <br />Habitable Area PC Recommended Change <br />5 –9 $6.00 $10.00 <br />10 –14 $9.00 $11.66 <br />15 –19 $12.00 $13.32 <br />20 or more $15.00 $15.00 <br />Summary of Key Amendments Recommended <br />by Planning Commission with Modifications