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Judson Brown, City of Santa Ana June 28, 2021 <br />Housing Opportunity Ordinance: Updated In-Lieu Fee Analysis Page 15 <br /> <br /> 2106011.SA:KHH <br /> 19090.017.021 <br /> <br />Supportable In-Lieu Fees <br />Ownership Housing Development <br /> <br />In-Lieu Fee <br /> 10% Moderate <br />Income Units <br /> Per Affordable Unit $215,000 <br />Per Total Unit in the Project $21,500 <br />Per Sq. Ft. of Saleable Area $13.00 <br /> <br />SUMMARY <br />It is important to set the in-lieu fee amounts at defensible amounts for the following <br />reasons: <br />1. The courts have ruled that inclusionary housing requirements cannot be <br />confiscatory or deprive an owner of a fair and reasonable return; <br />2. California Government Code Section 65583 (a) prohibits jurisdictions from <br />imposing requirements that constrain the development of housing; and <br />3. To maximize the production of housing, affordable housing programs should be <br />set up to balance the interests of property owners and developers against the <br />public benefit created by the production of affordable housing units. <br />Based on the results of the KMA financial analysis, the supportable in-lieu fees are <br />estimated as follows: <br />Supportable In-Lieu Fee: Housing Opportunity Ordinance Update <br /> Rental Residential Development $17.10 to $17.80/Sq. Ft. of Leasable Area <br /> Ownership Housing Development $13.00/Sq. Ft. of Saleable Area <br />