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(2) More than 20 units. In the case of a Residential Project comprised of <br />more than 20 residential lots or residential units, the Developer may <br />apply to pay a fee in lieu of constructing some or all of the required <br />units, and such application shall be subject to the review and <br />approval of the City Council, which may grant such the Developer's <br />request if substantial evidence supports a finding that the cost of <br />providing Inclusionary Units on-site would substantially exceed the <br />amount of the applicable in-lieu fee. <br />(3) Calculation of fee. The amount of the fees allowed by this Section <br />shall be calculated in accordance with the methodology to be set forth <br />in the Administrative Procedures. The calculation methodology is <br />based on the affordability gap associated with fulfilling the required <br />affordable housing units on site within the proposed Residential <br />Project. <br />(4) Timing of payment. The Developer shall pay any in-lieu fees allowed <br />by this Section in full before issuance of a Building Permit for any <br />portion of the Residential Project, including any non-residential <br />portions of a mixed-use development. <br />(5) Inclusionary Housing Fund. Fees collected in compliance with this <br />Section shall be deposited in the Inclusionary Housing Fund. <br />Section 7. Section 41-1905 is added to Chapter 41 of the Santa Ana <br />Municipal Code to read in full as follows: <br />Sec. 41-1905. Housing Plan and Housing Agreement <br />(a) Submittal and execution. The Developer shall comply with the following <br />requirements. <br />(1) Inclusionary Housing Plan. The Developer shall submit an <br />Inclusionary Housing Plan, in a form specified by the Executive <br />Director, detailing how the provisions of this Article will be <br />implemented for the proposed Residential Project. If the inclusionary <br />housing plan includes alternatives to on-site units that require the <br />approval of the City Council, then the Inclusionary Housing Plan shall <br />be subject to the review and approval of the City Council. All other <br />Inclusionary Housing Plans shall be subject to the approval of the <br />Executive Director, subject to appeal to the City Council. Any such <br />appeal shall be filed within fifteen (15) days of the decision of the <br />Executive Director. <br />(2) Inclusionary Housing Agreement. The Developer shall execute and <br />cause to be recorded an Inclusionary Housing Agreement. The <br />Ordinance No. NS-XXX <br />11A-10 Page 10 of 17