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(2) More than 20 units. In the case of a Residential Project comprised of more than 20 residential lots or residential units, the Developer may apply to pay a fee in lieu of constructing some or all of the required units, and such application shall be subject to the review and approval of the City Council, which may grant such the Developer's request if substantial evidence supports a finding that the cost of providing Inclusionary Units on-site would substantially exceed the amount of the applicable in-lieu fee. (3) Calculation of fee. The amount of the fees allowed by this Section shall be calculated in accordance with the methodology to be set forth in the Administrative Procedures. The calculation methodology is based on the affordability gap associated with fulfilling the required affordable housing units on site within the proposed Residential Project. (4) Timing of payment. The Developer shall pay any in-lieu fees allowed by this Section in full before issuance of a Building Permit for any portion of the Residential Project, including any non-residential portions of a mixed-use development. (5) Inclusionary Housing Fund. Fees collected in compliance with this Section shall be deposited in the Inclusionary Housing Fund. Section 7. Section 41-1905 is added to Chapter 41 of the Santa Ana Municipal Code to read in full as follows: Sec. 41-1905. Housing Plan and Housing Agreement (a) Submittal and execution. The Developer shall comply with the following requirements. (1) Inclusionary Housing Plan. The Developer shall submit an Inclusionary Housing Plan, in a form specified by the Executive Director, detailing how the provisions of this Article will be implemented for the proposed Residential Project. If the inclusionary housing plan includes alternatives to on-site units that require the approval of the City Council, then the Inclusionary Housing Plan shall be subject to the review and approval of the City Council. All other Inclusionary Housing Plans shall be subject to the approval of the Executive Director, subject to appeal to the City Council. Any such appeal shall be filed within fifteen (15) days of the decision of the Executive Director. (2) Inclusionary Housing Agreement. The Developer shall execute and cause to be recorded an Inclusionary Housing Agreement. The Ordinance No. NS-2825 Page 10 of 17