Monrovia City Council approves affordable housing in lieu fee resolution

Monrovia City Council has taken a significant step towards enhancing affordable housing in the community by adopting new in lieu fees for residential developments. During their regular meeting on July 1, 2025, the council approved a resolution that establishes fee amounts for developers opting to contribute financially instead of including affordable units in their projects.

The new fees, set at $29.40 per square foot for ownership projects and $24.50 for rental projects, are part of the Monrovia Inclusionary Housing Ordinance, which aims to meet the city’s Regional Housing Needs Assessment (RHNA) requirements. This ordinance, introduced on June 3, is designed to expand affordable housing options in Monrovia and is set to take effect on July 17.

The in lieu fees will be applicable to all ownership and rental projects containing 20 or fewer units. Developers choosing this option will need to pay the fees before obtaining a building permit. The collected funds will be allocated to a separate account dedicated to the production, preservation, and rehabilitation of affordable housing units in the city.

Additionally, the resolution includes a provision for annual adjustments to the fees based on the Engineering News Record construction index, ensuring that the fees remain aligned with current construction costs.

This decision marks a crucial advancement in Monrovia's efforts to address housing affordability, providing a structured approach to support the development of much-needed affordable housing in the area. As the city moves forward, the implementation of these fees is expected to play a vital role in shaping the future of housing in Monrovia.