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Council directs staff to explore inclusionary housing ordinance, in‑lieu fee study
Summary
After a staff presentation on inclusionary housing programs used by nearby cities, the City Council instructed staff to draft an inclusionary housing ordinance and to hire a consultant to prepare an economic/fee nexus study for a possible in‑lieu fee. Staff estimated the study cost at $20,000–$50,000 and said the process could take 12–18 months.
Planning staff presented research on inclusionary housing ordinances used in nearby jurisdictions and asked for council direction about pursuing a local ordinance and a consultant to analyze an in‑lieu fee.
The presenter summarized that jurisdictions with existing ordinances commonly set a 15% affordable set‑aside for residential developments as a threshold that avoids a required state economic feasibility review; some cities apply the requirement to developments with five or more units. Examples cited included Irvine and Tustin (Orange County) and Norco and Jurupa Valley (Riverside County). Staff noted Irvine’s ordinance has produced more than 2,000 units citywide when combined with other funding and partnerships.
Staff asked for direction on whether to prepare a city ordinance and to proceed with a consultant study to establish a legally defensible in‑lieu fee. The presentation estimated a consultant cost of $20,000–$50,000 and a project timeline of roughly 12–18 months, including public outreach and periodic reporting to council; staff also said any adopted fee would require periodic adjustment to match construction-cost inflation.
Councilmembers discussed scope and targeting. Some members said they prefer an approach that emphasizes multifamily development but does not exclude single‑family projects; others suggested an in‑lieu fee could be the more practical route for single‑family subdivisions because for‑sale “affordable” single‑family units can be difficult to maintain on moderate incomes. No final ordinance text was adopted; instead the council provided staff direction to prepare an inclusionary ordinance and to engage a fee‑study consultant, and staff said it would return with draft language and the consultant’s analysis.
Key implementation details noted by staff: many cities set a 15% target (or a lower percentage to avoid a state feasibility review), an in‑lieu fee can be calculated per market‑rate unit (some cities use a flat dollar amount per unit or a dollars‑per‑square‑foot formula), and in‑lieu funds are typically deposited into an affordable housing fund for future projects or partnerships with nonprofit/affordable‑housing developers.
Staff did not ask the council to adopt a final ordinance at the meeting; the direction provided was to proceed with the fee study and draft ordinance materials for later council consideration.
