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Council OKs in-lieu payment instead of six on-site inclusionary units for Newport 13 subdivision
Summary
The council approved a developer agreement allowing an in-lieu payment of $458,666 in place of constructing six onsite inclusionary affordable units for the Newport 13 single-family subdivision, citing feasibility and ability to leverage the fee in larger affordable projects.
The council on June 4 approved an affordable-housing agreement for the Newport 13 subdivision allowing the developer to pay an in-lieu fee instead of building six on-site inclusionary units.
City staff said the project would otherwise be required to provide six inclusionary units. Staff recommended acceptance of the in-lieu payment because the small scale of the subdivision makes on-site affordable ownership units financially infeasible and the in-lieu funds can be pooled and leveraged to support larger affordable housing projects. The staff report lists the in-lieu amount for this project as $458,666.
In discussion, councilmembers asked about the cost-per-unit and whether the city can stretch the in-lieu dollars farther by pairing them with state funds. Staff said the in-lieu fee can be combined with other funding sources to create a greater total subsidy for affordable rental or ownership projects; staff also noted that larger projects can often produce more affordable units with the city'held funds.
The council voted unanimously to approve the agreement; the clerk recorded five ayes. Councilmember Ocala moved the motion; Mayor Pro Tem Sulpizio Hall seconded. The item will direct the funds to the city'administered affordable housing resources and allows staff to leverage the payment for larger affordable-housing developments.
