DevFeeFinder
HousingSet by city fee ordinanceCitation Ordinance No. 2288 (10/24/2018)

Housing In-Lieu Fee

Levied by City of Morgan Hill on new development in Morgan Hill. Authorized under the Mitigation Fee Act - Gov. Code Sec. 66000 et seq. Collected at building permit.

This is an in-lieu option, not a charge every house pays. It is what a builder pays INSTEAD of doing something else - building the affordable units, or providing the artwork on site. A builder who does that thing pays none of it, so it is never summed into Morgan Hill's one-time total. It is levied per sq ft; every published rate is in the table below.

The record

Why it exists

“14.08.010 Findings and Purpose. 1. Need for in-lieu housing fees. The City Council has determined, based on the City's General plan including the housing element, and existing statutes and regulations of the State of California, that the In-Lieu Housing Fee is needed in order to finance the preservation of the existing Below Market Rate Portfolio, the administration of the Housing Program, future affordable housing programs and new projects.”

Ordinance No. 2288, 2018-10-24, s. 14.08.010(1), p. 3 · source document ↗
What it pays for

“All collected In-Lieu Housing Fees shall be used to finance the administration and implementation of affordable housing programs and projects within the City of Morgan Hill in support of the goals and objectives established in the City of Morgan Hill housing element.”

Ordinance No. 2288, 2018-10-24, s. 14.08.30 Applicability, para. 2, p. 4 · source document ↗
Where it applies

\"Downtown\" means the geographical area as depicted in Figure CNF-2 of the General Plan.

“"Downtown" means the geographical area as depicted in Figure CNF-2 of the General Plan.”

Ordinance No. 2278 New Series, adopted 2018-07-25, s. 14.04.030 Definitions, item 12, p. 5 · source document ↗
When it was adopted

2018-10-24

“THE FOREGOING ORDINANCE WAS INTRODUCED AT A REGULAR MEETING OF THE CITY COUNCIL HELD ON THE 17TH DAY OF OCTOBER 2018 AND WAS FINALLY ADOPTED AT A REGULAR MEETING OF THE CITY COUNCIL HELD ON THE 24TH DAY OF OCTOBER, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE: AYES: COUNCIL MEMBERS: Larry Carr, Rich Constantine, Rene Spring, Caitlin Robinett Jachimowicz, Steve Tate ... Effective Date: 11/24/18”

Ordinance No. 2288 New Series, adopted 2018-10-24, p. 16 of 16, clerk's attestation and Certificate of the City Clerk · source document ↗
Who adopted it

Ordinance No. 2288, New Series

“THE FOREGOING ORDINANCE WAS INTRODUCED AT A REGULAR MEETING OF THE CITY COUNCIL HELD ON THE 17TH DAY OF OCTOBER 2018 AND WAS FINALLY ADOPTED AT A REGULAR MEETING OF THE CITY COUNCIL HELD ON THE 24TH DAY OF OCTOBER, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE: AYES: COUNCIL MEMBERS: Larry Carr, Rich Constantine, Rene Spring, Caitlin Robinett Jachimowicz, Steve Tate ... Effective Date: 11/24/18”

Ordinance No. 2288 New Series, adopted 2018-10-24, p. 16 of 16, clerk's attestation and Certificate of the City Clerk · source document ↗
When it is paid

at building permit

“In-Lieu Fees shall be calculated based on the fee schedule in effect at the time the fee is paid. In-Lieu Fees shall be paid prior to issuance of building permits for Market-Rate units in a Residential Project. If building permits are issued for only part of a Residential Project, the fee amount shall be based only on the number of units then permitted.”

Ordinance No. 2299 New Series, adopted 2019-03-20, s. 14.04.070.D.4, pp. 3-4 · source document ↗
Who collects it

City of Morgan Hill, the agency that levies it. City of Morgan Hill Housing Division

“The In-Lieu Housing Fee must be provided to the Housing Division in proportion to the market rate units being delivered prior to Housing Division signing off for occupancy.”

Ordinance No. 2288, 2018-10-24, s. 14.08.30 Applicability, para. 6, p. 4 · source document ↗
Who is exempt

“"Residential Project" means a project undertaken for the purpose of development of land for residential purposes that requires the issuance of a discretionary or ministerial approval or permit, including a permit for construction, and that will include two (2) or more Dwelling Units. "Residential Project" also includes developments on Contiguous lots for which applications are filed by the same property owner or Applicant and that will include two (2) or more Dwelling Units.”

Ordinance No. 2278, 2018-07-25, s. 14.04.030 Definitions, item 27, p. 6 · source document ↗
Credits and offsets

“14.04.090 - Waiver of requirements. Notwithstanding any other provision of this Chapter, the requirements of this Chapter shall be waived, adjusted, or reduced if the Applicant demonstrates that applying the requirements of this Chapter would take property in violation of the constitutions of the United States or the State of California or would otherwise result in an unconstitutional application of this Chapter.”

Ordinance No. 2278, 2018-07-25, s. 14.04.090, p. 12 · source document ↗
How it changes

“The In-Lieu Housing Fees are established for Residential Projects and will be incorporated into development agreements entered into after the effective date of this ordinance.”

Ordinance No. 2288, 2018-10-24, s. 14.08.30 Applicability, para. 1, p. 4 · source document ↗

Every published rate

Every rate below applies to single-family detached.

Applies toBasisEffectiveAmount
rental, outside Downtown per sq ft 15 Jan 2026 $33.64
the line this rate was read from

“In-Lieu Housing Fee [new category as of October 24, 2018] — Rental Projects — Outside of Downtown | sq feet | 34.12 | (0.48) | 33.64 | (12)”

SCHEDULE OF DEVELOPMENT IMPACT FEES AT 1/15/2026, p. 5 of 5 · source document ↗
for-sale, outside Downtown per sq ft 15 Jan 2026 $22.85
the line this rate was read from

“In-Lieu Housing Fee [new category as of October 24, 2018] — For-Sale Projects — Outside of Downtown | sq feet | 23.18 | (0.32) | 22.85 | (12)”

SCHEDULE OF DEVELOPMENT IMPACT FEES AT 1/15/2026, p. 5 of 5 · source document ↗
rental, within Downtown per sq ft 15 Jan 2026 $16.82
the line this rate was read from

“In-Lieu Housing Fee [new category as of October 24, 2018] — Rental Projects — Within Downtown | sq feet | 17.06 | (0.24) | 16.82 | (12)”

SCHEDULE OF DEVELOPMENT IMPACT FEES AT 1/15/2026, p. 5 of 5 · source document ↗
for-sale, within Downtown per sq ft 15 Jan 2026 $15.31
the line this rate was read from

“In-Lieu Housing Fee [new category as of October 24, 2018] — For-Sale Projects — Within Downtown | sq feet | Pre-1/15/2026 Fee $ 15.53 | Annual Adjustment ENR Cost Index (0.22) | New Fee at 1/15/2026 15.31 | AUTHORITY (12)”

SCHEDULE OF DEVELOPMENT IMPACT FEES AT 1/15/2026, p. 5 of 5 · source document ↗

About these figures

Quoted, not summarized. Every amount and fact on this page is copied from the official document it links to. If we couldn’t find something in a document, we leave it blank instead of guessing.

Before any discounts. Some fees offer credits, waivers or phase-ins. They’re listed above but not subtracted, because whether you qualify depends on your project.

Check the date. Fees change. This page shows what was in force on the date at the top, with a link to the document that set it, so you can confirm the current amount yourself. How all of this is put together.

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