Inclusionary Housing In-Lieu Fee

“The purpose of the Inclusionary Housing In-Lieu Fee is to provide funds to the City to develop and construct affordable housing as would otherwise be provided on-site and to mitigate the burdens created by new residential development on the need for extremely low-, very low-, low- and moderate-income housing.”

“In compliance with Inclusionary Housing Ordinance, all inclusionary housing in-lieu fees collected shall be deposited in the City's Inclusionary Housing Fund to be used solely to provide housing affordable to extremely low-, very low-, low- and moderate-income households in the City, including reasonable administrative costs not to exceed 2% of fees collected in the previous fiscal year.”

“The provisions of this chapter shall apply to all residential projects of one (1) or more units, including rental and for-sale market-rate dwelling units, condominium or cooperative conversions, and time extensions of development plan approvals for previously approved residential projects.”

2024-11-26

“RESOLUTION NO. 2024-9387 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS REPEALING RESOLUTION 2000-5417 AND ESTABLISHING THE AMOUNT OF FEES PAYABLE IN-LIEU OF PROVIDING AFFORDABLE HOUSING UNITS AS ALLOWED BY CHAPTER 20.310 OF THE SAN MARCOS MUNICIPAL CODE ... PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS at a regular meeting held on the 26th day of November, 2024”

“RESOLUTION NO. 2024-9387 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS REPEALING RESOLUTION 2000-5417 AND ESTABLISHING THE AMOUNT OF FEES PAYABLE IN-LIEU OF PROVIDING AFFORDABLE HOUSING UNITS AS ALLOWED BY CHAPTER 20.310 OF THE SAN MARCOS MUNICIPAL CODE ... PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS at a regular meeting held on the 26th day of November, 2024”

at building permit

“The amount of the in-lieu fee for each required inclusionary unit shall be determined by the City in accordance with this section, and shall be paid at the time of issuance of building permits for the first residential units in a development project subject to this chapter.”

City of San Marcos, the agency that levies it

“Affordable housing must be constructed as part of certain projects pursuant SMMC Chp. 20.310. An affordable housing in-lieu fee may be paid under certain circumstances. This fee is administered by the City's Housing Division and calculated at the time the fee is to be applied.”

“This chapter shall not apply to the following, except at the discretion of the City: A. Any project developed pursuant to the terms of an existing development agreement entered into pursuant to Government Code Section 65964 et seq. before the effective date of this Zoning Ordinance. Inclusionary requirements, if any, shall be as set forth in such development agreement. B. Non-residential uses, except in the case of single-room-occupancy hotels. C. The construction of a new residential structure that replaces a residential structure that was destroyed or demolished within two (2) years prior to the application for a building permit, provided that the number of residential units is not increased. D. Accessory dwelling units developed in accordance with Chapter 20.410 (Accessory Dwelling Units and Accessory Structures).”

“Inclusionary unit credits. If an applicant of a new for-sale or rental development provides newly constructed off-site rental units to meet the inclusionary requirements, and such units exceed the number of inclusionary units required by this chapter, the excess units may be used to meet the inclusionary unit requirements for another applicant. Any sale of "inclusionary unit credits" shall be a civil transaction with no regulation by the City (i.e., the inclusionary unit credits may be sold at whatever price the market will bear).”

“For purposes of imposition of the Inclusionary Housing In-Lieu Fee amount set by this Resolution, the adjusted amounts shall be effective as of March 3, 2025. Until that date, the prior Inclusionary Housing In-Lieu fee amount in use by the City will be used for calculation of In-Lieu fee amounts.”