Chapter 18.05.05 Ownership unit affordable housing standards. - Davis Municipal Code

Home>City Manager's Office>Municipal Code

Municipal Code

Chapter 18 HOUSING
18.05.050 Ownership unit affordable housing standards.
A developer of residential ownership developments consisting of five or more units shall provide in each development, to the extent feasible, an amount equivalent to twenty-five percent of the total units for very low, low and moderate income households, after the inclusion of the density bonus for the project. Depending on the total number of units in the development as provided in Section (a) below, some of the required affordable units may be rental units and some for sale units. Residential projects consisting of fewer than five market rate units will not be required to produce affordable units. The approval process for Affordable Housing Plans will adhere to that which is required by Section 18.05.040 (b). The price of all affordable ownership housing units will be based on payments that make up no more than thirty-five percent of the gross monthly target income level designated for a specific unit and shall include mortgage principal and interest, taxes, insurance, assessments, and homeowner fees, as applicable and adjusted for household size. Percentages allowed for the qualifying of the mortgage loan shall be determined by the lender or lenders involved with the income-qualified household. Ownership affordable units that are converted into rental units, meet the requirements of this section, pursuant to state law, if the rents meet the affordable housing standards for rental units in this article, and as adopted by the city. To the maximum extent feasible, each developer must meet the twenty-five percent ownership affordable unit requirement as it pertains to the project, as set forth below: (a) Standard Ownership Affordable Housing Requirements All requirements listed under the respective category, as well as Section 18.05.040, must be adhered to and included within the project’s affordable housing plan. 1.Projects with fewer than five units for purchase a. No affordability requirements. 2.Projects totaling five to seventy-five units for purchase a.A number equivalent to twenty-five percent of the total units being developed, after the inclusion of the density bonus for the project, must be developed as affordable units, as directed in this section. b.The complete amount of required affordable units must be constructed on-site. c.The on-site construction shall be in conformance with all that is stated in Section (A), entitled On-Site Construction of Affordable Units for Purchase. 3.Projects totaling seventy-six to two-hundred units for purchase a.A number equivalent to twenty-five percent of the total units being developed, after the inclusion of the density bonus for the project, must be developed as affordable units, as directed in this section. b.The developer shall make an irrevocable offer to the city of sufficient land, without abnormalities (shape and terrain) and with complete environmental review that can accommodate the affordable housing requirement for the project in its entirety. c.The land dedication shall be in conformance with all that is stated in Section (B), entitled Land Dedication. 4. Projects totaling two-hundred and one or greater units for purchase a.A number equivalent to twenty-five percent of the total units being developed, after the inclusions of the density bonus for the project, must be developed as affordable units, as directed in this section. b.Half of the affordable housing requirement for the project, a number equivalent to twelve and one-half percent of the total units being developed, shall be developed on-site by the developer, in conformance with all that is stated in Section (A), entitled On-Site Construction of Affordable Units for Purchase c.Half of the affordable housing requirement for the project, a number equivalent to twelve and one-half percent of the total units being developed, shall be developed through a land dedication(s) by the developer to the City of Davis, in conformance with all that is stated in Section (B), entitled Land Dedication. 5.Project Individualized Program a.The developer may meet the city's affordable housing requirement with a project individualized program that is determined to generate an amount of affordability equal to or greater than the amount that would be generated under the standard affordability requirements.. The affordable units must, at a minimum, meet the same income targets specified in the standard ownership affordable housing provisions. i.A project individualized program shall be developed by the developer and city staff, taken action on by the Social Services Commission, and if the main project application requires, heard before the Planning Commission for decision. ii.If the main project is requesting planning entitlements that require City Council approval, it shall then be heard before the City Council for final decision. iii.If the main project does not require a City Council hearing, the Planning Commission's or the Social Services Commission’s determination may be appealed to the City Council by any member of the public. b. The Project Individualized Program is not intended to allow exception to a public input and review process. The Project Individualized Program is intended to be viewed thoroughly and scrutinized in public forums, allowing for input and competition from the public, other community-based non-profits, staff, and at a minimum, the Social Services Commission. The public hearing at the Social Services Commission shall be noticed to all community-based housing non-profits in the area, to the greatest extent possible, regardless of their involvement in the project. This public hearing shall scrutinize the project based on the following criteria: i.Need for government subsidy ii.Sustainability of the project and its services iii.Community need of the project type based on recent needs assessments and recent projects completed iv.Uniqueness/innovation of the proposed project v.Overall benefits and drawbacks of the project vi.Project’s compliance with the standards as outlined within the Affordable Housing Sections 18.05.010-18.05.070 of the City’s Municipal Code These meetings shall be carried out without any finite contracts in place between the parties involved, allowing for the potential direction to the developer to change the project. If the Social Services Commission finds that the proposed project does not satisfy one or all of the criteria listed above, it may choose to direct the developer to fulfill his/her affordable housing requirement through a land dedication process. This decision may be altered at either the Planning Commission or City Council public hearing, if the project requires review by either of these deciding bodies. Decision at either the Social Services Commission or the Planning Commission to direct the developer to do a land dedication to meet his/her affordability requirement, may be appealed to the City Council. (A)On-Site Construction of Affordable Units for Purchase. The units shall be constructed in conformance with all that required in this article. (a)Density Bonus. A one-for-one city density bonus shall be awarded for construction of on-site affordable units. (b) Housing Mix. The developer must provide a mix of two and three bedroom units, with a minimum of fifty-percent of the units as three bedroom units and in a combination of unit types as approved within the Affordable Housing Plan through the appropriate review process. Smaller and larger unit sizes shall be provided as an option, based on local housing needs and project character, as approved during the affordable housing plan review process. (c) Price of Units. The units will be affordable to moderate-income households, households with incomes ranging from 80% of Area Median Income to 120% Area Median Income, with the average affordability targeted at households with incomes at 100% of Area Median Income, the moderate target income. The Community Development Department Director shall determine the maximum sales price for these units on an annual basis. The Community Development Director shall propose annual adjustments to the maximum purchase prices based on changes in the Area Median Income, as determined by the U.S. Department of Housing and Urban Development. This price shall be reviewed annually for adoption by the City Council. (d)Buyer Selection and Screening. Please refer to Section 18.05.040(g) for the guidelines of this section. (e)Owner-Occupancy Restrictions. Any person who purchases a designated affordable unit pursuant to this article shall occupy that unit as his or her principal personal residence for as long as he/she owns the affordable unit. Such occupancy shall commence within six months following completion of the purchase. The purchases shall comply with the provisions of sections 18.04.020 through 18.04.060, inclusive, of this Code. (Ord. No. 1567, § 1 (part); Ord. No. 1651; § 1; Ord. No. 1728 §§ 4--7.) (f)Sustained Affordability. Restrictions shall be placed on the affordable housing obligation fulfillment, in order to ensure a measure of sustained affordability. In an effort to maintain the greatest number of units as affordable for the greatest period of time, one of the following restrictions shall be adhered to: 1. Appreciation Capped at Three Percent per Year plus a Three-Quarters of a Percent Maintenance Credit for Necessary Maintenance Costs of the Unit: The unit appreciates based on the average increase in Yolo County Area Median Income—3 %, plus an additional 0.75% percent as a credit for maintenance costs of the unit. This restricts the total appreciation of the unit to a maximum of 3.75%, compounded annually. 2. Alternative Proposal: Any other program that proves its ability to provide for sustainable affordability, as approved by staff, the Social Services Commission, and other public governing bodies as required by the individual project. Proposing an alternative method for sustained affordability must be justified based on current market trends and/or other prevailing circumstances. (g)Right of First Refusal. All affordable for-sale units constructed after January 1, 2005, shall deed to the City of Davis a permanent Right of First Refusal on the property, allowing the City the ability to either purchase the unit, or designate an appropriate buyer for the unit at its resale. The deed restriction shall allow the City to designate a third party to carry out its Right of First Refusal, and shall also allow for a one percent fee to be taken from the real estate transaction in order to pay for the costs of carrying out the Right of First Refusal. (h)Resale Report. The owners of all affordable for-sale units that include a resale restriction or were constructed after January 1, 2005, shall be required to clear all resale reports completed on these units prior to the close of escrow on the resale of each unit. The findings of the resale inspection that are required to be addressed cannot be transferred to the household purchasing the affordable unit. (B)Land Dedication. The developer shall make an irrevocable offer to the city of sufficient land, without abnormalities (shape and terrain) and with complete environmental review, which can accommodate the land dedication requirement for the project in its entirety. The land dedicated shall be of sufficient size to make the development of the required affordable units economically feasible, no less than one acre. The density of development for the purpose of calculating the acreage to be dedicated under this section shall be fifteen units per acre. The proposed use of such land must be consistent with the general plan. The city may approve, conditionally approve, or reject such an offer of dedication. If the city rejects such an offer of dedication, the developer shall be required to meet the affordable housing obligation by other means set forth in this article and approved by the city. The dedicated site shall be economically feasible to develop, of sufficient size to build the required number of affordable units, and physically suitable for development of the required affordable units prior to dedication of the land. The dedicated site shall also have appropriate General Plan designation and zoning to accommodate the required units, be fully improved with infrastructure, frontage improvements (i.e., curb, gutter, walk), paved street access, utility (i.e., water, gas, sewer, and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or required by the City. The developer must identify the land to be dedicated at the time the developer applies for a pre-zoning or zoning amendment, but in no event later than the application for the tentative subdivision map. Building permits shall not be issued prior to identification of land to be dedicated under this section. (a)Density Bonus. A one-for-one city density bonus shall be awarded for land dedication on the basis of fifteen units per net acre. (b)Housing Types on Dedicated Land. Housing built on land provided by dedication for affordable housing shall be permanently affordable. The city shall adopt a resolution establishing a process whereby property dedicated to the city pursuant to this section may be conveyed to third parties who shall enter into an agreement with the city to produce affordable housing within a specified period of time. The city shall consult with the Social Services Commission, nonprofit corporations, affordable housing organizations, and developers in designing this process. Housing on land dedicated pursuant to this section may consist of any of the following: (i)Resident controlled nonprofit housing corporation. (ii) Community based mutual housing association. (iii) Community based nonprofit controlled rental housing. (iv)Student housing cooperative. (v)Limited equity housing cooperative. (vi)Public housing (vii)Land trust (viii)Self-Help Housing (ix)Other forms of nonprofit housing containing a permanent affordability provision. (c)Price of Units. The average affordable price for each size category of units on land dedication sites shall not exceed the low target income, 65 percent of median income. The maximum income level served shall not be greater than 80 percent of area median income. A variety of unit sizes must be offered to income groups at all levels within the targeted group. For example, if three bedroom units are offered to families at eighty percent of median income, the same number of three bedroom units must be offered to households at fifty percent of area median income, making the average rent for the unit type 65 percent of area median income. (d)Buyer/Tenant Selection and Screening. Please refer to Section 18.05.040(g) for the guidelines of this section. (e)Owner-Occupancy Restrictions. Any person who purchases a designated affordable unit pursuant to this article shall occupy that unit as his or her principal personal residence for as long as he/she owns the affordable unit. Such occupancy shall commence within six months following completion of the purchase. The purchases shall comply with the provisions of sections 18.04.020 through 18.04.060, inclusive, of this Code. (Ord. No. 1567, § 1 (part); Ord. No. 1651; § 1; Ord. No. 1728 §§ 4--7.) (C)Options for Small Developments. Small developments of fifteen ownership units or fewer, and totaling no greater than 38 bedrooms in the project, that are located within the Core Area and are found to meet a specified community goal, can request to fulfill the twenty-five percent affordable housing requirement through one of the following options, as approved during the review process of the project’s affordable housing plan: (a)Construction Subsidy. City staff will work with the developer to provide financial assistance to be used in the construction of the affordable unit(s) required on-site, in order to assist in ensuring the project’s feasibility. The developer shall present a proforma (for the affordable units) to staff showing the necessary amount of construction assistance needed through supplemental city funds, in order to make the project economically feasible. The project will require the standard review process, and the necessary funding approval from the City Council. (b)Combination of On-Site Construction and In-lieu Fees. The affordability requirement may be fulfilled through a combination that includes the on-site development of a portion of the required affordable units, with the remaining amount of the affordability requirement fulfilled through in-lieu fees. The exact split of the combination shall be determined during the review of the project’s affordable housing plan, based on the developer’s stated ability to provide affordable units on-site. (c)In-lieu Fees. In the event that the developer cannot accommodate options (a) and (b) within the proposed project, the affordability requirement may be fulfilled through the payment of in-lieu fees pursuant to an adopted fee schedule to be revised on an annual basis. A payment plan may be approved by the Social Services Commission in the event that the developer does not have the necessary funds available for payment; however, the majority of in-lieu fees shall be paid prior to the issuance of the certificate of occupancy on any of the market rate units. In addition to the standard in-lieu fee, the City maintains the right to adopt an in-lieu fee for use in future resource-pooled projects. This special in-lieu fee would apply to projects within a specific project area where the fee is intended to be used towards a planned resource-pooled project. (Ord. No. 1567, § 1 (part); Ord. No. 1651; § 1; Ord. No. 1728 §§ 4--7; Ord. No. 2199)

18.05.050 Ownership unit affordable housing standards.

A developer of residential ownership developments consisting of five or more units shall provide in each development, to the extent feasible, an amount equivalent to twenty-five percent of the total units for very low, low and moderate income households, after the inclusion of the density bonus for the project. Depending on the total number of units in the development as provided in Section (a) below, some of the required affordable units may be rental units and some for sale units. Residential projects consisting of fewer than five market rate units will not be required to produce affordable units.

The approval process for Affordable Housing Plans will adhere to that which is required by Section 18.05.040 (b).

The price of all affordable ownership housing units will be based on payments that make up no more than thirty-five percent of the gross monthly target income level designated for a specific unit and shall include mortgage principal and interest, taxes, insurance, assessments, and homeowner fees, as applicable and adjusted for household size. Percentages allowed for the qualifying of the mortgage loan shall be determined by the lender or lenders involved with the income-qualified household.

Ownership affordable units that are converted into rental units, meet the requirements of this section, pursuant to state law, if the rents meet the affordable housing standards for rental units in this article, and as adopted by the city.

To the maximum extent feasible, each developer must meet the twenty-five percent ownership affordable unit requirement as it pertains to the project, as set forth below:

(a) Standard Ownership Affordable Housing Requirements

All requirements listed under the respective category, as well as Section 18.05.040, must be adhered to and included within the project’s affordable housing plan.

1.Projects with fewer than five units for purchase

a. No affordability requirements.

2.Projects totaling five to seventy-five units for purchase

a.A number equivalent to twenty-five percent of the total units being developed, after the inclusion of the density bonus for the project, must be developed as affordable units, as directed in this section.

b.The complete amount of required affordable units must be constructed on-site.

c.The on-site construction shall be in conformance with all that is stated in Section (A), entitled On-Site Construction of Affordable Units for Purchase.

3.Projects totaling seventy-six to two-hundred units for purchase

b.The developer shall make an irrevocable offer to the city of sufficient land, without abnormalities (shape and terrain) and with complete environmental review that can accommodate the affordable housing requirement for the project in its entirety.

c.The land dedication shall be in conformance with all that is stated in Section (B), entitled Land Dedication.

4. Projects totaling two-hundred and one or greater units for purchase

a.A number equivalent to twenty-five percent of the total units being developed, after the inclusions of the density bonus for the project, must be developed as affordable units, as directed in this section.

b.Half of the affordable housing requirement for the project, a number equivalent to twelve and one-half percent of the total units being developed, shall be developed on-site by the developer, in conformance with all that is stated in Section (A), entitled On-Site Construction of Affordable Units for Purchase

c.Half of the affordable housing requirement for the project, a number equivalent to twelve and one-half percent of the total units being developed, shall be developed through a land dedication(s) by the developer to the City of Davis, in conformance with all that is stated in Section (B), entitled Land Dedication.

5.Project Individualized Program

a.The developer may meet the city's affordable housing requirement with a project individualized program that is determined to generate an amount of affordability equal to or greater than the amount that would be generated under the standard affordability requirements.. The affordable units must, at a minimum, meet the same income targets specified in the standard ownership affordable housing provisions.

i.A project individualized program shall be developed by the developer and city staff, taken action on by the Social Services Commission, and if the main project application requires, heard before the Planning Commission for decision.

ii.If the main project is requesting planning entitlements that require City Council approval, it shall then be heard before the City Council for final decision.

iii.If the main project does not require a City Council hearing, the Planning Commission's or the Social Services Commission’s determination may be appealed to the City Council by any member of the public.

b. The Project Individualized Program is not intended to allow exception to a public input and review process. The Project Individualized Program is intended to be viewed thoroughly and scrutinized in public forums, allowing for input and competition from the public, other community-based non-profits, staff, and at a minimum, the Social Services Commission. The public hearing at the Social Services Commission shall be noticed to all community-based housing non-profits in the area, to the greatest extent possible, regardless of their involvement in the project. This public hearing shall scrutinize the project based on the following criteria:

i.Need for government subsidy

ii.Sustainability of the project and its services

iii.Community need of the project type based on recent needs assessments and recent projects completed

iv.Uniqueness/innovation of the proposed project

v.Overall benefits and drawbacks of the project

vi.Project’s compliance with the standards as outlined within the Affordable Housing Sections 18.05.010-18.05.070 of the City’s Municipal Code

These meetings shall be carried out without any finite contracts in place between the parties involved, allowing for the potential direction to the developer to change the project. If the Social Services Commission finds that the proposed project does not satisfy one or all of the criteria listed above, it may choose to direct the developer to fulfill his/her affordable housing requirement through a land dedication process. This decision may be altered at either the Planning Commission or City Council public hearing, if the project requires review by either of these deciding bodies. Decision at either the Social Services Commission or the Planning Commission to direct the developer to do a land dedication to meet his/her affordability requirement, may be appealed to the City Council.

(A)On-Site Construction of Affordable Units for Purchase.

The units shall be constructed in conformance with all that required in this article.

(a)Density Bonus. A one-for-one city density bonus shall be awarded for construction of on-site affordable units.

(b) Housing Mix. The developer must provide a mix of two and three bedroom units, with a minimum of fifty-percent of the units as three bedroom units and in a combination of unit types as approved within the Affordable Housing Plan through the appropriate review process. Smaller and larger unit sizes shall be provided as an option, based on local housing needs and project character, as approved during the affordable housing plan review process.

(c) Price of Units. The units will be affordable to moderate-income households, households with incomes ranging from 80% of Area Median Income to 120% Area Median Income, with the average affordability targeted at households with incomes at 100% of Area Median Income, the moderate target income.

The Community Development Department Director shall determine the maximum sales price for these units on an annual basis. The Community Development Director shall propose annual adjustments to the maximum purchase prices based on changes in the Area Median Income, as determined by the U.S. Department of Housing and Urban Development. This price shall be reviewed annually for adoption by the City Council.

(d)Buyer Selection and Screening. Please refer to Section 18.05.040(g) for the guidelines of this section.

(e)Owner-Occupancy Restrictions. Any person who purchases a designated affordable unit pursuant to this article shall occupy that unit as his or her principal personal residence for as long as he/she owns the affordable unit. Such occupancy shall commence within six months following completion of the purchase. The purchases shall comply with the provisions of sections 18.04.020 through 18.04.060, inclusive, of this Code. (Ord. No. 1567, § 1 (part); Ord. No. 1651; § 1; Ord. No. 1728 §§ 4--7.)

(f)Sustained Affordability. Restrictions shall be placed on the affordable housing obligation fulfillment, in order to ensure a measure of sustained affordability. In an effort to maintain the greatest number of units as affordable for the greatest period of time, one of the following restrictions shall be adhered to:

1. Appreciation Capped at Three Percent per Year plus a Three-Quarters of a Percent Maintenance Credit for Necessary Maintenance Costs of the Unit: The unit appreciates based on the average increase in Yolo County Area Median Income—3 %, plus an additional 0.75% percent as a credit for maintenance costs of the unit. This restricts the total appreciation of the unit to a maximum of 3.75%, compounded annually.

2. Alternative Proposal: Any other program that proves its ability to provide for sustainable affordability, as approved by staff, the Social Services Commission, and other public governing bodies as required by the individual project. Proposing an alternative method for sustained affordability must be justified based on current market trends and/or other prevailing circumstances.

(g)Right of First Refusal. All affordable for-sale units constructed after January 1, 2005, shall deed to the City of Davis a permanent Right of First Refusal on the property, allowing the City the ability to either purchase the unit, or designate an appropriate buyer for the unit at its resale. The deed restriction shall allow the City to designate a third party to carry out its Right of First Refusal, and shall also allow for a one percent fee to be taken from the real estate transaction in order to pay for the costs of carrying out the Right of First Refusal.

(h)Resale Report. The owners of all affordable for-sale units that include a resale restriction or were constructed after January 1, 2005, shall be required to clear all resale reports completed on these units prior to the close of escrow on the resale of each unit. The findings of the resale inspection that are required to be addressed cannot be transferred to the household purchasing the affordable unit.

(B)Land Dedication.

The developer shall make an irrevocable offer to the city of sufficient land, without abnormalities (shape and terrain) and with complete environmental review, which can accommodate the land dedication requirement for the project in its entirety. The land dedicated shall be of sufficient size to make the development of the required affordable units economically feasible, no less than one acre. The density of development for the purpose of calculating the acreage to be dedicated under this section shall be fifteen units per acre. The proposed use of such land must be consistent with the general plan. The city may approve, conditionally approve, or reject such an offer of dedication. If the city rejects such an offer of dedication, the developer shall be required to meet the affordable housing obligation by other means set forth in this article and approved by the city.

The dedicated site shall be economically feasible to develop, of sufficient size to build the required number of affordable units, and physically suitable for development of the required affordable units prior to dedication of the land. The dedicated site shall also have appropriate General Plan designation and zoning to accommodate the required units, be fully improved with infrastructure, frontage improvements (i.e., curb, gutter, walk), paved street access, utility (i.e., water, gas, sewer, and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or required by the City.

The developer must identify the land to be dedicated at the time the developer applies for a pre-zoning or zoning amendment, but in no event later than the application for the tentative subdivision map. Building permits shall not be issued prior to identification of land to be dedicated under this section.

(a)Density Bonus. A one-for-one city density bonus shall be awarded for land dedication on the basis of fifteen units per net acre.

(b)Housing Types on Dedicated Land. Housing built on land provided by dedication for affordable housing shall be permanently affordable. The city shall adopt a resolution establishing a process whereby property dedicated to the city pursuant to this section may be conveyed to third parties who shall enter into an agreement with the city to produce affordable housing within a specified period of time. The city shall consult with the Social Services Commission, nonprofit corporations, affordable housing organizations, and developers in designing this process. Housing on land dedicated pursuant to this section may consist of any of the following:

(i)Resident controlled nonprofit housing corporation.

(ii) Community based mutual housing association.

(iii) Community based nonprofit controlled rental housing.

(iv)Student housing cooperative.

(v)Limited equity housing cooperative.

(vi)Public housing

(vii)Land trust

(viii)Self-Help Housing

(ix)Other forms of nonprofit housing containing a permanent affordability provision.

(c)Price of Units. The average affordable price for each size category of units on land dedication sites shall not exceed the low target income, 65 percent of median income. The maximum income level served shall not be greater than 80 percent of area median income. A variety of unit sizes must be offered to income groups at all levels within the targeted group. For example, if three bedroom units are offered to families at eighty percent of median income, the same number of three bedroom units must be offered to households at fifty percent of area median income, making the average rent for the unit type 65 percent of area median income.

(d)Buyer/Tenant Selection and Screening. Please refer to Section 18.05.040(g) for the guidelines of this section.

(C)Options for Small Developments. Small developments of fifteen ownership units or fewer, and totaling no greater than 38 bedrooms in the project, that are located within the Core Area and are found to meet a specified community goal, can request to fulfill the twenty-five percent affordable housing requirement through one of the following options, as approved during the review process of the project’s affordable housing plan:

(a)Construction Subsidy. City staff will work with the developer to provide financial assistance to be used in the construction of the affordable unit(s) required on-site, in order to assist in ensuring the project’s feasibility. The developer shall present a proforma (for the affordable units) to staff showing the necessary amount of construction assistance needed through supplemental city funds, in order to make the project economically feasible. The project will require the standard review process, and the necessary funding approval from the City Council.

(b)Combination of On-Site Construction and In-lieu Fees. The affordability requirement may be fulfilled through a combination that includes the on-site development of a portion of the required affordable units, with the remaining amount of the affordability requirement fulfilled through in-lieu fees. The exact split of the combination shall be determined during the review of the project’s affordable housing plan, based on the developer’s stated ability to provide affordable units on-site.

(c)In-lieu Fees. In the event that the developer cannot accommodate options (a) and (b) within the proposed project, the affordability requirement may be fulfilled through the payment of in-lieu fees pursuant to an adopted fee schedule to be revised on an annual basis. A payment plan may be approved by the Social Services Commission in the event that the developer does not have the necessary funds available for payment; however, the majority of in-lieu fees shall be paid prior to the issuance of the certificate of occupancy on any of the market rate units. In addition to the standard in-lieu fee, the City maintains the right to adopt an in-lieu fee for use in future resource-pooled projects. This special in-lieu fee would apply to projects within a specific project area where the fee is intended to be used towards a planned resource-pooled project. (Ord. No. 1567, § 1 (part); Ord. No. 1651; § 1; Ord. No. 1728 §§ 4--7; Ord. No. 2199)