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Title 13 — Planning, Zoning and DevelopmentChapter XVII — AFFORDABLE HOUSING ORDINANCE

§ 13-332. Alternative compliance procedures.

Costa Mesa Zoning Code · 2026-06 edition · updated 2026-07-25 · Costa Mesa

The following are the alternative options to fulfill the requirements of this chapter if on-site production of affordable units is determined by the director or their designee to be economically infeasible.

  • (a) In-lieu fees. The payment of in-lieu fees may be used to fulfill the affordable housing requirement for rental projects and any fractional number of affordable units required.

    • (1) In-lieu fees shall be paid prior to the issuance of the first building permit for the residential project unless specified and/or agreed elsewhere in recorded agreement(s) with the city. For phased developments, the applicant may pay a pro rata share of the in-lieu fee concurrently with the issuance of a building permit for each phase.

    • (2) In-lieu fees shall be paid according to a fee schedule adopted by the city council. The in-lieu fee schedule shall be adjusted periodically on an annual basis or as determined by the city council or their designee and shall be adopted by resolution.

    • (3) All in-lieu fees collected shall be deposited into the city's housing trust fund.

  • (b) Off-site construction. Affordable units may be constructed off site only upon a determination by the director or their designee that on-site production of affordable units is economically infeasible. If this alternative compliance option is chosen, then the off-site affordable units must be constructed prior to or concurrently with construction of the market rate residential project.

    • (1) The off-site affordable units shall comply with all applicable requirements pursuant to this chapter for on-site production of affordable units.

    • (2) The off-site location shall be located within the City of Costa Mesa boundaries and shall be located within a reasonable distance from the market rate residential project that is subject to the affordable housing requirement.

    • (3) For residential projects for which a master plan is required, the affordable units may either be provided on site or off site on a separate parcel within the residential project's approved master plan boundaries.

  • (c) Land dedication. An applicant may dedicate, without cost to the city, land (single or multiple parcels) within the City of Costa Mesa boundaries that is sufficient to accommodate the number of affordable units required by the market rate project. The following requirements are applicable to any land proposed to be dedicated to the city to fulfill the affordable housing requirement:

    • (1) The land to be dedicated to the city shall be located in the City of Costa Mesa;

    • (2) The general plan and zoning standards shall allow for residential use at a density sufficient to allow for the market rate project's required number of affordable units to be constructed;

    • (3) The land shall be suitable in terms of size, configuration, and physical characteristics including existing utilities, streets, and other infrastructure improvements necessary to allow for the market rate project's required number of affordable units to be constructed;

  • (4) The value of the land shall be equivalent or comparable to the in-lieu fee payment that would be applicable to the proposed residential project;

    • (5) The applicant shall provide property related report(s) to demonstrate the suitability and value of the land to be dedicated including but not limited to title report, appraisal report, and environmental site assessment(s).
  • (Ord. No. 2024-02, 8/6/2024)

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