Article 5 — In-Lieu Fees — San Juan Bautista Zoning Code

11-09-500 In-lieu fee alternative – In-lieu fee authorized. ¶

(A) As an alternative to reserving units as required in SJBMC 11-09-400, the City Council, after consideration of the recommendation of the Planning Commission, may, in its sole discretion, allow the developer to pay a fee in lieu of reservation in an amount established by the City Council resolution according to the formula set forth in SJBMC 11-09-505 sufficient to subsidize the price of a median sales price home in San Juan Bautista to the extent that it brings the sales price of such a home into the affordable range for a low-income household.

(B) As to a condominium conversion, where findings can be made by the City Council that (1) no General Plan or specific plan objectives or policies relate to or govern the proposed conversion, and (2) the number of condominium units created will not exceed the number of units existing on the subject property at the time of application for conversion, and (3) the application of SJBMC 11-09400 and subsection (A) of this Section does not substantially further the purpose of this Chapter regarding the sort of development projects intended for inclusion, and (4) the utilization of this subsection (B) in place of said SJBMC 11-09-400 and subsection (A) of this Section shall not affect or prejudice State-required approval of City’s General Plan or any of its elements, and (5) imposition of an in-lieu fee per subsection (A) of this Section would render conversion infeasible, then and only then the City Council may negotiate, set, and impose an in-lieu fee in a range consistent with the needs of the City and the goals of the developer.

11-09-505 Amount of in-lieu fee. ¶

The amount of the in-lieu fee for each required inclusionary unit as specified in the City Council’s resolution shall be paid at the time of issuance of building permits for the first residential units in a residential project subject to this Chapter. The City Council resolution adopted pursuant to SJBMC 11-09-500 shall use the following formula:

(A) The median sales price of homes sold in the County of San Benito based on the last quarter of the calendar year prior to the year in which the building permit is issued minus the maximum affordable sales price for a three (3) bedroom unit as defined in SJBMC 11- 09 300(A). However, the area median income figures in effect during the last quarter of the calendar year prior to the year in which the building permit is being issued shall apply. (Median sales price of new home minus affordable three (3) bedroom sales price equals in-lieu fee.)

(B) To obtain the per unit in-lieu fee, the entire in-lieu fee shall be divided by the total number of units in the project. If the in-lieu fee option is chosen to comply with this Chapter, in whole or in part, the per unit in-lieu fee shall be paid for each unit for which a building permit is issued.

11-09-510 Use of in-lieu fees. ¶

All in-lieu fees collected hereunder shall be used by the City exclusively to provide housing opportunities for very low- or low-income households anywhere within the City. All in-lieu fees shall be held in a separate account with interest accruing to said account. All funds in the account shall be spent in any manner authorized by law as the City Council deems appropriate solely to provide housing opportunities for very low- or low-income households. For the purposes of this Section, the term “provide housing opportunities for very low- or low-income households” means any expenditure authorized by law which directly or indirectly makes housing units affordable to very low- or low-income households.