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Option 5: Fee-in-Lieu

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Applicants may pay a fee-in-lieu in place of providing affordable units. PHB staff calculate the fee amount due by multiplying the gross square footage of the residential and residential-related areas of the building by the Fee-in-Lieu Factor.
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Buildings that are not subject to Inclusionary Housing can purchase bonus density at $24/bonus square foot. Bureau of Development Services, Planning & Zoning determines the maximum density possible for each project.


Fee-in-Lieu Factor Schedule

Appendix A, in the Administrative Rules

Fee-In-Lieu. When the applicant elects the fee-in-lieu option, the fee-in-lieu per gross residential and residential related square foot (GSF) of the proposed development is:

  1. For developments in zones outside the Central City Plan District

    • $23 per GSF

  2. For developments in zones within the Central City Plan District

    • $27 per GSF

  3. For Bonus FAR in buildings not subject to Inclusionary Housing

    • $24 per square foot of Bonus FAR
      (as determined by Planning and Zoning, Bureau of Development Services)


Fee-in-Lieu FAQ

1. What is the Fee-in-Lieu and how is it calculated?

IH Subject Projects: Buildings that are subject to Inclusionary Housing can choose to pay a fee rather than providing IH Units. PHB staff calculate the fee-in-lieu amount due by multiplying the Gross Square Feet of the Residential and Residential Related portions of the Building (as determined by BDS Planning and Zoning) by the current Fee-in-Lieu factor found in Appendix A of the Inclusionary Housing program Administrative Rules.

Voluntary IH Projects: Buildings that are not subject to Inclusionary Zoning but would like to purchase additional density by paying into the Affordable Housing Fund can do so by opting-into Inclusionary Housing and electing the Fee-In-Lieu Option. PHB staff calculate the fee-in-lieu amount due by multiplying the bonus Gross Square Feet (as determined by BDS Planning and Zoning) by the current Fee-in-Lieu factor for “Bonus FAR in non-residential developments” found in Appendix A of the Inclusionary Housing program Administrative Rules.

2. What does ‘residential and residential related areas’ include?

The Gross Square Footage of all Dwelling Units, all space that is used to directly access the Dwelling Units, and all spaces tenants have access to, including but not limited to: hallways, laundry facilities, trash and recycling areas, fitness facilities, and other community and amenity spaces. For space that is the exclusive use of the occupants of the Dwelling Units, the total square footage of the space is included. For space that is shared by the occupants of the Dwelling Units and occupants of other uses in the Building, a percentage of the square footage of the space based on the percentage of the residential use portion of the Building is included in the Gross Square Footage. Square footage for vehicle and bicycle parking is excluded from the Gross Square Footage.

3. When is payment due? Can I pay over time? 

The fee-in-lieu must be paid prior to or at issuance of the building permit. Upon payment of the fee-in-lieu, the Applicant has no additional IH Program requirements relative to the proposed development. There is no option for payments at this time.

4. What happens to any payments made if a building permit is not issued or the project is not able to be competed?

PHB will corroborate with BDS and their tracking system that the permit has been cancelled and that the project no longer exists prior to issuing a refund payment.


Start an Intake Form

Follow the link for forms for Inclusionary Housing, as well as applications for other development incentives. These forms are all available on the Inclusionary Housing homepage.

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