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Annual and Five-Year Development Impact Fee Report <br />Fiscal Year Ending June 30, 2024 <br />City of Redwood City 40 <br />Affordable Housing In-Lieu Fee <br />The City may accept payment of an Affordable Housing In-Lieu Fee for fractional units <br />resulting from the calculation of the City’s inclusionary housing requirements. The City <br />may also accept payments of an Affordable Housing In-Lieu Fee in place of construction <br />of on-site units if certain findings can be made pursuant to Section 29.8.B. of the City’s <br />zoning code Similar to the Affordable Housing Impact Fee, the purpose of the fee is to <br />provide housing affordable to extremely low-, very low-, low-, and moderate-income <br />households in the City, consistent with the goals and policies contained in the City’s <br />Housing Element. <br />An “in‐lieu” fee is different than the development “impact fee.” It is voluntary in nature <br />and is not being “imposed” on a developer by Redwood City. Furthermore, the affordable <br />housing in-lieu fee for fractional units shall not exceed the fractional cost of providing an <br />affordable unit. This reasonable relationship between the fee and the purpose for which it <br />is charged is reflected in the City’s Municipal Code. <br />There is an unexpended balance in the Affordable Housing In-Lieu Fee Account, which is <br />expected to be used to fund the development of new affordable housing through the <br />regular release of Notices of Funding Availability (NOFAs). Information about typical <br />NOFA award amounts, the estimated start year, and other funding sources are noted <br />below in Table 26. <br />Table 26 Affordable Housing In-Lieu Fee Project Identification <br />Proje ct <br />CIP <br />(Y/N) <br />Estima te d <br />Sta rt Ye a r <br />Tota l Proje ct <br />Costs <br />% Funde d <br />w ith Fe e <br />Re ve nue <br />Amount <br />Funde d w ith <br />Fe e Re ve nue <br />Othe r Funding <br />Source s <br />353 Main St reet Affordable <br />Family Apartments [1] N FY 24/25 $3,500,000 10%$350,000 <br />RDA Low Mod, <br />Affordable Housing <br />Impact Fee <br />Release of Notic es of <br />Funding Availability for New <br />Affordable Hous ing [2] <br />N FY 24/25 $4,717,201 8%$400,000 Affordable Housing <br />Impact Fee <br />TOTAL $8,217,201 9%$750,000 <br />[2] As funds are available, the City will is s ue a Notice of Funding Availability (NOFA) to s olicit propos als for affordable <br />hous ing projects . Specific projects are to be determ ined. Funding am ounts awarded to projects will vary bas ed on <br />account balance (in the Affordable Hous ing Im pact Fee account and the Inclus ionary Hous ing In-Lieu Fee account) at the <br />tim e of the NOFA and s pecific needs of the s elected projects . Funding awards are typically at leas t $1 m illion and often <br />[1] A $3.5 m illion res idual receipt loan was provided to the 353 Main St. project com pris ed of RDA Low Mod funds <br />($2,410,325), Affordable Hous ing Im pact Fees ($512,414) and Hous ing In-Lieu Fees ($577,261). The loan was provided <br />in FY 21-22; however, a 10% continguency of $350,000 (from Hous ing In-lieu Fees ) was withheld until project com pletion. <br />The contingency paym ent is expected to be m ade in FY 24-25 <br /> <br />6.A. - Page 49 of 55 <br />54