Joanne Coletta
Planning and Development Director
May 21, 2025
The City Council provide direction to staff on
preparing an Inclusionary Housing Ordinance
and hiring a consultant to prepare a fee
analysis for determining an “in lieu fee”
associated with the ordinance.
Inclusionary Housing Ordinance
Request by Council Member Speake.
Presented to Council on September 18, 2024.
City Council direction to staff:
• Would like to learn more about it.
• Has an inclusionary housing ordinance
produced affordable housing in other
cities?
Requires developers of new residential construction to:
Provide a certain percentage of residential units to be set aside for the sale or rent to low or moderate income households.
OR
Pay the city a fee in-lieu of building affordable units. The in-lieu fee would be dedicated to affordable housing to facilitate the construction, acquisition or preservation of affordable housing.
Increase the availability of affordable housing units in the city.
Inclusionary Housing Ordinance
Riverside County
City IH Ordinance
Norco Yes
Jurupa Valley Yes
Riverside No
Moreno Valley No
Banning No
Lake Elsinore No
Temecula No
Eastvale No
San Jacinto No
Orange County
City IH Ordinance
Tustin Yes
Irvine Yes
Yorba Linda No
San Bernardino
City IH Ordinance
Rancho
Cucamonga
No
Ontario No
Chino Hills No
City New Residential
Development Affected
Common Affordable Housing Requirement Common Alternatives To Providing On-Site Affordable
Units
In Lieu Fee Housing Fund
Norco ≥ 5 single family units
≥ 5 multi-family units
15% of the total units*
(requiring a combination of low- and
moderate-income units)
*Jurupa Valley requires only 7% of the total
units
In lieu fee
Offsite units
Land donation
Conversion of market rate
units to affordable units
Preservation of at-risk units
Escalating fee. Fee is
based on square foot per
market rate unit type &
project size.
Inclusionary
Housing Trust
Fund
Jurupa
Valley
All residential types. $2.50 per square foot of
each market rate unit in
the project.
Affordable
Housing Trust
Fund
Tustin All residential types. $15,494 per market rate
unit but allows a 50%
reduction under the
Voluntary Workforce
Housing Incentive
Program (VWHIP).
VWHIP Fund
Irvine All residential types. $16,693 per market rate
unit in project.
Affordable
Housing Fund
Inclusionary Housing Ordinance
Inclusionary Housing Ordinance
CITY IH ORDINANCE
ADOPTION
AFFORDABLE UNITS
RESULTING FROM
IH ORDINANCE
NOTES
Irvine 2003 2,111 units constructed
433 units entitled
(Irvine Housing Element, May 24, 2022)
Irvine has a robust housing market.
5 th Cycle Housing Element 2014-2020:
Housing unit permits issued: 31,009
• 16,825 above moderate units
• 14,184 affordable units (using IH
Ordinance and other various funding sources
and partnerships with developers)
(Irvine Housing Element, May 24, 2022)
Tustin 2018 2 units constructed
9 units entitled
Limited to two geographical areas
(Red Hill Specific Plan and Downtown
Commercial Core Specific Plan)
Jurupa Valley 2022 No reportable metric Ordinance fairly new. City staff is required to provide an
update within 3 years (August 2025)
on the effectiveness of the ordinance.
Norco 2022 No reportable metric Ordinance fairly new.
TIME
12 to 18 months.
FEASIBILITY STUDY
Hire a consultant for feasibility analysis of inlieu fee (housing market analysis of construction costs, sale prices, rents, % of
income category allocation).
COST
$20,000 to $50,000 (consultant cost for
feasibility analysis).
Staff time devoted to the project
PUBLIC OUTREACH
Home builders, stakeholders, BIA.
CITY COUNCIL UPDATES
Updates throughout the process at City
Council meetings.
PERIODIC REVIEW
Periodic review of in-lieu fee after its
adoption.
The City Council provide direction to staff on
preparing an Inclusionary Housing Ordinance
and hiring a consultant to prepare a fee
analysis for determining an “in lieu fee”
associated with the ordinance.