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14 of 19 <br /> <br />Table 12: Rental Projects: Alternative Inclusionary Scenarios <br />Scenario Percent <br />Inclusionary <br />Affordability Mix <br />Existing IZO/ODS 15% 3.75% @ <br />50% AMI <br />3.75 % @ <br />60% AMI <br />7.5% @ 80% <br />AMI <br />Scenario 1 15% 5% @ 50% AMI 10% @ 60% AMI <br />Scenario 2 20% 10% @ 60% <br />AMI <br />10% @ 80% AMI <br />Scenario 3 20% 5% @ 50% AMI 15% @ 80% AMI <br /> <br />Housing In-Lieu Fee Analysis <br />For each of the scenarios, EPS developed a calculation of the equivalent in-lieu fee that <br />would need to be charged, per market-rate unit, to equate to the actual cost of <br />constructing the number of units, at the specified affordability rates. The calculation <br />factors in the cost of land, construction, City and outside agency fees and other typical <br />development costs. <br /> <br />Ownership Projects: Table 13 summarizes the maximum in-lieu fee that could be <br />charged, based on the inclusionary rates and affordability mix in each scenario. <br /> <br />Table 13: Maximum In-Lieu Fee per Market-Rate Unit - Ownership Existing <br />In-Lieu <br />Fee per <br />unit <br />Fee based on <br />Existing IZO <br />Requirements <br />Scenario <br />1 <br />(15%) <br />Scenario <br />2 <br />(20%) <br />Scenario 3 <br />(20%) <br />Scenario <br />4 <br />(25%) <br />Single <br />Family <br />Detached <br />$52,203 $357,502 $268,127 $363,347 $369,187 $441,977 <br />Townhome $51,077 $125,621 $94,216 $131,026 $136,436 $142,222 <br />Condo $51,077 $122,428 $91,821 $127,293 $132,158 $140,177 <br /> <br />As summarized in the table, for for-sale projects the hypothetical fee that could be <br />charged on a per-market-rate unit basis to equate to the same cost to construct, for any <br />scenario at or above a 20% inclusionary is between approximately $357,000 (under the <br />existing 20% requirement) and $442,000 (with a 25% requirement). Reducing the <br />inclusionary rate to 15% (assuming 120% AMI units) lowers the equivalent in-lieu fee to <br />approximately $268,000, per market-rate unit – still a significant amount. <br /> <br />While other factors need to be considered with respect to feasibility, it is unlikely that <br />new single-family development would be able to bear the cost to build, or to pay the <br />equivalent in-lieu fees, and still be feasible. <br /> <br />There is less of a discrepancy between the existing and potential in-lieu fee for for-sale <br />attached units such as townhomes and condominiums. For townhomes, the in-lieu fee <br />per unit under the current 20% requirement is approximately $125,600 per unit; this <br />amount is reduced to approximately $94,200 with a 15% requirement and increases to