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Residential and mixed-use projects shall incorporate the following as part of an on-site project:

A. Number of Units Required. Fifteen percent of the total number of dwelling units in a residential or mixed-use project shall be developed, offered to, and sold or rented to households at 80 percent or less of the area median income.

B. Fractional Units. In calculating the required number of inclusionary units, any fractional unit shall be rounded up to a whole unit.

C. Project Completeness. A residential or mixed-use project application will not be determined complete until the developer has submitted a housing plan and housing agreement, which demonstrates the manner in which the requirements of this chapter will be met.

D. Units for Sale. If a project consists of units for sale, 15 percent of the total number of units in the project shall be sold to households at 80 percent or less of the area median income.

E. Rental Units. If the residential or mixed-use project consists of rental units, a minimum percent of the units shall be provided as follows:

1. A minimum of five percent of the units shall be rented to very low-income households; and

2. A minimum of five percent of the units shall be rented to very low-income or low-income households; and

3. The remaining five percent of the units shall be rented to very low-income, low-income, or moderate-income households.

F. Displaced Households. On-site inclusionary units shall be required when very low-income, low-income, and/or moderate-income households are displaced. Any other provisions of this chapter notwithstanding, any project subject to this chapter which results in the displacement of very low-income, low-income, and/or moderate-income household(s) shall be required to provide on-site inclusionary units as required by this chapter.

G. Priority Processing. All residential and mixed-use projects providing inclusionary housing on site, pursuant to the provisions of this chapter, shall receive priority building department plan check streamlining, to the extent authorized by law.

H. Final Permit. The final construction permit sign off, or certificate of occupancy, for the inclusionary units shall be issued prior to, or concurrently with, the proposed project.

I. Concessions. By providing all the required inclusionary units on the project site, the developer may request, and the city may consider granting, one or more of the following concessions:

1. Side Yard Setback. Zoning Code Table 20.16-2, Development Standards for Residential Zones, and CMC 20.56.050(B)(1)(b). Deviate from side yard setback to require a five-foot setback for one story with two additional feet for a second story and above; for a maximum side yard setback of seven feet.

2. Distance Between Buildings. CMC 20.56.050(E) requires 10 feet between buildings. Deviate from this standard subject to building, fire, and life safety requirements, and design review.

3. Parking. Zoning Code Table 20.64-1. For residential and mixed use with residential delete the requirement for one space in a garage. Allow all spaces to be outdoors either covered by a carport or uncovered. Maintain required number of spaces.

4. Open Space. CMC 20.16.060(A)(1) allows private open space in the form of balconies, courtyards, at-grade patios, rooftop decks, or terraces; but does not allow private open space in the required front yard. Allow private open space in the front yard subject to design review.

5. Density Bonus. CMC 20.52.340. Maintain current standards allowing up to 35 percent density bonus with a conditional use permit to exceed 35 percent. Densities and affordability requirements to be in compliance with state standards and updated accordingly. (Ord. 720 § 9 (Att. 2), 2022).