Inclusionary Housing

Inclusionary Housing Ordinance and Guidelines

Inclusionary In-Lieu Fee Update for FY 2024-25

Staff updates the In-Lieu Fees on an annual basis using the methodology outlined in the Inclusionary Housing Guidelines below. On July 16, 2024 the City Council adopted the updated fees at a public hearing. These updated chapters will be incorporated into the Guidelines.

The For-Sale/Ownership In-Lieu Fee for FY 2024-25 is $273,400
The Rental In-Lieu Fee for FY 2024-25 is $299,200

To view the updated chapters, click here for the For-Sale In-Lieu Fee and here for the Rental In-Lieu Fee.

Inclusionary Housing Ordinance 

On November 19, 2019, the City Council adopted Ordinance No. 425, the Inclusionary Housing Ordinance (Ordinance), adding Chapter 18.37 to the City of East Palo Alto Development Code. The Ordinance applies to all new residential development. Please follow this link for the relevant sections of Ordinance within the  City of East Palo Alto Municipal Code.  

Overview

The Ordinance applies to all residential developments that result in additional dwelling units.

For projects with fewer than 5 units, the inclusionary obligation is either:

Payment of (percentage of) an In-Lieu Fee; or
One Inclusionary Unit provided on-site.*

In-Lieu Fee for Projects with Fewer than 5 Units
Project Size	For-Sale	Rental
1 unit	$54,680	$59,840
2 units	$109,360	$119,680
3 units	$164,040	$179,520
4 units	$218,720	$239,360

*Please schedule a meeting with the Housing Project Manager at housing@cityofepa.org to discuss Alternate Compliance Options.

For projects of 5 or more units, the inclusionary obligation is as follows:

For-Sale Residential Developments
Compliance Options	Obligation	Requirement
On-Site	20%	10% of units at Median Income
On-Site	20%	10% of units at Moderate Income
Off-Site *requires City Council approval*	25%	13% of units at Median Income
Off-Site *requires City Council approval*	25%	12% of units at Moderate Income
In-Lieu Fee *requires City Council approval*	25%	$273,400 per inclusionary unit (FY24-25)

Rental Residential Developments
Compliance Options	Obligation	Requirement
On-Site	20%	5% of units at 35% AMI
		10% of units at 50% AMI
		5% of units at 60% AMI
Off-Site *requires City Council approval*	25%	7% of units at 35% AMI
		12% of units at 50% AMI
		6% of units at 60% AMI
In-Lieu Fee *requires City Council approval*	25%	$299,200 per inclusionary unit (FY24-25)

The City of East Palo follows the 2024 Department of Housing and Community Development (HCD) state income limits and Inclusionary Housing Guidelines.

Program Guidelines

The Inclusionary Housing Guidelines are the companion document to the Inclusionary Housing Ordinance. The Guidelines are intended to assist potential homebuyers or renters, as well as developers, by addressing the key components of the Ordinance. The full Guidelines, drafted by Housing Division staff, are to be updated on a regular basis. 

Following a period of public review, the City Council adopted the first Guidelines on October 20, 2020. The City Council also adopted Inclusionary Housing In-Lieu Fees for Fiscal Year 21-22 for For-Sale and Rental on October 20, 2020, the fees for Fiscal Year 22-23 on June 7, 2022, the fees for Fiscal Year 23-24 on July 18, 2023, and the fees for Fiscal Year 24-25 on July 16, 2024. The current Inclusionary In-Lieu Fees can be found in their respective chapters in the Guidelines below.