For projects in Fairfax with three residential units or more proposed (not including ADUs or JADUs), fifteen percent of the units must be designated as affordable to low-income households or twenty percent for ownership projects. As an alternative to constructing inclusionary units, all or a portion of the inclusionary housing requirement may be fulfilled through the payment of a Housing In-lieu Fee.
The 2025 in-lieu fee equals $406,051.20 for single-family subdivisions and rental dwellings, and $323,046.01 for condominiums. These updated fees reflect the annual 2.3 percent increase to the California Construction Index (CCI). The Town calls for the in-lieu fee to be updated annually based on the CCI.
The in-lieu fees collected will be deposited in an Affordable Housing Fund solely used to increase and improve the supply of housing affordable to moderate, low, and very low-income households, consistent with the goals and policies contained in the town’s housing element and affordable housing requirements and policies.