to the City’s Inclusionary Housing Ordinance (Berkeley Municipal
Code (BMC) Chapter 23.C.12) twenty percent of all units in new
construction projects must be made available as inclusionary units at
specified affordable rents or sales prices and can only be rented or
sold to households meeting specific income limits.
City of Berkeley is proposing an amendment to the Inclusionary Housing
Ordinance, in the form of a new BMC Section 23C.12.035. This amendment
would adopt an optional fee that developers may pay to the City’s
Housing Trust Fund in lieu of providing inclusionary units in new
condominium projects. Thus, developers of these projects would have
the option of providing the required inclusionary condominium units or
paying the in-lieu fee. The proposed fee would be equivalent to 62.5%
of the difference between the allowable inclusionary sale price for
each inclusionary unit and the actual sale price of an equivalent
condominium unit at a market level.
projects that have obtained density bonuses those affordable units
that served as the basis for the density bonus would not be eligible
for the in-lieu fee option because eligibility for a density bonus
requires that the units actually be provided on site.
staff report setting forth the analysis and data supporting the
proposed ordinance is available from the Housing Department, 2180
Milvia St., 2nd floor, Berkeley, CA 94704, Tel: (510)
For further information, please contact Tim Stroshane
or Stephen Barton, Housing
Department at (510) 981-5400.