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New Inclusionary Housing Fees Take Effect on July 1, 2019

Author: Department of Planning & Building
Date: 6/12/2019 9:11:58 AM

Beginning July 1, 2019, building permits for new homes may be subject to a new inclusionary housing in-lieu fee.


Beginning July 1, 2019, building permits for new homes may be subject to the inclusionary housing in-lieu fee structure shown below. Residential permits submitted prior to July 1, 2019 will not be subject to inclusionary housing fees, unless they are required to as a condition of a recent subdivision map approval. The funds generated will be used to help affordable housing needs in San Luis Obispo County.

Inclusionary Housing In-Lieu Fee Structure – Effective July 1, 2019
Square-footage Range (Habitable Floor Area 1) Fee Amount
0 – 2,200 Exempt
2,201 – 2,500 $8 / SF
2,501 – 3,500 $12 / SF
3,501 – 4,621 $16 / SF
4,622 and over (total fee / total SF) 2 $7 / SF (over total square footage)
1 Excludes garages, carports, decks, patios, etc.
2 Homes of 4,622 square feet or larger will instead be subject to a fee of $7 / square-foot
Example 1: Fee Calculation for a 3,000 SF House
First 2,200 SF 2,200 SF X $0 / SF = $0
Next 300 SF (from 2,201 to 2,500 SF) 300 SF X $8 / SF = $2,400
Next 500 SF (from 2,501 to 3,000 SF) 500 SF X 12 / SF = $6,000
Total Fee (sum of the above) $0 + $2,400 + $6,000 = $8,400
Example 2: Fee Calculation for a 5,000 SF House
Total (5,000 SF) 5,000 SF X $7 / SF = $35,000

For questions or to calculate a fee estimate, please contact Ted Bench at [email protected] or (805) 781-5701.