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Nexus Study for Santa Monica's Inclusionary Housing Fee

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Nexus Study for Santa Monica's Inclusionary Housing Fee
HR&A prepared a complete revision to the City's inclusionary housing program to include a menu of options developers of market rate multi-family housing could use to meet the need for affordable housing associated with their projects. The options include a fee per square foot of new development. HR&A also prepared a "nexus" study to support the in-lieu fee component of the new program. In 1999, 2004 and 2006, HR&A recalculated the in-lieu fee to account for changed real estate market circumstances and recommended other changes to the fee program, including a novel annual inflation factor adjustment based on a weighted average of changes in land values and construction costs. HR&A's nexus study approach has received favorable commentary in the legal literature on this subject.


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