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the floor area added or to that portion of the square <br /> footage of the floor area converted for which the fee <br /> has not been paid. <br /> <br /> B. The City Council may adjust the fee in consideration of <br /> on-site or off-site programs promoting lower-income <br /> housing such as the dedication of land suitable for <br /> lower-income housing. <br /> <br />17.40.040 Exemptions. <br /> <br /> A. The following are exempt from the lower-income housing <br /> fee: <br /> <br /> 1. All units within a residential development project <br /> when the project has a minimum of fifteen percent <br /> (15%) lower-income housing units; <br /> <br /> 2. Those lower-income housing units in a residential <br /> development project with less than fifteen percent <br /> (15%) lower-income housing units; <br /> <br /> 3. Moderate-income housing units in residential <br /> development projects; <br /> <br /> 4. Second units as that term is used in Section <br /> 56852.2 of the Government Code; <br /> <br /> 5. Reconstruction or other new development on a site <br /> when such reconstruction replaces an equal number <br /> of square feet of floor area, as defined in the- <br /> Uniform Building Code, when the use is similar, <br /> and when such reconstruction occurs within two (2) <br /> years from the time the previous structure on the <br /> site was demolished; <br /> <br /> 6. Churches. <br /> <br /> B. The project developer shall enter into a regulatory <br /> agreement with the City in order for a project to <br /> qualify for an exemption by the inclusion of lower- <br /> income or moderate-income housing units. <br /> <br />17.40,050 Reduction of Fee - Commercial, Office or Industrial <br /> Pro~ect. <br /> <br /> A. The City Council may reduce the required fee for a <br /> commercial, office or industrial development project <br /> when the project developer can demonstrate (1) that the <br /> proposed use will generate substantially fewer workers <br /> than the uses which have established the fee; and (2) <br /> that the building design is unable to house another use <br /> <br /> 4 <br /> <br /> <br />