A. Fee Adjustment. A developer of any project subject to the affordable housing fee requirement may apply to the Planning Director for a reduction or adjustment to the fee, or a waiver of the fee, based upon the absence of any reasonable relationship or nexus between the impacts of that development and the amount of fee charged. The application shall be made in writing and filed with the Planning Director no later than the time of application for a building permit authorizing construction of the project that is subject to the fee or, where a building permit is not required, a use permit.

The application shall state completely and in detail both the applicant’s factual basis and legal theory for adjustment or waiver and compare its proposal with the analysis set forth in the nexus study. The Planning Director shall consider the application and render a decision in writing within 30 days. The decision of the Planning Director is appealable pursuant to subsection B of this section.

B. Appeal Procedure. A decision of the Planning Director on an application for a fee waiver pursuant to subsection A of this section shall be appealable in accordance with this section. Any person wishing to appeal a decision of the Director shall file an appeal to the City Council in writing with the City Clerk not later than 10 days from the date of the written decision of the Director. The written appeal shall state completely and in detail the factual and legal grounds for the appeal. The City Council shall consider the appeal at a public hearing within 60 days after the filing of the appeal. The decision of the City Council is final.

C. Fee for Adjustment Request or Appeal. The processing charge for the request for a fee adjustment shall be that charged for administrative permit review and the processing charge for appeal shall be that charged for an appeal of staff determination.

D. Refund of Fee. If the affordable housing fee/unit is paid and the building permit is later canceled or voided, or if a use permit which triggers the application of the fee fails to vest within the terms of the use permit, the Planning Director may, upon written request of the developer, order return of the fee less administrative costs if (1) the fees paid have not been committed, and (2) work on the private development project has not progressed to a point that would permit commencement of a new, changed, or expanded use for which a fee would be payable. If the findings required by Government Code Section 66001 are not made, a refund to the then owner of the property for which the fee was paid shall be made pursuant to Government Code Section 66001.