A. Use and Disbursement of Monies in the Fund. Monies in the affordable housing fee fund shall be used in accordance with and in support of activities to implement the City’s adopted Housing Element, Consolidated Plan, and Implementation Plan. Activities shall be limited to direct expenditure for capital projects or incidental noncapital expenditures related to capital projects, including but not limited to land acquisition, construction, rehabilitation, subsidization, counseling or assistance to other governmental entities, private organizations or individuals to expand affordable housing opportunities to very low- and low-income households. Monies in the affordable housing fee/unit fund may be disbursed, hypothecated, collateralized, or otherwise employed for these purposes from time to time as the City Council so determines is appropriate to accomplish the purposes of the affordable housing fund. These uses include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, predevelopment loan funds, participation leases, loans to develop affordable housing or other public/private partnership arrangements. The affordable housing funds may be expended for the benefit of both rental and owner-occupied housing.

B. Accounting of Fees. All affordable housing unit in-lieu fees shall be deposited into a segregated account and all expenditures of funds from the same shall be documented and included in an annual report, which shall be available for public inspection.