In-lieu and inclusionary fees
A payment substituting for a physical obligation, most often affordable units or park land.
The city, under an inclusionary housing or dedication ordinance
These are legally distinct from impact fees and often sit outside the enabling act's refund and credit protections.
In-lieu and inclusionary payments are legally distinct from impact fees and frequently sit outside the enabling act, which means the act's refund windows, credit rules and committee requirements may not protect them.
That distinction cuts both ways. It also means the fee may not be constrained by the act's proportionate share language, and the analysis behind it may be a housing needs study rather than a nexus study.
Where a jurisdiction offers a choice between building units and paying, model both. The in-lieu figure is often set to be the less attractive option deliberately.