Applicants/Developers requesting a Density Bonus, shall (draft and) agree to enter into a Density Bonus Housing Agreement with the City. The terms of the draft agreement shall be reviewed and revised as appropriate by the Community Development Director, who shall formulate a recommendation to the Planning Commission for final approval.
Following execution of the agreement by all parties, the completed Density Bonus Housing Agreement, or memorandum thereof, shall be recorded and the conditions therefrom filed and recorded on the parcel or parcels designated for the construction of Target Units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The Density Bonus Housing Agreement shall be binding to all future owners and successors in interest.
The Density Bonus Housing Agreement shall include at least the following:
(1) The total number of units approved for the Housing Development, including the number of Target Units.
(2) A description of the household income group to be accommodated by the Housing Development, as outlined in Section 17.21.030 of this Chapter, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price and Housing Cost.
(3) The location, unit sizes (square feet), and number of bedrooms of Target Units.
(4) Tenure of use restrictions for Target Units of at least 10 or 30 years, in accordance with Section 17.21.040 of this Chapter.
(5) A schedule for completion and occupancy of Target Units.
(6) A description of the Additional Incentive(s) or Equivalent Financial Incentives being provided by the City.
(7) A description of remedies for breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement).
(8) Other provisions to ensure implementation and compliance with this Chapter.
A. In the case of for-sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Target Units during the applicable use restriction period:
(1) Target Units shall, upon initial sale, be sold to eligible Very Low or Lower Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this Chapter.
(2) Target Units shall be initially owner-occupied by eligible Very Low or Lower Income Households, or by Qualified Residents in the case of Senior citizen housing.
(3) The initial purchaser of each Target Unit shall execute an instrument or agreement approved by the City restricting the sale of the Target Unit in accordance with this ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Target Unit and shall contain such provisions as the City may require to ensure continued compliance with this ordinance and the state Density Bonus Law.
B. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Target Units during the use restriction period:
(1) The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Units for qualified tenants;
(2) Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter.
(3) Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Target Units, and which identifies the bedroom size and monthly rent or cost of each Target Unit.