This article shall not apply to construction of the following development:
A. Any dwelling unit intended and used exclusively to house the elderly or handicapped, which unit is constructed for and operated by a foundation, agency, or entity which, pursuant to the provisions of section 1(c) of article XIII of the constitution of the state, has been granted a property tax exemption by the state legislature shall be exempt from the provisions of this article.
B. Any new dwelling unit intended and used exclusively to house very low, low or moderate income households provided that all of the following criteria are satisfied:
1. The dwelling unit is used exclusively to house very low, low or moderate income persons as defined by section 50093 of the California Health and Safety Code or any successor statute. The occupant(s) of the dwelling unit shall annually submit an affidavit and documentation satisfactory to the director of planning and community development that their household income meets the applicable income limits established by the state of California.
2. The maximum rent charged for the dwelling unit does not exceed thirty percent (30%) of the area median income adjusted for household size, as determined by the United States department of housing and urban development pursuant to section 8 of the United States housing act of 1937.
3. Prior to the issuance of a certificate of occupancy for the dwelling unit, the owner of the property executes and files a covenant running with the land with the city building official for recording with the county recorder. Said covenant shall be approved by the city attorney and shall state that the dwelling unit shall be used only as a residence for very low, low or moderate income persons as defined by state law for a period of not less than fifteen (15) years from the date the final certificate of occupancy is issued. In addition, the covenant shall provide that, subject to any limitations imposed by paramount federal or state law, during said fifteen (15) year term very low, low and moderate income Beverly Hills residents shall be given priority on occupying the building (or portion thereof) reserved for very low, low and moderate income households. The covenant shall further state that if such dwelling unit is used for any other purpose or if the dwelling unit is occupied by a household which does not qualify under the applicable definitions of very low, low and/or moderate income households prior to the expiration of the fifteen (15) year term, the exemption provided by this section shall not apply and all taxes imposed by this article for the exempted unit shall be due and payable immediately upon such change of use or occupancy. (1962 Code § 8-6; amd. Ord. 02-O-2419, eff. 1-17-2003)