§ 9.12  ACQUISITION, CONVERSION, AND REHABILITATION OF EXISTING MARKET RATE UNITS.
   The opportunity housing requirement in § 9.06 may be satisfied by the acquisition and substantial rehabilitation of existing market rate units for conversion to opportunity housing units affordable to households at or below 60% AMI only when the Community Development Department determines that the following requirements are met:
   (a)   Two market rate dwelling units must be acquired and substantially rehabilitated for each opportunity housing unit required, and the overall development must achieve a minimum of 20% opportunity housing units;
   (b)   The developer provides notice and temporary relocation assistance to existing residents in the units to be rehabilitated and as further required by the opportunity housing guidelines;
   (c)   The site is zoned for residential development at a density that can accommodate the number of units after the requirements of § 9.12 are met;
   (d)   The site complies with applicable building and housing code requirements;
   (e)   A physical needs assessment must be performed by the developer to the satisfaction of the city on each dwelling unit to be acquired and rehabilitated, the site upon which the development is located, and any associated common area, and include:
      (1)   Items identified for repair, replacement, and maintenance at the time of the assessment and within three years of the assessment;
      (2)   A plan to complete all identified repairs, replacement, and maintenance prior to the approval of the dwelling unit as an opportunity housing unit; and
      (3)   Description of the method by which a capital reserve for repair, replacement and maintenance will be established, initially capitalized, and maintained for the duration of the affordability term.
   (f)   Environmental review of the site has been completed for the presence of water, hazardous materials, radon, lead, environmental toxins, and geological hazards, and is clear of all such hazards to the satisfaction of the city;
   (g)   The construction schedule for the units to be substantially rehabilitated are included in the affordable housing plan pursuant to § 9.32;
   (h)   The rehabilitation of the dwelling units are scheduled to be completed prior to or concurrently with the market rate residential development pursuant to § 9.36(e);
   (i)   The number of bedrooms in the dwelling units to be rehabilitated must be substantially the same as the market rate residential dwelling units, as set forth in the opportunity housing guidelines; and
   (j)   The term of affordability of the opportunity housing units must be provided pursuant to § 9.37 and must commence upon initial occupancy of the opportunity housing units.
(Ord. 2019-16, passed 2-25-2019)