In recognition of the need to support development of affordable housing, the payment of connection fees for affordable housing units as defined herein may be deferred.
A. Qualifying Properties: Only those developments meeting the definition of an affordable housing project in section 10-2-2-1 of this chapter may qualify for this connection fee deferral.
B. Limitation on Deferral: Of the total connection fees imposed for an affordable housing project, only that portion of connection fees assessed for the affordable housing units may be deferred.
C. Term: The term of a deferral and payment agreement under this section shall not exceed seventeen (17) years.
D. Financial Assurances: The owner or operator shall post an irrevocable letter of credit, Certificate of Deposit, payment bond, or other financial assurances approved by the City Attorney's Office for the sum of the connection fees and interest to be charged on the unpaid balance.
E. Annual Report: For each year during the term of the agreement, due on or before the anniversary of the date the deferral and payment agreement was signed, the owner or operator shall submit a report to the department in the manner and form acceptable by the department, demonstrating that each dwelling unit for which fees were deferred continues to meet the definition of an affordable housing unit.
G. Prohibited Use; Default: During the term of the deferral and payment agreement, an owner or operator may not operate any of the affordable housing units as short-term rentals. An owner or operator will be deemed in default of the deferral and payment agreement if any of the following occur:
1. The owner or operator uses any of the dwelling units that were granted deferral as affordable housing units as short-term rentals; or
2. The owner or operator fails to submit the required annual report within thirty (30) days of the due date; or
3. Any of the dwelling units that were granted deferral as affordable housing units no longer meet the definition of an affordable housing unit.
H. Acceleration of Payments: Upon written default notice being given by the department to the owner or operator, the outstanding deferral amount shall be immediately due and payable in full, together will all interest due under the deferral and payment agreement. (Ord. 34-23, 8-29-2023)