(a) In general. An owner must comply with the city's mixed-income housing program during the term of the mixed-income restrictive covenant.
(b) Use of forms. If the director publishes mandatory forms to be used in the mixed-income housing program, which may be amended from time to time, the owner shall use those forms. The director may also publish non-mandatory forms that an owner may use.
(c) Management policies. An owner is responsible for ensuring that his or her employees and agents, including third-party management companies, are aware of and comply with the development bonus restrictive covenant and the mixed-income housing program.
(d) Recordkeeping.
(1) An owner shall maintain documentation during the rental affordability period including, but not limited to, applications, waitlists, first-hand or third-party verification of income and assets, leases for reserved dwelling units, and rents and any fees charged for reserved dwelling units.
(2) An owner shall maintain all required documentation in the eligible household's file on site at the development or maintain the documentation in an electronic format as long as the documentation can be accessed by onsite employees and provided in a timely fashion to the director upon request.
(3) An owner shall maintain documentation of all income verification efforts and household composition reviews throughout the term of each eligible household's tenancy and for at least three years after the eligible household moves out.
(e) Quarterly status reports. An owner shall submit quarterly status reports on a form provided by the director, as described below, in January, April, July, and October on or before the 10th day of the month. The report must include:
(1) the total number of dwelling units on the property;
(2) the total number of reserved dwelling units on the property;
(3) a list of all reserved dwelling units on the property, identified by unit number and unit type;
(4) for each reserved dwelling unit:
(A) the applicable income bands;
(B) the current affordable rent, utility allowance, and any fees charged;
(C) the occupancy status as of the last day of the previous month for the reporting period. For example, the report due October 10th should report occupancy as of September 30th of the same year;
(D) the income of the eligible household leasing and occupying the unit; and
(E) the most recent eligibility date for the eligible household leasing and occupying the unit;
(5) a signed statement by the owner acknowledging compliance with this division;
(6) certification that the development:
(A) has maintained vendor registration with one or more local providers of housing vouchers;
(B) has reported available units to one or more local providers of housing vouchers each quarter; and
(C) that the development will pass the provider's required inspections; and
(7) any other information requested by the director that is reasonably related to the mixed-income housing program.
(f) First and final quarterly status reports. An owner shall submit:
(1) the first quarterly status report before the 10th day of the month following the end of the first quarter in which the affordability period began; and
(2) the final quarterly status report on the 20th anniversary of the beginning of the rental affordability period, or a date determined by the director due to the tolling of and extension of the rental affordability period. The director shall verify that the owner has completed all applicable requirements of this division. If all requirements are completed, the director shall sign the submitted final quarterly status report before it is filed with the building official.
(g) Affirmative fair housing marketing plan.
(1) In this subsection ADMINISTRATOR means the administrator of the fair housing division of the office of equity and inclusion or its successor.
(2) Before an eligible household leases and occupies a reserved dwelling unit, an owner shall create an affirmative fair housing marketing plan and shall follow the affirmative fair housing marketing plan at all times during the rental affordability period.
(3) The affirmative fair housing marketing plan shall be in writing and shall be submitted to and receive written approval from the director at least 30 days before an owner starts marketing a unit in the property for initial occupancy.
(4) The affirmative fair housing marketing plan must describe the advertising, outreach, community contacts, and other marketing activities that inform potential renters of the existence of the reserved dwelling units.
(5) The administrator shall approve or deny the affirmative fair housing marketing plan within 60 days after a complete plan is submitted to the director.
(A) Approval. The administrator shall approve the affirmative fair housing marketing plan if it complies with the requirements of this division.
(B) Denial. The administrator shall deny the affirmative fair housing marketing plan if it does not comply with this division. If the administrator denies the affirmative fair housing marketing plan, he or she shall state in writing the specific reasons for denial. If denied, the owner shall immediately submit a new affirmative fair housing marketing plan.
(h) Audit and inspection.
(1) Any report, policy, or procedure that is required to be created and maintained by this article may be reviewed and audited by the director. An owner shall provide the director with all documentation necessary for the director to verify the accuracy of the information included in the report, policy, or procedure.
(2) The director may also randomly, regularly, and periodically select a sample of tenants occupying reserved dwelling units for the purpose of income verification. Any information received pursuant to this subsection is confidential and may only be used for the purpose of verifying income to determine eligibility for occupancy of the reserved dwelling units.
(i) Consent to substitute.
(1) For properties with three-bedroom or larger dwelling units, if an owner cannot locate eligible households to lease three-bedroom or larger dwelling units, and if the director is satisfied that the owner has made best efforts to lease the three bedroom or larger dwelling units, if applicable, including full compliance with the affirmative fair housing marketing plan, with written consent from the director, an owner may from time to time substitute on a two-for-one basis additional two bedroom dwelling units and/or on a three-to-one basis additional one bedroom dwelling units to meet the pro rata distribution requirements described in Section 51A-4.1106(f).
(2) Before granting written consent, the director shall review and approve an amended affirmative fair housing marketing plan detailing how the owner will target marketing to larger households who could qualify to lease the three-bedroom dwelling units (and larger dwelling units, if applicable). The director's written consent must include a time period during which the agreed-upon substitutions satisfy the pro rata distribution requirements. (Ord. Nos. 31142; 32195)