(a) The proceeds of general obligation bonds and bond anticipation notes authorized and issued for the purpose of developing housing for sale or for rental in the city, including, without limitation, paying the cost of construction of housing for sale or for rental in the city and the acquisition of land therefor, must be deposited in the housing development special fund and credited to the housing development account therein. Moneys on credit to the housing development account must be expended solely for the purpose of developing housing for sale or for rental in the city, including all expenses incurred in connection with and related to the issuance of general obligation bonds or bond anticipation notes issued for such purpose; provided that the proceeds of general obligation bonds and bond anticipation notes must be applied solely to the particular project or projects for which such bonds and notes are authorized.
(b) Moneys from the sale or rental of housing developed from moneys on deposit in the housing development special fund and credited to the housing development account therein, including housing developed from the proceeds of general obligation bonds and bond anticipation notes of the city authorized and issued for such purpose, must be deposited in the housing development special fund as and when received.
(c) Moneys in the housing development special fund, other than moneys on credit to the housing development account therein, may be expended in such amounts as appropriated in the annual executive operating and capital budget ordinances and amendments thereto for the following purposes:
(1) For rebate to the United States of America to the extent and as required by federal law;
(2) For additional credits to the housing development account for the development of additional housing for sale or for rental in the city;
(3) For the retirement of general obligation bonds or bond anticipation notes issued for the purpose of, and the proceeds of which have been applied to, the development of housing for sale or for rental in the city;
(4) For transfers to the general fund of the city as reimbursement of the principal of and interest on general obligation bonds or bond anticipation notes issued for, and the proceeds of which have been applied to, the development of housing for sale or rental in the city; and
(5) For payment of all expenses incurred in connection with and related to the issuance of general obligation bonds or bond anticipation notes issued for the development of housing for sale or rental in the city.
(d) Pending the expenditure of moneys on deposit in the housing development special fund or on credit to the housing development account therein, the director of budget and fiscal services shall, to the extent reasonable and practicable, invest and reinvest such moneys in accordance with law. Income from or earnings on the investment and reinvestment of such moneys must be deposited in the housing development special fund and must be expended as are all other moneys on deposit therein.
(e) In lieu fees or any other moneys received to satisfy city affordable housing requirements must be deposited in the housing development special fund and must be credited to the affordable housing development account. Moneys on credit in the affordable housing development account must be expended to increase the stock of affordable housing in the city by city or State agencies or by private persons or community housing development organizations under the sponsorship of or in partnership with city or State agencies. For the purposes of this section, “affordable housing” means housing for households earning between 30 and 80 percent of the area median income in the city as determined by the United States Department of Housing and Urban Development.
(f) Except for land acquired using moneys from the affordable housing development account, land acquired using moneys from the housing development special fund may be exchanged with another government entity for other land of equivalent value if the land disposed of by exchange is used for the development of housing for sale or rental in the city; provided first that such exchange must be approved by council resolution, and second, that if the land acquired by the city through such exchange is subsequently leased or sold by the city, the proceeds of the lease or sale must be deposited in the housing development special fund to the credit of the housing development account. Land acquired by such exchange need not be used for the development of housing.
(1990 Code, Ch. 6, Art. 46, § 6-46.3) (Added by Ord. 88-80; Am. Ord. 89-61, 05-008, 16-36)