(a) The ADUAB shall initially and semiannually thereafter establish the County-wide sale control prices of ADUs (“ADU sale control price”). The ADU sale control price shall:
(1) Account for fluctuations in the market; and
(2) Be adjusted according to the percentage change in the various cost elements as indicated by the Means Construction Cost Index, or other equivalent index should the Means Index be discontinued, or as may be selected by the ADUAB upon approval of theBoard.
(b) ADU sale control price shall be based upon a determination of all ordinary, necessary and reasonable hard and soft costs required to construct and market the ADUs by private industry in the immediate area, including the area's current general market and economic conditions.
(1) ADU sale control price shall include, among other costs, provisions for builder-paid permanent mortgage placement costs, closing costs, except for pre-paid expenses at settlement, and other applicable costs resulting from proffers given and accepted through a rezoning approval.
(2) ADU sale control price shall not include the cost of land, marketing expenses and extra finishes and amenities exceeding ten percent of the total unit construction cost, including landscaping, unless otherwise approved by the ADUAB.
(3) In the event there is a real estate agent who secures a certified purchaser for an ADU, the ADU sale control price shall include a 1.5 percent sales commission/finders fee to be paid to such real estate agent. ADUAB may, when necessary due to market conditions in the County, revise the 1.5 percent sales commission/finder’s fee to another reasonable percentage.
(4) In the event that the developer or builder is responsible for conducting a lottery to identify potential certified purchasers, the ADU sale control price may include a flat fee, to be determined by the ADUAB, to cover such costs.
(c) The ADU sale control price of ADUs within a development shall be established such that the owner shall not suffer economic loss as a result of providing the required ADUs. Economic loss shall result when the owner or applicant of a development that contains ADUs fails to recoup the cost of construction, including site development and infrastructure costs, and those allowances as may be determined by the ADUAB upon the sale of an ADU, exclusive of the cost of land acquisition and those costs voluntarily incurred.
(Ord. 99-07. Passed 6-16-99; Ord. 19-13. Passed 7-10-19.)