(A) General requirements - The developer will be required to enter into an affordable housing agreement with the city and, if applicable, the developer must also require that all initial buyers of the affordable units offered for sale execute an equity sharing agreement with the city or its designee pursuant to and in compliance with this section. (Cal. Gov't Code, Section 65915(c)). The density bonus affordable housing agreement may be combined with the affordable housing agreement and other documents required by Divisions 7B and 7C. The agreements shall be in the form provided by the city which shall contain terms and conditions mandated by, or necessary to implement, State law and this article. The Housing Director may designate a qualified administrator or entity to administer the provisions of this section on behalf of the city. The affordable housing agreement shall be recorded in the office of the Ventura County Recorder prior to, or concurrently with, final map recordation or, where the qualified housing development does not include a map, prior to issuance of a building permit for any structure on the site. The Housing Director is hereby authorized to enter into the agreements authorized by this section on behalf of the city upon approval of the agreements by the City Attorney for legal form and sufficiency.
(B) Minimum affordable housing component.
(1) (a) Rental units - Rents for lower income affordable units that qualified the housing development for the density bonus pursuant to Section 16-410.3 shall remain affordable for at least 55 years, or a longer period if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, as follows (Cal. Gov't Code, Section 65915(c)(1)).
(b) The affordable housing developer of a qualified housing development based upon the inclusion of affordable units for rent must enter into an affordable housing agreement with the city to maintain the continued affordability of the affordable units. The agreement shall establish specific compliance standards and specific remedies available to the city if such compliance standards are not met. The agreement shall, among other things, specify the number of lower-income affordable units by number of bedrooms; standards for qualifying household incomes or other qualifying criteria based upon the specific development; standards for maximum affordable rents; the person responsible for certifying tenant incomes; procedures by which vacancies will be filled; required annual report and monitoring fees; restrictions imposed on lower-income affordable units on sale or transfer; and methods of enforcing such restrictions.
(2) For-sale units - Owner-occupied moderate and lower income affordable units that qualified the housing development for the density bonus pursuant to Section 16-410.3 shall be available at an affordable housing cost (Cal. Gov't Code, Section 65915(c)(1)). For-sale very low, low and moderate units shall not have a term of affordability and shall be subject to an equity sharing agreement that meets the requirements of Cal. Gov't Code, Section 65915(c)(2) unless the equity sharing agreement is in conflict with the requirements of another public funding source or law (Cal. Gov't Code, Section 65915(c)(2)). If a resale restriction agreement or other affordability agreement is required for the development by another public funding source or law, the minimum term of the affordability restriction shall be 45 years or the minimum term required by the applicable public funding source or law, whichever is longer.
(a) The affordable housing developer of a for-sale development must enter into an agreement with the city ensuring that:
1. The initial buyers of the affordable units required under this division are lower or moderate income households, as required.
2. The units are offered at an affordable housing cost as defined in Section 16-410.2. (Cal. Gov't Code, Section 65915(c)(2))
(b) The initial eligible buyer of an affordable unit offered for sale shall enter into an equity sharing agreement with the city (Cal. Gov't Code, Section 65915(c)(2)). The equity share agreement shall be recorded as a lien against the purchased property, securing and stating the city's equity share in the property. The city shall enforce the equity sharing agreement unless it is in conflict with the requirements of another public funding source or law. (Cal. Gov't Code, Section 65915(c)(2)) The equity sharing agreement shall include at a minimum the following provisions:
1. Upon resale, the seller of the unit shall retain the value of improvements, the down payment, and the seller's proportionate share of appreciation. Any improvements must be constructed with a building permit. The city shall recapture any initial subsidy, as defined in division (B)(2)(b)2. below, and its proportionate share of appreciation, as defined in division (B)(2)(b)2. below, which amount shall be used within five years for any of the purposes described in Cal. Health and Safety Code, Section 33334.2(e) that promotes home ownership (Cal. Gov't Code, Section 65915(c)(2)(A));
2. For purposes of this subdivision, the city's initial subsidy shall be equal to the fair market value of the unit at the time of initial sale minus the initial sale price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value (Cal. Gov't Code, Section 65915(c)(2)(B));
3. The city's proportionate share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the unit at the time of initial sale. (Cal. Gov't Code, Section 65915(c)(2)(C))
(C) Minimum affordable housing component and childcare facility - If an additional density bonus or incentive is granted because a childcare facility is included in the qualified housing development, the affordable housing agreement shall also include the affordable housing developer's obligations pursuant to Section 16-410.9(A)(3) for maintaining a childcare facility, if not otherwise addressed through conditions of approval.
(Ord. No. 2912, 3035)