A. If a housing development provides low or very low income target rental units to qualify for a density bonus, the target units must remain restricted to lower or very low income households for a minimum of fifty-five (55) years from the date of issuance of the certificate of occupancy by the Building Official, or longer if required by the project financing.
B. In the case of all for-sale units that qualified the applicant for the award of the density bonus, the initial occupant shall be persons and families of very low, low, or moderate income households, as required. The applicant shall enter into and the City shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following requirements shall apply to the equity sharing agreement:
1. Upon resale, the seller of the target units shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The city shall recapture any initial subsidy and its proportionate share of appreciation which shall then be used within five (5) years for any of the purposes described in subdivision (e) of Section 33334.2 of the California Health and Safety Code that promote homeownership.
2. The city's initial subsidy shall be equal to the fair market value of the home 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.
3. The city's "proportionate share" shall be equal to the ratio of the local government's initial subsidy to the fair market value of the home at the time of the initial sale.
C. Sales price for for-sale affordable very low, low, and moderate income units shall be set at affordable housing cost. Rents for affordable low and very low income rental units shall be set at an affordable rent.
D. Unless otherwise governed by other funding sources, first priority for the affordable units will be given to individuals who reside, work, go to school, or have family in the City of Pinole.
E. The developer shall submit a project financial report (pro forma) demonstrating that the requested incentives or concessions are required to provide for affordable rents or affordable housing costs, as applicable. The City may retain a consultant to review the financial report. The cost of the consultant shall be borne by the developer with the following exception:
1. If the applicant is a nonprofit organization, the cost of the consultant may be paid by the City upon prior approval of the City Council.
F. All affordable units shall be occupied by the household type specified in the written agreement required under Section 17.38.030 I. The developer's obligation to maintain these units as affordable housing shall be evidenced by the master regulatory agreement which shall be recorded as deed restriction running with the land.
G. Prior to the rental or sale of any affordable unit, the City or its designee, shall verify the eligibility of the prospective tenant or buyer.
H. The City may establish fees associated with the setting up and monitoring of affordable units.
I. For rental affordable very low and low income units:
1. The owner shall obtain and maintain on file certifications by each household. Certification shall be obtained immediately prior to initial occupancy by each household and annually thereafter, in the form provided by the City or its designee. The owner shall obtain updated forms for each household on request by the City, but in no event less frequently than once a year. The owner shall maintain complete, accurate and current records pertaining to the housing development, and shall permit any duly authorized representative of the City to inspect the records pertaining to the affordable units and occupants of these units.
2. The owner shall submit an annual report to the City, on a form provided by the City. The report shall include for each affordable unit the rent, income, and family size of the household occupying the unit.
3. The owner shall provide to the City any additional information required by the City to insure the long-term affordability of the affordable units by eligible households.
(Ord. 2016-04 § 8 (part), 2016: Ord. 2010-02 § 1 (part), 2010)