A. Written Covenant: Before the issuance of a building permit for any dwelling unit in a development for which density bonus units have been awarded or incentives or concessions have been received, the developer shall identify the restricted units and shall enter into a written covenant with the city to guarantee one or both of the following, as applicable:
1. Lower And Very Low Income Households; Continued Affordability: The continued affordability and availability of the lower and very low income units shall be for a minimum of thirty (30) years, as required by state law 1 . Those units targeted for lower income households, as defined in Health And Safety Code section 50105, shall be affordable at a rent that does not exceed thirty percent (30%) of fifty percent (50%) of the area median income.
2. Moderate Income Households; Equity Sharing: The initial occupant of any moderate income unit in a condominium or planned development shall be a person or family of moderate income, as required by state law 2 . Upon resale, the seller of the unit shall retain the value of any improvements, the down payment and the seller's proportionate share of appreciation. The city shall recapture its proportionate share of appreciation, which shall be equal to the percentage by which the initial sale price to the moderate income person or family was less than the fair market value of the home at the time of initial sale. The city shall spend recaptured funds within three (3) years for any purposes to promote homeownership, as described in Health And Safety Code section 33334.2(e).
B. Recordation Of Agreement: The terms and conditions of the covenant shall run with the land which is to be developed, shall be binding upon the successors in interest of the developer, and shall be recorded in the official records of the county of San Bernardino. In addition to the requirements described in subsection A of this section, the agreement shall include the following provisions:
1. The developer shall give the city a continuing right of refusal to purchase or lease any or all of the designated units at the fair market value;
2. The deeds to the designated units shall contain a covenant stating that the developer shall not sell, rent, lease, sublet, assign or otherwise transfer any interests for the same without the written approval of the city confirming that the sales or rental price of the units is consistent with the limits established for lower, very low and moderate income households, which shall be related to the consumer price index; and
3. The city shall have the authority to enter into other agreements with the developer, or purchasers of the dwelling units, as may be necessary to ensure that the lower and very low income units are continuously occupied by eligible households. (Ord. 2762, 2012)
Notes
| 1 | 1. Gov.C. §§ 65915(c)(1), 65916. |
| 2 | 2. Gov.C. § 65915(c)(2). |