A. Target units shall be constructed concurrently with non-restricted units unless both the city and the developer or applicant agree within the density bonus housing agreement to an alternative schedule for development.
B. Lower-income target units shall remain restricted and affordable to the designated group for a period of 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or other applicable legal requirement; provided, that pursuant to Government Code section 65915(c), if the city does not grant at least one additional concession or incentive, the target units shall remain restricted and affordable for a period of 10 years.
C. The applicant shall agree to, and the city shall ensure that, the initial occupants of the moderate-income units that are directly related to the receipt of the density bonus in a common interest development, as defined in section 1351 of the Civil Code, are persons and families of moderate income, as defined in section 50093 of the Health and Safety Code. 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 then be used within three years for any of the purposes described in subdivision (e) of section 33334.2 of the Health and Safety Code that promote homeownership. For purposes of this subsection, the city's proportionate share of appreciation is equal to the percentage by which the initial sale price to the moderate-income household was less than the fair market value of the home at the time of initial sale.
D. Target units should be built on-site wherever possible and, when practical, be dispersed within the housing development. Where feasible, the number of bedrooms of the target units should be equivalent to the bedroom mix of the non-target units of the housing development, except that the developer may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. Housing developments shall comply with all applicable development standards, except those that may be modified as provided by this chapter.
E. Circumstances may arise in which the public interest is served by allowing some or all of the target units associated with one housing development to be produced and operated at an alternative development site. When the developer and the city agree to allow for construction of target units at an alternative site, the resulting linked developments shall be considered a single housing development for purposes of this section.
F. A density bonus housing agreement shall be made a condition of any density bonus approved pursuant to this section. The agreement shall be recorded as a restriction on the parcel or parcels on which the target units will be constructed. The agreement shall be consistent with section 17.704.070. (Ord. 2013-0020 § 1; Ord. 2013-0007 § 1)