Residences financed under this Article XV shall meet all the following affordability requirements:
(a) The Sponsor, or any other owner of a Residence that is not the City, shall enter into a regulatory agreement with the City for the life of the Residence to restrict occupancy of units to tenants with household income not to exceed 120% of AMI, and monthly rent not to exceed one-twelfth of 30% of 120% of AMI. Nothing in this Article XV shall limit the Board from requiring household incomes and corresponding rent maximums to be lower than the preceding sentence.
(b) Initial rents for qualified households shall not exceed the lesser of: (1) 30% of one-twelfth of the applicable annual income limit, or (2) at the election of the Sponsor, either (A) 15% below comparable market rent as established by a third-party market study accepted by the City, or (B) the average 10% below Small Area Fair Market Rents established by HUD.
(c) Average income at Stabilized Occupancy in each Residence must be no greater than 100% of Median Income. Average rents at Stabilized Occupancy in each Residence must be no greater than 30% of such average income limit.
(d) In instances of acquisition, no existing residents shall be involuntarily displaced. Units will be made available to households meeting the income restrictions applicable to the Residence upon voluntary vacancy of each such unit. Any existing tenants who elect to income-certify after the acquisition of a Residence will have their rent adjusted to the applicable affordability levels. If a Residence is subject to Administrative Code Chapter 37 (the Residential Rent Stabilization and Arbitration Ordinance, or “Rent Ordinance”) prior to acquisition, units will continue to be subject to the Rent Ordinance and excluded from the regulatory agreement until the earlier of: (1) the existing tenant voluntarily vacating the unit, or (2) the existing tenant income-certifying and executing a new lease under the requirements of the regulatory agreement.
(e) Annual rent increases shall not exceed the lesser of the annual percentage change of 100% of AMI from the previous year or 4% of the existing rent.
(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)