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(1) This Section shall govern exclusively where the City and County of San Francisco, on or after June 1, 1988, exercises the right of first refusal under Section 1341(c) to repurchase converted units. This Section shall not apply, however, to any units which are the subject of an application for conversion filed on or after June 1, 1988.
(2) The following definitions shall apply:
(a) "Household" shall mean the person or persons who will permanently reside in the unit. Such persons shall include dependents as that term is defined in the Internal Revenue Code provided that said dependents permanently reside in the unit.
(b) "Eligible household" shall mean a household in which the combined gross income plus 10 percent of the value of all interests in real estate, notes receivable, bank accounts, stocks and bonds does not exceed the maximum allowable income for the household under Subsection (d) below at the time of purchase of the unit.
(c) "Gross income" shall mean all income from whatever source derived as provided in the Internal Revenue Code (26 USC 61), whether or not exempt from federal income tax. Such income includes, but is not limited to, the following:
(1) Compensation for services, including fees, commissions, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(8) Alimony and separate maintenance payments;
(10) Income from life insurance and endowment contracts;
(12) Income from discharge of indebtedness;
(13) Distributive share of partnership gross income;
(14) Income in respect of a decedent; and
(15) Income from an interest in an estate or trust.
(d) "Maximum allowable income" shall mean 120 percent of the San Francisco Standard Metropolitan Statistical Area Median Income as published annually by the U.S. Department of Housing and Urban Development. The resulting figures may be adjusted upwards as necessary, not to exceed 15 percent, by the Director the Mayor's Office of Housing in order to assure that eligible households qualify for financing by institutional lenders.
(e) "First-time buyer" shall mean a person who has not purchased any dwelling as a principal place of residence within the past three years as verified by federal tax returns for said three-year period.
(3) The Mayor's Office of Housing shall be responsible for administering the resale of and reconveyance of units converted to condominiums under Sections 1341 and 1385 of this Code, including the exercise of the City's right-of-first-refusal as to sales following the first sale of the unit referred to in Section 1341(c). The Mayor's Office of Housing shall, whenever possible, reconvey converted units to purchasers who qualify as eligible households. The Mayor's Office of Housing shall give preferential consideration to households with dependents and to first-time buyers. The Mayor's Office of Housing shall adopt a preferential rating system to accomplish this purpose.
(4) All purchasers must become owner occupants.
(Added by Ord. 257-88, App. 6/22/88; amended by Ord. 400-89, App. 11/6/89; Ord. 320-08, File No. 080520, App. 12/19/2008)