(A) Use of fees. To the maximum extent possible, any monies received by the county pursuant to this chapter shall be used to increase, improve, and preserve the supply of affordable housing and services to provide extremely low, very low, low, and/or moderate-income housing. Any monies received pursuant to this chapter may be used for appropriate monitoring, enforcement, and administrative costs. Monies received may also be used to assist the county with all costs associated with construction, acquisition, unit purchase, development, and rehabilitation of property for rental or homeownership purposes as long as the property is offered for very low, low, and moderate-income housing. Monies received may also be used to provide subsidies for equity participation loans, low-interest loans, rent subsidies, grants, housing trusts, or down payment assistance to eligible participants of extremely low, very low, low, or moderate-income housing. Monies received may also be used for related activities that promote affordable housing such as homebuyer education, grant writing workshops, credit management workshops, financial literacy workshops and foreclosure prevention education. Any monies received by the county pursuant to this chapter shall be used to provide reasonable reimbursement to approved governmental agencies or non-profit organizations for related expenses associated with preserving an affordable “at-risk” unit for extremely low, very low, low, or moderate income in order to prevent foreclosure. Any monies received by the county pursuant to this chapter may also be used to provide reasonable reimbursement to the county to cover infrastructure costs associated with impact fee waivers provided to 100% affordable housing developments as authorized by this section. All such monies on deposit with the county including in-lieu fees, fees, promissory note repayments, shared appreciation payments, penalties, interest generated, or other funds collected shall be separately accounted for and shall not be used for purposes not authorized by § 21.03.002.
(B) Funding proposals. At least once a year when the county holds unappropriated in-lieu fees, the county shall advertise by notice in newspapers of local circulation and other such written notice as deemed necessary by the Board of Supervisors the availability of funds for the provision of very low, low, and/or moderate-income housing in the county. Included in the notice shall be an invitation to submit proposals and requests for funds to provide such housing in the county. Proposals submitted for funding shall be in accordance with the Board of Supervisors’ housing priorities set for the year. Proposals shall be reviewed by the Planning Commission to be submitted with recommendations to the Board of Supervisors for approval. The requests may be for grants, low-interest loans and other funding mechanisms deemed appropriate to secure the purpose of this chapter. The proposals may be for pre-development projects and services, projects to promote very low, low, or moderate-income housing unit(s), rehabilitation, land acquisition, unit purchase, and development of infrastructure or other projects deemed appropriate to secure the purpose of this chapter.
(C) Director’s authority. All proposals and requests for funding shall be referred initially to the Director or designee. The Director or designee shall make recommendations for funding to the Planning Commission, which shall make a funding recommendation to the Board of Supervisors in accordance with the procedures in this section. The Board of Supervisors, at its discretion, may elect to fund none, any, or all of proposals received and may attach conditions of approval, performance standards, or mitigation measures to any such approval. For proposals which have received approval in accordance with the procedures set forth in this section, the Director or designee shall have the authority to execute all documents necessary to implement the approval on behalf of the county, subject to the approval of County Counsel as to legal form.
(D) Grant contract. Upon authorization for funding, the Director, on behalf of the county, shall enter into a contract to assure to the greatest extent possible that the approved proposals and requests are satisfactorily completed. No warrant shall be issued until such contract is completed and signed by the appropriate parties.
(E) Household eligibility. The Director or designee shall establish standards for eligibility of extremely low, very low, low, and/or moderate-income households in units assisted with the proceeds of in-lieu fees. Priority for occupancy shall be granted to residents of the county and those employed in the county.
(F) Impact fees. Developments that provide 100% affordable housing may have pro rata reduction of impact fees, provided the Board of Supervisors identifies and allocated another source of funds to replace the impact fee waiver amount, as follows:
(1) Moderate income units shall require payment of 50% of the impact fees.
(2) Low-income units shall require payment of 25% of the impact fees.
(3) Very low-income units shall be exempt from impact fees.
(Ord. 866, § 1(part), 2010; Ord. 951, § 1(part), 2016; Ord. 1,014, § 12, 2020; Ord. 1052, § 2, 2023; Ord. 1059, § 2 (part), 2023)