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The units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable units in compliance with the following requirements, as required by Government Code § 65915(c). See also § 83.03.110 (Control of Resale).
(a) Duration of Affordability. The applicant shall agree to, and the County shall ensure, the continued availability of the units that qualified the housing development for a density bonus and other incentives and concessions, as follows.
(1) Low-, and Very Low-Income Units. The continued affordability of all low- and very low-income qualifying units shall be maintained for 30 years, or a longer time if required by the construction or mortgage financing assistance program, mortgage insurance program or rental subsidy program.
(2) Moderate Income Units in Common Interest Development. The continued availability of moderate-income units in a common interest development shall be maintained for a minimum of ten years.
(b) Unit Cost Requirements. The rents and owner-occupied costs charged for the housing units in the development that qualify the project for a density bonus and other incentives and concessions, shall not exceed the following amounts during the period of continued availability required by this Section:
(1) Lower Income Units. Rents for the lower income density bonus units shall be set at an affordable rent as defined in Health and Safety Code § 50053; and
(2) Owner-Occupied units. Owner-occupied units shall be available at an affordable housing cost as defined in Health and Safety Code § 50052.5.
(c) Occupancy and Resale of Moderate-income Common Interest Development Units. An applicant shall agree to, and the County shall ensure that the initial occupant of moderate income units that are directly related to the receipt of the density bonus in a common interest development as defined in Civil Code § 1351, are persons and families of moderate income, as defined in Health and Safety Code § 50093, and that the units are offered at an affordable housing cost, as defined in Health and Safety Code § 50052.5. The County shall enforce an equity sharing agreement unless it is in conflict with the requirements of another public funding source or law. The following requirements apply to the equity sharing agreement.
(1) 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.
(2) The County shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in Health and Safety Code § 33334.2(e) that promote home ownership. For the purposes of this Section:
(A) The County’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale, minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value; and
(B) The County’s proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale.
(Ord. 4011, passed - -2007)