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(a) Agreement Required. An applicant requesting a density bonus shall agree to enter into a density bonus agreement (referred to as the “agreement”) with the County in the County’s standard form of agreement.
(b) Agreement Provisions.
(1) Project Information. The agreement shall include at least the following information about the project:
(A) The total number of units approved for the housing development, including the number of designated dwelling units;
(B) A description of the household income group to be accommodated by the housing development, and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with HUD Guidelines;
(C) The marketing plan for the affordable units;
(D) The location, unit sizes (square feet), and number of bedrooms of the designated dwelling units;
(E) Tenure of the use restrictions for designated dwelling units of the time periods required by § 83.03.070 (Continued Availability);
(F) A schedule for completion and occupancy of the designated dwelling units;
(G) A description of the additional incentives and concessions being provided by the County;
(H) A description of the remedies for breach of the agreement by the owners, developers, and/or successors-in-interest of the project; and
(I) Other provisions to ensure successful implementation and compliance with this Chapter.
(2) Minimum Requirements. The agreement shall provide, at minimum, that:
(A) The developer shall give the County the continuing right-of-first-refusal to lease or purchase any or all of the designated dwelling units at the appraised value;
(B) The deeds to the designated dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet, or otherwise transfer any interests for designated units without the written approval of the County;
(C) When providing the written approval, the County shall confirm that the price (rent or sale) of the designated dwelling unit is consistent with the limits established for low and very low-income households, as published by HUD;
(D) The County shall have the authority to enter into other agreements with the developer, or purchasers of the designated dwelling units, to ensure that the required dwelling units are continuously occupied by eligible households;
(E) Applicable deed restrictions, in a form satisfactory to the County Counsel, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance, or withdrawal of the Certificate of Occupancy;
(F) In any action taken to enforce compliance with the deed restrictions, the County Counsel shall, if compliance is ordered by a court of competent jurisdiction, take all action that may be allowed by law to recover all of the County’s costs of action including legal services; and
(G) Compliance with the agreement will be monitored and enforced in compliance with the measures included in the agreement.
(3) For-Sale Housing Conditions. In the case of a for-sale housing development, the agreement shall provide for the following conditions governing the initial sale and use of designated dwelling units during the applicable restriction period:
(A) Designated dwelling units shall be owner-occupied by eligible households, or by qualified residents in the case of senior housing; and
(B) The initial purchaser of each designated dwelling unit shall execute an instrument or agreement approved by the County which:
(I) Restricts the sale of the unit in compliance with this Chapter, or other applicable County policy or ordinance, during the applicable use restriction period;
(II) Contains provisions as the County may require to ensure continued compliance with this Chapter and State law; and
(III) Shall be recorded against the parcel containing the designated dwelling unit.
(4) Rental Housing Conditions. In the case of a rental housing development, the agreement shall provide for the following conditions governing the use of designated dwelling units during the applicable restriction period:
(A) The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the designated dwelling units for qualified tenants;
(B) Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter;
(C) Provisions requiring owners to submit an annual report to the County, which includes the name, address, and income of each person occupying the designated dwelling units, and which identifies the bedroom size and monthly rent or cost of each unit; and
(D) The applicable use restriction period shall comply with the time limits for continued availability in § 83.03.070 (Continued Availability), above.
(c) Execution of Agreement.
(1) Following Board approval of the agreement, and execution of the agreement by all parties, the County shall record the completed agreement on the parcels designated for the construction of designated dwelling units, at the County Recorder’s Office.
(2) The approval and recordation shall take place at the same time as the Final Map or, where a map is not being processed, before issuance of Building Permits for the designated dwelling units.
(3) The agreement shall be binding on all future owners, developers, and/or successors-in-interest.
(Ord. 4011, passed - -2007)