The silent second may not be prepaid during its first twenty (20) years, as long as the low-income purchaser occupies the unit as their primary residence during this period. The silent second will be released by the County in thirty (30) years as long as the low-income purchaser occupies the unit as their primary residence for this duration. The amount due to the County at the eventual payoff of the silent second or sale of the affordable unit to a non-qualified purchaser shall be the amount which bears the equal ratio to the fair market value at the time the silent second is paid off as the initial value that the silent second had in relation to the original fair market sales price. For example, if the original sales price was two hundred fifty thousand dollars ($250,000) and the “affordability gap” was fifty thousand dollars ($50,000), the original silent second would be fifty thousand dollars ($50,000) (the ratio would be twenty percent (20%)). If the fair market value at the time of payoff was four hundred thousand dollars ($400,000), the amount due to the County would be eighty thousand dollars ($80,000), or twenty percent (20%) of four hundred thousand dollars ($400,000). In another case, if the property rose in value to three hundred thousand dollars ($300,000), the twenty percent (20%) ratio would require the payoff amount to the County to be sixty thousand dollars ($60,000).
(Ord. 1451, eff. January 1, 2015)