20.65.030

A. General. Applicants seeking to construct an Affordable Housing Development pursuant to this Chapter shall enter into a Regulatory Agreement with the City, which shall be recorded against the residential development. The terms of the draft Regulatory Agreement shall be reviewed and revised as appropriate by the Director or designee and the City Attorney or designee. The final Regulatory Agreement, as approved by the City Attorney, shall be executed by the Applicant and forwarded to the Approval Authority for final approval. B. Timing of Agreement Approval. Recording of the Regulatory Agreement shall take place either concurrently with the Discretionary Approval or Ministerial Approval that is being processed with the overlay district application; or under an application for a compliance plan submitted between the Discretionary Approval and Ministerial Approval, and building approval or grading approval, whichever comes first. C. Agreement Terms and Conditions. The Regulatory Agreement shall include at a minimum all of the following: 1. The total number of dwelling units approved for the Affordable Housing Development, including the number of Restricted Affordable Units; 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Housing Cost; 3. The location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units; 4. Term of use restrictions for Restricted Affordable Units for the minimum period(s) of time; 5. Requirements to ensure that the initial occupants of all for-sale units that qualified the Applicant for use of the overlay district are persons and families of Lower-Income, as required, and that the units are offered at an affordable housing cost, as that cost is defined in California Health & Safety Code section 50052.5. The Regulatory Agreement for for-sale Restricted Affordable Units shall include the following equity sharing provisions, unless it conflicts with the requirements of another public funding source or law: a. Upon resale to another income-qualified household, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City shall recapture any initial subsidy, as defined in Subsection 5.b., and its proportionate share of appreciation, as defined in Subsection 5.c., which amount shall be used within five (5) years for any of the purposes described in California Health & Safety Code section 33334.2, subdivision (e). b. For purposes of this Chapter, the City'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 Lower-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. c. For purposes of this Chapter, the City 's proportionate share of appreciation shall be equal to the ratio of the City's initial subsidy to the fair market value of the home at the time of initial sale. 6. A schedule for completion and occupancy of the Restricted Affordable Units; 7. A description of remedies for breach of the Regulatory Agreement, including at the City's option, the identification of tenants or qualified purchasers as third-party beneficiaries under the Regulatory Agreement; 8. A provision stating that the Regulatory Agreement shall be binding to all future owners and successors in interest; and 9. Other provisions to ensure implementation and compliance with this Chapter. D. Recordation. Following execution of the Regulatory Agreement, the Regulatory Agreement shall be recorded on the property subject to the Regulatory Agreement. (Ord. 30988.)