Continued Availability
Santa Clara City Code § 18.64.070
in effectThe units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable dwelling units in compliance with the following requirements, as required by Government Code Section 65915(c). See also Section 18.64.110 (Controls of Resale), below.
A. Duration of Affordability. The applicant shall agree to, and the City shall ensure, the continued availability of the dwelling units that qualified the housing development for a density bonus and other incentives and concessions, as follows.
1. Low- and Very Low-Income Dwelling Units – 55 Years. The continued affordability of all low- and very low-income qualifying dwelling units shall be maintained for 55 years, or a longer time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or by City policy or ordinance.
2. Moderate Income Dwelling Units in For-Sale Developments – 10 Years. The continued availability of moderate-income dwelling units in a for-sale development shall be maintained for a minimum of 10 years, or a longer time if required by City policy or ordinance.
B. Dwelling Unit Cost Requirements. The rents and owner-occupied costs charged for the dwelling 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 Dwelling Units. Rents for the lower income density bonus dwelling units shall be set at an affordable rent as defined in Health and Safety Code Section 50053; and
2. Owner-Occupied Dwelling Units. Owner-occupied dwelling units shall be available at an affordable housing cost as defined in Health and Safety Code Section 50052.5.
C. Occupancy and Resale of Income Restricted For-Sale Dwelling Units. The City shall enforce an equity sharing agreement, unless it conflicts with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source.. The following requirements apply to the equity sharing agreement.
1. Upon resale, the seller of the dwelling unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation.
2. The City shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote home ownership. For the purposes of this Section:
a. The City’s initial subsidy shall be equal to the fair market value of the dwelling unit 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 City’s proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the dwelling unit at the time of initial sale.
Source: City of Santa Clara Zoning Code (santaclaraca.gov PDF)URL: https://www.santaclaraca.gov/our-city/departments-a-f/community-development/planning-division/zoningFetched: 10/24/2026