SEC. 1399.3. DEFINITIONS.

In addition to the definitions in Section 1308, the definitions below shall govern this Article. To the extent that there is a conflict between the definitions below and those in Section 1308, the definitions in this Section control.

(a) "Carrying Charge" shall refer to the sole monthly charge to Resident Members covering that Resident Member's share of the operating and maintenance costs including, but not limited to, debt service on mortgages held by the Limited Equity Housing Cooperative, property taxes, management fees, maintenance costs, insurance premiums, common utilities, and contributions to reserve funds. Carrying Charge shall not refer to utilities solely attributable to the unit occupied by the Resident Member.

• (b) "Department" shall refer to the Department of Public Works.

• (c) "Director" shall refer to the Director of the Department of Public Works.

• (d) "Limited Equity Housing Cooperative" shall refer to a non profit public benefit corporation formed as a limited equity housing cooperative as defined under California Civil Code section 1351(m) and California Health and Safety

Code section 33007.5.

(e) "Maximum Allowable Allocation" shall mean the maximum number of unit conversions permitted per year, beginning on June 1st of each year, and shall equal 200 units per year plus any unused allocation from the previous year. Notwithstanding the foregoing, the number of unit conversions under this Article shall not exceed 400 in any year. Units or member shares located in City-owned buildings shall not be counted as part of the Maximum Allowable Allocation.

(f) "Maximum Annual Rent" shall mean the maximum rent that a Limited Equity Housing Cooperative may charge any Resident Tenant who is also a Qualifying Household as rent or any Member who is also a Qualifying Household as an annual Carrying Charge for the calendar year as published by the Mayor's Office of Housing. The maximum annual rent for a unit of the size indicated below shall be no more than 30 percent of the annual gross income for a Qualifying Household as defined in this Section, and as adjusted for the household size indicated below as of the first date of the tenancy or purchase of the Member Share:

(g) "Member Share" shall refer to a share of stock in the Limited Equity Housing Cooperative that provides the owner(s) with an exclusive right of occupancy to a portion of the residential property converted under this Article. (h) "Qualifying Household" shall refer to the residents of a unit in the residential property to be converted who, taken together as a household, earn less than eighty (80) percent of the San Francisco Median Income, as defined by the San Francisco Mayor's Office of Housing, and at least one of whom has occupied the unit as his or her primary residence for at least one year prior to the date of submission of the Certificate of Clearance.

the residents of a unit in the residential property to be converted who, taken together as a household, earn less than eighty (80) percent of the San Francisco Median Income, as defined by the San Francisco Mayor's Office of Housing, and at least one of whom has occupied the unit as his or her primary residence for at least one year prior to the date of submission of the Certificate of Clearance.

(i) "Permitted Eviction" shall refer to any attempt to terminate a tenancy of a Resident Tenant pursuant to San Francisco Administrative Code Section 37.9(a)(1) – (4), (6), and (7).

(j) "Resident Member" shall refer to a resident of the Limited Equity Housing Cooperative who has purchased a Member Share in the Limited Equity Cooperative.

(k) "Resident Tenant" shall refer to a tenant of the Limited Equity Cooperative who has entered into a lease with the Limited Equity Housing Cooperative pursuant to section 1399.8A.

(l) "Subdivider" shall mean, for purposes of this Article, a nonprofit public benefit corporation formed pursuant to California Corporations Code Section 5110 and their successors in interest.

(m) "Total Development Cost" shall mean, for the purposes of this Article, all costs relating to the purchase, improvement, rehabilitation, upgrade, and conversion of the property to be converted under this Article based upon a budget submitted to and approved by the Mayor's Office of Housing in the application for a Certificate of Clearance. (Added by Ord. 319-08, File No. 081513, App. 12/19/2008)