Beverly Hills Municipal Code Art. 5 Dwelling Unit Construction Tax

This tax shall be known as the DWELLING UNIT CONSTRUCTION TAX OF THE CITY OF BEVERLY HILLS. (1962 Code § 8-6)

A tax is hereby imposed for revenue purposes upon the construction of each dwelling unit in the city as follows: Each person who constructs or causes a dwelling unit to be constructed in the city shall pay to the city, in addition to any other fees or taxes required to be paid, the sum of five hundred ninety six dollars eighty five cents ($596.85) for each such dwelling unit, together with the additional sum of one hundred nineteen dollars thirty eight cents ($119.38) for each bedroom contained in each such dwelling unit. (1962 Code § 8-6)

For the purposes of this article, the following definitions apply:

BEDROOM: Any room designed and normally used for sleeping purposes in a dwelling unit.

DWELLING UNIT: Means and includes each single-family dwelling and each unit of an apartment, duplex, multiple-family dwelling, hotel or motel unit, condominium, or other structure designed as a separate habitation for one or more persons. (1962 Code § 8-6)

This article shall not apply to construction of the following development:

A. Any dwelling unit intended and used exclusively to house the elderly or handicapped, which unit is constructed for and operated by a foundation, agency, or entity which, pursuant to the provisions of section 1(c) of article XIII of the constitution of the state, has been granted a property tax exemption by the state legislature shall be exempt from the provisions of this article.

B. Any new dwelling unit intended and used exclusively to house very low, low or moderate income households provided that all of the following criteria are satisfied:

1. The dwelling unit is used exclusively to house very low, low or moderate income persons as defined by section 50093 of the California Health and Safety Code or any successor statute. The occupant(s) of the dwelling unit shall annually submit an affidavit and documentation satisfactory to the director of planning and community development that their household income meets the applicable income limits established by the state of California.

2. The maximum rent charged for the dwelling unit does not exceed thirty percent (30%) of the area median income adjusted for household size, as determined by the United States department of housing and urban development pursuant to section 8 of the United States housing act of 1937.

3. Prior to the issuance of a certificate of occupancy for the dwelling unit, the owner of the property executes and files a covenant running with the land with the city building official for recording with the county recorder. Said covenant shall be approved by the city attorney and shall state that the dwelling unit shall be used only as a residence for very low, low or moderate income persons as defined by state law for a period of not less than fifteen (15) years from the date the final certificate of occupancy is issued. In addition, the covenant shall provide that, subject to any limitations imposed by paramount federal or state law, during said fifteen (15) year term very low, low and moderate income Beverly Hills residents shall be given priority on occupying the building (or portion thereof) reserved for very low, low and moderate income households. The covenant shall further state that if such dwelling unit is used for any other purpose or if the dwelling unit is occupied by a household which does not qualify under the applicable definitions of very low, low and/or moderate income households prior to the expiration of the fifteen (15) year term, the exemption provided by this section shall not apply and all taxes imposed by this article for the exempted unit shall be due and payable immediately upon such change of use or occupancy. (1962 Code § 8-6; amd. Ord. 02-O-2419, eff. 1-17-2003)

The tax imposed by the provisions of this article shall be due and payable to the city upon the issuance by the city of a building permit for the construction of any dwelling unit. Payment of the tax shall be a condition precedent to the issuance of a building permit authorizing the construction of a dwelling unit. (1962 Code § 8-6)

Any tax paid to the city pursuant to the provisions of this article for any dwelling unit which is not constructed and for which the building permit issued for such a dwelling unit has been canceled or surrendered shall be refunded upon an application of the payor. Applications for such refunds shall be made within one year after the cancellation or expiration of the building permit for entitlement to a refund. (1962 Code § 8-6)