Sec. 41.06. - Density bonus agreement.

A.

Agreement Required and Provisions. An applicant requesting a density bonus agreement shall agree to enter into a recordable density bonus agreement ("agreement") with the city in a form approved by the city attorney. The executed agreement shall be recorded on the parcel or parcels designated for the construction of the designated affordable units. The approval and recordation shall take place prior to final map approval, or where a map is not being processed, prior to issuance of building permits for such parcels or units.

B.

Project Information. The agreement shall include at least the following information about the project:

1.

The total number of units approved for the housing development, including the number of designated affordable units;

2.

A description of the household income group to be accommodated by the housing development, and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with U.S. Department of Housing and Urban Development ("HUD") Guidelines;

3.

The marketing plan for the affordable units;

4.

The location, unit sizes (square feet), and number of bedrooms of the designated affordable dwelling units;

5.

Tenure of the use restrictions for designated affordable dwelling units of the time periods required by this section and Government Code Section 65915;

6.

A schedule for completion and occupancy of the designated affordable dwelling units;

7.

A description of the additional incentives being provided by the city;

8.

A description of the remedies for breach of the agreement by the owners, developers, and/or successorsin-interest of the project; and

9.

Other provisions to ensure successful implementation and compliance with this Section and Government Code Section 65915.

C.

Minimum Requirements. The agreement shall provide, at a minimum, that:

The developer shall give the city the continuing right-of-first-refusal to lease or purchase any or all of the designated affordable dwelling units at the appraised value;

2.

The deeds to the designated affordable dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet, or otherwise transfer any interests for designated affordable dwelling units without the written approval of the city;

3.

When providing the written approval, the city shall confirm that the price (rent or sale) of the designated affordable dwelling unit is consistent with the limits established for low and very low income households, as published by HUD;

4.

The city shall have the authority to enter into other agreements with the developer, or purchasers of the designated affordable dwelling units, to ensure that the required dwelling units are continuously occupied by eligible households;

5.

Applicable deed restrictions, in a form satisfactory to the city attorney, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance, or withdrawal of the certificate of occupancy;

6.

In any action taken to enforce compliance with deed restrictions, the city attorney shall, if compliance is ordered by a court of competent jurisdiction, take all action that may be allowed by law to recover all of the city's costs of action including legal services; and

7.

Compliance with the agreement will be monitored and enforced in compliance with the measures included in the agreement.

8.

The designated affordable dwelling units that qualified the housing development for a density bonus and other incentive s and concessions shall continue to be available as affordable units in compliance with the requirements of Government Code Section 65915(c).

D.

For-Sale Housing Conditions. In the case of for-sale housing developments, the agreement shall provide for the following conditions governing the initial sale and use of designated affordable dwelling units during the applicable restriction period:

1.

A requirement that designated affordable dwelling units shall be owner-occupied by eligible households, or by qualified residents in the case of senior housing; and

2.

Provisions as the city may require to ensure continued compliance with this section and state law;

3.

Terms for future sales and recapture of any equity to ensure continued affordability for the requisite time period, as prescribed by Government Code Section 65915(c).

E.

Rental Housing Conditions. In the case of rental housing development, the agreement shall provide for the following conditions governing the use of designated affordable dwelling units during the restriction period:

1.

The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the designated affordable dwelling units for qualified tenants;

2.

Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this section;

3.

Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying the designated affordable dwelling units, and which identifies the bedroom size and monthly rent or cost of each unit; and

4.

The applicable use restriction shall comply with the time limits for continued availability in compliance with this section.

F.

Execution of Agreement.

1.

Following Council approval of the agreement, and execution of the agreement by all parties, the city shall record the completed agreement on the parcels designated for the construction of designated affordable dwelling units, at the county recorder's office.

The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of building permits for the designated dwelling units.

3.

The agreement shall be binding on all future owners, developers, and/or successors-in-interest.

(Ord. No. 505, § 29, 10-21-2014)