Palo Alto Municipal Code Ch. 9.70 Resale Controls for Units Originally Financed with Mortgage Revenue Bonds

The purpose of this chapter is to enhance the public welfare by ensuring that housing financed with mortgage revenue bond proceeds contributes to attaining the housing goals set forth in the Comprehensive Plan of the City of Palo Alto by increasing the supply of residential housing affordable to low and moderate income households.

(Ord. 3336 § 1 (part), 1982)

(a) The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:

(1) “Consumer Price Index” means the consumer price index for the San Francisco-Oakland area published by U.S. Department of Labor, Bureau of Labor Statistics or a successor index approved by the director of planning and development services.

(b) "Qualified buyer" means a person or persons whose income does not exceed the maximum income established for mortgage revenue bond financing by the California Health and Safety Code and as specifically approved for a project in the developer agreement among the county of Santa Clara, the city and the developer for a project.

(3) “Deed restrictions” means the most recent deed restrictions developed by the city for the city’s below-market-rate program which are on file with the department of planning and development services.

(Ord. 5494 § 3, 2020: Ord. 3505 §1, 1984: Ord. 3336 § 1 (part), 1982)

In order to accomplish the purposes of this chapter, housing units in the city which are financed with mortgage revenue bonds shall be sold only to qualified buyers. The qualified buyers of each such unit shall grant to the city a right of first refusal to purchase the unit pursuant to deed restrictions to be recorded as part of any grant deed with the county recorder of Santa Clara County; provided, that the base price, as set forth in the deed restrictions, shall be increased by two-thirds of the percentage increase in the Consumer Price Index from the date of the purchase of a unit by the seller to the date of receipt by city of the notice of intent to sell.

(Ord. 3505 § 2, 1984: Ord. 3336 § 1 (part), 1982)

Unless they are more restrictive, the resale controls established by Section 9.70.030 shall not apply to units designated as BMR units under the city's below-market-rate program or to any other units for which resale controls have been established by the city.

(Ord. 3505 § 3, 1984: Ord. 3336 § 1 (part), 1982)