SEC. 60.5. NOTICE OF INTENT TO PREPAY AND/OR TERMINATE.

(a) At least 18 months prior to the anticipated date of any prepayment and/or termination, any owner of an assisted housing development shall deliver to the Director of Housing and to each tenant household a notice of intent to prepay and/or terminate.

• (b) The notice shall include the following information:

(1) The name and address of each owner of the assisted housing development. For any owner that is a corporation, the notice shall contain the names and addresses of the officers and directors of the corporation and of any person directly or indirectly holding more than 10 percent of any class of the outstanding stock of the corporation. For any owner that is a partnership or joint venture, the notice shall contain the names and addresses of the joint venturers or general and limited partners and shall specify the names and addresses of the natural persons who are the principal or controlling persons of such entities.

• (2) The development's name, federal, state, or local program name and ID number, and address;

(3) The date of intended prepayment and/or termination and a brief description of the owner's plans for the development, including any timetables or deadlines for actions to be taken;

(4) The number of subsidized rental units in the development subject to prepayment and/or termination, and the number of subsidized rental units occupied by tenant households with persons age 62 or older, with disabled persons, or with children;

• (5) The current rent schedule for the subsidized rental units;

(6) A brief description of any contracts concerning prepayment, termination or conversion the owner has made with any government agency, tenant household residing in the development, or other interested person or entity;

(7) The anticipated rent schedule after prepayment and/or termination;

(8) A statement signed by the owner under penalty of perjury certifying the date on which a copy of the notice was sent to the Director of Housing;

(9) A statement that the Planning Commission is required to hold a public hearing on the intended prepayment and/or termination within 90 days of receipt of the notice by the Director of Housing; and

(10) The telephone number of the Director of Housing or the designee of the Director of Housing to call to request additional written information about the owner's responsibilities and about the rights and options of tenant households.

(c) The 18-month notice period shall commence on the date the notice of intent to prepay and/or terminate has been received both by the Director of Housing and by all affected tenant households. The notice shall be deemed received five days after it is given by deposit in the United States mail, return receipt requested. No owner shall cause, either by action or inaction, the prepayment and/or termination to occur prior to the expiration of the 18-month notice period. (d) Within 21 days after the owner gives the notice of intent to prepay and/or terminate, the owner shall submit to the Director of Housing a statement certifying the following information under penalty of perjury:

mail, return receipt requested. No owner shall cause, either by action or inaction, the prepayment and/or termination to occur prior to the expiration of the 18-month notice period. (d) Within 21 days after the owner gives the notice of intent to prepay and/or terminate, the owner shall submit to the Director of Housing a statement certifying the following information under penalty of perjury:

(1) The owner's actual cash investment in the development, as defined by Section 60.8 (i)(1)(i) below, itemized by date of investment;

• (2) The total amount of debt described in Section 60.8 (i)(1)(iii) below; and

• (3) The total amount of debt described in Section 60.8 (i)(2)(iii) below.

(e) Upon 10 days' advance notice to the owner, the Director of Housing may require the owner to make available for inspection and auditing during normal business hours all financial books and records pertaining to the

development. The Director of Housing shall make a copy of: (1) the notice of intent to prepay and/or terminate and (2) the statement required by Section 60.5(d) above, and shall make such copies, together with the results of such audit, available to any qualified entity upon receipt of written request by such qualified entity. (Added by Ord. 332-90, App. 10/3/90)

SEC. 60.6. PUBLIC HEARING ON PROPOSED PREPAYMENT AND/OR TERMINATION.

(a) No later than 45 days after the date the Director of Housing receives the Notice of Intent to Prepay and/or Terminate, the Director shall notify the secretary of the City Planning Commission ("Commission") that such Notice was received and shall forward to the Commission a copy of such Notice. No later than 45 days after the secretary's receipt of notice from the Director pursuant to the preceding sentence, the Planning Commission shall hold a public hearing on the intended prepayment and/or termination. The failure of the Commission to hold a timely public meeting shall not prevent any person from exercising any of its rights with respect to the development.

(b) The Commission shall give notice of the date and location of the public hearing as customarily is given by the Commission for its public meetings. The notice shall contain a summary of the owner's plan for the development subsequent to prepayment and/or termination, including the date of any proposed prepayment, termination or conversion. The Commission shall also mail the notice of the public hearing to any interested person or organization that requests in writing to be notified of any particular public hearing on a proposed prepayment and/or termination, or of all public hearings on proposed prepayments and/or terminations.

(c) At least 14 days prior to the public hearing, the Director of Housing shall make available to any interested person copies of the notice of intent to prepay and/or terminate and any other information, including copies of this Chapter, that concerns the responsibilities of owners and the rights and options of tenant households.

(d) The Commission shall hear testimony and receive relevant documents from interested persons. The Commission shall consider the evidence and make specific written findings as to the following issues:

(1) The proposed date of prepayment, termination or conversion, if intended;

(2) The anticipated use of the assisted housing development subsequent to prepayment, termination or conversion, if intended;

(3) The anticipated numbers of units in the development on any proposed prepayment date that will be occupied by very low, low and moderate income households;

(4) The numbers of households in each income category identified in Subparagraph (3), above, that will contain, on the prepayment date, one or more disabled tenants, who are children under the age of 18 or persons over the age of 62;

(5) For each unit occupied by a very low, low or moderate income household prior to the prepayment date, the rent increase anticipated upon conversion expressed both numerically and as a percentage of the rent charged immediately prior to the conversion date;

(6) The numbers of tenant households, by each category identified in Subparagraphs (3) and (4) above, likely to be displaced by conversion;

(7) The vacancy rates in the City for rental units which are available at affordable rent to very low, low and moderate income households; and

(8) The likely impact of prepayment and/or termination and subsequent conversion upon public and private nonprofit services.

For the purpose of this Section 600.6(d):

(1) "Affordable rent" shall mean the rent levels specified in Section 60.8(b)(2)(i) and (ii) below; and

(2) A tenant household shall be presumed to be likely to be displaced when the rent due subsequent to the conversion date exceeds affordable rent.

(e) Within 30 days after the hearing, the Commission shall complete and forward its findings under Section 60.6(d) above to the Clerk of the Board of Supervisors ("Board"). Subject to the time required for adequate public notice and preparation for review, the Board shall consider the Commission's findings at the Board's next regular meeting following receipt of the findings by the Clerk of the Board, and shall, by resolution, accept the findings or remand the findings to the Commission for revision.

(Added by Ord. 332-90, App. 10/3/90)