Article 6 — Compliance Procedures

A developer who proposes to construct affordable units on-site or off-site pursuant to this chapter, or whose project receives money from the Housing Trust Fund, shall execute an Affordable Housing Agreement with the City. (a) Form of Agreement. The forms of the Affordable Housing Agreement and any related Declarations, Resale Restrictions, deeds of trust, and other documents authorized by this chapter shall be approved as to form by the City Attorney prior to being executed with respect to any residential development subject to this chapter. Any such agreements may be approved and executed by the City Manager.

(b) Recording of Agreement. The affordable housing agreement shall be recorded prior to, or concurrently with, final map recordation or, where the residential development does not include a map, prior to issuance of a building permit for any structure on the site. Resale restrictions, deeds of trust, and/or other documents comprising or related to the affordable housing agreement shall also run with the land and bind all future owners and successors in interest. (§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 12, Ord. 1719-NS, eff. November 24, 2023)

All affordable units offered for sale or rent in accordance with the requirements of this chapter shall be subject to certain restrictions as reflected in the Affordable Housing Agreement.

• (a) Units offered for Sale.

(1) Initial Sales Price and Resale. During the term of affordability, the maximum sales price permitted for initial sale and resale of an inclusionary unit designated for owner-occupancy shall be at a price established by the City.

(2) Owner Occupancy Required. All affordable units sold that are subject to the requirements of this chapter shall be occupied and used as owner's principal place of residence.

(3) Permitted Changes in Ownership. An affordable unit designated for owner-occupancy may be transferred or inherited subject to requirements established by the City, but all new owners shall continue to be subject to the terms of all recorded restrictions.

(4) Continued Occupancy. Purchasers of an affordable unit may continue to occupy that unit if their incomes rise above allowable income limits provided they continue to meet the other requirements of this program.

• (b) Units offered for Rent.

(1) Establishment of Rental Rates. Affordable units offered for rent to eligible lower, very-low, and extremely-low income households shall be rented at a maximum rate established by the City's Housing Division on an annual basis. Rental rates are calculated based on requirements stipulated in the State housing law.

(2) Continued Occupancy. Tenants of an affordable unit may continue to occupy that unit if their incomes rise above allowable income limits provided they continue to meet the other requirements of this program. (§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 6, Ord. 1543-NS, eff. October 8, 2010)

(a) The City Council may adopt guidelines, by resolution, to assist in the implementation of all aspects of this chapter.

(b) No household shall be permitted to begin occupancy of a dwelling unit which is required to be affordable under this chapter unless the City or its designee has determined a household's eligibility using methods as proscribed by the City.

(c) The City shall be authorized to enforce the provisions of this chapter and all Affordable Housing Agreements, regulatory agreements, covenants, resale restrictions, promissory notes, deed of trust, and other requirements placed on inclusionary units, and other affordable units, by civil action and any other proceeding or method permitted by law. The City may, at its discretion, take such enforcement action as is authorized under the Municipal Code and/or any other action authorized by law or equity or by any regulatory document, restriction, or agreement executed under this chapter.

(d) Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any applicant or owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a residential or nonresidential development shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

(e) The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

(f) For inclusionary and affordable units occupied under the provisions of the chapter, the City may require written verification of owner occupancy, or household eligibility and rental rates.

(g) The City Council by resolution may establish fees for the on-going administration and monitoring of affordable units, which fees may be updated periodically, as required.

(a) A developer may request that the requirements of this chapter be adjusted or waived based on a showing that applying the requirements of this chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. A developer may also request that the requirements of this chapter be satisfied by the developer in another manner which would result in reasonably comparable compliance with this chapter.

(b) Any request for a waiver, adjustment, or reduction under this section shall be submitted concurrently with the inclusionary housing plan required by Section 9-10.304, or density bonus plan required by Section 9-10.506, or with the application for a non-residential development. The applicant shall bear the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation.

(c) The request for a waiver, adjustment, or reduction shall be processed, reviewed, and approved or denied by the City Council, and may be processed concurrently with the discretionary applications, if required, for the development project. In making a determination on an application for waiver, adjustment, or reduction, the applicant shall bear the burden of presenting substantial evidence to support the claim.

The waiver, adjustment, or reduction may be approved only to the extent necessary to avoid an unconstitutional result, or if it is determined that an adjustment would result in a reasonably comparable compliance with this chapter, after adoption of written findings, based on substantial evidence, supporting the determinations required by this section. If a waiver, adjustment, or reduction is granted, any change in the use within the project shall invalidate the waiver, adjustment, or reduction.

(§ 1, Ord. 1506-NS, eff. October 9, 2008)