§ 24-138. Continued affordability.

The following requirements apply to all affordable units that qualify for a density bonus or other incentive.

A.

Duration of Affordability.

1.

All units shall remain affordable for thirty (30) years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

2.

Rents shall be set at affordable levels as defined in Health and Safety Code Section 50053.

3.

Owner-occupied units shall be available at an affordable cost as defined in Health and Safety Code Section 50052.5.

B.

Equity Sharing Agreement. The County shall enforce an equity sharing agreement for the resale of all common interest moderate-income units. The following apply to the equity sharing agreement:

1.

Upon resale, the seller of the unit shall retain the value of any improvements, the down-payment, and the seller's proportionate share of appreciation.

2.

The County shall recapture any initial subsidy, and its proportionate share of appreciation, which shall be used by the County within five (5) years as described in Health and Safety Code Section 33334.2(e).

3.

The County's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down-payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.

4.

The County's proportionate share of appreciation shall be equal to the ratio of the County's initial subsidy to the fair market value of the home at the time of initial sale.

(Ord. No. 4062, § 1, 9-10-13)