27.090 Density Bonus Housing Agreement.
A. Applicants for a density bonus, incentive or concession shall enter into a density bonus housing agreement (agreement) with the city, approved by the city council.
B. Following execution of the agreement by all parties, the completed agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed housing development, if the housing development is off site.
C. The agreement shall be processed concurrently with the associated entitlements, but approval of those entitlements may be approved prior to and conditioned upon city council approval of the agreement and subsequent recordation.
D. The agreement shall run with land to be developed and/or the alternative site for the proposed housing development and be binding on all future owners and successors in interest and shall include, at a minimum, the following:
1. The total number of units approved for the development, including the number of restricted affordable units.
2. A description of the household income group to be accommodated by the restricted affordable units, and the standards for determining the corresponding affordable rent or affordable sales price.
3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the restricted affordable units.
4. Term of use restrictions for restricted affordable units of at least 30 years for low and very low units.
5. A schedule for completion and occupancy of restricted affordable units.
6. A description of any concession or incentive being provided by the city.
7. A description for remedies of breach of the agreement by either party (the city may identify tenants or qualified purchasers as third-party beneficiaries under the agreement).
8. Other provisions to ensure implementation and compliance with this chapter.
E. In the case of for-sale housing developments, the density bonus housing agreement shall provide for the following conditions governing the initial sale and use of restricted affordable units during the applicable use restriction period:
1. Restricted affordable units shall, upon initial sale, be sold to eligible moderate income households at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing) as defined by this chapter.
2. Restricted affordable unit shall be initially owner-occupied by eligible moderate income households or by qualified residents in the case of senior citizen housing.
3. The initial purchaser of each restricted affordable unit shall execute an instrument or agreement approved by the city restricting the sale of the restricted affordable unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the restricted affordable unit and shall contain such provisions as the city may require ensuring continued compliance with this chapter and the state density bonus law.
F. In the case of rental housing developments, the density bonus housing agreement shall provide for the following conditions governing the use of restricted affordable units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining restricted affordable units for qualified tenants.
2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter.
3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying restricted affordable units, and which identifies the bedroom size and monthly rent or cost of each restricted affordable unit. (Ord. 2696 § 2, 2019.)