SR 06:078 - Laserfiche WebLink

. The seven affordable units will be subject to restrictive covenants restricting future sales prices for perpetuity. The City will conduct a public lottery to identify purchasers for theses units. Selection will be consistent with the City Preference System. The developer will reimburse the City for the cost of application processing. . The developer will use commercially available efforts to market and sell the affordable by design units to households consistent with a condensed preference system and require, excepting a "hardship", that the units be owner occupied for a period of one year. Section F of the Agreement details "hardship" situations that will permit an owner to sell within this timeframe. . The affordable units will be of high quality as the market rate units and dispersed throughout the development. Based on these requirements, the development meets the requirements of the Inclusionary Zoning Ordinance including assuring that 15% of the units are affordable for perpetuity, Staff has set the sales price consistent with a formula that assures these units are affordable to the target households. Staff expects the City will utilize consultant services to process the sale of the seven affordable units. Consultant services were utilized for the Bernal homes and staff was satisfied with the results. The seven affordable units will be subject to the City's Home Ownership Assistance Program documents which includes a Restrictive Covenants, Resale Restrictions, and Option to Designate Eligible Purchasers document that includes the following: The units must be owner occupied Buyers must be first time homebuyers which is defined as "a household where not more than one member of the household has held an interest in residential property provided no member of the household has been the sole owner of residential property. For a single head of household, the homebuyer must not have been a sole owner of residential property." Buyers must be income qualified Resale restrictions requiring the property to be sold to income qualified first-time homebuyers Resale pricing is restricted by increases to the Area Median Income The units must be adequately maintained and the City has the right to inspection The City has a first right to purchase the units at resale as a means of transferring to an eligible buyer The City may designate an eligible purchaser A any future second mortgage, home equity loan or line of credit will be limited to no more than 90% of the maximum allowable sales price The applicant is required to acquire private mortgage financing for the home purchase SR 06:078