§ 26-89-080. Ownership Unit Occupancy and Long-Term Restrictions

Each affordable ownership unit constructed in compliance with this Article shall comply with all of the requirements of this Section.

A.

Ownership unit occupancy requirements.

1.

Eligibility requirements. An affordable housing unit shall be sold, and to the extent required by Subsection D (Affordable Housing Agreement required), resold, only to a household certified by the CDC as extremely-low, very low-, low-, or moderate-income, and where applicable as a senior, disabled or large family household, as designated by the terms of project approval, and which also complies with all of the following requirements.

a.

The purchaser shall be an eligible household as defined by the CDC and specified in the Sonoma County Affordable Housing Program Homeownership Policies, available at the offices of the CDC.

b.

The purchaser shall reside in the unit as their principal residence and may not rent the unit in its entirety to another party.

2.

Buyer certification and selection. Affordable housing units shall be sold, and to the extent required by Subsection D. below resold, only to households certified by the CDC as satisfying eligibility requirements specified in Subparagraph A. 1., above, and in compliance with all of the following procedures:

a.

Initial buyers eligible to purchase affordable housing units shall be selected by the developer in compliance with a marketing program approved, in advance, by the Executive Director of the CDC. Subsequent buyers shall be selected by the CDC in compliance with the Sonoma County Affordable Housing Program Homeownership Policies, available in the offices of the CDC.

b.

The marketing program shall identify and detail an equitable selection process to be used for the marketing and sale of the affordable units.

c.

Selection criteria may include household income and assets, household size, and, in cases where units are dedicated for low-income senior, disabled, or large family households, the size or special needs features of the available unit(s).

3.

Preferences. Preference in the sale of affordable housing units shall be given first to persons currently employed in the County, and then to current County residents, to the extent allowed by law.

B.

Ownership units - sales price restrictions. Affordable ownership units as designated in the terms of project approval shall be offered at sales prices that are considered affordable to very low-, low-, or moderate-income households, as applicable, as defined in Section 26-02-140. CDC shall calculate sales prices for each of these income categories in compliance with the Sonoma County Affordable Housing Program Homeownership Policies, available at the offices of the CDC.

C.

Affordable Housing Agreement required.

1.

The CDC shall record an Affordable Housing Agreement with the eligible buyer concurrently with the recording of each grant deed transferring title to an affordable unit subject to this Section to an eligible household. The Affordable Housing Agreement shall provide the CDC, for the term specified in Subparagraph D.5., below, with a first right to purchase the unit upon resale in compliance with the Sonoma County Affordable Housing Program Homeownership Policies, available at the offices of the CDC.

2.

The Affordable Housing Agreement shall permit CDC to assign its rights to purchase the unit under the Agreement to an eligible buyer to purchase the unit.

3.

In all cases where the CDC exercises or assigns its rights to purchase the unit, the unit shall be conveyed to or purchased by an income-eligible buyer in compliance with the designation of the unit in project approvals and as determined by the CDC in compliance with the Sonoma County Affordable Housing Program Homeownership Policies, available at the offices of the CDC.

4.

The Affordable Housing Agreement shall contain provisions further restricting the resale of an affordable ownership unit to the extent required by the Sonoma County Affordable Housing Program Homeownership Policies, available at the offices of the CDC.

5.

The Affordable Housing Agreement for each affordable ownership unit shall reserve the unit for purchase by the CDC or its assignee and for resale only to eligible households, as defined by this Section and the project approvals, for a minimum term of 30 years, or for a longer time if required by the project approvals, construction or mortgage financing assistance program, or mortgage insurance program. A new term shall commence on the recording date of each new Affordable Housing Agreement recorded concurrently with a grant deed transferring title of the designated unit to an eligible household.

D.

Alternative financing programs and affordability guarantees.

1.

Where the Executive Director of the CDC determines, after consultation with County Counsel, that one or more Federal, State, and/or local financing programs applicable to a project will achieve results that are equivalent to, or more restrictive than the affordability and/or financing requirements of this Section and the Sonoma County Affordable Housing Program Homeownership Policies, and that the financing programs otherwise comply with applicable Federal, State and local laws, the Executive Director may authorize the relevant provisions of those programs to replace or supersede the affordability and/or financing requirements of this Section and the Sonoma County Affordable Housing Program Homeownership Policies.

2.

When authorized by the Executive Director of the CDC in compliance with Subparagraph D.1., the Affordable Housing Agreement required by Section 26-89-100 for a project shall incorporate the affordability and/or financing provisions of the relevant Federal, State, and/or local programs, that will replace the corresponding or similar requirements of this Section and the Sonoma County Affordable Housing Program Homeownership Policies. The CDC shall record an Affordable Housing Agreement in compliance with Subsection C., above, for each unit sold under this Subsection (D).

E.

Administrative fees. The CDC may collect an administrative fee, as the Board may establish from time to time, at close of escrow of the sale and resale of each affordable ownership unit, to recover the costs of its obligation under this Section.

(Ord. No. 6085, § IV(Exh. C), 10-7-2014)