“Administrative Regulations” means regulations that implement this chapter authorized by the City Manager or designee pursuant to CVMC 19.93.020.

“Affordable Housing Cost” shall have the meaning set forth in California Health and Safety Code Section 50052.5 and the attendant Administrative Regulations.

“Affordable Unit” means a unit restricted for sale to very low-Income, Low-Income or Moderate-Income Households and sold at an Affordable Housing Cost.

“AMI” shall have the same meaning as “area median income” set forth in California Health and Safety Code Section 50093.

“City” means the City of Chula Vista.

“Developer” means any person obligated to provide Affordable Units as part of a Development.

“Development” means a Project that contains residential dwelling units.

“Eligible Household” means any person meeting the criteria set forth in any City-imposed requirements applicable to an Affordable Unit.

“Equity” means the difference between, the unrestricted fair market value of the Affordable Unit on the date of the first resale of the Affordable Unit, as determined by an appraisal approved by the City, minus the sum of: (1) the original unrestricted fair market value of the Affordable Unit at the time of its acquisition by the Eligible Household; plus (2) the actual costs of any City-approved improvements to the Affordable Unit; and (3) the down payment. If the foregoing calculation of Equity results in a negative number, then the Equity shall be deemed to be zero.

“First-Time Homebuyer” means no member of the Household has had Ownership anywhere, other countries included, during the three-year period prior to the date of application.

“Homebuyer” means the Eligible Household who has entered into a Value Recapture Agreement with the City.

“Household” means all persons who have resided together for at least one year (except in the case of a newborn child) and will continue to reside in the residence being purchased. A Household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit.

“HUD” means the United States Department of Housing and Urban Development.

“Income” means the gross amount of all Income for all applicants and adult Household members that is to be received during the coming 12 months, as defined by HUD’s technical guide for determining Income and allowances, including all Income derived from any source, including but not limited to wages (gross pay), overtime, pensions, military service connected disability/veteran’s compensation, bonuses, public assistance, social security Income, alimony, child support, adoption support, foster care support, dividends and interest.

“Initial Benefit” means the difference between the sale price and the unrestricted fair market value of the Affordable Unit at the time of purchase.

“Low-Income Household” or “Lower-Income Households” has the same meaning as “lower income households” set forth in California Health and Safety Code Section 50079.5, as amended.

“Moderate-Income Household” has the same meaning as “persons or families of low or moderate income” set forth in California Health and Safety Code Section 50093, as amended.

“Ownership” means any of the following interests in residential real property: fee simple interest, joint tenancy, tenancy in common, interest of a tenant-shareholder in a cooperative, life estate interest held in trust for the applicant that would constitute a present Ownership interest if held by the applicant. Ownership does not include a remainder interest, a lease with or without an option to purchase, or any interest acquired on the execution of the purchase contract.

“Principal Residence” means the primary home which all of the Homebuyers reside in for not less than 10 months out of each calendar year.

“Underwriting” means the process by which a lender determines whether an applicant is eligible to receive a loan.

“Value Recapture Agreement” means an agreement by and between the City and the Homebuyer recorded against the Affordable Unit in the official records of the County of San Diego, which satisfies the requirements of this chapter. (Ord. 3572 § 2, 2024).