Compton City Zoning Code
§ 30-47.8
Enforcement of Affordability.
[Ord. #2163, § 1]
a.
Low and Very Low Income: Covenant for 30 Years. A covenant or other document satisfactory to the City Attorney shall be recorded before issuance of a Building Permit, which shall ensure that the low- and very low-income density bonus units are at all times rented or sold to, and remain affordable at, the applicable income level for at least 30 years. If the Compton Redevelopment Agency provides financial assistance to the developer of the project, a longer term of affordability may apply.
b.
Moderate Income: Equity-Sharing. A covenant or other document satisfactory to the City Attorney shall be recorded before issuance of a Building Permit, which shall ensure that the moderate-income density bonus units are initially occupied by persons or families at a moderate income level. Moderate-income units may be offered for subsequent sale to an above moderate-income purchaser; provided that the sale shall result in equity-sharing of a financial interest in the unit with the City, or its designee.
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. The City shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for affordable housing purposes.
2.
The City's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sales price to the moderate-income household, plus the amount of any publicly-assisted down payment or mortgage assistance. If upon resale, the market value is lower than the initial market value, then the value at the time of resale shall be used as the initial market value.
3.
The City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of the initial sale.
c.
Forfeiture of Funds. Any individual who rents units in violation of this section shall be required to forfeit all rents above the applicable affordable rate; any individual who sells a unit in violation of this section shall be required to forfeit all profits from the sale exceeding the difference between the sale price and the applicable affordable sales price. Recovered funds shall be deposited to the City of Compton Housing Trust Fund.