Very low, low, and moderate income units in housing developments qualified for a density bonus that are located in or found by the housing authority to benefit a former redevelopment project area shall remain at an affordable level for a period of not less than forty-five years for owner occupied units, and not less than fifty-five years for rental units, in accordance with applicable provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.). Upon resale, the city shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The equity sharing agreement shall include the following provisions:
A.
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 as defined in subsection B of this section, and its proportionate share of appreciation, as defined in subsection C of this section, which amount shall be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e).
B.
The city's initial subsidy shall be equal to the fair market value of the home at the time of the initial sale minus the initial sale price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.
C.
The city's proportionate share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the home at the time of initial sale.
(Ord. 25-1129, 2/18/2025)