The applicant of a residential or mixed-use development project approved pursuant Chapter 17.38 or Chapter 17.42 shall agree to construct, operate and maintain affordable units in accordance with an affordable housing agreement with the city or the city's designee. The affordable housing agreement shall be executed in a recordable form prior to the issuance of a building permit for any portion of a housing development subject to the requirements of Chapters 17.38 and 17.42. The affordable housing agreement shall be recorded and binding upon all future owners and successors in interest.
(A) Review. The form and substance of the affordable housing agreement shall be in form and content acceptable to the Director and City Attorney.
(B) Fees. The City Council may establish by resolution fees associated with the setting up and monitoring of the affordable housing agreement.
(C) Contents. The affordable housing agreement shall include at least the following terms:
(1) Identification of affordable units. The agreement shall identify the total number of affordable units and the total number of units approved for the housing development. Affordable units shall be identified by address or unit number within a single address and legal description, type (floor area, number of bedrooms/baths, etc.), and designated household income category. The affordable housing agreement shall also identify the total number of affordable units and total number of units required for the housing development, and shall specify that affordable units shall be completed on the same schedule as similarly located market rate units.
(2) Term of affordability. Unless specified elsewhere in this title or in federal, state, or local law, affordable units shall be subject to a minimum term of 55 years for rental units and 45 years for for-sale units at the designated household income category. Such reservation period shall begin on the date a certificate of occupancy is granted for each affordable unit.
(3) Density bonus projects. For density bonus projects subject to Chapter 17.38, all information provided in the density bonus application pursuant to § 17.38.050 shall be included in the agreement.
(4) Maximum allowable rent or sales price.
(a) Rental unit projects. In the case of rental housing developments, the affordable housing agreement shall provide for the following conditions governing the use of the affordable housing units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the affordable units for qualified tenants.
2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with Chapters 17.38 and 17.42.
3. Provisions requiring owners to submit an annual report to the city, which includes the name, address and income of each person occupying each affordable unit, and which identifies the bedroom size and monthly rent or cost of each affordable unit.
4. Determination of rent. A maximum rent schedule shall be submitted to the city prior to the issuance of an occupancy permit for the affordable units, and updated annually on the anniversary date of occupancy.
5. Deposit amount. Total move-in costs for eligible tenants occupying affordable units shall be limited to first month's rent plus a security/cleaning deposit not to exceed one month's rent.
6. Upward mobility allowance. When a tenant occupying an affordable unit no longer qualifies under the income requirements, verified through the monitoring program required as part of the affordable housing agreement, that tenant may then be charged market rate rent. If this occurs, any currently vacant unit of similar type to the affordable unit in question or, if no vacancies exist at the time of the conversion, the next market rate unit that becomes available, shall then immediately be designated as an affordable unit, and the owner shall immediately attempt to secure tenants in accordance with Chapters 17.38 and 17.42
. The owner is required to maintain at all times during the use restriction the minimum number of affordable units identified in the affordable housing agreement.
7. Subletting of affordable units. No subletting or short-term occupancy of designated affordable units shall be allowed.
(b) Ownership unit projects. In the case of for-sale residential developments, as a condition of approval of the residential development, the city affordable housing agreement shall include the following additional conditions governing the initial sale and use of affordable units during the applicable use period:
1. Affordable units shall be sold to eligible very low-income, low-income or moderate-income households at an affordable sales price and housing cost, or to qualifying residents in the case of a senior citizen housing development.
2. Affordable units shall be owner-occupied by eligible very low-income, low-income or moderate-income households, or by qualifying residents in the case of a senior citizen housing development.
3. The initial purchaser of each affordable housing unit shall execute an affordable housing agreement approved by the Director and City Attorney restricting the sale of the affordable housing unit in accordance with Chapters 17.38 and 17.42 during the applicable use restriction period. Such agreement shall be recorded against the parcel containing the affordable housing unit, shall run with the land for the term of the restriction, and shall contain such provisions as the city may require to ensure continued compliance with Chapters 17.38 and 17.42.
4. The affordable housing agreement shall stipulate that, when the terms of affordability expire on an affordable unit, the city and/or a qualified nonprofit housing organization identified by the city shall have a first right of purchase option 60 days prior to the affordable unit being advertised on the market.
5. For density bonus projects subject to Chapter 17.38, the affordable unit is subject to an equity sharing agreement that complies with Cal. Gov't Code § 65915(c)(2), as may be amended from time to time, unless such requirement conflicts with another public funding source or law, in which case the agreement may defer to the recapture provisions of that funding source.
6. Leasing, subleasing, or other non-owner occupancy of affordable ownership units shall be prohibited, unless expressly authorized by the city or the city's designee under limited circumstances.
7. Affordable units shall be completed on the same schedule as similarly located market rate units.
(5) Monitoring of compliance with agreement. A monitoring program shall be required, specifying the party responsible for certifying tenant incomes and sales/rental price, maintaining the required number of affordable units for the property, marketing and filling unit vacancies. The owner or applicant shall be required to comply with the city's monitoring and compliance activities.
(6) Remedies. Description of remedies for breach of the affordable housing agreement by either party (the city may identify tenants or qualified purchasers as third-party beneficiaries under the agreement).
(7) Description of density bonus. A description of the density bonus, concessions or incentives, waivers, and/or reduced parking requirements, if any, being provided by the city.
(8) Schedule. A schedule for completion and occupancy of the affordable units.
(9) Other provisions. Other provisions deemed necessary by the Director or the City Attorney to ensure implementation and compliance with Chapters 17.38 and 17.42
.
(Ord. 2025-09 § 17, 2025)