1. The purposes of this chapter are to:
   1. Provide requirements, guidelines, and incentives for the construction of housing affordable to moderate income households in Oakley City;
   2. Implement the affordable housing goals, policies, and objectives contained in Oakley City General Plan;
   3. Ensure a wide variety of affordable housing options and opportunities for residents, seniors, workers, and special needs individuals in Oakley City;
   4. Maintain a balanced community that provides housing for people of all income levels; and
   5. Implement planning for affordable housing as required by state code.

1. Affordable Housing Needs: The City, in conjunction with Mountainlands Community Housing Trust, or another community local housing nonprofit agency shall adopt a needs assessment model to determine the need for affordable housing, types of housing, special needs, and specific incomes to be targeted in Oakley City. The model shall be utilized to update the needs assessment no less than once every five (5) years, unless requested sooner by the Planning Commission or City Council.
2. Base Requirement: There shall be a base requirement to provide affordable housing as per this chapter throughout all zones of Oakley City. The base requirement shall apply to all new residential, commercial, and mixed-use development, and shall be calculated using affordable unit equivalents (AUEs).
3. Exemptions: The following developments shall not be required to provide additional affordable housing:
   1. The construction of accessory dwelling units in or abutting single-family residences.
   2. The construction of a single-family residence on an existing lot of record.
   3. The expansion of an existing residence.
   4. The construction of schools, churches, public facilities, and other institutional uses.
   5. A change or expansion of an existing commercial use which is less than a fifteen percent (15%) increase in the existing structure gross square footage or total project square footage, but no greater than five thousand (5,000) square feet; this is a onetime exemption.
   6. The first five thousand (5,000) square feet of a new commercial use; this is a onetime exemption.
   7. A change or expansion of an existing commercial use which is less than a fifteen percent (15%) increase of the existing total acreage but no greater than two (2) acres, if the use is primarily outdoors; this is a onetime exemption.
   8. A change in use which does not increase the employee generation by more than two (2) employees per one thousand (1,000) square feet. See Section 13-6-6 B.
   9. A subdivision consisting of eight (8) or less lots; this is a onetime exemption.
4. Definitions: Affordable for Sale Housing: Housing that is priced affordable to households with incomes at or below 80% of AMI. Affordable Housing Cost: Monthly housing costs that consume no more than 30 percent of a household’s income. Housing costs include rent or mortgage, basic utilities, and any Homeowners or Condo Association dues. Affordable Housing Unit or Housing Unit: Dwelling units that are deed restricted to the housing size and type for individuals meeting occupancy guidelines approved by the Oakley Council. Affordable Rental Housing: Housing that is priced affordable to households with incomes ranging from 50% to 80% of AMI. Area Median Income (AMI): The amount of income which divides the income distribution of the area (South Summit School District) into two (2) equal groups, half having income above that amount, and half having income below that amount as determined by the US Department of Housing and Urban Development (HUD) or using methodology as determined by the Oakley City Council. Attainable Housing: Housing that is priced affordable to households with incomes between 81 and 150 percent of AMI. Deed Restriction: A contract entered into between Oakley City or a local housing nonprofit agency and the owner or purchaser of real property identifying the conditions for occupancy and resale. Household: All individuals that are or will be occupying a unit regardless of legal status. Housing costs: Monthly housing costs that consume no more than 30 percent of a household’s income. Housing costs include rent or mortgage, basic utilities, and any Homeowners or Condo Association dues. Housing Unit: See Affordable Housing Unit. Household Income: Combined income of all individuals, excluding dependents, who are or will be occupying the unit regardless of legal status. Adjustments to the gross for business expenses can be made for persons who are self-employed. Median Lot Size: Half of all lots in the development are larger, and half are smaller.

1. Affordable Housing Agreement: All developments containing affordable units shall enter into a development agreement with Oakley City which will contain all aspects and requirements of a binding Housing Agreement. The development agreement shall be recorded against all parcels and units identified as affordable in the development, and shall include the following:
   1. Identification of the units to be deed restricted as affordable housing, including, but not limited to, unit or tax ID number and/or address, square footage, location, and style of unit.
   2. A specification of allowed starting sales and/or rental price(s), price increase methodology, target household size and target income range for each unit.
   3. Management plan for the affordable units, including the process for buyer qualification to ensure that employees working and living within the South Summit School District boundary are given priority. The management plan shall conform to a template to be provided by Oakley City.
   4. A copy of the approved deed restriction or document to assure affordability to be recorded against the individual affordable units.
   5. A good faith marketing plan for the units. All sellers or owners of deed restricted affordable units shall engage in good faith marketing efforts each time a deed restricted unit is rented or sold such that members of the public who are qualified to rent or purchase such units have a fair chance of becoming informed of the availability of such units. A public marketing plan shall be submitted by the developer prior to the initial sale or lease of the units.
2. Affordable units shall meet all of the following criteria:
   1. Design to Be Consistent with Character of Neighborhood: The specific unit type and design shall be consistent with the character of the surrounding neighborhood and/or development. If the development contains both market rate and affordable units, the exterior design, look and feel, and finishes of affordable units shall match the exterior design, look and feel and finishes of market rate units in the development. Interior finishes may differ between affordable and market rate units.
   2. Compliance with Development Standards Required: Affordable housing units shall comply with all the development standards outlined in this Title and shall comply with the requirements of the underlying zone, with the exceptions outlined in this chapter.
   3. Minimum Size: The minimum size of an affordable housing unit shall be based on the category of unit, as outlined in section 13-6-4, "Affordable Unit Equivalents (AUEs)", of this chapter.
   4. Concurrent Construction: The affordable housing component in a development shall be constructed concurrently with the rest of the development. Each phase of a project must contain a proportionate amount of the required affordable housing. This applies to both on-site and off-site housing.
   5. Construction Within Development Site: The affordable housing component of a development shall be constructed within the development site, except as outlined in this chapter.
   6. Residential Parking: Residential parking shall meet all the requirements of Section 13-9-22.
   7. Variation of Prices: The affordable units shall be provided in a variety of prices so that multiple income levels below 80% AMI, as outlined in section 13-6-12 of this chapter, are targeted. No one target income level may make up more than seventy five percent (75%) of the affordable units, except in cases where the total number of affordable units provided is ten (10) or fewer, or where the land use authority determines that a different unit mix is compatible with the proposed development, or where all units are approved to be located in a single structure.
   8. Variation of Sizes and Styles: The affordable units shall be provided in a variety of sizes and styles, as outlined in subsection 13-6-4C of this chapter. No one size or style of unit may make up more than seventy five percent (75%) of the affordable units, except in cases where the total number of affordable units provided is ten (10) or fewer, or where the land use authority determines that a different unit mix is compatible with the proposed development, or where all units are approved to be located in a single structure.
   9. Compatibility: To allow for the structures to be compatible with market homes within the subdivision and the existing neighborhoods, the homes constructed can be multi-family to avoid having smaller homes within a larger home community. Such multi-family structures shall contain no more than three (3) units per structure and shall be designed in such a manner that they appear to be one detached single-family home consistent with the adjacent larger homes. Multi-family structures shall be subject to all permitting requirements in chapter 3 of this Title.
   10. Minimum Length of Time: The minimum length of time for a unit to be deed restricted as an affordable unit shall be sixty (60) years as measured from issuance of certificate of occupancy, which may be renewed at the City’s option for additional terms in increments of ten (10) years.
   11. Rentals: On projects where rentals are approved by the City, all deed restricted rental units shall be rented for a minimum period of ninety (90) consecutive days. Nightly and weekly rentals shall be prohibited.
       1. Exemption: Special needs emergency/transitional/athlete/employee housing shall be exempt from the ninety (90) day limitation, but shall be rented for a sufficient period to prevent nightly and weekly rentals. To qualify for the exemption, there must be a quantified, demonstrated need for the emergency/transitional/athlete/employee housing within the City boundaries, and the housing must be developed in collaboration with a City approved organization. The housing must satisfy all other requirements of this chapter.
   12. For Sale Units: The maximum initial sales price or rent of an affordable unit shall be limited to a price that is affordable to Moderate Income Households, and to any specific AMI targets as outlined in the development agreement approval for Oakley City each year, and annual appreciation shall be limited through a deed restriction to ensure that the unit remains affordable over time. Notwithstanding this provision, the deed restrictions may provide for sales or rental to higher income households in the event the unit is not sold or rented within a reasonable time.
   13. Net Income Limitations: In addition to the net income limit, qualifying households are limited to a net worth of four (4) times the AMI.
   14. Master Leases: A qualified nonprofit organization, or employer desiring to provide qualifying employees with affordable housing, may purchase or lease existing affordable units when a master lease program is approved by the City, whereby the nonprofit organization or employer will rent or lease the units to qualifying employee households. A management plan shall be approved by Oakley City and recorded against the affordable units as part of, or an amendment to, a housing agreement.
   15. Housing Availability: In an effort to ensure that the affordable housing is available for qualified individuals:
       1. All renters of affordable units will be required to certify annually to the City, or its designee, that they still qualify for the targeted percentage of AMI. At the City’s discretion, tenants current income will be allowed to increase up to 1.5 times above the initial limit to account for raises or promotions, etc. If a renter no longer qualifies for the housing, their lease will not be renewed and the property will then be made available to a qualifying renter.
       2. If a for sale unit owner's household's income increases to an amount above the targeted percentage of AMI while occupying an affordable unit, the household shall not be required to sell the unit. Upon vacating the premises naturally, a for sale unit shall be sold pursuant to the terms of the deed restriction.
   16. Priority in Obtaining Units: Households currently living or working in Oakley City shall have priority in obtaining affordable units, through a selection process determined by the City Council, subject to compliance with federal and state fair housing requirements. If there is not an immediate need of an Oakley household, priority will then go to a household in the South Summit School District boundaries. The next availability layer would then progress to households in the region of Eastern Summit County.
   17. Deed Restriction Approval: A deed restriction shall be approved by the City and recorded on all affordable dwelling units. A template restriction approved by the City Council shall be used for all new affordable units, unless substitute restrictions setting forth substantially the same information are provided by a community-oriented housing nonprofit group for units they develop, and if the substitute restriction is approved by the City Council. Such substitute restrictions may include the use of a community land trust or management by a local housing nonprofit to ensure long term control and stewardship. The deed restriction templates shall be reviewed periodically, and shall at a minimum outline the following:
       1. Income and net worth qualification,
       2. Term of applicability,
       3. Assignable City right of first refusal,
       4. Allowable capital improvements,
       5. Maintenance,
       6. Occupancy requirements
       7. Rental and sales policies,
       8. Starting sales and rental prices,
       9. Allowable annual price increase,
       10. Reporting and monitoring structures,
       11. Management,
       12. Enforcement provisions.
   18. Modification of Restrictions: These restrictions may be modified to satisfy state and/or federal requirements, if a project receives state and/or federal funding that requires modifications.
   19. Certification: All for sale and rental affordable units shall be certified at the time of establishment by an independent qualified evaluator, at a minimum, Energy Star or its equivalent energy efficient certification.

1. Affordable Unit Equivalents (AUEs): All new development, not exempt from this chapter shall be required to provide a certain number of affordable unit equivalents (AUEs), as outlined in this chapter. To encourage the provision of smaller more affordable units, the cumulative total square footage required decreases for smaller units and increases for larger units.
2. AUE Defined: "AUE" is defined as a "two (2) bedroom unit with nine hundred (900) square feet of net livable space, measured exterior wall to exterior wall". Multiple smaller units together may constitute one AUE, or fewer larger units, according to the conversion in subsection C of this section.
3. AUE Conversions:
   1. Dormitory unit:
      1. Minimum size = 150 square feet per bed
      2. 1 AUE = 5 beds (1 bed = 0.2 AUE)
      3. Example: 8 AUEs = 40 beds
         1. 8 x 5 = 40, or
         2. 8 ÷ 0.2 = 40
   2. Single room occupancy (SRO) unit:
      1. Minimum unit size = 275 square feet
      2. 1 AUE = 2.75 units (1 unit = 0.3636 AUE)
      3. Example: 8 AUEs = 22 units
         1. 8 x 2.75 = 22, or
         2. 8 ÷ 0.36 = 22
   3. Studio unit:
      1. Minimum unit size = 400 square feet
      2. 1 AUE = 2.0 units (1 unit = 0.5 AUE)
      3. Example: 8 AUEs = 16 units
         1. 8 x 2.0 = 16, or
         2. 8 ÷ 0.5 = 16
   4. One-bedroom unit:
      1. Minimum unit size = 650 square feet
      2. 1 AUE = 1.25 unit (1 unit = 0.8 AUE)
      3. Example: 8 AUEs = 10 units
         1. 8 x 1.25 = 10, or
         2. 8 ÷ 0.8 = 10
   5. Two (2) bedroom unit:
      1. Minimum unit size = 900 square feet
      2. 1 AUE = 1 unit
      3. Example: 8 AUEs = 8 units
         1. 8 x 1 = 8, or
         2. 8 ÷ 1 = 8
   6. Three (3) bedroom unit:
      1. Minimum unit size = 1,150 square feet
      2. 1 AUE = 0.80 unit (1 unit = 1.25 AUEs)
      3. Example: 8 AUEs = 6.4 units
         1. 8 x 0.80 = 6.4, or
         2. 8 ÷ 1.25 = 6.4
   7. Four (4) bedroom unit:
      1. Minimum unit size = 1,400 square feet
      2. 1 AUE = 0.70 unit (1 unit = 1.43 AUEs)
      3. Example: 8 AUEs = 5.6 units
         1. 8 x 0.70 = 5.6, or
         2. 8 ÷ 1.43 = 5.6
4. AUE Application:
   1. Dormitory and SRO units shall only be permitted to meet the requirement for commercial and resort uses, and shall not be permitted in single-family residential neighborhoods.
   2. If units are provided that are larger than the minimum size outlined in subsection C of this section, the number of units per AUE may be reduced, but:
      1. In no case may the reduction exceed a total of ten percent (10%) of the obligated AUEs for a development, and
      2. In no case may the credit per unit exceed one hundred fifty (150) square feet per dormitory unit, SRO, studio, or one-bedroom unit, and
      3. For multiple bedroom units, in no case may the additional square footage credited toward the AUEs exceed one hundred fifty (150) square feet multiplied by the number of bedrooms.
5. Fractional Obligation: If the total number of required AUEs contains a decimal, and the units provided do not account for the entire decimal, then the developer shall pay a fee in lieu for the remaining fractional obligation only. In no case shall the number of AUEs provided be less than the whole number portion of the obligation.
   1. Example: If a developer has an obligation of 13.4 AUEs, and 13.2 AUEs are provided, a fee in lieu shall be paid for the 0.2 remainder, as outlined in section 13-6-9 of this chapter. In this case the number of AUEs provided may not be less than thirteen (13), the whole number portion of the obligation.
6. Reductions in Requirement: Developers may be granted the option of only one of the following reductions:
   1. If a developer provides all the required affordable housing up front (prior to the first certificate of occupancy for the market portion of the development), the number of required AUEs may be reduced by up to twenty five percent (25%) at the discretion of the land use authority.
   2. If a developer provides the required affordable housing in such a manner that the average household income targeted does not exceed fifty percent (50%) of the area median income (AMI), the number of required AUEs shall be reduced by twenty five percent (25%).
   3. If a developer provides the required affordable housing in such a manner that the average household income targeted does not exceed forty percent (40%) of the area median income (AMI), the number of required AUEs shall be reduced by forty percent (40%).
   4. If a developer provides the required affordable housing in such a manner that the average household income targeted does not exceed thirty percent (30%) of the area median income (AMI), the number of required AUEs shall be reduced by fifty percent (50%).

1. Obligation Rate: All new residential development subject to this chapter shall be required to develop or ensure the development of affordable housing at a rate as determined by a local Affordable Housing Needs or Nexus study. Such studies shall be done periodically to update the housing obligations of the Oakley City area or region. Using the most recent Affordable Housing Nexus Study prepared by Mountainlands Community Housing Trust in 2018, the housing demand for households that earn up to 80% of the AMI (Median Income) as a percent of market rate development for the Eastern Summit County area was 14.9 percent. This number is initially rounded up to fifteen percent (15%) for ease of calculation of the units in a proposed development (the future obligation rate shall be determined in the most recent approved Affordable Housing Needs or Nexus study). The required percent of affordable housing obligation shall be met concurrently with the construction of market rate units. The residential exemption of the first eight (8) lots is a onetime exemption and applies only to the first phase of multi-phase subdivisions.
   1. Calculation of Required AUEs: The total number of allowed market rate units shall be multiplied by the current approved obligation rate (initially set at 15%). The resulting number shall represent the total number of AUEs required of the project, shall be provided in addition to the allowed market rate units in the project, and shall not count against the allowed density of the project.
   2. Expansion: When existing development applies for additional units, the obligation rates shall be calculated on the net unit increase only.
2. Example: Example calculation for residential development requirement: Number of allowed market units in example development = 23 Assessable Base = 23 – (8 lot exemption) = 15 units Obligation rate = 15 x 15% = 2.25 Total AUEs required = 2.25 Total units permitted: 23 market + 2.25 affordable = 25.25 units Result: 25 units, fee in lieu for 0.25
3. Development of For Sale Lots: In projects developing for sale lots subject to this chapter, where the developer does not construct units on the lots but requires the purchaser to do so, the developer shall be required to create lots for the development of affordable housing at a rate of fifteen percent (15%) of the total approved market rate lots in the development.
   1. The affordable lots may be donated to City approved organization for the development of affordable housing on the lots. Utilities, curb and gutter, water shares and/or rights, and other necessary improvements shall be completed and provided by the developer so that an approved housing nonprofit organization receives a construction ready lot free and clear of all encumbrances. All required fees, such as special service fees, water shares and/or rights, impact fees but excepting building and planning fees, shall be paid by the developer of the project prior to donation of the lots, unless otherwise agreed to in writing by a nonprofit organization.
   2. The smallest affordable lot shall be no smaller than fifty percent (50%) of the size of the median market rate lot in the development.
   3. The affordable lots and units shall be located throughout the development and not clustered into the development. The land use authority shall have the discretion to modify this provision if they find that the development of affordable housing and the overall project will be enhanced by the non-integration of the affordable units based upon the design of the project, the type and size of the affordable housing provided and the character of the surrounding neighborhood.

1. Obligation Rate: For new commercial development subject to this chapter, or expansion of existing commercial development, an applicant shall be required to develop or ensure the development of affordable housing to meet fifteen percent (15%) of the employee housing demand generated by the new development (future obligation rates shall be determined in the most recent approved Affordable Housing Needs or Nexus study).
2. Employee Generation: "Average employee generation", defined as full time equivalents (FTEs, 2,080 hours) per one thousand (1,000) net leasable square feet, (as detailed in the 2018 Affordable Housing Nexus Study for Summit County area) is established as follows:
   
   EMPLOYEE GENERATION BY TYPE OF USE
   

   TYPES OF USE	FTEs
   Professional Office	2.6
   Medical Office	4.4
   Restaurant	3.3
   Retail	1.8
   Hotel (employees per room)	0.5 per room
   Manfacturing	0.0

3. Independent Calculation: If the applicant can make a persuasive argument as to why the City's adopted calculation is not relevant or does not apply, an applicant may submit an independent calculation of the number of employees to be generated by a proposed development, to be used in place of the employee generation table, subject to the following requirements:
   1. The City shall create a pool of approved entities, persons, or groups to conduct independent calculations. The pool shall be chosen from on a strictly rotational basis; each subsequent application requesting an independent calculation shall be assigned to the next entity, person, or group on the approved list.
   2. The land use authority shall make the final determination of whether or not the calculation constitutes compelling evidence of a more accurate calculation of employee generation than the "Employee Generation by Type of Use" table of this section.
   3. Should the independent calculation not be accepted, then the applicable generation factor from the employee generation table shall be applied to the proposed development.
   4. Any acceptance of an independent calculation shall be site and use specific, nontransferable, and be memorialized in the housing agreement for the property, which shall be executed prior to the issuance of any building or development permits.
4. Calculation of Required AUE(s): Required AUEs for commercial development shall be calculated using the following formula:
   
   Formula: (Employee generation x square footage) ÷ 1,000 = employees generated (Employees generated x obligation rate of 15%) = # of employees to mitigate (Employees to mitigate ÷ 1.5 workers per household ÷ 1.2 jobs per employee) = AUE obligation E. Example Calculation for Commercial Development Requirement:
   
   Example: Retail development application for a 30,000 square foot project: First 5,000 square feet are exempt; calculation done on 25,000 square feet Employee generation, general category: (1.8 x 25,000) ÷ 1,000 = 45 employees generated
   
   Mitigation: 45 employees multiplied by 0.15 (mitigation rate) = 6.8 employees 6.8 divided by 1.5 (workers per household) = 4.5 employees 4.5 divided by 1.2 (jobs per worker) = 3.75 AUEs

1. Subject to City Council review and approval, which may be based upon the determination of a realistic hardship, development may meet their AUE obligation in one of the following ways:
   1. Construct on-site affordable units.
   2. Construct off-site affordable units as outlined below:
      1. Prior to obtaining approval for the market site, a suitable alternate site for affordable housing, along with a conceptual site plan and unit layout for the alternate site, shall be presented by the applicant and approved by the City.
      2. Prior to commencement of improvements of the market site, a draw down bond with a minimum two (2) year term shall be posted in the amount equal to the fee in lieu of the required AUEs.
         1. In the event the required unit equivalents are not completed with a certificate of occupancy, or if substantial progress satisfactory to the City Council has not occurred within two (2) years, the City Council shall have the right to draw upon the bond, in which case all funds deposited shall be forfeited by the developer to the City.
      3. Prior to receiving a certificate of occupancy for any portion of the market site, a development plan, site plan, final plat if required, elevations, deed restriction, housing agreement, and timeline of construction for the affordable units shall be approved, and recorded where required, by the City.
      4. The off-site housing shall be constructed within two (2) years of the market development.
   3. Pay a fee in lieu as outlined in this chapter.
   4. Purchase existing unit(s) at market rate, record a City approved deed restriction on the unit(s), and sell the unit(s) to qualifying household(s) at an affordable price. The existing units shall be subject to the size and income requirements of this chapter.
   5. Donate land of sufficient size to accommodate the number of required AUEs to the City or its designee.
      1. Examples of City designees may include qualifying community based housing nonprofits such as Habitat For Humanity, Mountainlands Community Housing Trust, religious organizations, and Peace House. The recipient shall provide written acceptance setting forth the terms and conditions of the acceptance of the proposed donation to the City.
      2. Utilities, curb and gutter, water shares and/or rights, and other necessary improvements shall be completed and provided by the developer so that an approved housing nonprofit organization receives a construction ready lot free and clear of all encumbrances. All required fees, such as special service fees, water shares and/or rights, impact fees but excepting building and planning fees, shall be paid by the developer of the project prior to the donation of the lots, unless otherwise agreed to in writing by the nonprofit organization.
      3. The developer's obligation is deemed fully satisfied when the units are actually created, not by the land donation
   6. Transfer the development rights under a TDR agreement to another current or future development project in the City.

Mixed Use Development Requirements: The obligation rate for the residential portion of the development shall be determined using the residential development requirements, and the obligation rate for the commercial portion of the development shall be determined using the commercial development requirements. The total required AUEs shall be the sum of the residential obligation and the commercial obligation.

1. Applicability: Fees in lieu will be allowed sparingly to meet any AUE obligation, but only if specifically approved of the Planning Commission and City Council.
2. Fee Amount: If the City, in its sole discretion determines that (1) no other alternative is feasible, or (2) such a payment would result in more immediate development of housing, or (3) such a payment would leverage additional resources, then a Payment of Fees in Lieu of Development may be accepted. The collected funds may only be expended for projects located within the limits of Oakley City or within the South Summit School District boundary if more feasible. The In Lieu Fee shall be based on actual documented costs of construction in the prior year. The actual building cost per square foot is then multiplied by 900 square feet to arrive at the cost for an equivalent AUE. Updates may occur more frequently at the request of the City Council to reflect changing real estate conditions. Any Fees in Lieu collected, and any interest accrued shall be used only for the purpose of planning for, subsidizing, or developing affordable housing.
3. Payment of Fees: All fees in lieu shall be placed in a separate City account designated for affordable housing purposes only; or in the alternative, fees may instead be paid directly to an approved housing nonprofit upon approval by the appropriate land use authority.
4. Use of Fees: Use of the funds shall be approved on a case-by-case basis by the City Council. Some examples of permitted uses may include, but shall not be limited to, the following:
   1. To provide down payment and mortgage assistance to qualifying households.
   2. To provide fee assistance for Oakley City impact fees, specifically for affordable housing units.
   3. To buy down the price of affordable units that have naturally appreciated so as to become unaffordable to a qualifying household.
   4. To assist qualifying community-based housing nonprofit organizations in their affordable housing endeavors.
   5. To assist in the construction of affordable housing on City owned property.
   6. To purchase and/or rehabilitate existing properties in Oakley City that are available at below market rate prices.
   7. To preserve existing affordable units by purchasing mortgages or units to protect them from foreclosure.
   8. To provide funds to take advantage of potential opportunities that will enhance the objectives of this chapter.

Purpose: ADUs may provide a good source of seasonal affordable housing, as well as year-round affordable rental units and meet the requirements of this chapter, provided they are developed concurrently with the project. Requirements for ADUs are found in 13-9-5 of this Title. Unless deed restricted, made available to rent on a permanent basis, and placed under the management of the City or its designee, ADUs will not count toward the AUE obligation as they are considered part of a single-family dwelling.

1. Applicability: Affordable units may be eligible for waivers of building department and planning department application and permit fees. The waivers shall apply only to affordable units and/or lots and shall not apply to market rate units and/or lots in a development containing affordable units.
2. Schedule: Affordable units may be granted waivers as outlined below, up to the full amount of fees actually applied:
   1. A waiver of up to fifty percent (50%) of the fees for each unit targeting households at fifty percent (50%) of the area median income (AMI).
   2. A waiver of up to seventy five percent (75%) of the fees for each unit targeting households at forty percent (40%) of the area median income (AMI).
   3. A waiver of up to one hundred percent (100%) of the fees for each unit targeting households at thirty percent (30%) of the area median income (AMI).
3. Process: Prior to construction an applicant shall submit an application to the appropriate City department, containing the following:
   1. A site plan showing the total number of units in the development and identifying the affordable units.
   2. A summary outlining the sales and/or rental prices of each individual affordable unit.
   3. Nonprofit developers shall be granted a waiver of any waived fees up front.
   4. For profit developers shall post a cash bond, post a surety bond, or provide an irrevocable letter of credit for all required fees; any waived amount shall be released to the developer upon project completion, and un-waived fees paid to the appropriate department.
   5. The final decision concerning the approval of fee waiver applications shall be made by the City Council.

1. Prices: The rent and sales prices of affordable units shall be based upon the presumed size of the household occupying the unit. By City policy, the allowable price shall be calculated based upon the monthly income of qualifying households.
   1. For Sale Units: The allowable sales price shall be calculated so that the sum of the monthly mortgage payment, plus mortgage insurance, property taxes, and HOA dues does not exceed thirty percent (30%) of a household's gross monthly income, and based upon the following assumptions:
      1. An available fixed rate thirty (30) year mortgage, consistent with the first-time homebuyer rate offered by the Utah Housing Corporation, plus fifty (50) basis points. A lower rate may be used in calculating affordable prices if the developer can guarantee the availability of a fixed rate, thirty (30) year mortgage at this lower rate for all of the inclusionary units.
      2. A down payment of no more than five percent (5%) of the purchase price.
      3. A calculation of property taxes, and
      4. A calculation of homeowners' insurance and/or homeowners' association fees. Homeowners' association (HOA) fees shall be no more than the HOA fee for market rate units and shall be the lesser of the actual HOA fee or an annual amount equal to one percent (1%) of the allowable price as adjusted annually based upon the permitted increases in the allowable price as set forth in the deed restrictions. This limitation of HOA fees shall be set forth in the recorded deed restrictions.
   2. For Rent Units: The allowable rental price shall be calculated so that the monthly rent, plus utilities, does not exceed thirty percent (30%) of a presumed household's gross monthly income.

The City or its designee shall have the authority and responsibility to enforce compliance with the requirements outlined in this chapter. The provisions of this chapter shall apply to all agents, successors, and assigns of an applicant. No building permit or certificate of occupancy shall be issued, nor development approval be granted, which does not meet the requirements of this chapter. In the event it is determined that rents or sales prices in excess of those allowed by this chapter have been charged to a renter or buyer of an affordable unit, the City or its designee shall take appropriate legal action to correct the situation.

Each project shall comply with the applicable development application procedure and approval processes outlined in this Title.

The City Council may waive all or part of the requirements of this Chapter in exchange for enhanced project affordability or livability including but not limited to the incorporation of sustainable building practices and systems in the unit design and development.

The City Council may waive all or part of the requirements of this Chapter where the applicant can establish by clear and convincing financial data and other evidence relating to the character of the development or surroundings that the imposition of the requirements set forth in this Chapter shall create an economic hardship. The Council shall use the same standards that it applies to any other projects or properties in making a determination of economic hardship. A waiver under this section shall be granted only to the extent necessary to relieve the hardship or difficulty that serves as the basis for the requested waiver and shall not be considered precedent for future requests for administrative relief.