Ordinance 2021-1809 - Laserfiche WebLink

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17.76.070. These covenants shall allow for appreciation of the home at a rate determined based on changes in the area median income, plus an allowance for the value of capital improvements to the home installed by the owner. The rate may be capped so as to ensure the continued affordability of a unit to a new purchaser, to ensure that unit price does not fall unreasonably below the level at which a unit would be considered affordable, and to facilitate the economically practical sale of a unit once its owner's income increases sufficiently for the owner to afford a market -rate unit. The seller of the home shall charge to the buyer no other special or unusual fees, including any finder's fee. The City Council may consider allowing an owner of an affordable unit to sell to a buyer who does not meet the qualifications of Section 17.76.070, below, in exceptional circumstances involving significant disruption to the local economy or individual financial hardship. In exchange, the owner would transfer equity to the City at that time. The City Manager may specify in the deed restriction the amount of such equity. The amount shall be based on the difference between the initial sale price and the estimated market price of the unit at the time of initial sale. b. Rental covenants. The City Manager may release and discharge a rental covenant after thirty years' duration, allowing sale or rental of the property to people who do not qualify under Section 17.76.070, so long as the owncr of the units seeking the removal of the deed restriction pays to the City at that time, for each deed restricted affordable rental unit, the amount of the difference between the value of the unit with and without the deed restriction, as calculated by the City Manager based on reasonable market data collection or projections. If an arm's length sale of the property accompanies the termination, the units shall be valued proportionally to the value at which the property is priced in the sale, so long as the director determines that valuation to be a reasonable market price. Sec. 17.76.070 Income qualification and local live/work preference. Affordable units may be sold or rented only to a person selected by the City Manager who meets the City's qualifications. Such qualifications shall be based on the person's income and assets, and shall be intended to ensure that only those who require affordable housing shall be eligible. In selecting particular qualified applicants for particular affordable units, the City Manager shall consider applicants' household size compared to the size of available affordable units. If Ordinance No. 1809, Series 2021 Page 11 of 15