§ 17.43.100. Enforcement of Affordability

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 a density bonus unit is also being used to satisfy the requirements of Chapter 17.42, the longer term of affordability shall apply.

B.

Moderate income: recapture of financial interest. 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 a recapture by the City, or its designee, of a financial interest in the unit equal to:

1.

Difference between price and value. The difference between the initial moderate income level sales price and the appraised value at the time of the initial sale; and

2.

Proportionate share of appreciation. A proportionate share of any appreciation.

C.

Forfeiture of funds. Any individual who rents a unit in violation of this Chapter shall be required to forfeit all rents above the applicable affordable rate; any individual who sells a unit in violation of this Chapter 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 in to the Inclusionary Housing Trust Fund.

(Ord. 7056 § 3 (Exh. 1) (part), 2006)