§ 1600-400. RESIDENTIAL DEVELOPMENT PROJECTS

(a)

For-Sale Affordable Units.

(1)

Set-Aside Requirement. Every for-sale residential development project of ten or more dwelling units (either single-family detached or attached units, or a combination thereof) shall provide 5% of the units for sale at an affordable price to moderate or low income households. To the maximum extent feasible, these units shall be constructed on-site. All or a portion of this requirement may be satisfied by constructing rental units at affordable rents for moderate or low income households. If the set-aside calculation results in partial units, this partial unit obligation may be satisfied by paying a percentage of the in-lieu fee, as set forth in Section 1600-600 of this ordinance, equal to the percentage of the partial unit.

(2)

Density Bonus or Credit. For every affordable housing unit constructed on-site beyond the set-aside requirement, the Planning Commission shall provide the project applicant with either (a) a one-for-one density bonus of one additional market rate unit for every affordable unit built beyond the set-aside requirement or; (b) a one-for-one credit of one affordable unit for every affordable unit built beyond the set-aside requirement. If the credit option is chosen, the credit(s) may be banked and used to fulfill affordable housing requirements for future development applications. A density bonus granted under this ordinance for a specific project may not exceed 25% of the maximum density otherwise allowed under the existing General Plan, applicable specific plan, and zoning designations. Any density credit earned pursuant to this chapter in excess of 25% must be taken as a credit.

(3)

Sales Price Establishment. The units shall be affordable to households earning not greater than 120% of the County median annual income adjusted for family size. The maximum sales prices shall be determined by the Consolidated Area Housing Authority of Sutter County (Housing Authority) on an annual basis. The maximum sales prices will be adjusted by the Housing Authority as income limits for the target income groups are periodically adjusted, and shall account for mortgage interest rates and terms in effect at the time.

(4)

Unit Distribution. Affordable units for moderate and low income households constructed on-site shall include a mix of unit sizes within the development as approved by the Development Services Department Director or his/her designee. Affordable units shall not be unreasonably clustered together in any building, complex, or area of the development. For each affordable unit that is provided which contains four or more bedrooms, the total number of affordable units otherwise required shall be reduced by one unit.

(5)

Timing of Occupancy. The issuance of certificates of occupancy for affordable units shall occur concurrently with those for market rate units, and shall be issued in proportion to the total number of market rate unit certificates issued. The number of certificates of occupancy issued for affordable units shall not fall below 5% of the total number of certificates issued for market rate units.

(6)

Design Standards. Affordable units shall be compatible in appearance to market rate units on the exterior and shall comply with all applicable development standards except as specifically provided in the section "Reduction of Design and Development Standards" below. Interior amenities of affordable units may differ from those offered in market rate units.

(7)

Affordability Agreement. All for-sale units shall be maintained affordable for a period of five years from the date of the initial sale. Deed restrictions shall be in effect on all affordable units for this time period and shall be enforced by the Housing Authority. The deed restrictions shall stipulate that during this period, affordable units may only be sold at affordable prices to potential purchasers that qualify as low or moderate income under the County's guidelines in effect at that time.

(8)

Lack of Eligible Buyers. If the project applicant is unable to locate an eligible target income buyer within two months from the date of issuance of a certificate of occupancy, or an affordable unit owner is unable for a period of two months to resell an affordable unit, the project applicant or an affordable unit seller shall extend to the Housing Authority and two non-profit housing corporations a right of first refusal to purchase the unit for resale or rental to a target income household. If the project applicant or an affordable unit seller is unable to locate a target income buyer within the two month period and the Housing Authority and two non-profit housing corporations decline to purchase the unit within 30 days after the offer of right of first refusal is made, the project applicant or an affordable unit seller may sell the unit to a non-target income purchaser at a market rate price without any restrictions. The project applicant or an affordable unit seller must provide documentation to the Housing Authority that he/she has completed the following actions:

a.

Advertised the availability of the affordable unit in a local newspaper for a continuous period of 30 days.

b.

Distributed written information in the form of flyers, brochures, posters or pamphlets, to at least five local lending institutions, one public library, the Housing Authority, and other County governmental offices.

(b)

Rental Affordable Units.

(1)

Set-Aside Requirement. Every multi-family rental development of ten or more dwelling units shall provide 5% of the units at affordable rents for very low and low income households. To the maximum extent feasible, these units shall be constructed on-site. If the set-aside calculation results in partial units, this partial unit obligation may be satisfied by paying a percentage of the in-lieu fee, as set forth in Section 1600-600 of this ordinance, equal to the percentage of the partial unit.

(2)

Density Bonus or Credit. For every affordable rental unit constructed on-site beyond the set-aside requirement, the Planning Commission shall provide the project applicant either (a) a one-for-one density bonus of one additional market rate unit for every extra affordable unit or; (b) a one-for-one credit of one affordable unit for every extra affordable unit. This credit may be banked and used to fulfill affordable housing requirements for future development applications. A density bonus granted under this ordinance for a specific project may not exceed 25% of the maximum density otherwise allowed under the existing General Plan, applicable specific plan, and zoning designations. Any density credit earned pursuant to this chapter in excess of 25% must be taken as a credit.

(3)

Rental Price Establishment. For very low income target households, the units must be affordable to households earning not greater than 50% of the area median income. For low income target households, the units must be affordable to households earning more than 50% but not greater than 80% of the area median income. An equal number of the affordable units shall be set-aside for both target income groups. The affordable rent for each unit will be determined by the Housing Authority on an annual basis.

(4)

Unit Distribution. Affordable units constructed on-site shall include a mix of unit sizes dispersed throughout the entire development as approved by the Development Services Department Director or his/her designee. Affordable units shall not be clustered together in any building, complex, or area of the development. For each affordable unit which contains three or more bedrooms, the total number of affordable units otherwise required shall be reduced by one unit.

(5)

Timing of Occupancy. The issuance of certificates of occupancy for affordable units shall occur concurrently with those for market rate units, and shall be issued in proportion to the total number of market rate unit certificates issued. The number of certificates of occupancy issued for affordable units shall not fall below 5% of the total number of certificates issued for market rate units.

(6)

Design Standards. Affordable units shall be compatible in appearance to market rate units on the exterior and shall comply will all applicable development standards except as specifically provided in the section "Reduction of Design and Development Standards" below. Interior amenities of affordable units may differ from those offered in market rate units.

(7)

Affordability Agreement. All rental units shall be maintained affordable for five years, except when Affordable Housing Trust Funds are used to facilitate the provision of such units. In such instances, the rental units shall be affordable in perpetuity. Deed restrictions shall be placed on all units and enforced by the Housing Authority. In the case of conversion of the unit from rental to for-sale, the potential purchaser must qualify as very low or low income under the County's guidelines in effect at that time. Deed restrictions shall be placed on units converted from rental to for-sale and the units shall be affordable for a period of five years from the date of sale.

(8)

Non-Profit Agency and Housing Authority Participation. A project applicant may request the Planning Commission's approval allowing the project applicant to work with non-profit agencies or the Housing Authority in creating affordable housing units on another site. A plan describing such a partnership and the project must be submitted to the County for review by the Planning Commission. The number of affordable units proposed in such a partnership project must be at least equal to the number of units required to be built by the project applicant if such a partnership did not exist.

(c)

Annual Report and Certification. The Housing Authority shall submit an annual report to the Board of Supervisors by the 15th of every August documenting program progress for the previous fiscal year and certifying the continued affordability of units.

(d)

Mobile Home Park Conversions. Notwithstanding other provisions of this code applicable to the conversion of existing mobile home parks to mobile home subdivisions or owner-occupied stock cooperative parks, 5% of the spaces or lots within the mobile home subdivision or stock cooperative park shall be available at sale prices or rental rates affordable to target income group households.

(Ord. 1584, Sec. 3, May 28, 2013)