Sections:

 

18.210.010 –   Purpose and Intent

18.210.020 –   Definitions

18.210.030 –   Administrative Guidelines and Procedures

18.210.040 –   Administrative Fees

18.210.050 –   Affordability Controls

18.210.060 –   Duration

18.210.070 –   Occupancy Restrictions

18.210.080 –   Locals Preference

18.210.090 –  Affordable Housing Agreement

18.210.100 –   In-Lieu Affordable Housing Fee

 

 

18.210.010 – Purpose and Intent

 

The purpose of this chapter is to establish regulations and controls on affordable units required by Chapters 18.214 and 18.216 and affordable units which are provided in order to receive density bonuses, incentives, and/or concessions per Chapter 18.212.  This Chapter is intended to regulate or control the rent and sales price of affordable units, occupancy, and preferences for locals, and to establish a procedure by which such regulations and controls are recorded on affordable units.   

 

18.210.020 – Definitions

 

The following are definitions of special terms and phrases used in this Article.  Other general definitions are provided in Chapter 18.220 (Definitions / Glossary).

 

“Above Moderate Income Household” means a household earning a gross income of no greater than one hundred sixty percent (160%) of the median income.

 

“Affordable Rent” means monthly rent, including utility costs, does not exceed one-twelfth of 30 percent of the maximum annual income for a household of the applicable income level (Very Low, Low, Moderate, Above Moderate) as calculated pursuant to Section 18.210.050(A).

 

“Affordable Sales Price” means a sales price, including taxes, insurance, dues, and utility costs, that results in a monthly housing cost (including mortgage, insurance and home association costs, if any) that does not exceed one-twelfth of 35 percent of the maximum annual income for a household of the applicable income (Very Low, Low, Moderate, Above Moderate) as calculated pursuant to pursuant to Section 18.210.050(B).  Above moderate income affordable units may only be approved pursuant to Section 18.214.040(C)(1)(a) or Section 18.214.040(D).

 

“Affordable Units” means those dwelling units which are required to be rented at an affordable rent or to be purchased at an affordable sales price and subject to occupant affordability requirements.  Affordable units include, but are not limited to, inclusionary housing units.

 

“Alternative Equivalent Action” means a proposal to meet the requirements of inclusionary housing and/or employee housing by an alternative means.

 

“Area Median Income” or “Median Income” means the median income, with adjustments for household size, applicable to Nevada County as published annually pursuant to Section 6932, Title 25 of the Federal Code of Regulations (or its successor provision) by the United States Department of Housing and Urban Development, and as affirmed by the Community Development Director annually.  (Median income is the income level that indicates that one-half of the household incomes are higher than the median income level and one-half of the household incomes are lower than the median income level.) 

 

The presumed household size is an important factor in determining the affordable rent or affordable sales price.  For the purposes of defining median income, the household size shall be presumed to be:

 

- One person in a studio unit

- Two persons in a one-bedroom unit

- Three persons in a two-bedroom unit

- One additional person for each additional bedroom thereafter

 

“Inclusionary Housing Unit” means a dwelling unit that must be offered at affordable rent or affordable sales price as part of a residential development project.

 

“Low-Income or Lower-Income Household” means a household earning a gross annual income of no greater than eighty percent (80%) of the median income.

 

“Market Rate Unit” means a dwelling unit in a residential or mixed-use development that is not restricted in terms of rent or sales price.

 

“Moderate Income Household” means a household earning a gross income of no greater than one hundred twenty percent (120%) of the median income.

 

“Residential Development Project” means a project for the construction or placement of any dwelling unit in a permanent location, including dwelling units in a mixed-use project, or the subdivision of land which is planned, designed, or used for residential purposes, including the subdivision of land for sale of vacant residential lots .

 

“Utilities” include sewage collection and treatment, water, electricity, trash collection, and natural or propane gas.

 

“Very Low Income Household” means a household earning a gross income of no greater than fifty percent (50%) of the median income. 

 

18.210.030 – Administrative Guidelines and Procedures

 

The Council shall, by resolution, adopt guidelines and procedures, consistent with the terms contained in this chapter, as the Council determines to be necessary or convenient for the implementation and administration of this Chapter. 

 

18.210.040 – Administrative Fees

 

The Council may by resolution establish reasonable fees and deposits for the administration of this Chapter.

 

18.210.050 – Affordability Controls

 

A.         Affordable Rent.  Affordable rent shall be calculated as follows:

 

1.         The monthly rent shall not exceed one-twelfth of 30% of the maximum annual income for a household of the applicable income level.

 2.        Monthly rent shall include, but not be limited to, the monthly cost of rent or lease and utility costs based on utility allowances defined annually by the Community Development Director.

 

B.        Affordable Sales Price.  The affordable sales price shall be calculated as follows:

 

1.         The monthly housing cost shall not exceed one-twelfth of 35% of the maximum annual income for a household of the applicable income level.   

2.         Monthly housing cost shall include, but not be limited to, loan or mortgage payment (principle and interest), property taxes, mortgage insurance, homeowner association dues, homeowners insurance, and utility costs based on utility allowances defined annually by the Community Development Director.

 

C.        Resale Affordable Sales Price.  The maximum affordable sales price on the resale of an affordable unit shall be the higher of the sales price as calculated in Subsection B or the seller’s purchase price, adjusted for the percentage increase in median income since the seller’s purchase, plus the value of substantial structural or permanent fixed improvements to the building which create additional bedrooms.

 

D.        Sales to Non-Qualifying Household.

 

1.         If the developer or owner cannot sell the unit to a qualifying household at the affordable sales price or resale affordable sales price within a reasonable period of time, the Town shall have the right to purchase or assign its right to purchase such affordable unit at the maximum price which could be charged to an eligible household.  The term “reasonable period of time” shall be addressed in the administrative guidelines and procedures.  

2.         If the Town or its assignee does not purchase the unit within a reasonable period of time, the developer or owner may sell the unit in accordance with the Administrative Guidelines and Procedures.  

 

18.210.060 – Duration

 

The affordability controls and other restrictions consistent with the requirements of this Chapter shall be in effect for perpetuity.

 

18.210.070 – Occupancy Restrictions

 

A.         Rental Units.  Any person who occupies a rental affordable unit shall occupy that unit as his or her principal residence.

 

B.        Ownership Units.  An owner who purchases an affordable unit for sale shall occupy that unit as his or her principal residence.

 

C.        Exceptions.  The Community Development Director, on a case-by-case basis, may approve an exception to the occupancy restrictions in cases of changes of title due to unique circumstances (e.g., death, divorce), changes in tenant income, and other hardships.  Exceptions shall be addressed in the administrative guidelines and procedures.

 

18.210.080 – Locals Preference

 

Preference shall be given to locals, as defined in the administrative guidelines and procedures, in regards to availability to purchase or rent affordable units.  The preference for locals shall be addressed in the administrative guidelines and procedures and shall comply with fair housing laws and other applicable Federal and State laws. 

 

18.210.090 – Affordable Housing Agreement

 

A.         Agreement Required.  An affordable housing agreement shall be recorded for affordable housing required by the Town pursuant to Chapters 18.214 and 18.216 or for affordable housing offered by a developer for a development project in which density bonuses, incentives, and/or concessions have been granted by the Town pursuant to Chapter 18.212.  The agreement shall be recorded with the Nevada County Recorder prior to the issuance of a temporary or final certificate of occupancy or the recordation of a parcel or final map for the affordable housing.

 

B.        Agreement Information.  The affordable housing agreement shall include, but not be limited to, the following:

 

1.         A description of the development, including whether the affordable units will be offered for rent or for purchase;

2.         The number, size, and location of the affordable units, or any approved alternative;

3.         Density bonuses, incentives, and/or concessions granted by the Town, if any;

4.         Provisions and/or documents for initial sales price or rent, resale restrictions, occupancy restrictions, locals preference, deeds of trust, rights of first refusal, and rental restrictions;

5.         Provisions for monitoring the ongoing affordability of the affordable units, and the process for marketing units, and qualifying prospective households for income eligibility;

6.         Deed restriction acceptable to the Town;

7.         Any information required by the housing plan approved by the review authority;

8.         Any other pertinent information required by the Community Development Director.

 

C.        Agreement Approval.  The affordable housing agreement shall be consistent with the housing plan approved by the review authority and comply with the requirements of the chapters of this Article and any administrative procedures and guidelines adopted thereto.  The agreement shall be approved by the Community Development Director prior to recordation of the agreement with the Nevada County Recorder. 

 

18.210.100 – In-Lieu Affordable Housing Fee

 

The Town Council shall by resolution adopt an in-lieu affordable housing fee for the purposes of Chapters 18.214 and Chapter 18.216.  The resolution shall set forth the methodology and criteria for determining the fee and shall establish a procedure for the annual review and update of the fee.