A. Siting of Affordable Dwelling Units or Residential Building Lots. The affordable units constructed under the provisions of this chapter shall be included within the parcel of land for which the density bonus is granted. Segregation of affordable housing units within the development from market rate housing units shall be avoided whenever practical.

The department of planning and community development shall calculate and publish annually the maximum purchase prices and maximum rents applicable to each of the following income groups:

1. Extremely low income: less than 30 percent of median household income;

2. Very low income: 31 percent through 50 percent of median household income;

3. Low income: 51 percent through 80 percent of median household income;

4. Moderate income: 81 percent through 95 percent of median household income;

5. Middle income: 96 percent through 120 percent of median household income.

B. Duration of Affordability.

1. Rental Units.

a. Prior to the effective date of Ordinance No. 2021-11 on February 11, 2021, affordable rental housing units created as a result of the provisions of this chapter shall remain affordable for a period of 30 years from the time of first occupancy and shall be secured by a recorded agreement and covenant running with the land, binding all the assigns, heirs, and successors of the applicant.

b. For development projects that filed a complete land use permit application with the city subsequent to the effective date of Ordinance No. 2021-11 on February 11, 2021, affordable rental housing units created as a result of the provisions of this chapter shall remain affordable for a period of at least 50 years from the time of first occupancy and shall be secured by a recorded agreement and covenant in accordance with subsection C of this section.

2. Home Ownership Units.

a. Prior to the effective date of Ordinance No. 2021-11 on February 11, 2021, all affordable home ownership units created as a result of the provisions of this chapter shall be initially sold to income-qualified households and thereafter subject to a mechanism that is specified in an appropriate administrative procedure adopted by resolution by the city council allowing the city to capture a share of the appreciation when the unit is sold at market rate. The city’s share of the proceeds shall be placed in its housing trust fund. The affordable housing unit(s) shall be secured by a recorded agreement and covenant in accordance with subsection C of this section.

b. For development projects that filed a complete land use permit application with the city subsequent to the effective date of Ordinance No. 2021-11 on February 11, 2021, affordable home ownership units created as a result of the provisions of this chapter shall be sold to income-qualified households and shall remain affordable for a period of 99 years from the time of first occupancy. The affordable housing unit(s) shall be secured by a recorded agreement and covenant in accordance with subsection C of this section.

3. A unit that is owned or sponsored by a public or private nonprofit agency that already restricts benefit and resale is exempt from the provisions of subsections B.1 and B.2 of this section.

C. Required Documentation. Prior to the final approval of any land use application to which this chapter is applicable, the owner of the affected parcels shall deliver to the city a duly executed covenant running with the land, binding all the assigns, heirs, and successors of the owner of the affected parcels, in a form approved by the city attorney, identifying the units or parcels and acknowledging their obligation under this section. The applicant shall be responsible for the cost and recording of the covenant.

D. Construction of Affordable Units. When dwelling units subject to this chapter will be constructed in phases, or over a period of more than 12 months, a proportional amount of affordable housing units must be completed at or prior to completion of the related market rate dwellings, or as approved by the director.

E. Phased Development. If a project is to be phased, the proportion of affordable units or residential building lots to be completed with each phase shall be determined as part of the phasing plan approved by the director.

F. Unimproved Lots to Be Sold. Where the applicant intends to sell the individual unimproved lots created as a result of the provisions of this chapter, it is the responsibility of the applicant to arrange for the affordable units to be built.

G. Attached Housing. In single-family developments where there are two or more affordable units, side yard setbacks may be waived to allow for attached housing units for affordable units only. The placement and exterior design of the attached units must be such that the units together resemble as closely as possible a single-family dwelling.

H. Definition of Benefit. Where the code limits benefits to households whose incomes are at or below a specified income, the purpose is to include all categories of income, as defined in Chapter 18.36 BIMC, below the category specified. For example, if the benefit limit is, “to those households whose incomes are at or below low-income,” households who are extremely low income, very low income and low income may benefit. (Ord. 2021-11 § 2, 2021; Ord. 2018-30 § 1, 2018; Ord. 2011-02 § 2 (Exh. A), 2011)