Adopted October 21, 1992
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City of Camarillo
CITY COUNCIL POLICY
Section: Community Development Date Adopted: October 21, 1992 Last Amended:
Subject:Affordable and Senior Housing Programs
Number: 7.06 Page 1 of 12
PURPOSE
To establish general policies relating to housing programs for affordable and senior housing for rental and ownership opportunities in order to implement Chapter 19.49 of the Camarillo Municipal Code and Government Code Section 65915, et. seq., as may be amended from time to time (the “Density Bonus Act”). While these policies establish general requirements, it is the intent that there is to be flexibility in order to promote affordable and senior housing.
POLICY
I. General
A. The developer shall comply with Chapter 19.49 and the Density Bonus Act.
B. The definitions contained in Section Chapter 19.49.015 and the Density Bonus Act are incorporated herein by reference. In addition, “Housing Authority” means the Ventura County Area Housing Authority and “Qualified Household” means a household that meets the income, asset, and any other limitations required for an affordable unit based on its affordability level..
II. Affordable Ownership Housing Program
A. The Affordable Ownership Housing Agreement shall include the following:
1. The requirements for participation, which describe the minimum qualifications that units and projects must meet in order to participate in the housing program;
2. The division of responsibilities, which sets out the specific responsibilities of the parties involved;
3. The standards for household eligibility and unit prices, which list the criteria for determining household eligibility and describe the formula used for deciding unit
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prices;
4. The resale control section, which covers the deed restrictions used to keep units in the affordable market and describes the formula used to set resale prices;
5. The sales price of the affordable units;
6. The number, type and phasing of affordable units;
7. A requirement that affordable units be owner occupied; and
8. A provision that affordable units may be sold by the developer without restriction as to household eligibility beginning six months after the date sales first began for that unit’s development if unable to sell to qualified households; and
9.8. A provision for the City to receive proceeds of any sale or transfer which under the terms of the agreement are in excess of the amount at which the unit should have been sold to the appropriate income group. Any such proceeds received shall be used by the City to promote affordable housing.
B. Requirements for Participation.
In order for a housing development to participate in the housing program and be eligible for a density bonus and/or other incentive(s), the following requirements must be met:
1. Initial Availability. Affordable units must be made available to qualified households at the price(s) determined through this program. for a minimum of six (6) months from the opening of the tract sales office, or from the opening of the sales office for the specific phase or portion of a tract if the tract is to be developed in phases. The six month period shall not commence until the project has reached the stage where sales contracts can be executed. If at the end of the six month period some units remain unsold and the City Council determines that all reasonable efforts have been made to advertise and sell the units, then the remaining unsold units may be released from the program requirements.
2. Time Period of Availability. The units must remain available to qualified households for a minimum period of time as required by Chapter 19.49 and the Density Bonus Act.
3. Down Payment. The down payment required for affordable units shall not exceed five percent (5%) of the purchase price. This shall not prevent a home buyer from putting down more than five percent (5%).
C. Division of Responsibilities.
Project responsibilities will be divided as follows:
1. Developer. The developer shall:
a. Offer the required number of affordable units for sale in accordance with Adopted October 21, 1992
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the terms and provisions of this Chapter 19.49, the Density Bonus Act and this Policy 7.6, using appropriate deed forms approved by the City Attorney, and appropriately recording such deeds and other documents as may be required by the City;
b. Consult with the Director to determine the price ranges at which the units will be required to be offered for sale;
c. Notify the Director of issuance of the Department of Real Estate Public Report, upon receipt of same by the developer;
d. Notify the Director at minimum ten (10) days in advance of the date on which affordable units will become available for sale, and submit monthly reports to the Director covering the progress of sales of affordable units; e. Advertise the units, ensure that sales people are available to show the units and provide assistance in sales processing and paperwork for the affordable units in the same manner as the market rate units; f. Compensate the City and its designee as applicable for time expended qualifying applicants, preparing the list of eligible households, and reviewing the necessary documents with applicants;
g. Review the affordable ownership housing agreement with the home buyer under the supervision of the City or its designee; and h. In addition, the developer, with the assistance of the City or other such applicable agency, shall make every effort to obtain below market interest rate financing for the affordable units;.
h.i. Notify the City or its designee of all substantial improvements to the property and document the same at the time the notice for sale is given.
2. Home Buyer. The prospective purchaser of an affordable unit shall agree to:
a. Provide the information to the City or its designee necessary to determine whether the household is qualified to participate in the housing program; b. Complete the lender loan application and supply the information necessary to process the loan;
c. Provide a minimum down payment as required by the lender for the unit; d. Record the grant deed as required by the City, and send a copy of the recorded deed to the City;
e. Review the affordable ownership housing agreement with the seller under the supervision of the City or its designee;
f. Notify the City or its designee of all substantial improvements to the Adopted October 21, 1992
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property and document the same at the time the notice for sale is given; g.f. Comply with all deed conditions, restrictions and/or requirements of this program;
h.g. Live in the unit -- the purchaser may not lease or rent it except as consented to by the City or its designee; and
i.h. Notify the City or its designee in advance of intent to sell the unit, which triggers the 90-day period during which the City or its designee has a right to acquire the unit; and
Subsequent purchasers shall be subject to the same qualifications and requirements as the initial purchaser. The seller shall be subject to the resale price limit as determined below in Section II Ein their affordable housing agreement or the price for which they purchased the affordable unit, whichever is higher.
3. City. The City or its designee shall conduct application review as follows:
a. Evaluate proposed affordable housing projects to determine whether they are in accordance with the terms and provisions of the affordable housing program;
b. In consultation with the developer, determine price ranges for the affordable units in compliance with affordable housing law; c. Set and periodically update the requirements and qualifications for eligible households;
d. Screen applicant households to prepare and maintain a list of eligible households; and
e. Supervise Ensure the review of the affordable ownership housing agreement by the seller and the home buyer.
D. Standards for Household Eligibility and Unit Prices
Standards, criteria, and unit prices for new affordable housing agreements shall be determined in accordance with Chapter 19.49, the affordable housing cost limit set by any affordable housing law, including, but not limited to, California Health and Safety Code section 50052.5, determined to be applicable to the proposed sale of the property by City Staff, and the Density Bonus Act.
E. Resale Control.
1. Grant deeds for affordable units shall contain a restriction giving the first right of refusal upon resale to the City or its designee, for a period not to exceed 90 days from the date of notice required to be given above. If the City, its designee or assignee has opened escrow to purchase a unit before the end of the 90 Adopted October 21, 1992
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days, the City shall be considered to have exercised its right of first refusal.
2. The resale restrictions shall be effective for each restricted unit for a minimum period of time as required by Chapter 19.49. The City Council may, by resolution, terminate all such deed restrictions after making a finding that a need for affordable housing no longer exists.
3. If the City or its designee exercises it right of first refusal, after purchase, it the City or its designee shall resell the unit to a qualified home buyer at the lower of the following two amounts:
a. The affordable housing cost limit set by any affordable housing law, including, but not limited to, California Health and Safety Code section 50052.5, determined to be applicable to the proposed sale of the property by City Staff.
a. The market value as established by a qualified appraiser to be paid for by the seller; or
b. The total of:
(1) The original sale price, plus
(2) An increase based on two-thirds (2/3) of the percentage increase in the greater Los Angeles area (currently Los Angeles/Long Beach/Anaheim) Consumer Price Index, from the time the current homeowner purchases the unit until the City or its designee receives the notification of intent to sell, plus
(3) The market value of any structural or permanent fixed improvements as verified by a qualified appraiser if deemed necessary by the city, plus
(4) The seller’s closing costs, minus
(5) The amount needed to remedy any deficiencies in the unit, including:
(a) Violations of applicable building, plumbing, electric, fire or housing codes;
(b) Repair of appliances which were originally furnished to owner which are not in good working order; and,
(c) Holes or other defects (except for holes from picture hangers) in walls, ceilings, floors, doors, windows, screens, carpets, drapes and similar appurtenances.
4. Upon receipt of notification of intent to sell an affordable unitUpon the resale of an affordable unit by the City, the City or its designee will notify eligible Adopted October 21, 1992
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households from the eligibility list it maintains. One of these households may then purchase the unit at the price determined by the above formula.
5. A fee shall be paid to the City or its designee to compensate from for the time expended during the resale of the unit; the fee shall be paid from the proceeds of the sale of the unit for time expended qualifying applicants and reviewing the necessary documentation with applicants as applicable based on the affordable housing agreement.
6. Seller and buyer shall use deed forms and record such other documents as approved and reasonably required by the Director and the City Attorney for purposes of effectuating continuation of the specific units as affordable housing.
7. If no qualified household is available, the city or its designee, or the homeowner, if the right of first refusal is not exercised, may sell to any purchaser regardless of income restriction; all other restrictions shall remain in place.
III. Affordable Rental Housing Program.
A. The Affordable Rental Housing Agreement shall include the following:
1. The requirements for participation which describe the requirements and qualifications that units and projects must meet in order to participate in the housing program;
2. The division of responsibilities which outline the specific responsibilities of the parties involved;
3. The standards for household eligibility and rental rates which describe the criteria for determining household eligibility and the formula for setting rental rates;
4. The number, type and phasing of affordable units;
5. A limitation through deed restrictions for a minimum period of time as required by Chapter 19.49, limiting the initial and subsequent renters of affordable units to those certified by the City or its designee as being eligible households;
6. The rental price of the affordable units, which shall be the lowest rental rate applicable based on any relevant funding source utilized by the project or state law;
7. A requirement that affordable units be occupied by households of very low or lower income; and
8. A limitation that the rental price of an affordable unit to must be an amount that which is affordable to the same income category as the previous occupants for a minimum period of time as required by Chapter 19.49.
B. Requirements for Participation.
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In order for a housing development to participate in this housing program and be eligible for density bonus and/or incentive(s), the following requirements must be met:
1. Time Period of Availability. The units must be made available to such households for a minimum period of time as required by Chapter 19.49.
2. Rental Rates. Rental units shall be available at rents not to exceed those described in Chapter 19.49, the Density Bonus Act, or any affordable housing law.
3. Deposit Required. The deposit required shall not be more than an amount equivalent to one month’s rent.
C. Division of Responsibilities.
Program responsibilities will be divided as follows:
1. Developer. The developer shall:
a. Provide the requisite number of units, renting at the prices or rates set forth below. Specific units shall be designated for participation in the program;
b. Enter into a lease or other agreement or arrangement with the City or the Housing Authority to the satisfaction of the Director and City Attorney; c. Execute and record a deed restriction or other document in a form and manner acceptable to the Director and City Attorney to make record of the limitations and requirements set forth in the Affordable Rental Housing Agreement;
d. Compensate the City and its designee as applicable for time expended establishing rental rates, qualifying applicants, preparing a list of eligible households and reviewing the necessary documents with applicants; e. Review the affordable rental housing agreement with the tenant under the supervision of the City or its designee; and
f. Provide for management of all the units. It shall be the responsibility of the management to notify the City Housing Authority or its designee when a participating unit is vacant.
2. Tenant. The tenant shall:
a. Provide the information necessary to the City or its designee to determine whether the household is qualified to participate in the housing program; and
b. Review the affordable rental housing agreement with the developer under the supervision of the City or its designee.
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3. Housing Authority. The Housing Authority shall:
a. Administer the lease or other agreement executed in accordance with subsection D(2) below; and
b. Provide, to the extent feasible, a list of eligible very low or lower income tenants.
4.3. City of Camarillo. The City or its designee shall:
a. Provide the density-bonus and/or other incentive(s); b. Consult with the Housing Authority in setting rental rates; and c.b. Supervise Ensure the review of the affordable rental housing agreement by the developer and the tenant.
D. Standards for Household Eligibility and Rental Rates.
1. Standards, criteria, and rental rates shall be determined in accordance with Chapter 19.49, the Density Bonus Act, and any applicable affordable housing law.
2. Units under this program may be leased to the Housing Authority or the City of Camarillo, or such other agreement or arrangement with the Housing Authority shall be made, to the satisfaction of the City, to provide for rental of such units during a continuous period as required by Chapter 19.49 to persons or families of very low or lower income who have been approved and referred by the Housing AuthorityCity, or if a lease is entered into with the City or Housing Authority, to whom the City or Housing Authority may sublease any such unit.
The lease or other agreement with the Housing Authority may provide that in the event the Housing Authority should at any time not have eligible persons to occupy a unit or need to suspend or cease the program temporarily or otherwise, the Housing Authority may elect to release the unit temporarily to the owner for rental by the owner on a month-to-month basis at market rates until such time as the Housing Authority gives notice of its desire to recommence utilization of the unit. Upon such election by the Housing Authority, the Housing Authority shall have no obligation to pay rent until the unit is reclaimed and reoccupied on behalf of the Housing Authority.
IV. Senior Housing Program - Ownership.
A. The Senior Housing Ownership Agreement shall include:
1. The requirements for participation, which describe the minimum qualifications that units and projects must meet in order to participate in the housing program;
2. The division of responsibilities which outlines the specific responsibilities of the parties involved;
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3. The standards for household eligibility;
4. The resale control section which covers the deed restrictions used to keep units available for senior citizens and describes the formula used to set resale prices;
5. The number, type and phasing of senior units; and
6. A requirement that senior units be owner occupied.
B. Requirements for Participation.
In order for a housing development to participate in the program and be eligible for a density bonus or other incentive(s), the following requirements must be met:
1. Availability. Senior units must be made available to qualified households. for a minimum of six (6) months from the opening of the tract sales office or from the opening of the sales office for the specific phase or portion of a tract if the tract is to be developed in phases. The six month period shall not commence until the project has reached the stage where sales contracts can be executed. If at the end of the six month period some units remain unsold, and the City Council determines that all reasonable efforts have been made to advertise and sell the units, then the remaining unsold units may be released from the housing program requirements.
2. Time period of Availability. The units must remain available to qualified households for a minimum period of time as required by Chapter 19.49.
C. Division of Responsibilities.
Project responsibilities will be divided as follows:
1. Developer. The developer shall:
a. Offer the required number of senior units for sale in accordance with the terms and provisions of Chapter 19.49, the Density Bonus Act, and this Policy 7.6, using appropriate deed forms approved by the City Attorney and appropriately recording such deeds and other documents as may be required by the City;
b. Notify the Director of issuance of the Department of Real Estate Public Report, upon receipt of same by developer;
c. Notify the Director at minimum ten (10) days in advance of the date on which senior units will become available for sale, and submit monthly reports to the Director covering the progress of sales of the senior units; d. Advertise the units, ensure that sales people are available to show them and provide assistance in sale processing and paperwork for the senior units;
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e. Compensate the City and its designee as applicable for time expended qualifying applicants, preparing the list of eligible households and reviewing the necessary documents with applicants; and
f. Review the senior housing ownership agreement with the home buyer under the supervision of the City or its designee;.
f.g. Notify the City and/or its designee of all substantial improvements to the property.
2. Home Buyer. The prospective purchaser of a senior unit shall:
a. Provide the information to the City or its designee necessary to determine whether the household is qualified to participate in the housing program; b. Complete the lender loan application and supply the information necessary to process the loan;
c. Provide a minimum down payment as required by the lender for the unit. d. Record the grant deed as required by the City, and send a copy of the recorded deed to the City;
e. Review the senior housing ownership agreement with the seller under the supervision of the City or its designee;
f. Notify the City and/or its designee of all substantial improvements to the property and
g.f. Comply with all deed conditions, restrictions and/or requirements of this housing program;
h.g. Live in the unit -- the purchaser may not lease or rent it except as consented to by the City and/or its designee;
i.h. Notify the City or its designee in advance of intent to sell the unit which triggers the 90-day period during which City or its designee has a right to acquire the unit; and
j.i. Subsequent purchasers shall be subject to the same qualifications and residency requirements as the initial purchaser.
3. City. The City or its designee shall conduct application review as follows:
a. Evaluate proposed senior housing projects to determine whether they are in accordance with the terms and provisions of this senior housing program;
b. Set and periodically update the requirements and qualifications for eligible households;
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c. Screen applicant households to prepare and maintain a list of eligible households; and
d. Supervise Ensure the review of the senior housing ownership agreement by the developer and the home buyer.
D. Standards for Household Eligibility.
Household eligibility shall be determined in accordance with Chapter 19.49 and any applicable affordable housing law.
E. Resale Control.
1. Grant deeds for senior units shall contain a restriction giving the first right of refusal upon resale to the City or its designee, for a period not to exceed 90 days from the date of notice, required to be given above. If the City, its designee or assignee has opened escrow to purchase a unit before the end of the 90 days, the City shall be considered to have exercised its right of first refusal.
2. The resale restrictions shall be effective for each unit for a minimum period of time as required by Chapter 19.49. The City Council may by resolution terminate all such deed restrictions, after making a finding that a need for senior housing no longer exists.
3. If the City or its designee exercises its right of first refusal, it shall resell the unit to a qualified home buyer at the lower of the following amounts:
a. The affordable housing cost limit set by any affordable housing law, including, but not limited to, California Health and Safety Code section 50052.5, determined to be applicable to the proposed sale of the property by City Staff.
a. The market value, as established by a qualified appraiser to be paid for by the seller; or
b. The total of:
(1) The original sale price, plus
(2) An increase based on two-thirds (2/3) of the percentage increase in the greater Los Angeles area (currently Los Angeles/Long Beach/Anaheim) Consumer Price Index, from the time the current homeowner purchases the unit until the city or its designee receives the notification of intent to sell, plus
(3) The market value of any structural or permanent fixed improvements as verified by a qualified appraiser if deemed necessary by the City, plus
(4) The seller’s closing costs, minus
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(5) The amount needed to remedy any deficiencies in the unit, including:
(a) Violations of applicable building, plumbing, electric, fire or housing codes;
(b) Repair of appliances which were originally furnished to owner which are not in good working order; and,
(c) Holes or other defects (except for holes from picture hangers) in walls, ceilings, floors, doors, windows, screens, carpets, drapes and similar appurtenances.
4. Upon the resale of a senior unit by the City,Upon receipt of notification of intent to sell a senior unit, the City or its designee will notify eligible households from the eligibility list it maintains. One of these households may then purchase the unit at the price determined by the above formula.
5. A fee shall be paid to the City or its designee as applicable to compensate for the time expended during the resale of the unit; the fee shall be paid from the proceeds of the sale of the unit for time expended qualifying applicants and reviewing the necessary documentation with applicants.
6. Seller and buyer shall use deed forms and record such other documents as approved and reasonably required by the Director and the City Attorney for purposes of effectuating continuation of the specific units as affordable housing.
7. If no qualified household is available, the City or its designee, or the homeowner if the right of first refusal is not exercised, may sell to any purchaser regardless of income or age restriction; all other restrictions shall remain in place.
V. Senior Housing Program - Rental
A. The Senior Housing Rental Agreement shall include:
1. The requirements for participation which describe the requirements and qualifications that units and projects must meet in order to participate in the housing program;
2. The division of responsibilities of all the parties involved;
3. The standards for household eligibility;
4. The number, type and phasing of senior resident units;
5. A limitation through deed restriction for a minimum period of time as required by Chapter 19.49, limiting the initial and subsequent renters of senior units to those certified by the City or its designee as being eligible households; and
6. A requirement that senior resident units to be occupied by household meeting Adopted October 21, 1992
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the definition of Civil code Section 51.3.
B. Requirements for Participation.
1. Time Period. The units must be made available to such households for a minimum period of time as required by Chapter 19.49.
C. Division of Responsibilities.
Program responsibilities will be divided as follows:
1. Developer. The developer shall:
a. Provide the requisite number of units, renting to qualifying residents.
Specific units shall be designated for participation in the program. b. Enter into a lease or other agreement or arrangement with the City or the Housing Authority, to the satisfaction of the Director and City Attorney; c. Execute and record a deed restriction or other document in a form and manner acceptable to the Director and City Attorney to make record of the limitations and requirements set forth in the Senior Housing Agreement.
d. Compensate the City and its designee as applicable for time expended establishing rental rates, qualifying applicants, preparing the list of eligible households and reviewing the necessary documents with applicants; e. Review the senior housing rental agreement with the tenant under the supervision of the City or its designee; and
f. Provide for management of all the units. It shall be the responsibility of the management to notify the Housing AuthorityCity or its designee when a participating unit is vacant.
2. Tenant. The tenant shall:
a. Provide the information necessary to the City or its designee to determine whether the household is eligible to participate in the program; and b. Review the senior housing rental agreement with the developer under the supervision of the City or its designee
3. Agreements. The Housing Agreement shall:
a. Determine who shall administerthe administration of the lease or other agreement executed in accordance with subsection D(2) below.
4. City of Camarillo. The City or its designee shall:
a. Provide the density bonus and/or other incentives; and Adopted October 21, 1992
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b. Supervise Ensure the review of the senior housing rental agreement by the developer and the tenant.
D. Standards for Household Eligibility and Rental Rates.
1. Household eligibility shall be determined in accordance with Chapter 19.49 and affordable housing law.
2. Units under this program may be leased to the Housing Authority, a non-profit organization, or the city of Camarillo for a period of a minimum of 30 55 years or such other agreement or arrangement shall be made, to the satisfaction of the City, to provide for rental of such units during a continuous period of at least 30 55 years to senior households who have been approved to enter into an agreement to manage and maintain the units.
The lease or other agreement with the Housing Authority or other non- profit organization may provide that in the event the Housing Authority or other non- profit organization should at any time not have an eligible person to occupy a unit or need to suspend or cease the program temporarily or otherwise, the Housing Authority or other non-profit organization may elect to release the unit temporarily to the owner for rental by the owner on a month-to-month basis to the general public until such time as the Housing Authority or other non-profit organization gives notice of its desire to recommence utilization of the unit. Upon such election by the Housing Authority or other non-profit organization shall have no obligation to pay rent until the unit is reclaimed and recognized on behalf of the Housing Authority or other non-profit organization.