Guidelines
for Implementation of the
Inclusionary Housing and
Affordable Housing Linkage Fee
Ordinance
Article 15.04.603 of the Richmond Municipal Code.
May 2022
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TABLE OF CONTENTS
1.0 INTRODUCTION 3
1.1 Overview of Requirements for Residential Developments 3
1.2 Overview of Requirements for Non-Residential Developments 3
2.0 NEW RESIDENTIAL DEVELOPMENT PROJECTS 5
2.1 Affordable Housing Plan 5
2.2 Inclusionary Housing Agreement 5
2.3 Standards for Inclusionary Units 5
2.4 Standards for On-Site Inclusionary Units 7
2.5 Additional Standards for Off-Site Inclusionary Units 8
2.6 Provisions Applicable to Property Dedication 12
3.0 HOUSEHOLD INCOME AND QUALIFYING STANDARDS FOR INCLUSIONARY UNITS 14
3.1 Income Limits to Qualify for an Inclusionary Unit 14
3.2 Determination of Gross Household Income 14
3.3 Income from Assets 14
3.4 Household Size and Occupancy Limits for Units 15
3.5 Conflicts of Interest 15
4.0 PROVISIONS APPLICABLE TO FOR-SALE INCLUSIONARY UNITS 17
4.1 Eligibility requirements for purchasers of for-sale inclusionary units. 17
4.2 Marketing and Sale of For-Sale Inclusionary Units 17
4.3 Determination of Initial Sales Prices for Ownership Inclusionary Units 18
4.4 Determination of Maximum Resale Prices for Ownership Inclusionary Units. 19
4.5 Capital Improvements 20
4.6 Maintenance 21
4.7 Loan Requirements 21
4.8 Refinancing 21
4.9 Subordination 22
4.10 Insurance Requirements 22
4.11 Owner Occupancy and Annual Certification Requirement 22
4.12 Temporary Owner Occupancy Waivers 22
4.13 Term of Affordability 23
4.14 Limitations on Title Changes 23
5.0 REQUIREMENTS FOR RENTAL INCLUSIONARY UNITS 25
5.1 Maximum Rents 25
5.2 Occupancy Requirements 25
5.3 Annual Recertification and Over-Income Tenants 26
5.4 Property owner / manager responsible for marketing and lease up 26
5.5 Ongoing Compliance with Affordability Restrictions 27
5.6 Terms of Lease 27
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5.7 Renovation of rental inclusionary units 28
6.0 AFFORDABLE HOUSING PLAN SUBMISSION REQUIREMENTS 29
ATTACHMENT A - GROSS INCOME per California Code of Regulations, Title 25, Section 6914.
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1.0 INTRODUCTION
The City of Richmond’s Inclusionary Housing and Affordable Housing Linkage Fee program (“IH/AHLF”) is established in Article 15.04.603 of the City of Richmond Municipal Code (“RMC”). The City’s inclusionary program was adopted in 2001 and updated in 2020 by adoption of Ordinance 24-20 (“Ordinance”), which also established an affordable housing linkage fee that applies to new non- residential development. The amounts of the in-lieu fee and non-residential affordable housing linkage fee are established in Resolution 115-20 (“Resolution”), adopted October 20, 2020.
These Guidelines for Implementation of the Inclusionary Housing and Affordable Housing Linkage Fee Ordinance (“Guidelines”) establish procedures for the IH/AHLF program, including:
Procedures that apply to new residential developments subject to the Ordinance; and Procedures to ensure continued affordability of inclusionary units over time.
Adoption of guidelines is authorized by RMC 15.04.603.150. In the event of a conflict between the Guidelines and Ordinance or Resolution, the Ordinance and Resolution shall prevail. Undefined capitalized terms in the Guidelines are defined in the Ordinance and Resolution.
1.1 Overview of Requirements for Residential Developments
The City’s inclusionary requirements apply to new residential developments with ten or more units and are summarized in the table below.
Rental
Residential Developments
For-Sale
Residential Developments
Percent Affordable Units Required
9% Very Low
or
10% Low
7% Low For-Sale Units
or
10% Moderate For-Sale Units
or
10% Very Low Rental Units
Fee in-lieu of constructing inclusionary units
South of I-580 and including
the Point San Pablo Peninsula In-lieu fee permitted May not pay an in-lieu fee
Other Areas of the City In-lieu fee phased in as building permits are issued.
Other Alternatives Off-site affordable units, property dedication.
Fee amounts are established in the Resolution and are indexed annually for increases in construction costs.
1.2 Overview of Requirements for Non-Residential Developments
New non-residential developments and non-residential components of mixed use developments adding 5,000 square feet or more of new gross floor area are subject to the City’s affordable housing linkage fee
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at an amount established in the Resolution. Fees apply to net new office, retail/service, warehouse / distribution, research and development, industrial, and hotel development. The Guidelines do not include any additional provisions related to implementation of linkage fees beyond those specified in the Ordinance and Resolution.
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2.0 NEW RESIDENTIAL DEVELOPMENT PROJECTS
2.1 Affordable Housing Plan
An application for first approval of a residential development project or mixed use project containing ten or more units must submit an affordable housing plan describing how the project will comply with the Ordinance. The affordable housing plan must include information that will enable evaluation of the proposed compliance and specify the compliance alternative the project proposes to use:
on-site inclusionary units,
off-site inclusionary units,
in-lieu fee payment, or
property dedication.
The affordable housing plan will be processed concurrently with all other permits required for the residential development. It is recommended that the applicant consult early with City staff during the predevelopment or site planning process to allow sufficient time to develop the affordable housing plan.
The applicant’s affordable housing plan must be reviewed and approved by the same body that will review and approve other permits required for the residential development. To approve the affordable housing plan, the approval body must conclude that the affordable housing plan conforms to the requirements of the Ordinance and Guidelines.
Subsequent changes to an affordable housing plan after initial approval are also required to be reviewed and approved by the same approval body as approved the original affordable housing plan.
Section 6 specifies the required contents of the affordable housing plan. Requirements vary depending on the compliance alternative selected.
2.2 Inclusionary Housing Agreement
Projects proposing to comply through provision of on- or off-site inclusionary units must enter into an inclusionary housing agreement with the City consistent with the requirements of RMC 15.04.603.110.
The inclusionary housing agreement obligates the project to provide the inclusionary units consistent with the terms of the approved affordable housing plan and is recorded as a restriction against the property, running with the land and binding upon successor owners. Execution of the inclusionary housing agreement is required prior to issuance of a building permit or approval of a final or parcel map.
2.3 Standards for Inclusionary Units
This section outlines the minimum standards that all inclusionary units must meet.
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Bedroom Count
The average number of bedrooms for the inclusionary units must be comparable to or greater than the average number of bedrooms of the market rate units.
Unit Size (square feet)
The square footage size of inclusionary units must be comparable to or greater than the average square footage size of the market rate units.
The developer may propose inclusionary units that have a smaller average size than the market rate units, if the decision-making body finds a smaller size meets the minimum standards specified below and will result in at least five percent (5%) more affordable units, with a minimum of one additional inclusionary unit.
The following minimum square footages as defined by California Tax Credit Allocation Committee Regulations (2021) apply:
Unit Type Minimum Unit Size
Studio 200 square fee t
1-bedroom unit 450 square feet
2-bedroom unit 700 square fee t
3-bedroom unit 900 square fee t
4-bedroom unit 1,100 square fee t
Minimums may be waived to the extent market rate unit sizes are also below these minimums.
Bathrooms
The minimum number of bathrooms required is as follows:
Studios, one and two bedrooms: one bathroom
Three or Four Bedrooms: two bathrooms
All bathrooms must include a sink and toilet. At least one bathroom must have a shower stall and standard-size tub or combination tub-shower unit.
Kitchens
Kitchens must include:
Four-burner cook top and full-size oven with built-in exhaust hood Full-size sink with electric disposal
Full-size dishwasher
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Full-size refrigerator with freezer
Upper and lower cabinets with doors
Appliances must be new and of good quality.
Closets
Minimum of one coat closet, one linen closet, and one closet for each bedroom.
Laundry
On-site or in-unit laundry is required. Laundry facilities must be comparable to market rate units.
2.4 Standards for On-Site Inclusionary Units
When inclusionary units are provided on-site, the following standards apply.
Exterior Appearance and Quality
Inclusionary units are required to be comparable in exterior appearance and overall quality of construction to the market-rate units. State law requires that the occupants of the inclusionary units in a mixed-income multifamily building have the same access to the common entrances as the occupants of the market-rate units.
Unit Type
The unit type for on-site inclusionary units must match the market rate units. For example, in a townhome development, the inclusionary units must also be townhomes. In a single family development, inclusionary units may be duplexes. This requirement may be waived if the decision-making body finds providing units of a different type than the market rate units will result in at least five percent (5%) more affordable units, with a minimum of one additional inclusionary unit.
Interior Finishes and Features
Interior finishes, features, and amenities must be durable, of good quality, and consistent with contemporary standards for new housing, but may differ from the market rate units.
Appliances must be new and of good quality, but may be a different make, model, or style from the market rate units.
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Access to Amenities
The inclusionary units shall have access to the same common areas and amenities as the market rate units.
Any fees that are associated with access to on-site amenities in a rental development, when combined with the rents charged for the inclusionary units, must not exceed the applicable maximum affordable rent. In a for-sale development, any fees associated with on-site amenities must be either be included in HOA dues or otherwise considered in monthly homeownership costs for purposes of determination of the maximum affordable sales prices.
Location of On-Site Inclusionary Units
On-site inclusionary units shall be distributed throughout the residential development project located so as not to create a concentration of inclusionary units in any one portion of the residential development project. State law requires that in a mixed-income multifamily building, the inclusionary units may not be isolated on a specific floor or an area on a specific floor. The inclusionary units may be concentrated in one or more separate multifamily buildings only if the applicant demonstrates that concentration of the affordable units within separate buildings is required based on the funding source used (e.g., tax credit financing) or legal requirements imposed on the type of project (e.g., senior housing).
Timing of Construction for On-Site Inclusionary Units
Inclusionary units must be constructed in proportion to construction of the market-rate units. A building permit may not be issued for any market-rate unit unless a proportional number of building permits have been issued for inclusionary units. A certificate of occupancy or final inspection may not be issued for market-rate units unless a proportional number of certificates of occupancy or final inspections have been issued for inclusionary units.
Timing requirements may be modified if the City approves an alternative phasing plan for the inclusionary units as part of the affordable housing plan and inclusionary housing agreement. Approval of an alternative phasing plan may include a requirement that completion of the inclusionary units be secured by a requirement to pay the in-lieu fee that would otherwise apply, or other means of security as may be deemed necessary and acceptable to the City.
2.5 Additional Standards for Off-Site Inclusionary Units
When inclusionary units are provided off-site, all the criteria for on-site inclusionary units, described above, continue to apply. In addition, the following criteria apply.
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Calculation of Inclusionary Units Required With Off-Site Inclusionary Units
The required number of off-site inclusionary units is calculated by applying the inclusionary unit percentages established in RMC 15.04.603.040 to the combined number of units in the residential development project and the off-site inclusionary unit development.
For example, if the residential development includes 300 market rate rental units and the off-site inclusionary unit development includes 33 low income inclusionary units, the percentage of inclusionary units required is calculated as 10% x (300 + 33) = 33.33, which rounds down to 33 units. A fractional unit in-lieu fee would be due for the remainder of 0.33 units, or a total of 34 inclusionary units could be provided.
Location of Off-Site Inclusionary Units
The following location criteria apply to off-site inclusionary units:
(1) Must be within the City of Richmond no more than one mile from the residential development project.
(2) Within the same U.S. Census, census tract as the residential development, or a different census tract where median household income is at least equal to 80% of the median household income for the census tract applicable to the residential development, so long as the location will not tend to cause segregation or concentrations of poverty. Census tract maps and data on median household income as of the date of these Guidelines is included below. Current data available at the time the affordable housing plan is submitted should be utilized. The approval body may grant an exception to this requirement if it finds the exception will not tend to cause residential segregation or concentrations of poverty.
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Census Tract Map (2020 Census)
Source: U.S. Census Bureau 2020 Census – Census Tract Reference Map.
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Median Household Income by Census Tract (2015-2019 American Community Survey) (note: current data as of the time of affordable housing plan submission should be used) Census Tract Median Household Income
3601.01 $87,333
3601.02 $127,125
3602 $82,224
3610 $94,010
3650.02 $53,790
3650.03 $73,750
3671 $57,059
3700 $102,450
3710 $84,591
3720 $67,047
3730 $54,049
3740 $56,675
3750 $61,196
3760 $51,250
3770 $39,232
3780 $102,057
3790 $46,382
3800 $80,110
3810 $51,783
3820 $44,464
3830 $79,746
3922 $84,604
Source: US. Census 2015-2019 ACS.
Timing of Construction for Off-Site Inclusionary Units
Construction of the off-site inclusionary units may not have commenced prior to approval of the residential development.
Final inspections for occupancy of the market-rate units in the residential development project will be granted only after final inspections are completed for the off-site affordable units related to those market- rate units.
Timing requirements may be modified if the approval body approves an alternative phasing plan for the off-site inclusionary units as part of the affordable housing plan and inclusionary housing agreement.
Approval of an alternative phasing plan may include a requirement that completion of the off-site inclusionary units be secured by a requirement to pay the in-lieu fee that would otherwise apply or other means of security as may be deemed necessary and acceptable to the City.
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Additional Criteria for Off-Site Units
Approval of off-site inclusionary units in satisfaction of the requirements of the Ordinance is subject to the following additional criteria:
1. Financing or a viable financing plan, which may include public funding, shall be in place for construction of the off-site inclusionary units.
2. If the inclusionary units will be constructed by a separate developer, an agreement with such separate developer for construction of the units is in place.
3. The developer has marketable fee title to, or demonstrates control of, the site proposed for off-site inclusionary units.
4. The site has a General Plan and zoning designation that authorizes residential uses.
5. The site is suitable for development of affordable housing units in terms of configuration, physical characteristics, location, access, adjacent uses, and other relevant planning and development criteria including, but not limited to, factors such as the cost of construction or development arising from the nature, condition, or location of the site.
6. Infrastructure to serve the site, including but not limited to streets and public utilities, must be available at the property line and have adequate capacity to serve an affordable housing development.
7. Environmental and geological hazard reviews have been completed and demonstrate that the property is suitable for residential use.
2.6 Provisions Applicable to Property Dedication
Criteria for Acceptance of Property Dedication
Acceptance of property dedication in satisfaction of the requirements of the Ordinance is subject to the following criteria:
1. Location – Location criteria for off-site inclusionary units apply.
2. Value – The appraised value must equal or exceed the amount of the in-lieu fee that would otherwise be due. For for-sale units south of I-580 or located on the Point San Pablo Peninsula, the in-lieu fee for rental units will be used for purposes of determining compliance with this condition.
3. Financing or a viable financing plan, which may include public funding, shall be in place for construction of affordable units on the dedicated property.
4. The developer has marketable fee title on the site proposed to be dedicated.
5. The site has a General Plan and zoning designation that authorizes residential uses.
6. The site is suitable for development of affordable housing units in terms of configuration, physical characteristics, location, access, adjacent uses, and other relevant planning and development criteria including, but not limited to, factors such as the cost of construction or development arising from the nature, condition, or location of the site.
7. Capacity – The dedicated property shall be suitable for development of at least 40 units or 10 percent more than the number of inclusionary units otherwise required, whichever is greater.
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8. Infrastructure to serve the site, including but not limited to streets and public utilities, must be available at the property line and have adequate capacity to serve an affordable housing development.
9. Environmental review of the site has been completed for the presence of hazardous materials and geological review for the presence of geological hazards and all such hazards are or will be mitigated to the satisfaction of the City prior to acceptance of the site by the City.
Acceptance of sites may be conditioned upon satisfaction of certain conditions prior to conveyance to ensure the site is delivered in a condition that is suitable for development of the affordable units.
Dedication is required to be completed prior to the issuance of any building permit for the residential development project.
Transfer of Report(s) to City
Concurrent with conveyance of the site, all entitlements, permits, preliminary engineering, architectural and any other reports or studies pertinent to the site shall be transferred to the City.
Disposition by City
With respect to sites dedicated to the City in satisfaction of the Ordinance, the City shall solicit proposals to construct affordable units consistent with the purpose of the Ordinance. If the City determines that construction of an affordable housing development on the property is not viable, the City may dispose of the dedicated site for any purpose. Funds collected as a result of sale, transfer, lease, or other disposition of sites dedicated to the City shall be deposited into the affordable housing fund described in RMC
15.04.603.130.
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3.0 HOUSEHOLD INCOME AND QUALIFYING STANDARDS FOR INCLUSIONARY UNITS
3.1 Income Limits to Qualify for an Inclusionary Unit
Income limits to qualify for an inclusionary unit under the program are based on the limits annually published by State Department of Housing and Community Development (HCD) for Contra Costa County pursuant to Title 25 of the California Code of Regulations, Section 6932.
Very Low (up to approximately 50% of AMI)
Low Income (approximately 50% to 80% of AMI)
Moderate Income (approximately 80% to 120% AMI)
3.2 Determination of Gross Household Income
Annual household income is defined pursuant to the California Code of Regulations (Title 25 Section 6914), included as Attachment A. Gross household income is the sum of all the income for every adult, 18 years or older, living in the unit. Sources of income include all wages or salaries, overtime pay, commissions, fees, tips, bonuses and other compensation, net income from a business or profession or from the rental of real or personal property, interest and dividends, payments received from social security, annuities, insurance policies, distributions from retirement funds, pensions, disability or death benefits, payments in lieu of earnings, public assistance, alimony and child support received, and any other source of income. Certain items are excluded from gross household income, as listed in Attachment A. All adult household members seeking to rent or purchase an inclusionary unit are required to submit documentation to verify the household meets the income and other requirements for occupancy of the unit.
3.3 Income from Assets
To determine eligibility for purchase of an inclusionary unit, a percentage of the household’s assets (as defined below) shall be added to the household income only when the household’s assets exceed the applicable annual household income limit.
When assets exceed the annual household income limit, then the amount of income attributed to these assets shall be calculated and included as part of household income based on the greater of:
The actual annual income generated from the assets; or 10% of the value of assets in excess of the household income limit.
Assets include:
Cash, bank account balances, certificates of deposit, and any cash or cash equivalents. Marketable securities, stocks, bonds, notes, and other forms of capital investment. Equity in real estate.
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Cash value of revocable trusts and irrevocable trusts when a household member is a beneficiary. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).
Personal property held as an investment that is readily convertible into cash. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim’s restitution, insurance settlements, and other amounts not intended as periodic payments.
The following are excluded for purposes of determining income from assets:
Ordinary household effects including furniture, fixtures, and personal property. Automobiles for personal use.
Term life insurance policies (i.e., where there is no cash value). Business assets other than residential real estate.
Funds to be used toward the purchase of the inclusionary unit (down payment and closing costs). Retirement Plan Assets - Assets in a retirement plan recognized by the U.S. Internal Revenue Service are excluded for purposes of income calculated from assets. However, as described above, distributions from retirement plans are included in income.
3.4 Household Size and Occupancy Limits for Units
A household is defined as all persons who live or are proposing to live in the inclusionary unit. Pregnant applicants are counted as two members of a household upon submittal of medical documentation.
Children that live in the household at least 50% of the time are included.
Minimum occupancy is as follows, unless a reasonable accommodation is required (for instance, to allow a disabled resident to retain a caregiver).
Unit Type Minimum Occupanc y
Studio 1
1-Bedroom 1
2-Bedroom 2
3-Bedroom 3
4-Bedroom 4
To be eligible for occupancy of the unit, adult household members must not be eligible to be claimed as a dependent of a third party who is not a member of the household.
3.5 Conflicts of Interest
The following individuals are ineligible to purchase or rent an inclusionary unit:
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City employees and officials and their immediate family members and dependents who have policy-making authority over or participate in the administration or implementation of any City housing program, including but not limited to the Ordinance.
City employees and officials and their immediate family members and dependents who have authority over or participate in the review, approval, or permitting process for development projects that are subject to the Ordinance.
A vendor or consultant to the City, including employees, immediate family members and dependents, who provides, or has provided within the past five years, any goods or services in connection with City housing programs and / or proposed developments subject to the Ordinance.
The applicant, developer, or property owner of a project containing the inclusionary units and its officers and employees and immediate family members.
Any other individual who has a conflict of interest as defined in the City’s Conflict of Interest policy.
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4.0 PROVISIONS APPLICABLE TO FOR-SALE INCLUSIONARY UNITS
4.1 Eligibility requirements for purchasers of for-sale inclusionary units.
Household income within the maximum income limit for the unit. Ability to qualify for a 30-year fixed rate mortgage in an amount sufficient to purchase the unit. A minimum down payment of 3% of the purchase price of the inclusionary unit. Down payment may be in the form a silent second loan made through a down payment assistance program and may be comprised of gift funds but cannot exceed 20 percent of the purchase price. Cash reserves equal to three months of housing payments (principal, interest, property taxes, hazard insurance, HOA dues and other related costs).
Non-homeowner who meets one of the following criteria:
o Has not had any ownership interest in a principal residence in the five years preceding the date of application.
o A single person who has only owned a home with a former spouse while married or, for registered domestic partners, for the duration of the registered partnership. o An individual who has only owned a principal residence not permanently affixed to a permanent foundation.
o Prior homeowner who has lost a home to foreclosure not more recently than three years prior to the date of application, provided other eligibility requirements are met including an ability to qualify for a new 30-year mortgage.
Commitment to use the property as a primary residence. Proof of participation in a HUD-approved pre-purchase homebuyer education workshop for all adults who will be on title of the property.
4.2 Marketing and Sale of For-Sale Inclusionary Units
The applicant and all successors in interest shall be responsible for the marketing and sale of inclusionary units. The Applicant shall determine the selection criteria for occupancy of inclusionary units as set forth in the affordable housing plan. The applicant shall preliminarily screen all prospective buyers to ensure compliance with the applicable income restrictions and the City or its agent shall subsequently verify the eligibility of each buyer identified by the applicant prior to close of escrow for all initial sales.
The applicant may elect to sell for-sale inclusionary units to a qualified nonprofit housing corporation for the purposes of administering the inclusionary units and ensuring sale and resale to eligible households, provided that all of the requirements of California Government Code Section 65915(c)(2)(A)(ii) and the Ordinance are met.
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4.3 Determination of Initial Sales Prices for Ownership Inclusionary Units
The maximum initial sales prices of inclusionary units are determined by the City, or its agent, based on the maximum affordable housing cost provisions of Section 50052.5 of the California Health and Safety Code and the most recent HCD income limits for Contra Costa County, as follows:
Step 1. Determine annual median income. Using HCD income tables for Contra Costa County, identify the annual median income for a household size that is one person more than the number of bedrooms in the inclusionary unit.
Step 2. Determine the maximum affordable housing cost as follows:
For Moderate Income, the maximum monthly affordable housing cost = Median income from Step 1 X 110% X 35% / 12.
For Low Income, maximum monthly affordable housing cost = Median Income from Step 1 X 70% X 30% / 12.
Step 3. Estimate all non-mortgage monthly housing expenses as the sum of:
a. Property taxes calculated based on rates applicable to the proposed unit inclusive of special taxes, parcel taxes, or other fixed charges or assessments. b. Mortgage insurance premium using rates published by the Federal Housing Administration.
c. Hazard insurance estimated based on a quote or estimate from an insurance provider or actual current premiums for comparable units. A walls-in policy would apply where the structure is or will be covered by an HOA policy.
d. Homeowner’s association dues (HOA) based on the actual amount approved by the State of California Department of Real Estate for the project. e. Utility costs determined using the current Housing Authority of the County of Contra Costa utility allowance schedule inclusive of heating, cooking, other electric, water heating, water, and garbage, not including any such costs included in HOA fees.
Step 4. Determine the amount available for mortgage payments. This is calculated based on the maximum monthly affordable housing cost from Step 2 less estimated non-mortgage monthly expenses from Step 3.
Step 5. Determine the supported mortgage amount. This is calculated based on the amount available for mortgage payments from Step 4. Interest rates are based on a 30-year fixed rate fully amortizing mortgage with commercially reasonable points and fees. Interest rates are drawn from the Freddie Mac Primary Mortgage Market Survey and are set at the greater of a rolling ten-year average of weekly interest rates, or current rates at the time of pricing.
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Step 6. Determine the maximum inclusionary unit sales price by adding the mortgage amount from Step 5 and an assumed 5% down payment.
4.4 Determination of Maximum Resale Prices for Ownership Inclusionary Units.
Maximum resale prices for existing inclusionary units will be determined by the City or its agent in accordance with the terms of the affordability restrictions recorded on the title.
Unless otherwise specified, the maximum re-sale price is based on the greater of:
(1) The then current affordable purchase price calculated in accordance with the same procedures that apply to new units, less costs to repair any damage and deferred maintenance, or
(2) Seller’s adjusted costs, equal to the sum of:
a. The original purchase price paid by the seller, as adjusted by the change in the Consumer Price Index for all urban consumers for the San Francisco Bay Area since the date of purchase; plus
b. Sellers capital improvement costs equal to the sum of:
i. An allowance for capital improvements equal to 10% of the original purchase price of the unit, provided the unit has been owned at least five years; and ii. Sellers actual documented capital improvement costs in excess of the allowance per (b., i.), if any, for which seller furnishes the required documentation as described in Section 4.5, minus depreciation of 7% per year from the date of the improvements. Costs to add bedrooms or increase floor area are not subject to a depreciation adjustment. plus
c. Estimated seller-paid marketing, commission, and closing costs up to 6% of the sum of a. and b; less
d. Costs to repair damage and deferred maintenance.
Sellers are not guaranteed a new buyer will purchase the unit at the maximum resale price. It is possible the owner will need to lower the price to attract a qualified buyer. Affordability restrictions may include a City right to inspect prior to resale to determine if damage or deferred maintenance exists, to require the repair of damage or deferred maintenance, to have repair costs deducted from seller’s sales proceeds, and an assignable right of first refusal or option to purchase the unit at the restricted price.
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4.5 Capital Improvements
The depreciated cost of capital improvements made to the unit may be considered when the maximum resale price is determined, as described in the preceding section, to the extent costs exceed a standard allowance of 10% of the original purchase price. Examples of eligible capital improvement costs include:
Major electrical wiring system upgrade
Additions
Alarm system
Smoke detectors
Major plumbing upgrades or replacement
Additional closets and walls
Removal of toxic substances or mold/mildew
Energy efficiency improvements
Insulation
Replacement of built-in appliances and systems including furnace, water heater, stove/range, garbage disposal, dishwasher and microwave hood.
Countertops
Built in cabinets
Bathroom tile
Bathroom vanity
Flooring replacement
Earthquake retrofit or foundation repairs
For consideration as part of the resale price, the following must be provided for each eligible improvement.
Contractor invoices.
Proof of payment, such as a cancelled check, bank account statement or credit card bill. Copy of building permits, if required.
Before and after photos.
The homeowner is responsible for maintaining records of capital improvements and for submission of supporting documentation of the improvements at the time of resale. Unless the seller provides required documentation at the time of resale, only the standard 10% capital improvement allowance will be considered. The City is not responsible for maintaining records regarding capital improvement costs.
Items not considered capital improvements
Cosmetic improvements, items with a limited useful life, or items considered to be part of normal homeowner maintenance are permitted but would not be considered capital improvements for purposes of calculating the maximum resale price. Examples of ineligible costs include:
New carpet
Painting or refinishing of existing surfaces
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Drywall repairs
Plumbing repairs
Window glass
Replacement of lighting fixtures, handles, locks, doorknobs, outlets, or switches Hot tub or spa, special entrances, thermostats, built in stereo system Portable appliances (not built in)
Decorative wall coverings or hangings, window treatments, mirrors, shelving.
4.6 Maintenance
The homeowner is required to maintain the unit throughout the ownership period. Appliances must be maintained in good working order. The unit must be sanitary and free of code violations.
4.7 Loan Requirements
The first mortgage must be a fully amortizing 30-year term fixed principal and interest loan. Interest only loans, negative amortization loans, adjustable rate loans, balloon payments, and reverse mortgage loans are not permitted. First mortgages must have a maximum loan to restricted value ratio no greater than 97%, based on the then current maximum resale price.
4.8 Refinancing
Written permission from the City or its agent is required prior to refinancing the first mortgage and is subject to the following conditions:
The principal amount for the new first mortgage is equal to, or less than, the original first mortgage principal plus closing costs and points.
The interest rate for the new first mortgage is less than the interest rate on the original first mortgage.
The loan requirements described in the prior section are met.
Approval of the City or its agent is required for any cash-out refinancing, home equity loan, line of credit, or other financing secured by title. The requirement for approval extends both to first mortgages and subordinate financing. Approval is subject to:
A maximum combined loan to value ratio of 80%, with value equal to the then current maximum resale price, as calculated with consideration to the cost of capital improvements that will be financed.
A determination that the homeowners housing costs, including the additional borrowing, will not exceed 35% of the owners then current household income, does not exceed the owner’s ability to pay, and the loan or line of credit otherwise meets standard underwriting criteria.
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4.9 Subordination
Affordability restrictions may be subordinated to a first mortgage with approval by the City or its agent based on a determination that subordination is necessary to obtain commercially reasonable financing terms. Affordability restrictions will not be subordinated to any other liens or financing. Subordination to a new first mortgage upon refinance is subject to approval by the City or its agent and must conform to the requirements of the preceding section.
4.10 Insurance Requirements
Inclusionary unit owners must maintain a standard homeowner’s insurance policy in an amount equal to the estimated replacement value of the home with the City named as an additional insured. The City will be entitled to any policy proceeds in excess of the affordable unit purchase price if the proceeds are not used to rebuild the home.
4.11 Owner Occupancy and Annual Certification Requirement
Owner occupancy as a principal residence for at least ten (10) months out of each calendar year is required.
An annual certification is required for owners of inclusionary units certifying that the owner is occupying the unit as a principal residence. The certification must be accompanied by documentation to verify owner occupancy, including but not limited to a property tax statement, proof of insurance, utility bills, or other documentation as may be requested. The owner must claim a homeowner's property tax exemption.
If an owner is not in compliance with occupancy requirements, intentionally makes false statements on the annual certification, or fails to submit the annual certification of owner occupancy, the City will pursue remedies available under the affordability covenants, which may include exercising an option to purchase the unit or requiring a sale to a qualified buyer.
4.12 Temporary Owner Occupancy Waivers
Owner occupancy waivers of up to one year may be granted under any of the following circumstances:
The property is being marketed for-sale to a qualified buyer, The property is in foreclosure,
The owner is on active military duty,
Reasons deemed acceptable by the City, in its sole discretion, which are temporary in nature (e.g. sabbatical, caring for a sick relative, temporary relocation for work), Temporary financial hardship where the households monthly housing expenses exceed 50% of household income.
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Any owner-occupancy waiver request must be in writing and accompanied by appropriate supporting documentation at least 30 days prior to commencement of the waiver period. Program participants who have purchased a residence elsewhere are not eligible for owner-occupancy waivers. At the end of the owner-occupancy waiver period, if the owners do not reoccupy the unit, it must be listed for sale.
Renting, leasing, or subleasing is prohibited unless authorized by the City. Temporary rental of the unit may be authorized in connection with an owner occupancy waiver only when all of the following conditions are satisfied:
Owner is in compliance with all requirements of the program. Total period for which the unit is leased does not exceed 12 months May not be offered as a short-term rental.
Tenant satisfies the income and other eligibility requirements for the unit. Tenant acknowledges, in writing, that the rental is temporary. Rent does not exceed the lesser of the maximum rent allowable for a rental unit with the same maximum household income restriction or the owners documented total housing expenses (including mortgage, property taxes, HOA dues, and insurance).
Owner-occupancy waiver recipients must provide copies of executed lease agreements to the City.
4.13 Term of Affordability
Resale restrictions for for-sale inclusionary units shall remain in effect for a minimum of 45 years from the date of the original sale of the unit. The term of the resale restriction shall renew at each re-sale.
4.14 Limitations on Title Changes
Title changes other than through a re-sale of the unit to a qualified buyer are not permitted except as provided below and are subject to written approval by the City or its agent.
Marriage or Domestic Partnership
No sooner than 12 months after the original purchase, a spouse or domestic partner may be added to title and assume the same rights and responsibilities as the original owner.
Dissolution of Marriage or Domestic Partnership
A spouse or domestic partner may be removed from title with proof of death, dissolution of marriage or domestic partnership.
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Owner’s Death
When an owner dies, surviving co-owners continue to hold title and must notify the City within 60 days and provide requested documentation prior to removing a deceased owner from title. When all owners on title have died, the unit may be transferred by inheritance, will, or any other function of law to a child, spouse or domestic partner not on title, provided that the transferee otherwise qualifies for the inclusionary unit. Within six months following the death of all owners on title, transferees who meet income eligibility requirements and wish to occupy the unit as a principal residence must execute documents transferring title and assuming the rights and responsibilities of the deceased owner.
Transferees who either do not meet eligibility requirements of the program or who do not wish to live in the unit must initiate the sales process for the unit to a qualified buyer within six months. If all owners on title have died, and the property is transferred to a minor child, provisions of the Probate Code must be complied with regarding ownership and occupancy of the property.
Living Trust
Transfers to a living trust require approval by the City or its agent and will be considered only if the following conditions are met:
The trust is a revocable trust that complies with and is governed by the laws of California. The owner serves as the trustee, settlor, and primary beneficiary. There is no impairment of the City’s rights.
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5.0 REQUIREMENTS FOR RENTAL INCLUSIONARY UNITS
5.1 Maximum Rents
The maximum rents for rental inclusionary units are revised annually following publication of HCD income limits for Contra Costa County. Maximum rents for rental inclusionary units are set at levels affordable to low and very low-income households based on the following formula:
1. Maximum gross monthly rent is the product of the following:
Median income divided by twelve months, based on HCD income tables for Contra Costa County for a household size that is one person more than the number of bedrooms in the inclusionary unit.
60% of median for a Low income unit or 50% of median for a Very Low income unit. A 30% share of income for housing costs.
2. Maximum affordable monthly rents are equal to the maximum gross monthly rent minus an allowance for tenant-paid utilities determined based on allowances annually published by the Housing Authority of the County of Contra Costa. If a parking charge or amenity fee applies, the monthly charge for the amenity fee and one parking space will be deducted.
3. Maximum rents are adjusted annually based on the most recently published HCD income limits.
Rents may be adjusted no more than once per year.
5.2 Occupancy Requirements
Qualifying Income
Households occupying rental inclusionary units must qualify as Very Low or Low income.
Primary Residence
All members of the household must occupy the unit as their primary residence for at least 10 out of 12 months of each calendar year.
Changes to occupancy during the lease term.
The approved tenant(s) must occupy the rental inclusionary unit during the entire term of the lease.
Households must maintain a minimum household size of at least one person per bedroom.
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For occupants added during the lease term (roommate, family member, etc.), the tenant must notify the City or its agent prior to the move in date and the entire household will be reevaluated to determine eligibility, including household income requirements.
Subletting and Short Term Rentals are Not Permitted
Inclusionary unit renters may not sublet any part of the rental inclusionary unit to anyone that is not a part of the household at any time. Rental inclusionary units cannot be used as a short-term rental or vacation rental.
5.3 Annual Recertification and Over-Income Tenants
Each year, inclusionary unit renters must provide household income documentation and other applicable household information to the project owner to verify continued compliance with the affordability restrictions applicable to the units. If a very low-income tenant’s household income increases and exceeds the income limits for a very low-income household but does not exceed the limit for low-income, then the tenant's rent will be increased to low-income rents and the tenant may remain in the unit until a suitable low- income unit becomes available. If a tenant's household income increases and exceeds the income limits for a low-income household, the tenant may remain in the unit if their income does not exceed the applicable income limits for moderate-income, and the tenant’s rent will be increased to moderate-income rents. If a tenant’s income exceeds the applicable income limits for moderate-income, the property owner may offer the tenant a market rate unit not to exceed market rent. In a mixed-income project, inclusionary unit tenants with incomes over moderate income may be allowed to remain in their unit, with rents adjusted to market rate, if the next available market rate unit of the same bedroom size is substituted as an inclusionary unit at the required rent level (i.e. inclusionary units in a rental project may be “floating” as long as the bedroom and affordability mix of the inclusionary units is preserved). In the event no market rate unit is available, the over- income tenant will be given six (6) months or until the expiration of the tenant’s lease, whichever is longer, to locate alternate housing and vacate the inclusionary rental unit. An extension of up to an additional six months is permitted in situations where tenants demonstrate hardship.
5.4 Property owner / manager responsible for marketing and lease up
The applicant or property owner, and all successors in interest, is solely responsible for marketing the rental inclusionary units and screening household eligibility. The applicant may designate a property manager, operator, leasing agent, or other individual or entity to administer marketing and screening activities in compliance with the Ordinance and these Guidelines.
In reviewing each candidate, the apartment owner/property manager may apply the same tenant selection criteria, such as past performance in meeting financial obligations and credit references, as those applied to applicants for non-inclusionary units on the same property, except for standards relating to income eligibility and other requirements specified in these Guidelines.
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5.5 Ongoing Compliance with Affordability Restrictions
Any project containing rental inclusionary units is required to submit an annual compliance report to the City or its agent consisting of the following:
1. Tenant Income Certification (TIC): Completed and signed by residents residing in the rental inclusionary units documenting family size, income and other financial information. Residents must be recertified annually to maintain eligibility.
2. Certified rent rolls: A report listing each inclusionary unit, the resident's name, rental rate, household income, the household size, and any other information regarding property tenancy. Rent rolls should be electronically submitted in an excel spreadsheet or electronic form otherwise acceptable to the City or its agent.
3. Certificate of compliance: A signed statement attesting that the project is in compliance with the inclusionary housing agreement.
5.6 Terms of Lease
Inclusionary unit tenants will be subject to the same conditions of tenancy as other tenants occupying the subject property, except for terms relating to occupancy, income eligibility, annual recertification, and limits on rents. The form of tenant lease for inclusionary units is subject to review and approval by the City or its agent. The tenant lease shall, among other matters:
Provide for termination or non-renewal of the lease for failure to provide information required or reasonably requested by the apartment owner/property manager to establish or recertify the tenant's qualification, or the qualification of the tenant's household, for occupancy of the unit. Be for an initial term of not less than one (1) year. After the initial year of tenancy, the lease may be month to month by mutual agreement of the apartment owner/property manager and the tenant, however the rent may not be raised more often than once every twelve (12) months after such initial year, subject to at least sixty (60) days' written notice. Prohibit subleasing of the unit and its use for short-term rentals and include the tenant's obligation to inform the property manager of any need for maintenance or repair. Allow termination of tenancy if tenant no longer meets the household income and minimum household size requirements applicable to the unit or if tenant is in violation of other requirements of these Guidelines such as the prohibition on subleasing or use as a short term rental.
Include, at the rental property owner or manager’s option, the obligation for the tenant to provide a security deposit not exceeding one (1) months' rent. Owners that allow pets may charge an additional refundable pet deposit up to an additional one months’ rent, provided the charge does not exceed charges applicable to market units and is waived for documented service animals. Otherwise conform to these Guidelines.
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If a project owner is seeking to evict a tenant, the eviction process must comply with all applicable Local, State and Federal laws including the Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance.
5.7 Renovation of rental inclusionary units
Any upgrades or renovations must be implemented comparably between inclusionary units and market- rate units, including services related to relocation during renovations.
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6.0 AFFORDABLE HOUSING PLAN SUBMISSION REQUIREMENTS
Residential developments of ten or more units are required to submit an affordable housing plan describing how the project will comply with the Ordinance. The following information must be included with the Affordable Housing Plan.
A. Contact
1. Property Owner Name
2. Developer / Applicant Name(s) and contact e-mail, phone, address.
B. Project Description
1. Project Name and brief description.
2. Site Address
3. Assessor Parcel Number(s)
4. Number of residential units
5. Number of residential buildings
6. Tenure (for-sale, rental, or combination).
7. Whether a parcel or condo map is proposed.
8. Unit mix and floor area information in a form similar to the table below.
Report for-sale and rental units separately and use a separate line for each bedroom size.
Market Rate Units Inclusionar y Units (if proposed)
Unit
Type
/ Plan
Type
No. of
Bedrooms
Per Unit
No.
of
Units
Average
Net Floor
Area* Per
Unit
(Sq.Ft.)
Aggregate
Net
Residential
Floor Area*
(Sq.Ft.)
No.
of
Units
Average
Net Floor
Area*
Per Unit
(Sq.Ft.)
Aggregate
Net
Residential
Floor Area*
(Sq.Ft.)
Income
Level (ELI,
VL, Low,
Mod)
Total No.
of Units
Total
Less: Existing to
be Removed (if
any):
Net New
*Net new residential floor area shall be calculated based on the floor area of dwelling units in the building, excluding unheated unenclosed spaces such as balconies, patios, unfinished garages or outside storage lockers, areas used for off-street parking and loading, and common hallways and common areas.
C. Proposed Compliance
1. Indicate how the project proposes to comply with the Ordinance:
a. On-site inclusionary units
b. In-lieu fee payment
c. Off-site inclusionary units
d. Property dedication
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2. If an exemption applies under RMC 15.04.603.030, specify the reason for the exemption and provide supporting information to demonstrate applicability.
D. Projects Proposing In-Lieu Fee
If an in-lieu fee is proposed, provide an estimate of the in-lieu fee that is due with a supporting calculation.
E. Projects Proposing On-Site Inclusionary Units
1. Identify the entities who will be responsible for development, ownership, management, and on-going compliance of the inclusionary units.
2. List inclusionary units to be provided with tenure, plan type, number of bedrooms, square footage, and income level applicable to each unit.
3. Site and floor plans identifying the location and square footage of market rate and inclusionary units, and bathrooms, kitchen appliances, closets, and laundry for inclusionary units.
4. Elevations of market-rate units and inclusionary units.
5. Phasing plan for the inclusionary and market rate units that complies with RMC
15.04.603.060.
6. Information to demonstrate inclusionary units will be comparable in exterior appearance and overall quality of construction to market-rate units.
7. Comparison of interior finishes and features between market rate and inclusionary units.
8. Confirmation residents of inclusionary units will have access to the same amenities and features as residents of market rate units, including but not limited to common areas, parking, and storage, and, in a mixed-income multifamily building, have the same common entrance as the market-rate units.
9. If inclusionary units are proposed to be placed in one or more separate buildings, evidence the proposed concentration is required by the funding source or type of building (such as senior units).
10. If inclusionary units are proposed to be a different unit type or size than the market rate units, information to support a finding that a smaller size or different unit type will provide adequate and decent housing and will result in at least five percent (5%) more affordable units than otherwise required.
11. Identify any public funding anticipated for the inclusionary units.
F. Projects Proposing Off-Site Inclusionary Units
1. For the proposed property where off-site inclusionary units would be constructed:
a. Narrative description
b. Address
c. APN(s)
d. General Plan and zoning designations.
e. Property owner name and contact information.
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f. Evidence of developer ownership or control or agreement with owner. g. Location map
h. Preliminary title report.
i. Phase I Environmental Report
j. Phase II Environmental Report if hazardous materials are suspected in Phase I report k. Evidence of hazardous materials mitigation, if applicable.
2. Identify the entities who will be responsible for development, ownership, management, and on-going compliance of the inclusionary units.
3. Location map demonstrating the off-site project is within one-mile of the market rate residential project and complies with the location criteria established in the Guidelines.
4. Number of units, bedroom mix, square footage, tenure and income level for proposed off-site inclusionary units and market rate units.
5. Site and floor plans identifying the square footage of market rate and off-site inclusionary units, and bathrooms, kitchen appliances, closets, and laundry for inclusionary units.
6. Elevations of market-rate and inclusionary units,
7. Comparison of interior finishes and features between market rate and inclusionary units.
8. Phasing plan for the inclusionary and market rate units that complies with RMC
15.04.603.060.
9. If inclusionary units are proposed to be placed in one or more separate buildings, evidence the proposed concentration is required by the funding source or type of building (such as senior units).
10. If inclusionary units are proposed to be a different unit type or size than the market rate units in the project, information to support a finding that a smaller size or different unit type will provide adequate and decent housing and will result in at least five percent (5%) more affordable units than otherwise required.
11. Infrastructure study by a licensed professional demonstrating the proposed property is served by infrastructure adequate to support development of affordable units. If adequate infrastructure is not provided, a third-party cost estimate of providing such infrastructure must be provided.
12. Evidence of a viable financing plan for off-site inclusionary units, including identification of any public funding sources anticipated or required.
G. Information Required for Projects Proposing Property Dedication
1. For the proposed property proposed for dedication:
a. Narrative description
b. Address
c. APN(s)
d. General Plan and zoning designation.
e. Property owner name and contact
f. Evidence of developer ownership or control.
g. Location map
h. Preliminary title report.
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i. Phase I Environmental Report
j. Phase II Environmental Report if hazardous materials are suspected in Phase I report k. Cost estimate for mitigation of hazardous materials, if applicable (mitigation must be complete prior to dedication)
l. Recent Land/Site Surveys
m. Appraisal for residential use of the property prepared by a licensed appraiser.
2. An assessment of the proposed site’s ability (with existing zoning, occupancy, building, and use restrictions) to provide at least 40 units and 10% more than the number of inclusionary units otherwise required.
3. Location map demonstrating the property is within one-mile of the market rate residential project and information to demonstrate compliance with location criteria established in the Guidelines.
4. Infrastructure study by a licensed professional demonstrating the proposed property is served by infrastructure adequate to support development of affordable units. If adequate infrastructure is not provided, a third-party cost estimate of providing such infrastructure must be provided.
5. Schedule for transfer of the property, which must be completed prior to issuance of any building permit for the market rate development.
6. Evidence of a viable financing plan for development of affordable units on the property, including identification of any public funding sources anticipated or required.
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ATTACHMENT A – GROSS INCOME
Title 25 of the California Code of Regulations, Section 6914 (Attached for ease of reference only. The current version of Title 25 CCR Section 6914 shall apply.)
“Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income. If the circumstances are such that it is not reasonably feasible to anticipate a level of income over a twelve-month period, a shorter period may be used subject to a redetermination at the end of such a period. “Income” shall consist of the following:
(a) Except as provided in subdivision (b), all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business);
(3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts;
(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (but see subdivision (b)(3)).
(6) Public Assistance. If the public assistance payment includes an amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling;
(8) All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse (but see subdivision (b)(5)).
Where a family has net family assets in excess of $5,000, income shall include the actual amount of income, if any, derived from all of the net family assets or 10 percent of the value of all such assets, whichever is greater. For purposes of this section, net family assets means value of equity in real property other than the household's full-time residence, savings, stocks, bonds, and other
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forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded.
(b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gifts;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses;
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses;
(4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire;
(6) Relocation payments made pursuant to federal, state, or local relocation law;
(7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household;
(9) Payments received pursuant to participation in the following volunteer programs under the ACTION Agency:
(A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Programs for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).