§ 822-4.410. Restrictions.

(a)

Rental Inclusionary Unit Restriction. The monthly rent for a rental inclusionary unit shall remain reserved for the target income level group at the applicable affordable rent for a period of fifty-five years.

(b)

For-Sale Inclusionary Unit Restrictions.

(1)

The initial sale of a for-sale inclusionary unit shall occur only to a household that meets the following criteria:

(A)

The household has not owned a residence within the previous three years; and

(B)

The household has no more than two hundred fifty thousand dollars in assets. This amount excludes assets reserved for a down payment and closing costs, assets in retirement savings accounts, and assets in medical savings accounts.

(2)

The initial purchaser of a for-sale inclusionary unit must agree to occupy the dwelling unit as the principal residence for at least three years, unless an emergency requires the earlier sale of the unit.

(3)

A for-sale inclusionary unit may be sold after the initial sale to an above-moderate income purchaser and at a market price, provided that the sale results in a recapture by the county of a financial interest in the unit equal to the sum of:

(A)

The difference between the initial affordable sales price and the appraised market value of the unit at the time of the initial sale; and

(B)

The county's proportionate share of any appreciation since the time of the initial sale. Appreciation is the difference between the resale price to the above-moderate income purchaser and the appraised market value at the time of the initial sale. The county's proportionate share of appreciation is equal to the percentage by which the initial affordable sales price was less than the appraised market value at the time of the initial sale.

The recaptured amount will be deposited in a restricted fund established pursuant to Section 822-4.404.

(Ord. 2006-43 § 2).