Chapter 17.51
INCLUSIONARY HOUSING

Sections:

17.51.010    Purpose.

17.51.020    Definitions.

17.51.030    Administrative Manual.

17.51.050    Development Requiring Inclusionary Contribution.

17.51.060    Inclusionary Requirements.

17.51.070    On-Site Inclusionary Units.

17.51.080    In-Lieu Fees.

17.51.090    Development Project Approval.

17.51.100    Occupancy And Continuing Availability Of Units.

17.51.110    Collection And Use Of In-Lieu Fee.

17.51.120    Enforcement.

17.51.130    Monitoring.

17.51.010 Purpose.

The purpose of this chapter is to enhance the public welfare by meeting the city’s regional share of housing needs, assisting in the implementation of the housing element goals, policies, and programs, and ensuring compatibility between future housing development and housing units affordable to persons of very low, low and moderate income by requiring that developable land in the city is utilized in a manner consistent with state and local land use and housing policies. (Ord. 492 §1(part), 2011).

17.51.020 Definitions.

For the purposes of this chapter the following definitions shall apply:

1.    "Administrative manual" means the manual prepared pursuant to section 17.51.030.

2.    "Affordable" means a cost for housing, whether for an owner-occupied or rental unit, that does not exceed "affordable housing cost" as set forth in California Health and Safety Code section 50052.5.

3.    "Affordable housing agreement" means an agreement between the city and the applicant governing how the applicant shall comply with this chapter.

4.    "Affordable housing plan" means a plan submitted to the city by the applicant that demonstrates the manner in which the applicant proposed to meet the requirements of this chapter.

5.    "Applicant" means a person or entity that applies for a residential development and, if the applicant does not own the property on which development is proposed, also means the owner or owners of the property.

6.    "Appropriate authority" means that person, official, or body designated by city regulations to hear, grant, deny, modify, condition, revoke, or otherwise act on permits required by the city’s regulations.

7.    "Approval" means approval by the appropriate authority of any discretionary permit for residential development, including but not limited to subdivision approval, use permit approval, planned unit development approval and, if no other discretionary approval is required, a building permit for residential development.

8.    "Building permit" means a permit issued by the city building inspection department authorizing construction of one or more dwelling units.

9.    "Dwelling" means any structure or portion thereof designed or used as the residence or sleeping quarters of a household, including a live/work unit.

10.    "First approval" means the first approval, as the term "approval" is defined in this chapter, to occur with respect to a residential project.

11.    "For-sale inclusionary unit" means an inclusionary unit that is designated in an affordable housing agreement to be sold to a household eligible under this chapter.

12.    "Household" means one or more individuals who occupy one dwelling unit as a single housekeeping unit, whether or not related by blood or marriage.

13.    "Housing authority" means the housing authority of the county of Monterey.

14.    "HCD" means the state of California Department of Housing and Community Development.

15.    "HUD" means the United States Department of Housing and Urban Development.

16.    "In-lieu fee" means a fee paid in the manner specified in this chapter in place of constructing an inclusionary housing unit.

17.    "Low income inclusionary unit” means an inclusionary unit reserved for occupancy by low income households at an affordable rent or sales price.

18.    "Low income household" or "lower income household" means a household, including a very low income household, with an annual income which does not exceed HUD’s annual determination for low income households with incomes of eighty percent (80%) of the median income, adjusted for household size.

19.    "Market rate unit" means a unit that is not subject to the rental, sale, or resale provisions of this chapter.

20.    "Median income" means the annual median income for Monterey County, adjusted for household size, as published periodically in Title 25 California Code of Regulations section 6932.

21.    "Mixed-use" means the combination of two (2) or more housing unit types, such as single-family and multifamily.

22.    "Mixed housing type" means the combination of two (2) or more housing unit types, such as single-family and multifamily.

23.    "Moderate income inclusionary unit" means an inclusionary unit reserved for occupancy by moderate income households at an affordable rent or sales price.

24.    "Moderate income household" means a household, including a low income household and a very low income household, with an annual income which does not exceed one hundred twenty percent (120%) of the median income, adjusted for household size.

25.    "Pending development" means a residential development for which an application for a first approval was deemed complete by the city on or before the effective date of the ordinance codified in this chapter, so long as the number of dwellings does not increase after the first approval.

26.    "Qualified nonprofit housing corporation" shall mean CHISPA, the housing authority of Monterey County, or any other nonprofit housing corporation approved by the city.

27.    "Rental inclusionary unit" means an inclusionary unit designated in an affordable housing agreement to be rented to a household eligible under this chapter.

28.    "Residential development" means any project requiring subdivision approval, use permit approval, any other discretionary permit approval, building permit, or a combination thereof, for which an application or applications are submitted to the city and which would, by the construction or alteration of structures or the creation of new or additional lots, potentially allow the development of five (5) or more new or additional dwelling units, if approved.

29.    "Subdivision" means a subdivision as that term is defined by the California Subdivision Map Act.

30.    "Unit" means any structure or portion thereof designed or used as the residence or sleeping quarters of a household, including a live/work unit.

31.    "Utilities" means costs for water, sewer, garbage collection, electricity, gas, and other heating, cooking and refrigeration fuels.

32.    "Very low income inclusionary unit" means an inclusionary unit reserved for occupancy by very low income households at an affordable rent or housing cost.

33.    "Very low income household" means a household with an annual income not exceeding HUD’s annual determination for very low income households, with an annual income which does not exceed fifty percent (50%) of the median income, adjusted for household size. (Ord. 492 §1(part), 2011).

17.51.030 Administrative Manual.

The council shall adopt an administrative manual, approved as to form by the city attorney, that shall include guidelines intended to provide assistance in the interpretation and implementation of this chapter, including income and maximum asset guidelines for households residing in inclusionary units and units assisted by in-lieu fee proceeds. All mandatory provisions of such manual, when adopted, shall bind applicants, inclusionary unit residents, and other private parties subject to this chapter. Maximum permitted sales and rental prices shall be governed by the administrative manual. The city manager or his or her designee is authorized and directed to amend the administrative manual from time to time, without action by the city council, as necessary to incorporate amendments to this chapter or as otherwise necessary or appropriate to carry out the provisions and purposes of this chapter. The administrative manual also may be amended from time to time by resolution adopted by the city council. All amendments to the administrative manual shall be approved as to form by the city attorney. (Ord. 492 §1(part), 2011).

17.51.050 Development Requiring Inclusionary Contribution.

A.    Except as expressly provided in subsection B of this section, all residential developments, as defined in subsection 17.51.020(25), shall contribute to the provision of housing for very low, low, and moderate income households in the city.

B.    Residential developments meeting one of the following criteria shall not be required to comply with this chapter provided the city council makes written findings supporting the determination that one or more of the following applies:

1.    Existing residences which are altered, improved, restored, repaired, expanded or extended; provided, that the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums;

2.    The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two (2) years prior to the approval of a building permit for the new residential structure; provided, that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished residential structure;

3.    Those residential units which have obtained approval of a vesting tentative map or a development agreement prior to the effective date of the ordinance codified in this chapter;

4.    As a result of unusual or unforeseen circumstances, it would not be appropriate to apply, or would be appropriate to modify, the requirements of this chapter because the project, by covenant or other legally binding restriction, restricts occupancy of fifty percent (50%) or more of the units to occupancy by very low and/or low income residents; or

5.    The application for the project was complete prior to the adoption of the ordinance codified in this chapter.

C.    Residential developments may be exempted from all or a portion of the requirements of this chapter, at the recommendation of the planning commission and as approved by the city council, provided the city council makes written findings supporting the determination that two (2) or more of the following situations exist at the time of project approval:

1.    Economic conditions at the time of project approval are such that the average fair market value of for-sale residential units within the city boundaries is at or below the for-sale price for an inclusionary unit as set forth in the administrative manual; and

2.    The average rental rates within the city boundaries are at or below rental rates for inclusionary units as set forth in the administrative manual; or

3.    The number of affordable or government-subsidized units within a one-half mile radius from a proposed development exceeds twenty percent (20%) of the total number of units when including the total number of existing, approved and applicant-proposed units; or

4.    Development of off-site affordable housing is proposed in a targeted growth area designated for infill growth to meet the objectives of California SB 375; or

5.    A developer has proposed to provide significant amenities above and beyond those required as a result of the development to the benefit of the city as determined in an applicable development agreement; or

6.    An applicant developing multiple properties within the city may redistribute affordable housing obligations in a manner acceptable to the city, if entitlements for all properties have been completed; or

7.    The proposed payment of in-lieu fees (as determined per the administrative manual) to the LMI Housing Fund will result in significant contributions to an identified city-sponsored affordable housing project. (Ord. 492 §1(part), 2011).

17.51.060 Inclusionary Requirements.

All residential development consisting of five (5) or more units or lots in the city shall provide inclusionary units on site, in accordance with the provisions of this chapter. The city’s density bonus ordinance shall be applicable to proposed projects which conform to the density bonus ordinance requirements. Multifamily projects designed as rental projects shall require a set-aside of twenty percent (20%) of the units as inclusionary rental units. Traditional subdivision projects shall require a set aside of twenty percent (20%) of the units as for-sale inclusionary units. Both mixed-use projects and projects of mixed housing type shall require a set-aside of twenty percent (20%) of the units included in the development as inclusionary units; however, the number and type of rental inclusionary units and for-sale inclusionary units shall be determined on a case-by-case basis and set forth in the affordable housing agreement.

A.    Multifamily Rental Inclusionary Units: For multifamily rental inclusionary units ten percent (10%) of the total units in the development shall be set aside for low income households and ten percent (10%) of the total units in the development shall be set aside for very low income households.

B.    Non-Multifamily Rental Inclusionary Units: For rental units other than multifamily units, ten percent (10%) of the total units in the residential development shall be set aside for low income households and ten percent (10%) shall be set aside for moderate income households.

C.    For-Sale Inclusionary Units: For for-sale inclusionary units, ten percent (10%) of the total units in the development shall be set aside for moderate income households and ten percent (10%) of the total units in the development shall be set aside for low income households.

1.    Where the number of required moderate income units is not a whole number, the fractional units required shall be added to the number of low income inclusionary units required.

2.    If the resultant number of low income units is not a whole number, the fractional units required shall be added to the number of very low income units required.

3.    Where (after any addition of fractional units under the preceding sentences) the number of very low income inclusionary units required is not a whole number, the applicant shall either include the next higher whole number of very low income inclusionary units or elect to pay a fractional unit in-lieu fee for the fractional unit in the amount provided in section 17.51.080.

D.    The size, design, and location of inclusionary units shall be consistent with the city general plan, zoning ordinance, and other city ordinances and building standards. The inclusionary units shall be substantially the same in type of units as the market rate units and externally compatible in materials and architecture. However, on a case-by-case basis, the number of each type of unit (e.g., single-family, duplex, townhouse, etc.) and the number of for-sale and rental units, may deviate from the standards of this chapter, provided the city council makes written findings supporting the determination that such deviation(s) are consistent with the intent of this chapter and that the total number of inclusionary units complies with the requirements of this chapter. The number of each type of inclusionary unit and the number of for-sale inclusionary units and rental inclusionary units shall be set forth in the affordable housing agreement. An application for each deviation as required by the zoning ordinance or any other city ordinance, such as (but not limited to) an application for a planned unit development or rezoning, shall be submitted by the applicant and processed in the same manner as other similar applications.

1.    Compliance may be accomplished by the developer alone or in combination with others, including without limitation the housing authority of Monterey County, CHISPA, or another nonprofit housing corporation approved by the city.

2.    In the event that the affordable housing agreement includes a provision for the construction of inclusionary units by a qualified nonprofit housing corporation, the pacing of construction of the market rate units shall not be tied to the pacing of construction of the inclusionary units unless otherwise specified in the affordable housing agreement or the conditions of approval. (Ord. 492 §1(part), 2011).

17.51.070 On-Site Inclusionary Units.

A.    To satisfy its inclusionary requirements on site, a residential development must construct inclusionary units in an amount equal to or greater than twenty percent (20%) of the total number of units approved for the residential development (except to the extent a fraction of a unit would be required, for which the applicant shall either construct a unit or substitute a fractional unit fee). Initial and subsequent affordability levels and eligible occupants of the inclusionary units shall conform to the requirements of this chapter.

B.    Inclusionary units must be constructed as set forth below.

1.    Receive building permits and certificates of occupancy either prior to or concurrently with the remainder of the residential development;

2.    Be compatible in exterior materials and architecture with the other units in the residential development; however, interiors may differ to the extent authorized in the affordable housing agreement;

3.    Be dispersed throughout the residential development to the extent feasible or as otherwise provided by the affordable housing agreement;

4.    Contain or exceed the average number of bedrooms in the development’s market-rate units; however, size of bedrooms may differ to the extent authorized in the affordable housing agreement. (Ord. 492 §1(part), 2011).

17.51.080 In-Lieu Fees.

Projects may pay a fee in lieu of constructing affordable units in accordance with the provisions of this section.

A.    Qualification for In-Lieu Fee: The developer of a residential development containing five (5) or more units may elect to pay a fee in-lieu of providing a required inclusionary unit only if the twenty percent (20%) obligation results in a fractional unit and only as to that fractional unit.

B.    Fee Amount: The fee amount shall be determined and shall be included in the affordable housing agreement as follows:

1.    The fee shall be twenty percent (20%) of the cost of developing the average market-rate unit proposed for the development multiplied by the number of inclusionary units for which the fee is being paid.

2.    The city shall prepare a table that identifies in-lieu fee amounts based on criteria stated in the administrative manual. The council shall adopt an annual in-lieu fee table by resolution and shall update it on an annual basis; however, the previous year’s table shall remain in effect until such time as the table is updated.

C.    For approved projects that are being developed in one phase, payment of in-lieu fees shall be made in full to the city prior to recordation of parcel or final maps or, where the residential development is not subject to subdivision approval, prior to issuance of the first building permit for the development. For projects that are being developed in more than one phase, the requirements of this section may, at the applicant’s discretion, be accomplished on a phase-by-phase basis, with in-lieu fees paid prior to the issuance of building permits for each phase. (Ord. 492 §1(part), 2011).

17.51.090 Development Project Approval.

A.    From and after the effective date of the ordinance codified in this chapter, a residential development application will not be deemed complete until the applicant has an affordable housing plan that demonstrates the manner in which the applicant proposes to meet the requirements of this chapter, including any plans that indicate location of on-site units or intent to pay in-lieu fees.

B.    Conditions to carry out this chapter shall be imposed on the first approval of a residential development. When granting the first approval, the appropriate authority shall determine and include as a condition of approval:

1.    The method of compliance with this chapter, including whether the residential development will comply with this chapter through provision of on-site units or payment of an in-lieu fee or combination thereof;

2.    If inclusionary units are to be provided, the number of units and, if applicable, the fractional amount of units for which an in-lieu fee will be paid; and

3.    Such other matters as the appropriate authority deems proper.

C.    The conditions of approval shall further provide that prior to the recordation of the parcel map or final map in the case of subdivisions and/or prior to the issuance of building permits in the case of all other land use permits to which this chapter applies, the applicant shall enter into an affordable housing agreement acceptable to the city that contains specific requirements implementing the conditions of approval including, but not limited to, as applicable, the number of inclusionary units, the level(s) of affordability, location and type of inclusionary units, timing of construction of inclusionary units in relation to the construction of the market rate units in the development, preferences given in selecting occupants, and amount of the in-lieu fee, if any.

1.    The affordable housing agreement may be amended by the parties in the same manner in which it was adopted, provided the amendment is consistent with the conditions of approval and any subsequent city approvals, including specifically the number of on-site units provided for in the original affordable housing agreement.

2.    The imposition of conditions on the first approval pursuant to this chapter does not preclude the appropriate authority from imposing such other conditions as may be required by this chapter when acting on a subsequent application for a subsequent approval for all or part of the same residential development.

D.    Where a residential development receives a subdivision approval, the final subdivision map or parcel map that is to be filed and recorded shall include a notation, in a form acceptable to the city attorney and consistent with the Subdivision Map Act, describing the conditions of approval to comply with this chapter.

E.    Any determination made by the appropriate authority to implement this chapter in connection with granting a first approval may be appealed pursuant to the appeal provisions of the city code or other applicable appeal provisions by which the first approval may be appealed. (Ord. 492 §1(part), 2011).

17.51.100 Occupancy And Continuing Availability Of Units.

A.    Inclusionary rental units shall remain restricted and affordable to the designated income group for a minimum of fifty-five (55) years. In addition to the income of a targeted group, limitations on assets may also be used as a factor in determining eligibility for rental or for sale units. Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be rented for an amount which exceeds ninety percent (90%) of the actual rent charged for a comparable market unit in the same development, if any.

1.    Rental inclusionary units shall be rented only to eligible households, at affordable rents for the relevant income category, and pursuant to any further requirements set forth in the affordable housing agreement or other relevant documents pursuant to this chapter.

2.    All leases or rental agreements for rental inclusionary units shall require annual certification by the city or its designee to determine, at a minimum, the rental cost of the unit, any other relevant charges to the tenant, tenant household income, and the inclusion of a provision prohibiting subletting or assignment of the inclusionary unit to an unqualified tenant shall be certified annually.

B.    For-sale inclusionary units shall be sold only to eligible households at prices affordable to such households and pursuant to further requirements of resale restrictions as determined by the affordable housing agreement and other provisions of this chapter. The initial maximum sale price of the inclusionary unit to the first purchaser shall be determined by the appropriate authority, pursuant to a method set forth in the administrative manual. Similar restrictions shall be required of subsequent owners at the time they acquire the unit.

1.    After the initial sale of the inclusionary for-sale units at a price affordable to the target income level group, inclusionary for-sale units shall remain affordable to subsequent income eligible buyers pursuant to a resale restriction with a term of forty-five (45) years. For-sale units may be sold at market price under the conditions set forth in this section and consistent with the administrative manual.

a.    Base Resale Price: The price at which the owner purchased the affordable unit shall be adjusted by the percentage increase or decrease in the median annual income at one hundred percent (100%) of median of a family of four (4) in Monterey County.

b.    The percentage increase or decrease shall be computed for the period that the affordable unit is held by the owner.

c.    This adjusted price shall be increased by the market value, if any, of any documented, permanent capital real estate or fixed improvements approved by the city.

d.    The maximum permitted resale price shall be reduced to the extent the unit has been adversely affected in value by deficient or deferred maintenance. To facilitate a determination by the building official concerning maintenance at the time of resale, the seller shall comply with any applicable requirements in the administrative manual.

e.    Where an owner has lawfully added a bedroom to a for-sale inclusionary unit, the maximum resale price of the unit shall be calculated based on the existing number of bedrooms and assuming a household size corresponding to the total number of bedrooms, including the added bedroom.

f.    The administrative manual or the affordable housing agreement for the project may provide for a ceiling that limits the resale price increases resulting from the modification in subsection B1c of this section.

g.    No price adjustment will be made except upon presentation to the city of written documentation of all expenditures made by the owner for which an adjustment is requested.

h.    The adjusted price shall be decreased by the amount necessary to repair any damages and to put the unit into a sellable condition, including items such as paint, cleaning, construction repairs, and to bring said unit into conformity with all applicable provisions of the Greenfield Municipal Code and the affordable housing guidelines contained in the administrative manual established by the city. The value of price adjustments shall be reasonably determined by the city.

2.    Upon resale of the unit, if the affordable unit is sold at market price, the city will receive the difference between the base resale price and the actual market sales price of the unit.

3.    Funds recaptured by the city shall be used in assisting other eligible households with home purchases at affordable prices. To the extent possible, projects using for-sale units to satisfy inclusionary requirements shall be designed to be compatible with conventional mortgage financing programs including secondary market requirements.

C.    Transfer of a for-sale inclusionary unit to a child(ren), stepchild(ren), or a parent(s) upon the death of the owner(s) shall be permitted without regard to any otherwise applicable preferences or waiting list priority for successor owners only if findings are made by the appropriate authority that:

1.    The child(ren), stepchild(ren), or parent(s) was, at the time of the owner’s(s’) death, a legal resident in the unit;

2.    The child(ren), stepchild(ren), or parent(s) is of sufficient age to enter into a contract;

3.    The household of the child(ren), stepchild(ren), or parent(s) would be eligible based on income to purchase the unit; and

4.    The child(ren)’s, stepchild(ren)’s, or parent’s(s’) household will continue to occupy the unit;

5.    A child(ren), stepchild(ren), or parent(s) that is a current legal resident of the inclusionary unit at the time of the owner’s(s’) death, regardless of any otherwise applicable preferences or waiting list priority, shall be entitled to occupy a for-sale inclusionary unit after the death of the prior owner, for a period not to exceed one year, without regard to otherwise applicable resale requirements of this chapter, but subject to any applicable provisions of the administrative manual or the affordable housing agreement. However, within nine (9) months of the date of the owner’s(s’) death, the unit shall either:

a.    Be transferred to ownership by the child(ren), stepchild(ren), or parent(s) (if the household is eligible and applies for transfer of ownership); or

b.    Be offered for sale in conformance with this chapter, with appropriate documents recorded against the unit under this chapter for the city’s benefit.

D.    All resale restrictions shall authorize the city or its designee to purchase any affordable for-sale inclusionary unit at the maximum resale price which could be charged to a purchaser household (less an allowance for the real estate commission avoided by the city’s purchase), at any time the owner(s) proposes sale, prior to the owner’s(s’) acceptance of a binding offer to purchase from another eligible party.

E.    For-sale inclusionary units may be refinanced or used as security for additional financing, to the extent provided in the administrative manual.

F.    Resale restriction documents may prohibit or limit leasing or rental of inclusionary for-sale units.

G.    Terms of Affordability: For rental inclusionary units, affordability and occupancy restrictions shall remain in effect for a period of fifty-five (55) years from the date of the initial rental and any subsequent rental, and for for-sale inclusionary units, affordability and occupancy restrictions shall remain in effect for a period of forty-five (45) years from the date of recording of the initial sale and any subsequent sale. For both for-sale and rental inclusionary units, the applicable affordability and occupancy restrictions shall apply to any replacement structure or structures that may be constructed in the event that a structure containing an inclusionary unit or units is demolished or destroyed; provided, that if demolition or destruction of a structure containing inclusionary units occurs twenty-five (25) years or more after recording of the restrictions and said demolition or destruction was unintentional, restrictions on the units in the structure shall terminate on demolition or destruction.

H.    Maintenance and Insurance: Regulatory agreements and resale restriction documents shall include maintenance and insurance requirements for affordable units.

I.    Approval and Recording of Documents: The city shall establish the form and content of documents required or authorized under this section, and approved as to form by the city attorney. Regulatory agreements and resale restriction documents may provide for specific affordability and/or occupancy requirements for particular affordable units, consistent with this chapter and with the terms of the project’s affordable housing agreement. These documents shall be executed by the record owner(s) of affected property, approved as to form by the city attorney, and recorded in the official records of the city.

J.    Occupancy: Initial and subsequent occupancy of inclusionary units shall be consistent with conditions and requirements stated in the administrative manual.

K.    Marketing and Selection of Participants: The administrative manual shall set forth marketing and selection policies and procedures for inclusionary units. The manual shall contain policies that provide preferences for the purchase and rental of units by households with members who live or work in the city. The city or its designee shall review the income qualifications of potential applicants. If the city maintains a list or lists of eligible households, it may require that households occupying affordable units shall be selected from one or more of such lists. (Ord. 492 §1(part), 2011).

17.51.110 Collection And Use Of In-Lieu Fee.

A.    Any monies received by the city pursuant to this chapter or from other sources for the express purpose of the provision of affordable housing in the city shall be used to provide very low, low and/or moderate income housing within the city, except to the extent allocated to monitoring, enforcement, and administrative costs.

B.    Annually, if funds are available beyond those that the city intends to use for monitoring, enforcement, administrative costs or the implementation of the city’s own affordable housing programs, the city shall advertise by notice in newspapers of local circulation, and other such written notice as deemed necessary, availability of funds for the provision of very low, low, and/or moderate income housing in the city. Included in such notice shall be an invitation to submit proposals and requests for funds to provide such housing in the city. Proposals submitted for funding shall be in accordance with the city council’s housing priorities, as set forth in the housing element. Each proposal for funding shall be reviewed by staff and submitted with a recommendation to the council for final approval. The request may be for grants, low interest loans, and other funding mechanisms deemed appropriate to secure the purpose of this chapter. The proposals may be for pre-development projects and services, projects to promote very low, low, or moderate income housing units, rehabilitation, land acquisition, unit purchase, development of infrastructure, or other projects deemed appropriate to secure the purpose of this chapter.

C.    Upon authorization for funding, the city and the grantee shall enter into a contract to ensure that the proposed project activities in the approved proposal and funding request are satisfactorily completed. No warrant shall be issued until such contract is completed, reviewed as to form by city legal counsel, and signed by the appropriate parties.

D.    For units assisted with the proceeds of in-lieu fees, the city shall establish standards for eligibility of very low, low and/or moderate income households and shall adopt policies that provide preferences for the occupancy of such units by eligible households with members who live or work in the city. (Ord. 492 §1(part), 2011).

17.51.120 Enforcement.

A.    No permit, license, subdivision approval, map, or other approval or entitlement for a residential development shall be issued, including without limitation a final inspection for occupancy or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

B.    In the event of a violation of any provision of this chapter or the contravention of any requirement imposed pursuant to this chapter, the city may in its discretion, in addition to all other remedies, take such enforcement action as is authorized under the city code as well as any other action authorized by law or by any regulatory document, restriction, or agreements executed under this chapter. (Ord. 492 §1(part), 2011).

17.51.130 Monitoring.

A.    Owners and occupants of property subject to restrictions pursuant to this chapter shall permit city employees or others designated by the city to inspect the property upon two (2) business days’ advance written notice. Owners or property subject to restrictions pursuant to this chapter shall retain all records related to compliance with obligations under this chapter for a period of not less than five (5) years and shall make such records available to city employees or others designated by the city for inspection and copying upon five (5) business days’ advance written notice. The city shall be further entitled to monitor compliance with this chapter as provided in the administrative manual and in documents executed with respect to any residential development and/or inclusionary unit.

B.    Periodic Evaluation: The planning commission and city council shall annually, or more often at the commission or council’s discretion, evaluate the effectiveness of the inclusionary housing program in addressing the city’s housing goals and policies and may propose modifications as necessary. No modification of the inclusionary housing program shall be adopted without prior public notice and hearing as provided for by law. (Ord. 492 §1(part), 2011).