§ 8116-9.2. Equity sharing agreement for moderate income affordable units.

In addition to the affordable housing agreement pursuant to Section 8116-9.1.2, the affordable housing developer of a qualified housing development based upon a moderate income minimum affordable housing component shall enter into an equity sharing agreement for a common interest development with the County. (Government Code Section 65915(c)(2).) The County shall enforce the equity sharing agreement unless it is in conflict with the requirements of another public funding source or law. (Government Code Section 65915(c)(2).) The equity sharing agreement shall include at a minimum the following provisions:

(a)

Upon resale, the seller of the unit shall retain the value of improvements, the down payment, and the seller's proportionate share of appreciation. The County shall recapture any initial subsidy, as defined in subparagraph (b), and its proportionate share of appreciation, as defined in subparagraph (c), which amount shall be used within five (5) years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote home ownership. (Government Code Section 65915(c)(2)(A).)

(b)

The County's initial subsidy shall be equal to the fair market value of the unit at the time of initial sale minus the initial sale price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (Government Code Section 65915(c)(2)(B).)

(c)

The County's proportionate share of appreciation shall be equal to the ratio of the County's initial subsidy to the fair market value of the unit at the time of initial sale. (Government Code Section 65915(c)(2)(C).)

(Ord. No. 4455, § 7, 10-22-2013)