Attachment 2DIVISION 6. - HOUSING ASSISTANCE PROGRAM
Sec. 29.10.3000. - Intent.
This division is adopted to meet housing needs shown in the housing element of the
general plan.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3005. - Below market price program—Established.
This division establishes the below market price program (BMP).
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3010. - Same—Intent.
The below market price (BMP) program requires the provision of dwellings that persons
and families of moderate income can afford to buy or rent, and assures to the extent possible
that the resale prices of those dwellings, and rents if they are rented, will be within the means
of persons and families of moderate income.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3015. - Application.
This division shall apply to all multiple-family dwelling projects, residential condominium
projects, condominium conversions, and to all residential planned development projects
(division 2 of article VIII of this chapter) either approved after July 4, 1979, or whose approval
includes a condition requiring the provision of BMP dwellings. Projects in the R -l and HR zones
are excepted from BMP participation. The exception does not apply if the project is built under
the rules of an overlay zone unless the rules of the overlay zone provide otherwise.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3020. - Definitions.
For the purposes of this division the following definitions shall apply:
BMP dwelling means any residential dwelling unit designated for very low, low, and
moderate income under the rules of this section.
Person of moderate income means one whose income falls within the range specified by
the Town Council in the resolution authorized by section 29.10.3040.
ATTACHMENT 2
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3025. - Scope.
The Below Market Price Program requirements shall apply to all residential development
projects that include five (5) or more residential units or parcels which involve:
1. New construction of ownership or rental housing units, including mixed use
developments and addition of units to existing projects, or
2. Subdivision of property for single family or duplex housing development, or
3. Conversion of rental apartments to condominiums or other common interest
ownership, or
4. Conversion of non-residential use to residential use.
Planned development with an underlying zone of HR shall only be required to pay an in -lieu
fee as established by a separate resolution.
The residential developments consisting of five (5) or more units are required to provide
the following number of BMP units:
(1) Projects containing five (5) or more but less than twenty (20) market rate units must
provide a number of BMP units equal to ten (10) percent of the number of market rate
units.
(2) Projects with from twenty (20) to one hundred (100) market rate units must provide
BMP units as determined by the following formula:
Number of BMP units = .225 (total # of market rate units) - 2.5
(3) All projects in excess of one hundred (100) market rate units must provide a number
of BMP units equal to twenty (20) percent of the market rate units.
(4) Whenever the calculations of BMP units result in a fraction of one-half or more, the
number of units to be reserved is increased to the next whole number.
(5) The Town, at its sole discretion, may consider an in -lieu payment alternative to the
required BMP unit in the case of Planned Unit development with an underlying zone of
HR. The required in-lieu fee is as established by a separate resolution and is to be paid
to the Town prior to issuance of the certificate of occupancy for the market rate
residential unit that triggered the BMP requirement. The provision for a BMP unit
applies if the project is built under the rules of an overlay zone unless the rules of the
overlay zone provide otherwise.
BMP units shall be constructed and Certificate of Occupancies secured concurrently with or
prior to the construction of the market -rate units. The BMP requirement will be calculated on
the basis of the whole development. The Town Council may grant an exception to the phasing
requirements during the project approval process.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3030. - Price.
The price of BMP units is controlled for the first buyer and for future buyers by the BMP
Guidelines as adopted and amended from time to time by Council resolution and as follows:
(1) The initial price is limited to direct construction cost and a proportionate share of the
costs of preparing working drawings and specifications and providing on -site and off-
site improvements, determined according to rules set by the Council.
(2) The initial price does not include the cost of land, profit, or marketing costs.
(3) Each BMP unit will be subjected to recorded title restrictions concerning manner of
fixture sales, occupancy and leasing.
(4) Each buyer of a BMP unit must agree to sell the unit to a moderate income buyer
designated by the Town. The Town will designate moderate income persons according
to rules adopted by the Council in effect at the time the seller purchased the unit.
(5) The resale price cannot exceed the original selling price plus the value at the time of
sale of improvements added by the owner, and plus an amount equal to the increase
in cost of living or housing during the owner's tenure. The index or method to be used
in calculating the increase is established by the Council.
(6) If a BMP unit to be resold has not been properly maintained or for any other reason is
in poor condition and in need of cleaning or repair, the Town may elect to do the work
or have it done and recover the cost from the sale price limited as provided in
subsection (5).
(7) The regulations will specify the period for controlled resales. The time period will be
in perpetuity or for as long as is practical.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3035. - Project denial.
If an applicant for zoning approval declines to provide BMP units required by ordinance,
the zoning approval shall be denied.
(Ord. No. 2181, § III, 10-19-09)
Sec. 29.10.3040. - Administration.
The Council shall adopt by resolution regulations concerning all aspects of the BMP
program, including the elements of location of the units, price, buyer eligibility standards, rent,
the length of the period during which a unit will be subject to BMP restrictions, the form of
recorded instruments and any other matter consistent with the p rovisions of this section.
(Ord. No. 2181, § III, 10-19-09)
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