A. “Administrator” means below market rate program administrator which may either be the city itself or a third-party administrator acting as an agent for the city in connection with all aspects of the operation of the city’s below market rate program pursuant to an agreement entered into between the city and the administrator, as such agreement may be amended or replaced from time to time.

B. “Affordable” means housing which can be purchased or rented by a household with very low-, low-, or moderate-income, as described in the city’s affordable housing standards.

C. “Below market rate (BMR)” means that the affordability level of an inclusionary unit is below the cost of what a current market rate unit would be and is affordable to extremely low-, very low-, low-, or moderate-income households.

D. “Borrower” shall be defined as one who meets the eligibility requirements for purchasing an inclusionary affordable unit.

E. “Commercial linkage fee” means the fee paid by the applicant of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the city (see Chapter 4.60).

F. “Density bonus” means a density increase over the maximum density otherwise allowable under the zoning regulations, Chapter 17.140.

G. “Early resale” shall mean the sale, lease, or transfer of property within seven years of the initial close of escrow for equity share inclusionary units.

H. “Equity share” shall mean the shared equity of appreciation between the city and the borrower on inclusionary units when agreements specifically allow for affordable units to be sold at market rate after a seven-year period.

I. “Fee schedule” means fees that for-sale and for-rent units are subject to and are paid to either the city or the administrator for associated costs related to but not limited to eligibility screening, income verification, marketing of affordable units, and the close of escrow or completion of new lease agreements for affordable units.

J. “Inclusionary housing unit” means a dwelling unit required under the provisions of this chapter, and which meets the city’s affordable housing standards.

K. “Low-” or “lower-income households” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families shall not exceed eighty percent of the median income within the city as published and periodically updated by the State Department of Housing and Community Development.

L. “Market rate” shall mean the highest price a willing buyer would pay and a willing seller would accept, both being fully informed and in an open market, as determined by an appraiser.

M. “Moderate-income households” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families exceed eighty percent but are less than or equal to one hundred twenty percent of the median income within the city as published and periodically updated by the State Department of Housing and Community Development.

N. “Commercial development project” shall mean development projects which result in the construction or conversion of structures for the purpose of conducting business, including but not limited to retail sales, restaurants, offices, gas stations, manufacturing, etc.

O. “Residential development project” shall mean development projects which result in the construction or conversion of structures, including, but not limited to, single-unit attached or detached homes, apartments, condominiums, live/work units, mixed-use, mobile homes, transitional housing or supportive housing, and group housing.

P. “Very low-income” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families shall not exceed fifty percent of the median income within the city as published and periodically updated by the State Department of Housing and Community Development. (Ord. 1719 § 3, 2022)