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A. Eligibility--General Policy. All affordable housing developed pursuant to this chapter, including rental units and units (or lots) for sale, shall be leased or sold to eligible persons. The developer or subdivider shall at all times assure that affordable housing units are transferred to eligible persons, and it shall provide proof of its compliance with all eligibility and affordability controls to the City or its designated monitoring agency annually and/or upon written request. The City may require advance approval of eligibility. Prospective tenants or purchasers of affordable housing shall provide verification of their eligibility to either the developer or subdivider at the time they apply for housing subject to this chapter. To be an eligible person for affordable housing, the person(s) must satisfy, at the time of application and continuing at all times thereafter, the following criteria:

1. The persons comprising the household must have a combined household income that does not exceed one hundred percent of the Grand County, Utah, area median income (AMI), as published by HUD from time to time;

2. At least one person in the household must be either: (a) employed full time in Grand County; (b) disabled; (c) a retired person over sixty years of age who was a full-time employee of an entity located within Grand County for at least five continuous years immediately preceding his or her retirement; or (d) a parent residing with one or more minor children; and

3. All persons occupying PAD affordable housing units must utilize the housing as their sole place of residence.

B. Occupancy Restrictions. Leasing of affordable sales units and subleasing of rental agreements for affordable rental units shall not be permitted, except upon advance written approval by the City where the proposed occupants qualify as eligible person(s). Overnight accommodation uses shall not be permitted in any PAD housing units (including market rate units). Persons occupying PAD market rate units must utilize the housing as their sole place of residence; the use of market rate units as second homes is prohibited.

C. Rent Calculation. The developer or owner offering affordable housing units for lease shall set the monthly rental rate at an amount that does not exceed thirty percent of the area median income (AMI) for a Grand County household, less a reasonable utility allowance, divided by twelve months (the allowed rental rate). The allowed rental rate shall be adjusted proportionately, depending upon the size of the unit and the income tier (moderate, low, very low, or extremely low) of the persons occupying the unit. Inflation adjustments in the allowed rental rate shall be made annually, as of January of each calendar year, and shall be based upon the year to year increase in the Consumer Price Index (CPI-U), West Region, as published by the United States Department of Labor, Bureau of Labor Statistics. The City or the monitoring agency will publish the inflation adjustment and provide same to developers or owners for purposes of calculating allowed rental rate increases.

1. Nothing in this chapter shall preclude a developer or owner from entering into a fixed rental rate lease with a tenant who is otherwise compliant with this chapter at the time of execution.

D. Sales Eligibility, Additional Requirements. In addition to the general qualifications set forth in subsections (A) and (B) of this section, eligible persons who purchase affordable housing units pursuant to this chapter shall demonstrate that their total household net assets (asset value after deduction of the value of any liens--such as a car loan) shall not exceed forty percent of the original purchase price (OPP) or the subsequent sales price of the housing unit.

E. Sales Price Calculation--Subsequent Sales. The OPP for affordable housing units developed pursuant to this chapter shall be calculated as follows: principal, interest, taxes, and insurance (PITI) on the unit shall not exceed thirty percent of the Grand County AMI for a household of four divided by twelve months. Assumptions used to calculate the OPP shall be: (1) a five percent down payment; (2) a thirty-year mortgage term; and a mortgage rate equal to the prevailing first home rate, or its equivalent, of the Utah Housing Corporation (www.utahhousingcorp.org) (or equivalent). The City will determine OPP at the time of land use approval in a manner that reflects proportionate changes in OPP based on housing unit size.

F. Maximum Appreciation. To assure continued affordability, each affordable housing unit developed under this chapter shall be subject to a deed restriction, in a form approved by the City, which caps appreciation which may be earned upon subsequent sale of the unit. The maximum resale price (MRP) shall be:

1. The OPP plus three percent per year from the date of purchase to the date of sale, prorated for each month less than a calendar year; and

2. The actual cost of any capital improvements to the unit, including by way of example: (a) the addition of finished living space; (b) remodeling of a kitchen or bath; (c) replacement of major components such as heating systems, cooling systems, windows, roofing, siding or the like; provided, that the improvements have been permitted and inspected by the City Building Official. The property owner is responsible for documenting the value of all such improvements at the time of permitting. In no event shall capital improvements exceed five percent of the MRP. (Ord. 19-02 (part), 2019)