17.48.060 Affordable housing standards.
A. Affordable Housing Costs. The total housing costs paid by a qualifying household, which shall not exceed a specified fraction of their gross income, adjusted for household size appropriate for the unit, as follows:
1. Very low income households, rental units: thirty percent of fifty percent of the Monterey County median income;
2. Very low income households, for-sale units: thirty percent of fifty percent of the Monterey County median income;
3. Low income households, rental units: thirty percent of sixty percent of the Monterey County median income;
4. Low income households, for-sale units: thirty percent of seventy percent of the Monterey County median income;
5. Moderate income households, rental units: thirty percent of one hundred ten percent of the Monterey County median income;
6. Moderate income households, for-sale units: thirty-five percent of one hundred ten percent of the Monterey County median income;
7. Middle income households, for-sale units: thirty-five percent of one hundred thirty-five percent of the Monterey County median income.
B. Development Standards.
1. All inclusionary units and density bonus target units shall be reasonably dispersed throughout the residential development; and shall be comparable with the market-rate units in terms of the design, infrastructure (including sewer, water and utilities), construction quality, exterior appearance, exterior materials and finished quality.
2. The bedroom mix of the inclusionary and density bonus target units shall be equivalent to the bedroom mix of the market-rate units of the residential development, except that the developer may include a higher proportion of inclusionary and density bonus target units with more bedrooms, unless both the approval body and developer agree within the affordable housing agreement to an alternative bedroom mix for the inclusionary and density bonus target units.
3. All inclusionary units and density bonus target units in a residential development shall be constructed concurrently with or prior to the construction of the market-rate units, unless both the approval body and developer agree within the affordable housing agreement to an alternative schedule for construction.
C. Length of Affordability.
1. Inclusionary Units.
a. Inclusionary units shall be reserved for very low, low, and moderate income households at the ratios established in Table 17.48.030-1, and shall be provided at the applicable affordable housing cost.
b. All affordable units provided through the inclusionary requirement shall be retained in perpetuity if permitted by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the residential development. If not permitted by the affordable housing funding programs, then affordable rental units shall be reserved for income-eligible households for a minimum of fifty-five years, while affordable owner-occupied units shall be reserved for income-eligible households for a minimum of forty-five years, with the forty-five-year time restriction beginning again at the time of resale.
c. Notwithstanding anything to the contrary in this subsection, no inclusionary rental unit shall be rented for an amount which exceeds ninety percent of the actual rent charged for a comparable market unit in the same development, if any.
d. After the initial sale of the inclusionary for-sale units at a price affordable to the required 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 years.
2. Density Bonus Target Units.
a. Density bonus target units used to also fulfill the city’s inclusionary housing requirements shall adhere to the affordability requirements of the inclusionary housing provisions as set forth in subsection (C)(1) of this section and the duration requirements for affordability set forth in this subsection (C)(2).
b. Density target units provided above and beyond the inclusionary requirements shall adhere to the following affordability requirements:
i. Density bonus target units offered for rent to low income and very low income households shall remain restricted and affordable to the designated income group for a minimum period of thirty years.
ii. Density bonus target units offered for sale to very low, low, or moderate income households shall be sold at an affordable sales price and reserved for income-eligible households for a minimum of thirty years, with the thirty-year time restriction beginning again at the time of resale.
iii. A longer affordability period may be specified if required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the residential development.
c. Notwithstanding anything to the contrary in this subsection, no density bonus target unit designated as a rental unit shall be rented for an amount which exceeds ninety percent of the actual rent charged for a comparable market unit in the same development, if any. (Ord. 2020-07 § 2, 2020; Ord. 2006-14 § 2 (Exh. A), 2006)