Item 28 - Housing Ad Hoc Committee Progress Report Regarding The Housing Opportunity Ordinance

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Sec. 41-1908. - Enforcement. (a) Violation. Any violation of this article constitutes a misdemeanor. (b) Forfeiture of funds. Any individual who sells an inclusionary unit in violation of this article shall be required to forfeit any money in excess of the affordable housing cost at such time. Any individual who rents an inclusionary unit in violation of this article shall be required to forfeit all money so obtained. Recovered funds shall be deposited into the inclusionary housing fund. (c) Legal actions. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance with this article, including actions: (1) To disapprove, revoke, or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval; and (2) For injunctive relief or damages. (d) Recovery of costs. In any action to enforce this article, or an inclusionary housing agreement recorded hereunder, the city shall be entitled to recover its reasonable attorney's fees and costs. ( Ord. No. NS-2881, § 2, 9-1-15 ; Ord. No. NS-2994 , § 3, 9-1-20) Sec. 41-1909. - Inclusionary housing fund. (a) Inclusionary housing fund. There is hereby established a separate fund of the city, to be known as the inclusionary housing fund. All monies collected pursuant to this article shall be deposited in the inclusionary housing fund. Additional monies from other sources may be deposited in the inclusionary housing fund. The monies deposited in the inclusionary housing fund shall be subject to the following conditions: (1) Monies deposited into the inclusionary housing fund must be used to increase and improve the supply of housing affordable to moderate, low, very low, and extremely low income households in the city as specified in the city's affordable housing funds policies and procedures. A priority will be on the creation of new affordable housing opportunities or units fromfor large families currently living in the existing market rateCity. Other eligible uses of the inclusionary housing stock rather than construction of new affordable housing units. This includes,fund include but isare not limited to, the purchase and rehabilitation of units for sale. Monies may also be used to pay for one-time programs for code enforcement, quality of life and general health and safety activities. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this article. : (i) Create affordable units from the existing market rate housing stock including but not limited to, the purchase and rehabilitation of units. (ii) Pay for one-time programs for code enforcement, quality of life, and general health and safety activities. (iii) Cover reasonable administrative or related expenses associated with the administration of this article. (iv) Implement and promote programs addressing housing security, eviction prevention, and housing legal assistance for city residents. (2) The fund shall be administered by the executive director, or his or her designee, who may develop procedures in the city's affordable housing funds policies and procedures to implement the purposes of the inclusionary housing fund consistent with the requirements of this article and any adopted budget of the city. (3) Monies deposited in accordance with this section shall be used in accordance with the affordable housing funds policies and procedures, housing element, consolidated plan, or subsequent plan adopted by the city council to construct, rehabilitate, or subsidize affordable housing or to Exhibit 3 - Redline Draft