(Added by Ordinance No. 189805; Amended by Ordinance Nos. 190093 and 190523, effective August 1, 2021.)
A. Purpose Statement.The City intends to implement the Deeper Housing Affordability FAR Density Bonus Program (the "DHA Program") to increase the numbers of dwelling units available for sale or for rent to households earning incomes that fall within particular City established parameters.
B. Administration.
1. PHB will certify whether the applicant's proposed development meets the standards and requirements set forth in PCC Subsection 33.120.211 C.2., PCC Subsection 33.110.265 F., PCC Subsection 33.110.210 D.1. and this Section.
2. The Director of PHB or a designee may enter into covenants and agreements, prepare forms, and adopt, amend and repeal Administrative Rules, which establish procedures, policies, program requirements, compliance monitoring standards, and penalties, for implementation, administration, and enforcement of a program consistent with the provisions of this Section. The Director of PHB, or a designee, has authority to make changes to the Administrative Rules as is necessary to meet current City housing program requirements. PHB Administrative Rules will set forth clear and objective criteria to establish minimum standards for Affordable Housing units restricted under the DHA Program.
C. Standards.Buildings or sites approved for the DHA Program must satisfy the following criteria:
1. Dwelling units for sale shall remain affordable for a period of at least 10 years and be available to households earning 80 percent or less of area MFI. Dwelling units for rent shall remain affordable for a period of 99 years and be available to households earning 60 percent or less of area MFI;
2. Owners are required to sign a covenant that will encumber the property receiving a density bonus under the DHA Program, and will be recorded in the official records of Multnomah County, Oregon;
3. For rental dwelling units, the owner or a representative shall submit annual documentation of tenant income and rents to PHB;
4. The City may inspect any of the dwelling units in the building for compliance with DHA Program requirements and may inspect files documenting tenant income and rents of the affordable rental dwelling units; and
5. Failure to meet the requirements of the DHA Program will result in a penalty and may result in legal action.
D. Penalties.
1. In the event of a failure to meet the requirements of the DHA Program and the additional requirements established in the covenant, PHB may choose to negotiate with the building owner to bring the building into compliance.
2. Should PHB and the owner not agree upon an acceptable remedy to bring the project into compliance, the owner will owe financial penalties payable to PHB as follows:
a. Dwelling units for rent:
For-Rent Dwelling Unit Penalty. For a building or site with rental dwelling units, a penalty equal to multiplying the gross square feet of the residential and residential-related portions of the building or buildings by $23;
Interest. Interest on the entire unpaid For-Rent Dwelling Unit Penalty amount, assessed at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the date of default;
Financial Incentives. Repayment of any financial incentives and exemptions received according to code and Administrative Rules including, but not limited to, system development charges, property taxes, and construction excise taxes; and
Additional Penalties. PHB may pursue any remedy available at law, or in equity, including but not limited to injunctive relief, and other remedies such as foreclosure, or receivership if the financial penalties established in this Subsection 2. are not timely paid in accordance with the timeframe prescribed by PHB or a court of competent jurisdiction.
Upon the owner's payment in full of the applicable For-Rent Dwelling Unit Penalty, Interest, Financial Incentives repayment amounts due and payment of any Additional Penalties, the impacted building and dwelling units for rent will cease to be bound to the restrictions of the DHA Program, and PHB will release the covenant.
b. Dwelling units for sale:
(1) For dwelling units for sale, after the initial sale to an eligible homebuyer, repayment of the difference between the restricted sale price and the assessed value for each dwelling unit as stated in the DHA Program Administrative Rules; and
(2) For-Sale Dwelling Unit Penalty. For a building or site with dwelling units for sale, a penalty equal to multiplying the gross square feet of each dwelling unit and the corresponding percentage of the residential and residential-related portions of the building by $23;
Interest. Interest on the entire unpaid For-Sale Dwelling Unit Penalty amount, assessed at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the date of default;
Financial Incentives. Repayment of any financial incentives and exemptions received according to code and Administrative Rules including, but not limited to, system development charges, property taxes, and construction excise taxes; and
Additional Penalties.PHB may pursue any remedy at law, or in equity, including but not limited to injunctive relief, and other remedies such as foreclosure, or receivership if the financial penalties established in this Subsection 2. are not timely paid in accordance with the timeframe prescribed by PHB or a court of competent jurisdiction.
Upon owner’s payment in full of the applicable For-Sale Dwelling Unit Penalty, Interest, Financial Incentives repayment amounts due and payment of any Additional Penalties, the impacted dwelling unit for sale will cease to be bound to the restrictions of the DHA Program and PHB will release the covenant for that dwelling unit.