22.52.050 Agreements and covenant.
Prior to the issuance of any certificate of occupancy, the proponent shall record with the Snohomish County auditor’s office, in a form approved by the city, an agreement specifying the affordable nature of the units. The agreement shall constitute a covenant running with the land, binding on the assigns, heirs, and successors of the proponents and owners of the property.
A. Contents of the Agreement. The agreement shall specify the terms and conditions of the affordable units to assure that the units remain affordable as required under this section and the agreement shall include at a minimum the following:
1. The total number of units approved for the housing development, including the number of target units;
2. A description of the household income group to be accommodated by the housing development and the standards for determining the corresponding affordable rent or affordable sales price and housing cost;
3. The location, unit sizes in square feet, and number of bedrooms of target units;
4. Tenure of use restrictions for affordable units;
5. A schedule for completion and occupancy of affordable units;
6. A description of any additional incentive(s);
7. A description of remedies for breach of the agreement by either party. The city may identify tenants or qualified purchasers as third party beneficiaries under the agreement; and
8. Other provisions to ensure implementation and compliance with this chapter.
B. Ownership Housing Developments. In the case of for-sale housing developments, the agreement shall provide conditions governing the initial sale and use of affordable units during the applicable restriction period:
1. Affordable units shall, upon initial sale, be sold to eligible lower income households at an affordable sales price and housing cost;
2. Affordable units shall be owner-occupied by eligible lower-income households, or by qualified residents in the case of senior citizen housing; and
3. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the city restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period.
C. Rental Housing Developments. In the case of rental housing developments, the agreement shall provide conditions governing the use of affordable rental units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants;
2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter; and
3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.
D. Compliance Report. Any developer of a project under this chapter shall demonstrate that a public or private nonprofit 501(c)(3) organization, county, state, or federal agency is responsible for tracking and enforcing the affordability requirements. Said entity shall report on compliance with the affordability requirements to the city annually, or as requested. (Ord. 005/2019 § 10 (Exh. B))