The restricted sales marketing period provides the County the opportunity to purchase any workforce housing units at any time, residents of Kaua'i the first opportunity to buy, the developer with an opportunity for buyer solicitation before committing to construction of the project, and a multiple phased sales process giving residents of higher incomes an opportunity to buy after the targeted income group has the first priority to purchase workforce housing units.
(a)
County Purchase. The County may purchase workforce housing units at any time that they are available for purchase, and before or after an eligible buyer has the opportunity to purchase, at the same price that the developer is required to sell the workforce unit to an intended income group. The County shall then resell the housing unit under the County's leasehold program or rent the housing unit.
(b)
Potential Buyers List. Approximately six months before the start of site construction, the developer may notify by mail all residents on the County's mortgage-ready home-buyer list and notify by newspaper and radio all other Kaua'i residents of the intent to sell the workforce housing units, with a description of all workforce housing units to be offered for sale, and the specific income qualifying criteria and sales prices for each workforce housing unit in the project being offered, for the purpose of establishing a list of potential buyers for the workforce housing units, without executing purchase documents or collecting any fee or deposit.
(c)
Home-Buyer List Sales. Approximately 12 months before construction of the workforce housing units is complete, but no earlier than the start of site construction, the developer shall offer the workforce housing units exclusively for sale to income-qualified buyers on the County's mortgage-ready home-buyer list in the sequential order of their home-buyer number for a period of 90 days.
(d)
Public Notice of Workforce Unit Sales. Approximately 10 months before completion of the workforce housing units, the sales notice of the intent to sell the workforce housing units shall be published by the developer in a newspaper of general circulation in the County for a minimum of once per week for a minimum of three weeks. The notice of intent to sell shall invite prospective buyers the opportunity to purchase units after those residents on the County's list have first had an opportunity to purchase.
(e)
Target Income Group Sales. Approximately nine months before construction of the workforce housing units is complete, the developer shall establish a developer's selection list for the sequence for sales to applicants not on the County's list, by either the public lottery or first-come, first-served methods, adjusted by preferences applicable to the project, notify prospective buyers of their selection number, and initiate sales exclusively to income-qualified buyers in order of the selection list for a period of 90 days.
(f)
Higher Income Group Sales. Approximately six months before construction of the workforce housing units is complete, the developer shall offer remaining unsold units to income-qualified buyers whose incomes are up to the next higher workforce housing income group, first, to residents on the County's mortgage-ready home-buyer list and, second, to residents on the developer's selection list for a period of 60 days. At the beginning of this sales period, another sales notice to sell any remaining unsold workforce housing units shall be published by the developer in a newspaper of general circulation in the County for a minimum of once per week for a minimum of three weeks. The sales notice shall invite prospective qualified buyers who are one income group higher than the target income group an opportunity to purchase any unsold units.
(g)
Developer Sales Status at Construction Completion. Five months before completion of construction of the workforce housing units, the developer shall provide in writing a notice to the Housing Agency providing the number and prices of any unsold units. The County may elect to purchase any unsold units and enact appropriation legislation for the purchase funds.
(h)
Resident Sales Without Income Restriction. Four months before completion of construction of the workforce housing units, the developer shall offer remaining unsold units to qualified buyers without income restriction, first, to residents on the County's mortgage-ready home-buyer list, and second, to residents on the developer's selection list for a period of 60 days. At the beginning of this sales period, another sales notice to sell any remaining unsold workforce housing units shall be published by the developer in a newspaper of general circulation in the County for a minimum of once per week for a minimum of three weeks. The sales notice shall invite prospective buyers who are residents of any income an opportunity to purchase any unsold units.
(i)
Resident Sales Without Income or Property Restrictions. Sixty-one days before the completion of construction of the workforce housing units, the developer shall offer remaining unsold units to qualified residents without income restrictions and without other residential property ownership restriction, first, to residents on the County's mortgage-ready home-buyer list, and second, to residents on the developer's selection list for a period of 60 days.
(j)
Unrestricted Market Sales. Any workforce housing units that remain unsold after completion of construction of the workforce housing units, as evidenced by the issuance of final building inspection for single family dwellings or certificate of occupancy for multifamily dwellings, the developer may sell as market units at market prices without regard to the workforce housing unit restrictions (including price restrictions, income restrictions, and resale restrictions, mortgage debt restrictions, and owner-occupancy restrictions) contained herein, and in such case the developer shall receive credit for all units built to satisfy its workforce housing requirements.
(k)
Award of Workforce Housing Credit. The developer shall receive the workforce housing credit at the time of recordation of a sale during the restricted sales period or recordation of a sale to the County. The developer shall receive workforce housing credit for workforce housing units that remained unsold during the restricted sales period one day after the end of the restricted marketing period.
(Ord. No. 860, November 20, 2007)