Notwithstanding any other County ordinance to the contrary,
the County shall impose an anti-speculative buy-back provision to
preserve the affordability of units during a specific period of restriction
that shall be known as the "restrictions on sale or transfer, debt,
and use."
(Ord. No. 860, November
20, 2007)
The County shall implement a buy-back, mortgage debt, and occupancy provision that shall be known as the "restrictions on sale or transfer, debt, and use." These restrictions shall apply to the sale or transfer of any real property, apply to amount of mortgage indebtedness of any real property, and apply to the use of any real property acquired, financed, developed, constructed, or sold by the County pursuant to this Chapter or Section 2-1.16, Kaua'i County Code 1987, or to privately developed real property that is sold to satisfy a housing requirement and which are sold on the condition that the purchaser accepts the restrictions on the sale or transfer, debt, and use in the real property purchased.
(Ord. No. 860, November
20, 2007)
The restrictions on sale or transfer, debt, and use shall apply
for a period of time and the period of time shall not be increased
beyond the date of closing (date of recordation by the State of the
title transfer) of the purchase without the mutual consent of the
owner and the Housing Agency. The subsequent sale of any real property
repurchased by the County pursuant to the restrictions on sale or
transfer, debt, and use shall incorporate the restrictions on sale
or transfer, debt, and use and the restriction shall apply for the
same period of time. The periods of time that the restrictions on
sale or transfer, debt, and use shall apply are as follows:
(a)
Fifty
years for all units sold during all sales periods that are restricted
by the buyer's income, or
(b)
Ten
years for units sold during the sales period that is not restricted
by the buyer's income, or
(c)
Not
applicable for units sold after the restricted sales period as open
market sales.
(Ord. No. 860, November
20, 2007; Ord. No. 1081, October 29, 2020)
The County's interest created by the provisions of the restrictions
on sale or transfer, debt, and use shall be recorded as a lien on
the real property and shall be superior to any mortgage created after
the purchase of a workforce unit without the prior written consent
of the County and the subordination of the County's lien by the Director
of Finance.
(Ord. No. 860, November
20, 2007)
For the term of the restrictions beginning from the purchase
of a dwelling unit, or from the date of occupancy of a dwelling unit
built on a vacant lot purchased as a vacant lot, whether ownership
of the dwelling unit or vacant lot is from an original or subsequent
purchase, and whether by lease, assignment of lease, deed, or agreement
of sale, if the owner wishes to sell or to transfer title to the real
property or the lease, the County shall have the first option to purchase
the real property or lease at a price which shall not exceed the sum
of:
(a)
The
original cost to the owner;
(b)
The
cost of any capital improvements added by the owner, provided that
for a vacant lot owner, the cost of a dwelling unit constructed by
an owner builder, including a participant in a County sponsored self-help
housing project, shall be the initial building assessment value determined
by the County's Real Property Tax Division, Department of Finance,
or the total documented cost of construction, whichever is greater;
and
(c)
Simple
interest on the original cost to the owner and the cost of capital
improvements added to the property by the owner at the rate of 1%
a year.
(Ord. No. 860, November
20, 2007)
For the term of the restrictions beginning from the purchase
of a dwelling unit, or from the date of occupancy of a dwelling unit
built on a vacant lot purchased as a vacant lot, whether ownership
of the dwelling unit or vacant lot is from an original or subsequent
purchase, and whether by lease, assignment of lease, deed, or agreement
of sale, if the owner wishes to make additional mortgage loans on
the property during the term of the restrictions, such additional
mortgage loans shall not be made without the prior written authorization
of the Housing Agency. The only additional mortgage loans that may
be approved during the restriction period are loans whose proceeds
will be used for capital improvements to the dwelling unit, to build
a dwelling unit, or to pay for catastrophic medical expenses incurred
by a member of the owner's household. Additional mortgage loans shall
only be authorized by the Housing Agency when the total of all mortgage
debt to market value is a ratio that does not exceed 80%.
(Ord. No. 860, November
20, 2007)
Real property purchased from the County through the Housing
Agency or real property privately developed and sold to satisfy a
housing requirement shall be occupied by the owner at all times during
the applicable restriction period, except in a hardship circumstance
where a temporary occupancy waiver of no more than one year may be
provided by the Housing Agency, or occupancy is temporarily suspended
as a result of a natural disaster that renders the dwelling unit non-habitable.
(Ord. No. 860, November
20, 2007)
The restrictions on sale or transfer, debt, and use shall apply
to all workforce housing sold in fee simple to income-qualified buyers,
qualified buyers, and qualified residents.
(Ord. No. 860, November
20, 2007)
