[HISTORY: Adopted by the County Council of
Sussex County 1-17-2006 by Ord. No. 1821. Amendments noted where
applicable.]
This chapter shall be known as the "Moderately
Priced Housing Unit Program" (the "MPHU Program" or the "Program")
and establishes mechanisms to stimulate the production and sale of
housing for residents with moderate incomes.
This chapter seeks to better protect the health,
safety and welfare of Sussex County's residents and workforce by stimulating
the provision of housing for residents with moderate incomes.
The Sussex County Council hereby finds that
a severe shortage exists within the County for housing for residents
with moderate incomes. Specifically, the Council finds that:
A.
The County is experiencing rapid population growth.
From 1990 to 2000, the County's population increased by 38.3% from
113,229 persons to 156,638 persons. Most of these new residents are
classified as the "young elderly," defined as people entering pre-retirement
or early retirement that are financially well off.
B.
This influx of affluent new households has created
significant new demand for public utilities, health and human services,
government services and retail and other commercial services, thereby
increasing the need for persons of moderate income employed in the
stated capacities and for the housing to accommodate those employees.
C.
In turn, the supply of moderately priced housing has
decreased over the past 10 years as housing costs have escalated due
to the influx of affluent households. The most recent real estate
data suggests that households earning 50% to 125% of the area median
income have very few choices for modern, modest quality housing except
in the most western areas of the County and, even there, choices and
supply are limited.
[Amended 4-23-2013 by Ord. No. 2302]
D.
Based on the most recent Department of Labor data,
a significant portion of the Sussex County workforce earns less than
125% of the area median income.
E.
Based on this information, Council finds that new
development is not adequately addressing the housing needs of the
County's moderate-income residents and workforce. Continuation of
this trend will have a negative effect upon the ability of local employers
to maintain an adequate workforce.
F.
The inadequate supply of housing for the County's
workforce is increasing the commuting distance to employment to include
commuting outside the County. This imbalance between jobs and housing
has undesirable transportation and environmental consequences. Longer
commuting overtaxes existing roads and transportation facilities and
significantly contributes to air and noise pollution and traffic congestion.
It also produces stress for affected employees and creates greater
than normal personnel turnover in the private businesses and public
agencies of the County. These circumstances adversely affect the health,
safety and welfare of County residents.
G.
Projections suggest that the high level of demand
for higher priced housing will continue, driven by macro-population
factors, low County taxes and the proximity of the resort areas in
eastern Sussex, discouraging developers from offering a more diverse
range of housing in areas where the demand for housing and the workers
to support associated residents is strong. The production of moderately
priced housing is further deterred by the high cost of materials and
labor.
H.
Housing industry experts advise that if land and development
costs can be reduced, modern, quality houses can be built and sold
at prices affordable to households of moderate income.
I.
Given the proper incentives, the private sector possesses
the necessary resources and expertise to provide the type of moderately
priced housing needed in the County.
The Sussex County Council hereby declares it
to be public policy of the County to:
A.
Encourage the creation of a full range of housing
choices, conveniently located in suitable living environments, for
all incomes, ages and family sizes.
B.
Encourage the production of moderately priced housing
to meet the existing and anticipated future employment needs in the
County.
C.
Assure that moderately priced housing is dispersed
throughout the County consistent with the Comprehensive Plan.
D.
Encourage the production of moderately priced housing
by allowing increases in density to reduce land and development costs.
E.
Encourage developments in Town Centers, Developing
Areas and Coastal Areas with 35 or more total dwelling units to include
a minimum number of moderately priced units of varying sizes on public
water and sewer systems.
[Amended 5-21-2019 by Ord. No. 2656]
F.
Provide incentives for private developers to construct
moderately priced housing through tools such as the density incentive
(defined below).
G.
Allow developers who are building qualified projects
an expedited review period.
[Amended 11-20-2007 by Ord. No. 1941]
H.
Allow developers who are building qualified projects
an expedited review period.
The following words and phrases have the following
meanings:
Any person, firm, partnership, association, joint venture,
corporation, or other entity or combination of entities owning or
controlling via contract qualified land (defined below) and any transferee
of all or part of the qualified land that, after this chapter takes
effect:
Submits to the County for approval or extension
of approval a plan of housing development for any type of site review,
subdivision plan or development approval (hereinafter a "development
plan") that provides for the development of at least 35 dwelling units
on qualifying land in one or more subdivisions, parts of subdivisions,
resubdivisions, or stages of development; or
With respect to land in zones not subject to
subdivision approval or site plan review, applies for building permits
for the construction of 35 or more dwelling units on qualifying land.
The resale MPHU sale price established by the Department pursuant to § 72-11A.
All land of the applicant if:
The property lines are contiguous; and/or
The property lines are separated only by a public
or private right-of-way at any point; and/or
The property lines are separated only by other
land of the applicant not subject to this chapter at the time of the
submission of a permit or development plan by the applicant.
The time a MPHU is subject to resale price controls and owner
occupancy requirements. The control period is 20 years and begins
on the date of sale for new or resale MPHUs.
The date of settlement for purchase of a new or resale MPHU.
Any increase in density pursuant to § 72-7A that allows a residential development to achieve a density greater than would have been possible under the applicable provisions of current and future Zoning Ordinances and the County's Subdivision Regulations.
The Sussex County Department of Community Development and
Housing unless a DDE is the applicant or has provided any funding,
in which case Department will refer to the DDE.
Any agency, authority or political subdivision of the State
of Delaware or any other public housing development agency or nonprofit
housing corporation, land trust or similar entity designated by the
Department and approved by the County Administrator.
[Amended 11-20-2007 by Ord. No. 1941]
The head of the Sussex County Department of Community Development
and Housing or head of a DDE, as applicable.
A building or part of a building that provides a complete
living facility for one family, including, at a minimum, facilities
for cooking, sanitation and sleeping.
Person(s) whose household is of moderate income, who has
been found eligible to purchase an MPHU and who holds a valid certificate
of eligibility from the Department. Eligible buyers of equal moderate
income may qualify for different maximum sale prices (defined below)
based on the size of the eligible buyer's household.
For sale of a new MPHU in the open market without deed restrictions pursuant to § 72-10A(7), "excess proceeds" means 95% of the sale price to the open market buyer less the applicant's actual out-of-pocket closing costs as shown on the HUD-1 settlement sheet less the applicable maximum sales price.
For sale of a resale MPHU in the open market
without deed restrictions, "excess proceeds" means the resale price
to the open market buyer less the seller's actual out-of-pocket closing
costs as shown on the HUD-1 settlement sheet less a market rate third
party sales commission (if a broker is used) less the approved resale
price.
For sale of an MPHU as the result of a foreclosure
event, "excess proceeds" means the accepted bid at the foreclosure
sale less the approved resale price, provided that the accepted bid
exceeds the sum of the outstanding principal balance, interest, taxes,
insurance, fees provided for in the mortgage and any foreclosure-related
expenses, including, but not limited to, expenses of marketing the
property due to the first mortgagee and any other costs associated
with the foreclosure sale payable to junior lien holders.
The Seller is obligated to discharge any mortgages
or other debt associated with the MPHU out of the maximum sales price
or approved resale price.
A foreclosure, deed-in-lieu of foreclosure or other court-ordered
sale.
The new MPHU sale price established by the Department pursuant to § 72-9.
The criteria required to obtain a certificate of eligibility as enumerated in § 72-6 below.
Those levels of income established by the County Administrator
which prohibit or severely limit the financial ability of persons
to buy housing in Sussex County. Moderate income is established as
50% to 125% of area median income adjusted for household size as defined
by the U.S. Department of Housing and Urban Development (HUD). Income
includes salary, wages, dividends, interest and all other sources
recognized by HUD from the eligible buyer and all other adults who
will occupy the MPHU. Further, for persons or households with significant
assets that do not produce income, the Department will establish criteria
for imputing income to such assets.
[Amended 11-20-2007 by Ord. No. 1941; 4-23-2013 by Ord. No. 2302]
A dwelling unit which is:
[Amended 11-20-2007 by Ord. No. 1941]
Offered for sale and sold to eligible buyers
through or pursuant to regulations promulgated by the Department and
approved by the County Administrator; or
Sold under another government program designated
by the County Administrator and designed to assist in the construction
or occupancy of moderately priced housing.
The period during which an MPHU must be offered for sale exclusively to an eligible buyer as established in § 72-10A(6).
All land:
Owned by or under contract to the applicant;
and
In a Town Center, Developing Area or Coastal
Area and zoned for any type of residential development to which a
density provision applies or land that is designated on a town’s
comprehensive plan as lying within the town’s growth and future
annexation area; and that
[Amended 11-20-2007 by Ord. No. 1941; 5-21-2019 by Ord. No. 2656]
Requires the submission of a development plan
or, where a development plan is not required, a building permit; and
that
Is served by a public sewer and water system;
and that
Is at one location.
A.
Eligible buyers must:
(2)
As of the date of application to purchase an MPHU,
be a permanent resident of Sussex County.
(3)
For one year immediately preceding the date of application
to purchase an MPHU, have been a permanent resident of Sussex County.
(4)
At of the date of application to purchase an MPHU,
have been employed in Sussex County for at least the immediately preceding
year and be currently employed in Sussex County as of the date of
sale.
B.
Where necessary or advisable to achieve the objectives
of this chapter or to comply with state or federal housing laws, the
Department may propose changes to these standards for approval by
the County Administrator, including changes to eligibility requirements
for home buyer applicants as recommended by the Department.
[Amended 11-20-2007 by Ord. No. 1941]
A.
Density incentives.
(1)
Subject to meeting the requirements outlined in §§ 72-8, 72-9 and 72-10 of this chapter, a proposed development on qualifying land at one location may achieve the following density incentives:
|
Tier A
|
Tier B
|
Tier C
| ||
|
MPHUs required
|
15%
|
15%
|
15%
| |
|
Density incentive
|
20%
|
25%
|
30%
|
|
Tier A: greater than 100% and less than or equal
to 125% of the area median income as established by the U.S. Department
of Housing and Urban Development, adjusted for family size and updated
annually.
| |
|
Tier B: greater than 80% and less than or equal
to 100% of the area median income as established by the U.S. Department
of Housing and Urban Development, adjusted for family size and updated
annually.
| |
|
Tier C: less than or equal to 80% of the area
median income as established by the U.S. Department of Housing and
Urban Development, adjusted for family size, and updated annually.
|
(2)
For applicants proposing a mix of tiers, the density
incentive will be the weighted average reflecting the number of units
in each tier. For example, if a project has 1/3 each of Tier A, Tier
B and Tier C MPHUs, the weighted average density incentive will be
25%. If a project has 90% Tier A and 10% Tier C, the weighted average
density incentive will be 21%.
(3)
In planned development zones and mixed use zones containing
flexible development standards, the number of MPHUs will be 15% of
the total number of dwelling units.
(4)
In either single-family detached or townhouse subdivisions,
each MPHU must have at least two bedrooms. One-bedroom MPHUs are permitted
in condominiums, provided that the number of one-bedroom condominium
MPHUs is equal to or less than the number of market rate one-bedroom
units in the subdivision.
B.
Other incentives will include:
(1)
Expedited review. A project entering the MPHU program
through execution of an MPHU agreement will receive expedited review.
The expedited review is provided to the applicant to assist the applicant
in managing, to the extent possible, the risk of changes to cost,
interest rates, schedule and other factors that the applicant is taking
on by virtue of participation in the MPHU program. If the applicant,
at any time during processing, elects to withdraw from the MPHU program,
any approvals granted for the development through the date of withdrawal
will be vacated and the applicant will have to resubmit the project
in the normal County process.
(2)
The project entering the MPHU Program with the execution
of an MPHU agreement will be allowed to utilize the density permitted
by the zoning district in which the property is located, provided
that the total density, including MPHU incentives, shall not exceed
12 units per acre.
[Added 11-20-2007 by Ord. No. 1941[1]]
[1]
Editor's Note: This ordinance also repealed former Subsection
B(2), Fee waivers.
C.
The Council is authorized to modify the provisions
of the County's Zoning Ordinance and the County's planning and zoning
regulations and processes as needed to achieve the density incentives
and the specific design elements (e.g., minimum lot sizes, setbacks,
building heights, parking requirements, etc.) of approved MPHU projects.
To participate in the MPHU program and to secure
a density incentive, an applicant must execute an MPHU agreement negotiated
with the Department and the County Attorney. Each agreement must include,
at a minimum, the following information and/or evidence the following
agreements and any others deemed necessary by the Department and the
County Attorney to properly implement the chapter.
A.
The specific number of MPHUs to be constructed in
each price level meeting the maximum sale prices established by the
Department. An amendment to the MPHU agreement will be made to incorporate
approved development plans once the plans are available.
B.
The schedule pursuant to which the MPHUs will be constructed,
marketed and delivered and the relationship between the delivery of
market rate units and the delivery of MPHUs (i.e., a stated number
of MPHUs to be created for each nonMPHU created).
C.
Any economic risk created by changes, whether within
or outside of the applicant's control, in development and construction
costs, interest rates, processing and construction schedules, permitting
and any other factor impacting the applicant's economics are borne
solely by the applicant.
D.
The County Administrator may withhold building permits
until the applicant is, in the sole discretion of the Department,
in full compliance with the MPHU agreement.
[Amended 11-20-2007 by Ord. No. 1941]
E.
Be signed by the applicant, by other parties having
an interest in the property and by all other parties whose signatures
are required by law for the effective and binding execution of contracts
conveying real property. MPHU agreements must be executed in a manner
that will enable them to be recorded in the land records of the County.
If the applicant is a corporation, the principal officers of the corporation
must sign the agreements individually and on behalf of the corporation.
F.
Partnerships, associations and corporations may not
evade the requirements of the MPHU agreement through voluntary dissolution.
G.
The MPHU agreement may only be assigned with the written
approval of the Department and only if the proposed assignee agrees
to fulfill and demonstrates the financial ability to fulfill the applicant's
obligations under the MPHU agreement.
H.
Applicants are responsible for marketing and selling
the MPHUs. During priority marketing periods, the applicant will work
with the Department to screen eligible buyers and to receive any specific
selection criteria or directions promulgated by the Department.
I.
If the applicant is not also the builder, disclosure of the relationship between the applicant and builder as soon as the relationship is established. Further, acknowledgement by the applicant and builder that any deed transferring lots to builder will be encumbered by covenants described in § 72-8K below.
J.
MPHU units must be fully integrated into the communities
of which they are a part and shall not be substantially different
in appearance from non-MPHU units. When the MPHU units are a part
of a phased development, a proportionate number or percentage of said
units shall be placed within each phase and/or constructed within
each housing type appearing in the development. The planning and design
of individual MPHUs must be consistent with the planning and design
of market rate units within a single project.
[Amended 11-20-2007 by Ord. No. 1941]
K.
The applicant will execute and record covenants confirming
that:
(1)
The restrictions of this chapter run with the land;
and
(2)
The covenants will bind the applicant, any assignee,
mortgagee, or buyer and all other parties that receive title to the
property, with the exception of the first lien mortgage holder, and
except for a second mortgage which is approved by the first mortgage
lender and the Department prior to the date of sale and the proceeds
of which are used solely to pay or reimburse some or all of an eligible
buyer's down payment and/or settlement costs. In the event the first
lien mortgagee acquires the property through a foreclosure or acceptance
of deed-in-lieu of foreclosure, the resale restrictions will be extinguished.
The covenants must be senior to all instruments securing financing
with the exception of the first lien mortgagee and an approved second
lien mortgage to defray some or all of the down payment and/or settlement
costs, as defined above.
[Amended 11-20-2007 by Ord. No. 1941]
(3)
In any later deed or instrument conveying title to
an MPHU, the property remains subject to the restrictions contained
in the covenants required under the chapter during the control period
until the restrictions are released. The source of the deed restrictions
must be included in the public land records so that they are readily
identifiable in a routine search.
L.
Where the applicant is a DDE, covenants will be negotiated
between the Department and the DDE so as to be consistent with the
mission, strategies, business plans and operating procedures of the
DDE and may, with Council approval, deviate from the requirements
of this chapter.
A.
The Department will establish the maximum sale price
for each tier of moderate income and for each household size within
each tier. The maximum sale price applies to new MPHUs. The maximum
sale price for any level of moderate income and household size is
established by:
(1)
Calculating the maximum conventional, thirty-year
amortizing first mortgage supportable by the Council-approved moderate
income levels based on prevailing interest rates, amortization schedules
and allowable debt burdens provided by mortgage lenders approved by
the Department to make loans to eligible buyers; then
(2)
Deducting from the calculated maximum first mortgage
the good-faith estimate of a typical eligible buyer's out-of-pocket
closing costs as shown on a HUD-1 settlement sheet to purchase the
MPHU; and finally
(3)
Multiplying the result by 0.95, or such other factor
promulgated by the Department and approved by the County Administrator
from time to time, to provide a minimum financial cushion for eligible
buyers for routine maintenance, emergencies and other unplanned financial
circumstances.
[Amended 11-20-2007 by Ord. No. 1941]
B.
The Department will establish new maximum sale prices
whenever there are, in the Department's sole opinion, material changes
in moderate income as defined and/or in market terms for interest
rates, amortization schedules and debt burdens.
C.
Maximum sale prices are solely income and mortgage-related
and are not tied to the applicant's actual cost of producing and selling
MPHUs, or, in the case of resales, sale price expectations based on
the Sussex County real estate market. Applicants must carefully consider
the risks associated with fluctuations in both maximum sale prices
and in the cost of producing MPHUs prior to participating in the MPHU
program. Once an applicant enters the program, all such risks are
borne solely by the applicant, and the applicant will have no cause
to seek relief from the Department or the County.
A.
Sale to eligible buyers.
(1)
Every MPHU constructed under this program must be
offered to all eligible buyers for purchase as the eligible buyer's
principal residence. Notification of MPHU availability will be made
through legal notices in area publications meeting public notice criteria.
At the time the Department accepts an application from an eligible
buyer, it will secure written confirmation from such person that eligible
buyers are solely responsible for monitoring legal notices for the
availability of MPHUs and for information on the MPHU program.
(2)
Before formally offering any MPHUs, the applicant
must notify the Department of the date on which the applicant will
be ready to begin the marketing to eligible buyers. The notice must
set forth, for each MPHU, its address, floor area, room mix, delivery
date, estimated homeowners' association charges (if any), estimated
annual property taxes and estimated annual utility expenses for sewer,
water, electric and, if available, gas. The notice will also include
floor plans and elevations for each MPHU or model of MPHU.
(3)
After receiving the offering notice, the Department
must notify the County Administrator of the offering. If the Department
finds that the offering notice is complete, it will provide the applicant
with the maximum sale price for each unit and authorize the applicant
to offer the MPHUs to eligible buyers during the priority marketing
period pursuant to rules established by the Department.
[Amended 11-20-2007 by Ord. No. 1941]
(4)
The Department will, with approval of the County Administrator,
establish a selection system that considers household size, length
of County residency, length of employment in the County and length
of time since the person was certified for the MPHU program. The Department
will coordinate with the applicant in the selection of specific eligible
buyers identified by the applicant during the applicant's marketing.
If there are multiple, equally qualified eligible buyers seeking to
buy the same MPHU, the purchaser will be selected by a lottery run
by the Department.
[Amended 11-20-2007 by Ord. No. 1941]
(5)
The Department, with the approval of the County Administrator,
may establish special selection criteria or MPHU allocations to address
certain specific housing needs, such as target workforce sectors or
economic development initiatives.
[Amended 11-20-2007 by Ord. No. 1941]
(6)
The priority marketing period for new MPHUs begins
on the earlier to occur of when the Department declares the offering
notice complete, or 15 days after submission of the offering notice
to the Department and ends 180 days thereafter.
(7)
Any units available after expiration of the priority marketing period will, upon written approval from the Department, be released to the applicant for sale as market rate units without deed restrictions pursuant to the MPHU agreement and subject to the Department's rights pursuant to the next Subsection B.
B.
Sale to the Department. If no eligible buyer is found
for an MPHU during the applicable priority marketing period, the Department
may:
A.
Except for foreclosure proceedings (§ 72-13), MPHUs produced under the MPHU program may only be resold during the control period at the following prices (the approved resale price):
(1)
If the current maximum sale price for an MPHU in the
same tier as the MPHU to be sold is equal to or less than the prior
price paid for the MPHU, including closing costs, then the approved
resale price is the prior price paid including closing costs.
(2)
If the current maximum sale price for an MPHU in the
same tier as the MPHU to be sold is greater than the prior price paid
for the MPHU, including closing costs, then the approved resale price
is the original purchase price, including closing costs, plus 3% annual
escalation from date of purchase to date of sale, but in no event
more than the current maximum sale price.
B.
Resale requirements during the control period.
(1)
Any MPHU offered for resale during the control period
must first be offered to the Department at the approved resale price.
The Department will have 60 days to exercise this option and, if exercised,
closing will take place 60 days thereafter. The Department may buy
an MPHU when funds are available and the Department finds that buying
and reselling the MPHU will increase opportunities for eligible buyers
to buy the MPHU.
(2)
If the Department does not buy the MPHU, the Department will notify the seller of that fact and the approved resale price and a ninety-day priority marketing period will commence. During that period, the seller will market the MPHU to eligible buyers as described for new MPHUs in § 72-10A.
(3)
If no eligible buyer is identified, a resale MPHU
may be offered for sale as a market rate unit without deed restrictions
and free of any approved resale price limitation after expiration
of the priority marketing period. Any excess proceeds from such a
sale will be distributed to the Department.
(4)
The seller will submit to the Department for approval
at least 30 days prior to closing:
(a)
A copy of the proposed sales contract, including
a list and the price of any personal property included in the sale,
which contract will be contingent on Department approval.
(b)
Draft of the settlement sheet.
(c)
An affidavit signed by the seller and buyer
attesting to the accuracy of all documents and conditions of the sale.
(5)
A signed copy of the settlement sheet is to be provided
to the Department immediately upon execution via facsimile from the
settlement agent's office.
(6)
A transfer of an MPHU that does not comply with this
chapter and the Department will not release deed restrictions or provide
any consents or estoppels until all required documents and affidavits
have been submitted to and approved by the Department.
(7)
If the unit is resold during the control period, then
a new control period begins.
C.
There are no sale restrictions after expiration of
any control period.
A.
Every owner of an MPHU must occupy the MPHU as the owner's principal residence during the control period. Each owner must certify before taking occupancy that the owner will occupy the MPHU as the owner's principal residence during the control period. The Director will require an owner who does not occupy the MPHU as the eligible buyer's principal residence to offer the MPHU for resale to another eligible buyer under the resale provisions of § 72-11. Annual certification of principal residency from each owner will be required.
B.
Except as provided in § 72-12C following, during the initial control period after the date of original sale, and, if the MPHU is resold, the subsequent new control period, no liens other than the first mortgage will be permitted on an MPHU other than statutory liens for unpaid real estate taxes or assessments for infrastructure improvements and any liens validly recorded for unpaid homeowner's association fees.
C.
If an eligible buyer has owned an MPHU for five years
or more, the eligible buyer may request permission from the Department
to place a second mortgage on the MPHU to provide for necessary capital
improvements or for other purposes permitted by rules to be promulgated
by the Department. The Department may approve the request if:
(1)
The eligible buyer provides evidence that it has an
approved lender ready to make the requested loan; and
(2)
The eligible buyer provides evidence of approval from
the first mortgagee that the mortgagee approves the subordinate financing;
and
(3)
The Department determines that the total of the first
and second mortgages does not exceed 90% of the then prevailing maximum
sale price for an equivalent MPHU.
D.
An owner of an MPHU, except the Department, may only
rent the MPHU to any another party in certain limited and extraordinary
circumstances approved by the Department (e.g., death of an owner).
(1)
The Department may allow rental of the MPHU for a
period not to exceed 12 months at rents set by the Department. Any
approved rental will automatically amend the applicable MPHU covenants
to extend the control period for a time equal to the approved rental
period.
(2)
Any unapproved rental is a violation of this chapter
and will result in a fine payable to Sussex County equal to the full
amount of any illegal rental received plus $500 per each month of
illegal rental. Any amount unpaid after 90 days is grounds for a lien
against the MPHU, and Sussex County may obtain a judgment and record
the lien. If an illegal rental continues for more than six months,
Sussex County may sue to force a sale pursuant to the provisions of
this chapter.
E.
An owner may only sell an MPHU after first notifying
the Department of the proposed sale and obtaining a current certificate
of eligibility issued by the Department from the proposed buyer.
F.
A person may own only one MPHU at any given time.
If an MPHU owner is buying a different MPHU pursuant to this chapter,
the Department, in its sole discretion, may authorize an overlapping
ownership period of up to 60 days.
G.
If an MPHU owner dies, at least one heir, legatee, or other person taking title by will or by operation of law must be an eligible buyer and must occupy the MPHU as his or her principal residence during the control period. If these conditions cannot be met, the new owner(s) must sell the MPHU to an eligible buyer pursuant to § 72-11 of this chapter.
A.
MPHU mortgages will include the following provisions.
(1)
The Department will request that approved lenders
providing mortgages to eligible buyers provide a copy of any mortgage
default notification to the Department no earlier than the 45th day following delinquency and no later than the
60th day following delinquency. The Department
will require that all approved lenders have the eligible buyer sign
an authorization form permitting the loan servicer to give such notice
to the Department.
(2)
The MPHU owner must provide a copy of any mortgage
default notification immediately upon receipt.
(3)
In such event, the Director shall make every effort
to work with the owner to reconcile the delinquency/default, including
a deed in lieu of foreclosure, referral to an agency skilled in mortgage
default counseling, sale to another eligible buyer or Department-designated
entity (if no eligible buyers are interested in the MPHU). The Department
will have 60 days from date of notification to assist the homeowner
in curing the default.
(4)
If the Director determines that the waiting list of
eligible buyers warrants retaining the MPHU in inventory and if funding
is available, the Director is authorized to notify the mortgagee that
the Department or DDE guarantees payoff of the outstanding principal
balance, interest, taxes, insurance, fees provided for in the mortgage
and any foreclosure-related expenses, including, but not limited to,
expenses of marketing the property within 60 days in return for cancellation
of foreclosure actions. Prior to making such notification, the Department
will secure the MPHU owner's consent to sell the property and will
coordinate with the mortgagee or its servicing agent. Should the MPHU
owner not consent to a sale and should the default not be cured, the
foreclosure could proceed. The Department reserves the right to purchase
the MPHU at the foreclosure sale, thereby ensuring a renewed control
period. The Department will take into consideration the possible legal
costs associated with eviction in determining whether or not to bid
at the foreclosure sale. If the mortgagee is the successful bidder
at the foreclosure sale, the Department will have the option to pursue
purchase of the property from the lender within 30 days of the foreclosure
sale. The Department assumes recourse for any necessary eviction proceedings.
In the event the Department purchases the MPHU, the Department will
pay the principal, interest and other costs outlined above to the
mortgagee up to, but not exceeding, current market value (without
deed restrictions) as determined by mortgagee's appraiser. Title to
the MPHU property will then pass to the Department. The Department
will thereupon re-offer the property in accordance with the MPHU program
to eligible buyers, with the requirement that the Department is, to
the extent possible, made whole for monies spent in the process of
obtaining the property in the MPHU program.
B.
MPHU mortgages and covenants will provide that, if
an MPHU is sold through a foreclosure event, a payment must be made
to the Department as follows:
(1)
If a foreclosure event occurs during the control period
and if the accepted bid at the foreclosure sale exceeds the approved
resale price, excess proceeds will be paid to the Department in lieu
of the former MPHU owner. The Department is responsible for monitoring
foreclosure events and ensuring recapture of any excess funds.
(2)
If the accepted bid at the foreclosure sale is less
than the approved sale price, no payment is due to the Department.
(3)
If the foreclosure event occurs after the twenty-year
control period, then no payment is necessary to the Department.
A.
To assist the Council in assuring that the program
achieves the objectives outlined in the chapter, the Council will
establish a test period during which the Council, supported by the
Departments of Community Development and Housing and Planning and
Zoning, will test the effectiveness of the chapter and its associated
rules and regulations. The test period will be long enough for the
initial MPHU projects to be processed, developed and sold to eligible
buyers, which period shall be 24 months. Improvements to concepts,
processes and rules and regulations identified during the test period
will be incorporated into future amendments of the chapter. The Council
views this chapter as a living document that will be modified as needed
to respond to economic, housing, development, land use and other trends
in the County and to best practices in MPHU programs. The chapter
will not be fully implemented until the test period is completed and
the chapter hereafter amended to include any additional provisions
the Council determines are needed prior to the expiration of the test
period.
B.
The section further establishes a request for proposal
("RFP") process to select program participants during the test period.
The RFP process will:
(1)
Allow the County to manage the number of potential
development projects participating in the program until program guidelines
related to administration, land use, zoning and public processing
are tested and finalized.
(2)
Allow the County to manage the number of potential
MPHUs created until the actual market for MPHUs is better understood
and quantified and until program guidelines related to marketing,
sale, financing, resale and ownership are tested and finalized.
(3)
Allow applicants to present alternative approaches
to lot sizes, housing types, density incentives and other program
features to encourage better overall land use, creation of MPHUs in
high land-cost areas or similar potentially desirable outcomes. Alternative
approaches deemed successful by the Council will be incorporated in
the amendment to the chapter prior to full implementation.
(4)
Ensure that the letter of the chapter produces results
that are consistent with the spirit of the chapter by allowing the
Council to amend the chapter as needed based on actual experience
prior to final promulgation and full adoption.
C.
During the phased implementation period, the Council
directs the Director, Planning and Zoning to exploring existing zoning
classifications, to consider new zoning classifications and to consider
overlay designations that can be modified or created to encourage
the creation of MPHUs, particularly in the coastal area of the County.
The findings of this study will be used by the Council in considering
changes to the County's Comprehensive Plan during its next scheduled
update.
D.
The County
Administrator, in cooperation with the County Attorney, shall develop
and approve a standard set of agreements and documents to implement
all of the requirements of this chapter, and all applicants and eligible
buyers shall be required to execute those documents as a condition
of participating in the MPHU Program.
[Added 11-20-2007 by Ord. No. 1941]
A.
The Department must maintain a list of all MPHUs constructed
and sold under this program, and Council hereby authorizes the County
Administrator to promulgate and adopt regulations and approve the
various agreements and documents necessary to administer this program.
[Amended 11-20-2007 by Ord. No. 1941]
B.
The Director may, with Council approval, waive or
modify the provisions of the MPHU program if the Director finds that
the program is in conflict with state or federal housing laws.
C.
This program applies to all agents, successors, and
assigns of an applicant. A building permit must not be issued, and
a preliminary plan of subdivision, development plan, or site plan
must not be approved unless it meets the requirements of this program.
The Director of Planning and Zoning may deny, suspend, or revoke any
building or occupancy permit upon finding a violation of this program.
Any prior approval of a preliminary plan of subdivision, development
plan or site plan may be suspended or revoked upon the failure to
meet any requirement of this chapter. An occupancy permit must not
be issued for any building to any applicant, or a successor, or assign
of any applicant, for any construction that does not comply with this
program.
D.
The Director is authorized to pursue any available
remedy, legal, or equitable in nature, to enforce the requirements
of this program or to prevent or abate a violation of this program.
E.
The Director may take legal action to stop or cancel
any transfer of an MPHU if any party to the transfer does not comply
with all requirements of this program. The Director may recover any
funds improperly obtained from any sale or rental of an MPHU in violation
of this chapter.
F.
In addition to or instead of any other available remedy,
the Director may take legal action to:
G.
The Director may take action if the MPHU are illegally
rented or lease.
[Added 12-9-2008 by Ord. No. 2016]
[Amended 11-1-2016 by Ord. No. 2474]
This chapter seeks to better protect the health, safety and
welfare of Sussex County's residents and workforce by stimulating
the provision of affordable rental housing for residents with low
and moderate incomes and is hereafter known as the "Sussex County
Rental Program" or "SCRP" or "program."
[Amended 11-1-2016 by Ord. No. 2474]
The Sussex County Council hereby finds that a shortage exists
within the County for housing for residents with low and moderate
incomes. Specifically, the Council finds that:
A.
It is well known that Sussex County rents have inflated far beyond
the ability of an average wage earner to pay. It is also known that
federal rental assistance programs, such as the state-administered
Public Housing and Section 8 Housing Choice Voucher Programs, are
unable to completely satisfy the need for affordable rental housing.
B.
Council finds that new development is not adequately addressing the
rental housing needs of the County's low- and moderate-income residents
and workforce. Without influencing this trend, local employers will
have a difficult time maintaining an ample workforce.
C.
Without an adequate supply of affordable rental housing in close
proximity to employment and Town Centers, the County's workforce must
commute a great distance for work. Not only do long commutes have
a negative effect on the environment and transportation, but commuting
also comes with high fuel expenses.
D.
Given the proper incentives, the private sector possesses the necessary
resources and expertise to provide the type of affordable rental housing
needed in Sussex County.
[Amended 11-1-2016 by Ord. No. 2474]
The Sussex County Council hereby declares it to be the public
policy of the County to:
A.
Encourage the creation of a full range of housing choices, conveniently
located in suitable living environments, for all incomes, ages and
family sizes.
B.
Encourage the production of affordable rental units to meet the existing
and anticipated future employment needs in the County.
C.
Assure that affordable rental units are dispersed throughout the
County consistent with the Comprehensive Plan.
D.
Encourage developments in Growth Areas as defined within the County's
most current comprehensive plan and Areas of Opportunity as defined
by the Delaware State Housing Authority to include affordable rental
units on public water and sewer systems.
[Amended 10-18-2022 by Ord. No. 2889]
E.
Provide incentives for developers to construct affordable rental
units through tools such as the density incentive and expedited review
(defined below).
The following words and phrases have the following meanings:
Any person, firm, partnership, association, joint venture,
corporation, or other entity or combination of entities owning or
controlling via contract qualifying land (defined below) and any transferee
or successor in interest of all or part of the qualifying land pursuing
the development of affordable rental housing under the SCRP that:
[Amended 11-1-2016 by Ord. No. 2474]
Submits to the County for approval or extension of approval
a plan of housing development for any type of site plan review, subdivision
plan or development approval (hereinafter, a "site plan") that provides
for the development of affordable rental units on qualifying land
in one or more subdivisions, parts of subdivisions, resubdivisions,
multifamily townhouse developments or phases of development under
the terms and conditions as set forth in this article.
[Amended 10-18-2022 by Ord. No. 2889]
With respect to land in zones not subject to subdivision approval
or site plan review, applies for building permits for the construction
of affordable rental units on qualifying land under the terms and
conditions as set forth in this article.
The midpoint family income for Sussex County, calculated
each year by the U.S. Department of Housing and Urban Development
(HUD), adjusted for household size.
[Amended 11-1-2016 by Ord. No. 2474]
All land of the Applicant if:
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
The property lines are contiguous; or
The property lines are separated only by a public or private
right-of-way at any point; or
The property lines are separated only by other land of the Applicant
and not subject to this section at the time of the submission of an
application or development plan by the Applicant.[1]
The date of the initial lease agreement signing of an approved
Eligible Tenant for a SCRP Unit.
[Amended 10-18-2022 by Ord. No. 2889]
The Sussex County Department of Community Development and
Housing or its successors.
Any agency, authority or political subdivision of the State
of Delaware or any other public housing development agency or nonprofit
housing corporation, land trust or similar entity designated by the
Department and approved by the County Administrator.
The head of the Department of Community Development and Housing
or head of a DDE, as applicable.
Any building, structure, or portion thereof which is occupied
as, or designed or intended for occupancy as, a residence; and any
vacant land which is offered for sale or lease for the construction
or location thereon of any such building, structure, or portion thereof.
"Dwelling" shall not include hotels, motels, motor lodges, boarding
and lodging houses, tourist houses, or similar structures.
[Amended 11-1-2016 by Ord. No. 2474]
The levels of income designated by the County Administrator
which prohibit or severely limit the financial ability of persons
to rent a dwelling unit in Sussex County. Eligible Income is low to
moderate income, defined as 30% to 80% of the area median income for
Sussex County adjusted for household size as defined by the U.S. Department
of Housing and Urban Development (HUD). Income includes gross salary,
wages, dividends, interest and all other sources recognized by HUD
from the Eligible Tenant and all other adults (age 18 and older) who
will occupy the SCRP Unit. Income will be verified by a copy of the
filed income tax returns from the previous year and any other personal
and financial information requested by the Landlord in order to accurately
verify the potential tenant's qualifications and income, which may
include, but is not limited to, a credit history report and a criminal
background report on the proposed adult tenants, so long as these
are requirements for all leases in the housing development.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
Person(s):
[Amended 11-1-2016by Ord.
No. 2474; 10-18-2022 by Ord. No. 2889]
Whose household income is within the Eligible Income.
A project entering the SCRP will receive priority in the
County's planning and zoning process, with the Director of Planning
and Zoning and the County Administrator to determine the Applicant's
placement in the list of pending applications. The expedited review
is provided to the Applicant to assist the Applicant in managing,
to the extent possible, the risk of changes to cost, interest rates,
schedule and other factors that the Applicant is taking on by virtue
of participation in the SCRP. If an Applicant at any time during processing
elects to withdraw from the SCRP, any approvals granted for the development
through the date of withdrawal will be vacated and the Applicant will
have to resubmit the project through the normal County process. A
project receiving expedited review does not exempt the project from
the County's planning and zoning process, nor guarantee approval through
that process.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A foreclosure, deed-in-lieu of foreclosure or other court-ordered
sale of the rental unit or of the subdivision or development in which
the unit is located, subject to rental restrictions continuing in
force after foreclosure sale of disposition.
The owner of the property that contains SCRP Units or an
entity designated by the owner to manage and lease dwelling units.[2]
[Amended 10-18-2022 by Ord. No. 2889]
All land that:
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A dwelling which is:
[Amended 11-1-2016 by Ord. No. 2474]
Offered for lease to Eligible Tenants through or pursuant to
the provisions of this article and any regulations promulgated thereunder
by the Department and approved by the County Administrator; or
[Amended 10-18-2022 by Ord. No. 2889]
Leased under another government program designated by the County
Administrator designed to assist in the construction or occupancy
of affordable rental housing.
[1]
Editor's Note: The definition of "certificate of eligibility,"
as amended 11-1-2016 by Ord. No. 2474, and the definition of "control
period," both of which immediately followed this definition, were
repealed 10-18-2022 by Ord. No. 2889.
[2]
Editor’s Note: The former definition of “minimum
standards of eligibility,” which immediately followed, was repealed
11-1-2016 by Ord. No. 2474.
[Amended 11-1-2016 by Ord. No. 2474]
A.
There shall be a preference given to tenants who have worked or resided
in Sussex County for at least one year preceding the application to
the SCRP. In addition, Eligible Tenants must:
[Amended 10-18-2022 by Ord. No. 2889]
(1)
Have proof of citizenship.
(2)
Be of Eligible Income, as defined in § 72-19 above, and be able to pay the first month's rent and any required security deposit.
(3)
Comply with the criminal history and credit requirements for tenants
of all leases within the proposed housing development.
(4)
(Reserved)
(5)
Occupy the SCRP Unit as the tenant's principal residence during
the lease period. Each Eligible Tenant must certify before taking
occupancy that the tenant will occupy the SCRP Unit as the tenant's
principal residence. Any tenant who violates occupancy requirements
will be subject to eviction procedures.
B.
Where necessary or advisable to achieve the objectives of this chapter
or to comply with state or federal housing laws, the Department may
propose changes to these standards for approval by the County, including
changes to eligibility requirements for tenants as recommended by
the Department.
[Amended 10-18-2022 by Ord. No. 2889]
B.
Expedited review. A project entering the SCRP through execution of an SCRP Agreement will receive expedited review, as defined in § 72-19 above, through the County's Planning and Zoning process.
C.
Incentives will only be granted to projects submitted for new development
that meet all requirements of this program.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
B.
All units contributed as SCRP Units will remain at the affordable rental rates specified herein. SCRP Units shall never be leased as market-rate units, regardless of vacancy, except in accordance with § 72-23N(1).
C.
(Reserved)
D.
SCRP Units must be fully integrated into the communities of which
they are a part and shall not be substantially different in external
appearance from market-rate units. SCRP Units shall be equipped with
the same basic appliances as the market rate units, such as an oven,
refrigerator, dishwasher, and washer and dryer.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
To participate in the SCRP and secure any incentives provided
for herein, an Applicant must execute an SCRP Agreement prepared by
the Department and the County Attorney. Each agreement must include,
at a minimum, the following information and/or evidence the following
agreements and any others deemed necessary by the Department and the
County Attorney to properly implement the chapter:
A.
The specific number of SCRP Units to be constructed in the project.
If a final site plan has not been approved when the SCRP Agreement
is executed, an amendment to the SCRP Agreement will be made to incorporate
the approved final site plan.
B.
A description of how the SCRP Units will be marketed and delivered.
The SCRP Units must be constructed and delivered in equal proportion
to non-SCRP Units within the development.
(1)
Applicants shall affirmatively market the SCRP Units to diverse populations,
and meet with the surrounding residents early in the development approval
process.
C.
Any economic risk created by changes, whether within or outside of
the Applicant's control, in development and construction costs,
interest rates, processing and construction schedules, permitting
and any other factor impacting the Applicant's costs and development
obligations are borne solely by the Applicant.
D.
Building permits, performance bonds and letters of credit. No building
permits shall be issued in any subdivision or housing development
where SCRP Units are included until the Applicant executes a valid
SCRP Agreement which applies to the entire subdivision.
E.
Be signed by the Applicant and all other parties having an interest
in the property whose signatures are required for the effective and
binding execution of contracts conveying real property. SCRP Agreements
must be executed in a manner that will enable them to be recorded
in the land records of the County.
F.
Partnerships, associations, corporations and other entities may not
evade the requirements of the SCRP Agreement through voluntary dissolution,
bankruptcy, or the sale or transfer of qualifying land.
G.
The SCRP Agreement may only be assigned with the prior written approval
of the Department and only if the proposed assignee demonstrates the
financial ability to fulfill all of the Applicant's obligations
under the SCRP Agreement.
H.
Landlords are responsible for marketing, leasing, and determining tenant eligibility for the SCRP Units. A landlord shall not be permitted to refuse to rent a unit to an Eligible Tenant. The reasons for a refusal to rent to an Eligible Tenant shall be documented and included in the Annual Audit and Certification required by § 72-28.
I.
If the Applicant is not also the builder, the relationship between
the Applicant and the builder shall be fully disclosed to the Department's
satisfaction, as soon as the relationship is established.
J.
SCRP Units must be fully integrated into the communities of which
they are a part (not separated geographically from the market rate
units and not grouped together) and shall not be substantially different
in external appearance from non-SCRP Units. When the SCRP Units are
a part of a phased development, a proportionate number or percentage
of said Units will be placed within each phase and/or constructed
within each housing type appearing in the development. The planning
and design of individual SCRP Units must be consistent with the planning
and design of non-SCRP Units (i.e., market-rate units) within a single
project.
(1)
The ratio of SCRP Units by type must reflect the ratio by type of
market rate units, to the extent feasible. For instance, if a development
has 200 two-bedroom dwelling units and 100 one-bedroom dwelling units,
the ratio of two-bedroom to one-bedroom SCRP Units should also be
2:1.
K.
The SCRP Agreement shall be recorded in the Office of the Recorder
of Deeds confirming that:
(1)
The covenants contained within it will bind the Applicant, any assignee,
mortgagee, or buyer and all other parties that receive title to the
property. In the event the mortgagee acquires the property through
a foreclosure or acceptance of deed-in-lieu of foreclosure, the SCRP
Agreement covenants will continue in effect. The covenants must be
senior to all instruments securing financing.
(2)
In any deed or instrument conveying title by the Applicant, the property
shall remain subject to all of the terms and conditions contained
in the SCRP Agreements by the Applicant required under the chapter.
The source of the SCRP Agreements and any deed restrictions related
thereto must be included in the public land records so that they are
readily identifiable in a routine title search.
L.
Where the Applicant is a DDE, agreements will be negotiated between
the Department and the DDE so as to be consistent with the mission,
strategies, business plans and operating procedures of the DDE and
may, with Council approval, deviate from the requirements of this
chapter.
M.
The SCRP Agreement requires that the Landlord ensure that the SCRP
Units are occupied only by tenants whose annual income levels do not
exceed the eligible income limit, and shall prohibit tenants from
subletting or subleasing the Units.
(1)
In addition, the Landlord must supply the information listed below
in a format acceptable to the Director on an annual basis:
(a)
The number of SCRP Units, by bedroom count, that are leased
to Eligible Tenants and those that are vacant, and the monthly rent
charged for each SCRP Unit;
(b)
For each SCRP Unit, the tenant's name, household size,
and total household income as of the date of the lease, and the effective
date of the lease;
(c)
A statement that, to the best of the Landlord's information
and knowledge, tenants who are leasing the SCRP Units meet the eligibility
criteria.
(2)
The Department shall audit the report and may require such additional
information monthly needed to evaluate and accept the annual report.
N.
The tenant must vacate the SCRP Unit if the tenant's household
income exceeds 80% of the area median income by 20% at the time of
lease renewal. The Applicant must take the necessary action to have
the tenant vacate the SCRP Unit within six months of receiving information
that the tenant's household income exceeds the Eligible Income
limit.
(1)
Notwithstanding the provisions of § 72-23N above, if the Applicant immediately designates an additional comparable unit as an affordable dwelling unit to be leased under the controlled rental price and requirements of the SCRP program, the tenant of such SCRP Unit referenced in § 72-23N above may continue to lease such Unit at the market value rent.
[Amended 11-1-2016 by Ord. No. 2474]
A.
Rent.
(1)
Rent shall be established and updated annually by the Department
based upon 25% of household income for 50% of the area median income
adjusted for household size and unit size and shall not include trash
services, parking, water and sewer utilities and any other charges
to be paid by the tenant.
(2)
The Eligible Tenant must provide to the Landlord income tax returns
(and proof of payment of any taxes owed) from the previous year for
all members of the household who were required to file such returns.
If an Eligible Tenant was not required to file tax returns or if the
Landlord believes that information from the previous tax returns is
insufficient to determine income, the Landlord is authorized to request
such information as it deems necessary to confirm the income levels
of the proposed tenants.
[Amended 10-18-2022 by Ord. No. 2889]
B.
Unit and household size. Households must be placed in units according
to the following distribution:
|
Unit Size
(number of bedrooms)
|
Household Size
| |
|---|---|---|
|
Efficiency
|
1
| |
|
1
|
1 to 2
| |
|
1 plus Den
|
2 to 4
| |
|
2
|
2 to 4
| |
|
2 plus Den
|
2 to 4
| |
|
3
|
4 to 6
| |
|
4
|
5 to 8
|
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A.
Leases to Eligible Tenants.
(1)
Every SCRP Unit constructed under this program must be offered to
all Eligible Tenants for lease as the Eligible Tenant's principal
residence. Notification to the public of SCRP Unit availability will
be made by the Landlord and is recommended to be made by advertising
on DelawareHousingSearch.org and similar sites. The Department may,
but is not obligated to, provide notice of SCRP Unit availability
through the Department's website.
(3)
Annually, the Department will provide updated income guidelines and
rental rates to the Landlord for use in leasing the SCRP Units.
(4)
Lease agreements shall contain the same terms and conditions as the
lease agreements with market-rate renters with the exception of the
rental rates and other terms and conditions as required under this
article.
(5)
All lease agreements of SCRP Units shall cover a period of one year.
(6)
An Eligible Tenant already occupying a SCRP Unit shall have a first-option
to renew the lease agreement each year, as long as the tenant maintains
good standing with the Landlord and continues to qualify as an Eligible
Tenant.
B.
Tenants of SCRP Units shall provide an executed affidavit on an annual
basis certifying their continuing occupancy of the unit as their principal
residence. Tenants shall provide such affidavit to the Landlord by
the date that may be specified in their lease or that may otherwise
be specified by the Landlord.
C.
In the event the tenant of an SCRP Unit fails to provide his or her
Landlord with an executed affidavit as provided for in the preceding
subsection within 30 days of written request for such affidavit, then
the lease shall automatically terminate, become null and void and
the occupant shall vacate the Unit within 30 days of written notice
from the Landlord.
[Amended 10-18-2022 by Ord. No. 2889]
[Amended 11-1-2016 by Ord. No. 2474]
Improvements to concepts, processes and rules and regulations
of the SCRP program will be incorporated into future amendments of
this article. Council views this article as a living document that
will be modified as needed to respond to economic, housing, development,
land use and other trends in the County and to best practices in affordable
rental programs.
[Added 10-18-2022 by Ord. No. 2889[1]]
The Landlord shall contract with an independent Delaware Certified Public Accountant that has no other relationship with the Landlord/Developer/Owner/Manager to audit the Landlord's Compliance with this Chapter 72, the conditions of approval for the project, the terms of the SCRP Agreement, the rental of the SCRP Units and the status of the Eligible Tenants (and their Eligible Income) within the project. In this engagement, the Delaware Certified Public Accountant will perform this obligation in accordance with attestation standards established by the American Institute of Certified Public Accountants. This annual audit and report shall certify that the project remains in compliance with i) all of the Chapter 72 requirements and the terms of the SCRP Agreement; ii) the status of each of the SCRP Units (whether leased or vacant); iii) certification that each of the Eligible Tenants renting an SCRP Unit within the project is an Eligible Tenant as of the date of the annual audit and report; iv) the status and duration of any vacancy of any SCRP Unit; v) the marketing efforts to re-let any vacant SCRP Unit to an Eligible Tenant; vi) the status of any list of Eligible Tenants waiting for an SCRP Unit to come available; and vii) such other information as the Delaware Certified Public Accountant and/or the Community Development and Housing Office may deem appropriate and necessary. This annual audit and report shall be submitted to both the Office of Planning and Zoning and the Community Development and Housing Office no later than March 1 of each year.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A.
The Department will maintain a list of all SCRP Units constructed
and leased under this program, and the Council hereby authorizes the
County Administrator to promulgate and adopt regulations and approve
the various agreements/documents necessary to administer this program.
Therefore, Sussex County shall commence a comprehensive review of
this SCRP Program on or before January 1, 2028.
B.
The Director may, with Council approval, waive or modify the provisions
of the program if the Director finds the program in conflict with
state or federal housing laws.
C.
This program applies to all agents, successors, and assigns of an
Applicant. A building permit shall not be issued and a preliminary
plan of subdivision, development plan, or site plan shall not be approved
for a development that will contain affordable rental units to be
submitted to this program unless it meets the requirements of this
program. The County Administrator may deny, suspend, or revoke any
building or occupancy permit upon finding a violation of this program.
Any prior approval of a preliminary or final plan of subdivision,
development plan or site plan may be suspended or revoked upon the
failure to meet any requirement of this chapter. An occupancy permit
shall not be issued for any building to any Applicant, or a successor,
or assign of any Applicant, for any construction that does not comply
with this program. The County Administrator may also withhold or call
in performance bond funds, letters of credit, and certificates of
compliance or occupancy from the Applicant for any violation of this
program.
D.
In the event that the Landlord rents any of the SCRP Units at non-SCRP
Unit rates (i.e., market rental rates) so that the proportionate share
of SCRP Units versus non-SCRP Units as originally approved is not
maintained, the Landlord of the project shall be required to pay to
Sussex County the monthly market rent collected from any such SCRP
Unit that is rented at a non-SCRP Unit Rate. Any such funds collected
by Sussex County shall be used for housing purposes and administered
by the Sussex County Office of Community Development and Housing.
E.
The Director is authorized to pursue any available remedy, legal
or equitable in nature, to enforce the requirements of this program
or to prevent or abate a violation of this program.
F.
The Director may take legal action to stop or cancel any lease of
an SCRP Unit if any party does not comply with all requirements of
this program. The Director may recover any funds improperly obtained
from the rental of a SCRP Unit in violation of this chapter.
G.
In the event of litigation to enforce the terms and conditions of
this chapter or any agreement or obligation under the SCRP program,
the Department shall be entitled to an award of legal costs and fees
to be collected from the party who is determined to be in violation
of such agreements and obligations.
