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PROPOSAL
BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA |
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| Section 2009 of the City Charter of the City of Santa Monica is amended to read as follows: Section 2009. Use of tax. All monies derived from the Tenant-Participating Conversion Tax shall be annually appropriated by the City Council for only the following purposes: (a) To pay for reasonable and necessary costs of development and administration of programs required to meet the purposes of this Section. Such monies shall not be used for costs attributable to the processing of Tenant-Participating Conversion Applications or to the non-project related administrative overhead of nonprofit housing development corporations that are acquiring and rehabilitating, constructing, or providing rental subsidies for affordable housing in the City.
(b)
(1) To assist Low Income Households and
Moderate Income Households in Tenant-Participating Conversions to purchase
or improve their units subject to an affordable repayment plan including
interest, keyed to future income increases. Upon resale of a unit by a
household assisted pursuant to this Subsection, the City shall receive a
percentage of the appreciated value of that unit obtained by the assisted
household. In the case of a direct loan, the percentage of the appreciated
value received by the City shall not be less than the percentage of the
loan to the purchase price for the unit. In the case of a loan made by a
private lender that is guaranteed by the City, the percentage of the
appreciated value received by the City shall not be less than the
percentage of that portion of the loan guaranteed by the City to the
overall loan provided by the private lender. (2) To assist the City or a nonprofit housing development corporation to purchase units, for which a Tenant-Participating Conversion Application has been approved, for lease or resale to Low and Moderate Income Households, provided that any unit so acquired shall be subject to limited equity resale provisions.
(3)
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