Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-5

(a) All qualifying transactions shall be made pursuant to a contract or development agreement between the City and the developer.
(b) The agreement shall include the following provisions:
(1) Applicable affordability requirements:
a. For Type 1 and Type 2 qualifying transactions, at least 20 percent of the dwelling units for rent or lease as part of the residential housing project shall be affordable and provided to households earning up to 80 percent of the Area Median Income. Where the product includes a fraction, a fraction of 0.5 or greater shall be rounded up to the next higher whole number and a fraction less than 0.5 shall be rounded down to the next lower whole number;
b. For Type 3 and Type 4 qualifying transactions, at least 15 percent of the dwelling units for rent or lease as part of the residential housing project shall be affordable and provided to households earning up to 60 percent of the Area Median Income, and at least five percent of the dwelling units for rent or lease as part of the residential housing project are to be affordable and provided to households earning up to 50 percent of the Area Median Income. Where the product includes a fraction, a fraction of 0.5 or greater shall be rounded up to the next higher whole number and a fraction of less than 0.5 shall be rounded down to the next lower whole number. Residential Housing Projects meeting the definition of a Type 3 or Type 4 qualifying transaction are subject to this subsection;
c. For Type 5 qualifying transactions, the affordability requirements shall follow the criteria set forth by the applicable state or federal regulations of the relevant funding program; and
d. For Type 6 qualifying transactions, at least 20 percent of the dwelling units for rent or lease as part of the residential housing project shall be affordable and provided to households earning up to 80 percent of the Area Median Income. Where the product includes fraction, a fraction of 0.5 or greater shall be rounded up to the next higher whole number and a fraction of less than 0.5 shall be rounded down to the next lower whole number.
(2) Applicable affordability restrictions:
a. For Type 1 through Type 5 qualifying transactions, for at least 30 years after the time of the issuance of the Certificate of Occupancy and Compliance, or Certificate of Acceptance, as applicable, for that unit; and
b. For Type 6 qualifying transactions, at least the number of years of the Tax Abatement Certificate approved by the City Council and the State Tax Commission.
(3) The affordability requirement shall automatically terminate if the property is taken by eminent domain.
(4) At the sole discretion of the City, for Type 2, Type 3, and Type 4 qualifying transactions of non-occupied developments only, the direct monetary support or award of Community Development Block grant funds or HOME Investment Partnership Program funds, may be returned to the City to enable the developer to offer market rate housing.
a. The request to return funds acquired through Type 2, Type 3, or Type 4 qualifying transactions shall be made in writing to the Housing and Revitalization Department.
b. The Housing and Revitalization Department shall prepare a recommendation regarding the request for action by City Council.
c. The Housing and Revitalization Department's recommendation shall become effective unless disapproved by a resolution adopted by a majority of City Council members serving within 30 days after the filing of the recommendation with the City Clerk.
d. The City shall provide an Acknowledgement of Expiration or Release of the affordability requirements upon the receipt of the full amount of returned funds.
(5) Income verification and confirmation of eligibility criteria shall occur through production of information, including rent rolls, to the Housing and Revitalization Department on an annual basis or upon request. If the income verification demonstrates a tenant's income has increased over the applicable thresholds, it shall be valid through the end of the lease term or for an additional one month if the lease term is expiring for that affordable unit.
(6) Where the requirements of this article are not met or maintained, the developer or owner shall be responsible for financial penalties as set forth in Section 22-3-6 of this Code or the underlying tax abatement agreement.
(7) Subject to Subsections (b)(2) and (b)(3) of this section, the provisions of the contract or development agreement relating to affordable housing shall run with the land and be binding on all subsequent owners of the residential housing project. The City shall provide an Acknowledgement of Expiration or Release of the Affordability Requirements upon the occurrence of such event.
(c) The affordability requirements, obligations, and penalties shall be set forth in a restrictive covenant or other appropriate document in recordable form, fully executed by the owner of the residential housing project and recorded with the Wayne County Register of Deeds. The City shall provide an Acknowledgement of Expiration or Release of the Affordability Requirements upon the occurrence of such event.
(d) All qualifying transactions, which propose the development or rehabilitation of an occupied housing project, must submit to the Housing and Revitalization Department for approval a Relocation and Transition Plan, which describes how the owner will minimize displacement of existing residents, provided, that such plan must conform to the guidelines adopted by the Housing and Revitalization Department.