Affordable units may be marketed on a lease-purchase basis, subject to the following requirements:
(a) Affordable lease-purchase units shall be subject to all provisions of this Chapter governing rental units while being leased and governing ownership units at the time the purchase option is exercised, except as otherwise provided in this section.
(b) No lease-purchaser shall be eligible to participate in occupying or owning a lease-purchase unit unless such participant, prior to either occupation or ownership, is determined by the administering agency to meet the requirements of the Affordable Housing Guidelines for ownership units.
(c) Rental payments for lease of a lease-purchase unit may exceed the amount set forth in the Affordable Housing Guidelines; provided, however, that the amount by which such rent exceeds said rent schedule amount shall be credited to the purchaser’s payment of the purchase price. If the purchase-option is not exercised, said amount shall be refunded immediately by the lessor-seller to the lease-purchaser.
(d) The entire amount of any advance payment to the lessor-seller as prepayment of rent, cleaning or security deposit, or other substantially equivalent payment, shall be credited to the purchaser’s payment of the purchase price. If the purchase-option is not exercised, said amount shall be subject to state law governing same.
(e) Each and every lease-purchase agreement for a lease-purchase unit shall provide that the maximum term of said lease shall not exceed twelve months. If, at the end of the twelve (12) month period, lessee-purchaser does not exercise the purchase option on a lease-purchase unit, said unit must be sold according to the regulations in this chapter and the Affordable Housing Guidelines.
(f) Escrow proceedings for lease-purchase units shall not exceed the twelve (12) month option period by more than an additional sixty (60) days.
(g) If a lessee-purchaser does not exercise the purchase-option on a lease-purchase unit and does not involuntarily vacate the premises, the lessor-seller shall, without cost to the County, immediately proceed to require the lease-purchaser to vacate said unit, including by appropriate legal action, if necessary. If, in the sole discretion of the County, the County determines that the lessor-seller is not reasonably performing said obligation, the County may commence appropriate legal action to require the lease-purchaser to vacate said unit. The lessor-seller shall execute all documents necessary or convenient for this purpose and shall be liable for the costs, (including staff and court) expenses, and attorney’s fees so incurred by the County.
(h) The maximum sales price at the time of exercise of the purchase option shall be the amount in effect at the time the lease-purchase agreement is entered into. (Ord. 3666, 8/6/85; 3802, 12/16/86; 3881, 12/15/87; 4081, 10/16/90; 4425, 8/13/96; Ord. 4755 § 6, 1/27/04)