A. The systems development charge for the development of qualified affordable housing under the City’s affordable housing laws shall be deferred until the transfer of ownership to an ineligible buyer occurs. Deferred systems development charges shall be secured by a second mortgage acceptable to the City, bearing interest at not less than five percent per annum. Accrued interest and principal shall be due on sale to an ineligible buyer.
B. The systems development charge and second mortgage for the development of qualified affordable housing shall terminate 20 years after the issuance of a certificate of occupancy if the housing unit(s) have continued to meet the affordable housing requirements during the 20-year period. (Ord. 2791 § 8, amended, 1997; Ord. 2670, amended, 1992)