In order to preserve the future affordability of a workforce housing unit, the owner must offer the city first right of refusal when he or she wants to sell the unit. The city may decide to purchase and hold the unit, or the city may opt to assign its right to purchase to a new eligible buyer from the Workforce Housing waiting list. The City, or the new eligible buyer, will pay the owner the fair market price for the workforce housing unit, which will be determined by a Market Approach to Value appraisal, which is based on the fair market value of comparable properties that have recently sold.
Should the City not exercise its right to purchase, or if the City opts to purchase and assign its right to purchase to an eligible buyer from the waiting list, but no eligible buyers express interest in purchasing the unit within 90 days of the time the owner first notifies the City of their intent to sell, the City shall notify the owner, in writing, and the owner will thereafter have the right to sell the unit to any other person or entity, in the resale restrictions terminate.
In either event, the city will receive the amount of the Workforce Housing Discount secured by its second deed of trust plus the shared net appreciation. If the City purchases and holds the unit, or if the unit is sold to the general public, the recaptured funds will be deposited into the Workforce Housing Revolving Fund and these funds will be reinvested in the Workforce Housing Program for the purpose of preserving or creating affordable housing.
If the city assigns its right to purchase, and an eligible buyer purchases the unit, the recaptured funds will then be provided as a second deed of trust to the new eligible buyer in order to help them buy down their first mortgage.