When grant money is issued there is a contract signed between the City of Palmdale and the developer of the property. The contract will state the length and terms of the agreement, along with any covenants that the property owner needs to abide by. The Housing Division is responsible for enforcing the terms of the agreement to ensure that monies received from grants are being utilized in an appropriate way. During the term period the property is subject to monitoring and compliance by the City or the Housing Authority of the City of Palmdale.
Density Bonus Agreement
The Density Bonus Law is an incentive to encourage the development of affordable and senior housing. Density Bonus allows a greater density of units to be built on a parcel that is zoned for a lessor density. In exchange for building a select number of units for qualified residents, a developer, is granted concessions that could reduce the cost of building. The developer would enter into a Density Bonus Agreement with the City that would specify the concessions granted and the maximum incomes and rents for the affordable housing units governed by the agreement. The City monitors compliance of the Density Bonus Agreement for a term of 35 to 55 years pursuant to the terms of the agreement. During the term of the agreement the owner is required to submit documentation to the City of Palmdale’s Housing Division to ensure compliance with the terms of the Density Bonus Agreement.
Annual Density Bonus Compliance
Density Bonus Agreements are all different due to the concessions that are granted in exchange for the reservation of affordable units for qualified residents. The annual reporting date also varies due to the nature of the agreement. However, the core documents that need to be submitted remain the same:
- Annual Density Bonus Report Spreadsheet – A document that list all units in the development and identifies which units are designated as Density Bonus. The Annual Density Bonus Report also list information such as: the unit type, verified income amount, income levels and gross rent amount.
- Rent Rolls – For a twelve (12) month period.
- A copy of the Project Status Report (PSR) – A document that is submitted to the Tax Credit Board for Tax Credit Compliance for the reporting year, if applicable.
- A copy of the fully executed Lease Agreement is required for all affordable units under the Density Bonus Agreement in the development.
Depending on the agreement additional documentation may be requested. Some examples of additional information that may be requested are:
- Resident Self- Certification – A document where a resident self certifies the household’s size and income limit.
- Affirmative Marketing Materials – How is the property being advertised to reach qualified residents.
- Management Plan – The owner/property manager’s plan for management of the property.