Loading...
HomeMy WebLinkAbout38.43 - Affordable Housing Incentives and Required Affordable Homes 08 02 15 Chapter 38.43 Affordable Housing 38.43.010. - Purpose. The purpose of this article is to enhance the public welfare by ensuring that the affordable housing needs of the residents of Bozeman are addressed. The City Commission finds that there is a critical shortage of for-sale and rental housing affordable to Bozeman households with incomes at and below the area median income, as calculated annually by the U.S. Department of Housing and Urban Development. As a result, some residents pay excessive amounts of income for housing, reducing the amounts available for other necessities and a decent standard of living. The shortage of affordable housing also has negative economic impacts, including residents leaving the city for locations with more affordable housing, and hiring of new employees being deterred by the high cost of housing, especially home purchase opportunities. To maintain a sufficient resident workforce in all fields of employment, and to ensure the public safety and general welfare of the residents of the city of Bozeman, affordable housing needs must be addressed. Accordingly, this article has two primary objectives: To define affordable housing; To provide for incentives from the City of Bozeman for the development of affordable housing for purchase and for rent; To create affordable housing plans to ensure creation of affordable housing; To establish a program that results in the creation of affordable housing; and To ,,,,,,. 38.43.020. – Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (these will be ordered alphabetically in the final draft) Lower-Priced Homes for Purchase or Lower-Priced Homes – Newly created dwelling units for purchase, affordable to a household with an income between 66% and 80% of Area Median Income. Moderate-Priced Homes for Purchase or Moderate-Priced Homes– Newly created dwelling units for purchase, affordable to a household with an income between 81%% and 100% of Area Median Income. Market-Rate Homes – Any single-household home subject to this Article , which homes are not subject to the Affordable Housing requirements of this Article, including detached homes, attached town homes, and condominium units but not including multifamily units that are not condominium units. The numbers of Market-Rate Homes in a residential or mixed-use development are used, in part, to determine the required number of Affordable Homes, as described in Section 38.09.051 of this Article. Area Median Income or AMI – Defined by the U.S. Department of Housing and Urban Development (HUD), AMI is the median income for a family of four within a specific geographical area, such as Gallatin County. For each such region, HUD adjusts this primary AMI for households of different sizes and different AMI levels and updates the calculations annually based on estimated changes in area incomes. For purposes of this article, the City of Bozeman has adopted HUD’s AMI calculations as an equitable and reasonable tool for qualifying homebuyers for any affordable dwelling units created by this ordinance. Very Low-Cost Rental Units – Newly created dwelling units for rent, affordable to a household with an income below 65% of Area Median Income and subject to a long-term affordability controls providing for maximum rental amounts and maximum incomes of occupants; such controls must be imposed and monitored by a public or quasi-public agency for a period of at least 20 years after initial occupancy, in exchange for subsidized financing. Developer – For purposes of this Article, a Developer is the person or legal entity who: (a) submits an Affordable Housing Plan for a subject property along with other submissions required for land use approvals, zoning, or permit reviews by the City, and/or (b) is the owner of the subject property during the development phase or a successor in title, such as a builder, contractually obligated to implement the Affordable Housing Plan with respect to one or more lots or parcels of land and/or (c) receives development incentives for the production of affordable housing. Price Tier(s) - Lower-Priced Homes and Moderate-Priced Homes, singly or collectively. Instructions for Preparing Affordable Housing Plans – An administrative document updated at least annually by the City’s Department of Community Development which will include: (a) general instructions on how to complete the City’s form for Affordable Housing Plans, (b) current maximum prices for Affordable Homes, (c) current qualifying income levels for Affordable Homes, (d) an explanation of minimum design criteria and other details of compliance, (e) guidance on the marketing, buyer qualification and sales of Lower-Priced Homes, (f) guidance on alternative means of compliance including land donations and payment of fees-in-lieu including a current schedule of allowed fees-in-lieu, and (g) explanation of the required certification by the Developer that all applicable requirements of this article will be adhered to in implementing the Affordable Housing Plan. 38.43.030. – Applicability. The provisions of this article apply to applications made on or after [DATE], proposing construction, Substantial Improvement, or Adaptive Reuse which will result in the availability of 10 or more detached homes, condominium units and/or town homes. The provisions of this article apply to all active applications for approval of a subdivision, annexation or a site plan for a development within Bozeman that includes 10 or more Market Rate Homes (dwelling units) of any kind, to be created through new construction, Substantial Improvement or Adaptive Reuse Unless otherwise prohibited by the City’s ordinances or standard review and approval procedures, an existing application, subdivision plat, annexation plan or site plan may be amended to request approval of one or more of the incentives related to described herein. New subdivision plats or amendments of existing plats affecting more than 30% of the platted lots. Annexations that include residential zones. Applications for site plans for creation of condominium dwelling units by new construction, Substantial Improvement or Adaptive Reuse. Projects or portions of projects composed of rental housing units are exempt from these requirements. 38.43.040. – Applying for Approval of Incentives and Receiving Incentives. Affordable housing plan. The applicant will complete an Affordable Housing Plan in a form provided by or approved by the City that includes the number, location (lots in the plat or units within a site plan), timing of delivery and other characteristics of the affordable housing proposed; such plan, when approved by the City, will become incorporated by reference in any approved plat, site plan or annexation agreement. If a proposed residential development is subject to the requirements of Section XXX of the City’s Code of Ordinances for building Affordable Homes, the applicant will provide only one Affordable Housing Plan to meet the requirements of this Article . Affordable housing agreement. An Affordable Housing Plan approved by the City will be considered an Affordable Housing Agreement when it is included in a development agreement between the Developer and the City, or other recorded documentation that binds the parties to implementation of the Affordable Housing Plan. Forms and technical assistance. The City will provide forms with instructions for preparing Affordable Housing Plans. Cancellation of incentives provided. DISCUSS: There should be some clawbacks if there is a failure to deliver the units. However, I don’t think we need to say that the City can make a Developer stop work if they are not following their conditions of approval (i.e. following the Affordable Housing Plan)—since that is true of any conditions of approval. 38.43.050. – Calculation of Affordable Sale Prices and Qualifying Incomes. Qualifying Dwelling Units. For purposes of qualifying for a specific incentive defined in this article, affordable dwelling units for purchase must be proposed in one or both of the following categories: Lower-Priced Homes and Moderate-Priced Homes Price Targets. In order for home prices to be affordable to a broad range of potential buyers in the two qualifying income groups, price targets will be calculated based on income levels which are less than the highest income in each qualifying category, as follows: Lower-Priced Homes for Purchase. The price target for these homes, intended to be affordable to buyer-households with a range of incomes from 65% to 80% of Area Median Income will be based on a prototype household income at 70% of Area Median Income. Moderate-Priced Homes for Purchase. The price target for these homes, intended to be affordable to buyer households with a range of incomes from 81% to 100% of Area Median Income will be based on a household income at 90% of Area Median Income. Adjustment for numbers of bedrooms in the proposed dwelling units. To determine the prices of proposed affordable dwelling units of different bedroom sizes, the City will calculate a schedule of affordable prices based on AMIs for households of different sizes, as follows: Zero bedroom or studio unit – 1 person household; One bedroom unit – 2 person household; Two bedroom unit – 3 person household; Three bedroom unit or larger – 4 person household. Process for determining and applying affordable sales price schedule. The City or its agent will calculate a schedule of affordable sales prices annually, within 30 calendar days of the HUD’s annual publication of updated AMI calculations, to be effective on the date of publication by the City. The City or its agent, at the City’s sole discretion, may recalculate the schedule of affordable sales prices if prevailing mortgage interest rates have increased by 50 basis points or more over the assumption used for the previous schedule. Upon its publication, such schedule will be applicable to any subsequent application or amendment to an application for land use approvals that include approvals of incentives for affordable housing. Financial assumptions to be used for calculating affordable sales price. AMIs for the Bozeman area as defined herein. Gross monthly income will be calculated as the appropriate HUD AMI calculations income divided by 12. The assumed monthly payment will be 33% of gross monthly income for payment of principal, interest, taxes, property insurance premiums, mortgage insurance premiums (assuming the higher of either government or private mortgage insurance), and homeowner/condominium association fees. The assumed interest rate will be determined by the City or its agent by a survey of at least three local mortgage lenders, averaging their current rates for loans that match the assumptions herein. The assumed financing will be a conventional or government-insured fixed-rate loan with a term of 15 to 30 years. The calculation will assume that a borrower will provide a payment and require either private or government mortgage insurance. Verifying and certifying buyers’ incomes and other qualifications for Lower-Priced Homes. To qualify for purchase of an Affordable Home, a prospective buyer must meet these criteria: Having a household income in the 65%-80% AMI category, as verified and certified by the City or its agent; such certification must have been provided no more than one year prior to the closing date of the purchase. Asset Limitation (?) The City will require that income calculations be performed using HUD’s online HUD online income certification tool or impose a similar method which adjusts gross incomes based on extraordinary expenses and imputation of assets to income. The buyer’s household must meet the definition of “Household” in 10.08.020. The buyer must meet the Federal Housing Administration definition of First-Time Homebuyer meeting the following criteria An individual who has had no ownership in a principal residence during the 3-year period ending with the date of purchase. A single parent who has only owned with a former spouse while married An individual who is a displaced homemaker and has only owned with a spouse An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of construction a permanent structure. Any income from business activities, investments, rental properties or other return on assets, including return of capital, must be included in gross income. Being a resident of Bozeman for at least one year prior the closing date of the purchase, or having moved to Bozeman for a new job within a year, or having a verified offer of employment in Bozeman starting no more than one month after the closing date for the purchase. The buyer must contribute at least $1,000 towards the purchase of the home from seasoned funds unless waived in writing by the Department of Community Development because of extraordinary circumstances. The buyer must utilize conventional or government-insured fixed-rate first-mortgage financing with a term of 15 to 30 years. Simplified compliance for Moderate-Priced Homes. Such properties may be sold without being subject to requirements for income limits, owner-occupancy, subsidy recapture, or other long-term affordability controls. Verification of sales prices. For each sale of an Affordable Home, the seller must provide the City or its agent with a copy of the HUD-1 form prepared by an attorney or title company indicating the sales price. The final sales price on the HUD-1 form may not exceed the maximum price for a specific Affordable Home as described in City’s Instructions for Preparing Affordable Housing Plans plus an allowed maximum of $3,000 in buyer selected upgrades, if allowed by the first mortgage lender underwriting. If the City or its agent discovers that a buyer was overcharged for a home, the applicant or his/her successor in title who sold the home must provide a refund to the buyer, in accordable with the standard terms of the Affordable Housing Plan. 38.43.060. – Incentives Available for Affordable Housing The following incentives are available to Developers of affordable housing units, as applicable to the type of development proposed. Incentives Description Very Low-Cost Rentals Lower-Priced Homes Moderate-Priced Homes  Impact Fee Subsidy Homes benefiting households with incomes at or below 80% of the Area Median Income, as defined in this section, shall be eligible for a full subsidization of impact fees, paid from municipal funds and secured with a lien instrument due upon sale, transfer or non-rate/term refinance of the home. X X   Financing of Infrastructure for Affordable Homes The city will provide on a first-come first-served basis, infrastructure development assistance funded from municipal sources not to exceed $10,000 per home benefiting households with incomes at or below 80% of Area Median Income, as defined in this section. This assistance shall be passed on to the buyer as a discount and be secured with a lien instrument due upon sale, transfer or non-rate/term refinance of the home. X X         Reduction of Parkland Requirements For development projects of ten or more units that include homes benefiting households with incomes at or below 80% of the Area Median Income, as defined in this section, shall be allowed a reduction in the size of parkland requirements equivalent to the actual lot area of lower-priced affordable units within the project. X X         Simultaneous Infrastructure Housing Construction For development projects with homes benefiting households with incomes at or below 80% of the Area Median Income, as defined in this section, shall be allowed to simultaneous start of infrastructure and housing development at the installation of gravel base roads, provided the Developer has provided assurance through a performance bond ensuring the completion of infrastructure. X X                      38.43.70. – Affordable housing plan requirement. The applicant will complete an Affordable Housing Plan using a form provided by or approved by the City that includes the number, location (lots in the plat or units within a site plan), timing of delivery and other characteristics of the Lower-Priced Homes and/or Moderate-Priced homes proposed to meet the requirements of this Article. Such plan, when approved by the City, will become incorporated by reference in any approved plat, site plan or annexation agreement. Such plan, if approved by the City, will serve the purposes of the section 10.08.040(A) of the City’s Code of Ordinances and thereby entitle the applicant to certain incentives. 38.43.80 – Provision of Affordable Homes on-site or off-site. To meet the requirements of this Article for providing Affordable Homes, development proposals must include one of these three options for building and selling Affordable Homes to be built on-site or off-site within the city limits of Bozeman. An Affordable Home must be a completed, habitable dwelling unit; providing a building lot for an Affordable Home is not sufficient for compliance. Build and sell Low-Priced Homes. With this option, 10% of the total housing units proposed must be built and sold at affordable prices to households with incomes at or below 80% of area median income; or Build and sell Moderate-Priced Homes. With this option, 30% of the total housing units proposed must be “naturally affordable,” i.e. entry-level homes of modest design built and sold at prices affordable to households with incomes from 81% to 100% of area median income. Income qualification of buyers and long-term affordability controls are not required. Build and sell a mix of both types of homes. With this option, the Developer may select options (A) and (B) above for two different sets of identified building lots or condominium units, so long as the ratio of Lower-Priced Homes to Moderate-Priced Homes is one to three. 38.43.090. – Timing of compliance. Required Affordable Homes or Alternative Means of Compliance shall be provided in accordance with the following requirements: Timing of providing Affordable Homes. In each development in which more than one Affordable Home is required to be sold, the Affordable Housing Plan shall provide for Affordable Homes to be sold in sequence and in proportion to the sale of unimproved lots or Market Rate Homes. This sequence shall be defined precisely. Such timing of compliance shall be represented in an Affordable Homes Pricing and Delivery Schedule as described elsewhere in this Article. Earlier delivery. A Developer may sell affordable or attainable units earlier than required in an Affordable Homes Agreement or an Affordable Homes Pricing and Delivery Schedule. Timing of providing in-lieu contributions. In-lieu contributions when required or permitted shall be due and deliverable to the City before the recordation of the Affordable Housing Plan. An Applicant may, at his or her option, propose an alternative to this requirement in which staged contributions are made upon the predicted occurrence of certain events, such as the sale of lots, which alternative may be approved at the sole discretion of the City. Staged delivery of in-lieu contributions. In the case of staged delivery of in-kind contributions when permitted, the value of each contribution shall be determined in accordance with provisions elsewhere in this Article that take into account the differential financial value to the City of payments that are made a substantial amount of time later than recordation of the Affordable Housing Plan, using conventional methods of discounting future cash flows to present value. 38.43.100. – Calculation of the Required Number of Affordable Homes. The calculation formula. In any development which is obligated to fulfill the requirements of this Article by directly providing Affordable Homes, the number of Affordable Homes shall be equal to 10%, 30% or some other percentage of the total number of homes proposed to be built, depending on whether the Developer has chosen to build and sell Lower-Priced Homes, Moderate-Priced Homes or a mix of both options. The total number of homes is defined as the sum of the number of Affordable Homes and Market-Rate Homes. The whole number resulting from this calculation shall be the number of homes required to be built and sold. Providing “Fractions” of Affordable Homes. If the calculation of the required number of Affordable Homes results in a fraction of a home, this obligation will be satisfied by payment of a fee-in-lieu pursuant to §_____ of this Article or through a land donation of equivalent value in support of affordable/attainable housing. Calculations for phased developments. It is anticipated that in larger developments being built in phases over a number of years, the number of market-rate homes may not be certain at the time of execution of the Affordable Housing Agreement. In such cases, the Affordable Housing Agreement will include an estimated number of market-rate homes and estimated required number of Affordable Homes for the entire project. If the number of homes in the first phase of such development is certain at the time of final submission and City acceptance of the Affordable Housing Plan, then a separate Affordable Homes Pricing and Delivery Schedule for that phase shall be incorporated in the Plan. As the number of homes in future phases becomes certain, the Plan shall provide for the Department of Community Development to administratively approve subsequent Affordable Homes Pricing and Delivery Schedules for future phases of the development, consistent with the Affordable Housing Plan and the requirements of this Ordinance. 38.43.110. Pricing of required Affordable Homes. Lower-Priced Homes: Prices of homes affordable to households with incomes from 65% to 80% of area median income are determined by the formulas in Section 10.9.030. Moderate-Priced Homes: Prices of homes affordable to households with incomes from 81% to 100% of area median income are to be determined by the formula for determining Affordable Home prices, in Section 10.9.030. 38.43.120 Pricing and Delivery Schedules in Affordable Housing Plans. In an Affordable Housing Plan or Agreement or as otherwise required by this Article, the Affordable Homes Pricing and Delivery Schedules shall be in the form of a chart that contains the numbers of required Affordable Homes by bedroom size and Price Tier, and shall indicate the current Affordable Home Prices. Guidance regarding the distributions of the required number of Affordable Homes within the two Price Tiers and required bedroom sizes shall be provided in the Instructions for Preparing Affordable Housing Plans. Such distribution by Price Tiers shall be based primarily upon an assessment of housing needs among the income groups corresponding to Price Tiers, but shall take into account the economic impact on developments subject to the requirements of this Article. 38.43.130. Minimum design requirements of Affordable Homes. Required numbers of bedrooms in Affordable Homes. In each development subject to the requirements of this Article, Affordable Homes shall represent a mix of bedroom sizes as similar as possible (given rounding of numbers) to the mix of bedroom sizes of the market-rate homes in the Development. Standards for design and construction. The City’s Instructions for Preparing Affordable Housing Plans shall define reasonable standards for the design and construction of Affordable Homes to ensure livability and compatibility with nearby market-rate homes in the development, including but not limited to numbers of bathrooms, garages and parking areas, minimum floor areas, mechanical equipment and hookups, location of Affordable Homes within developments, design and materials, and green building features. 38.43.140 Marketing, sales and occupancy of Affordable Homes. Marketing to and certifying eligibility of Affordable Home Buyers. Developers subject to this Article shall market and sell Affordable Homes in accordance with provisions described in the City’s Instructions for Preparing Affordable Housing Plans. These provisions will address factors such as preferences for current residents and workers in Bozeman and adjacent areas, waiting list management, marketing materials, responsibilities for marketing Affordable Homes, inability to identify qualified buyers, procedures for certification of buyer eligibility, purchase contracts, and full disclosures to buyers of their obligations and rights under this Article. Filing of deed restrictions and liens. An Affordable Homes Developer selling an Affordable Home shall cause to be recorded in the offices of the Gallatin County Clerk and Recorder of Deeds, simultaneous with the recording of the deed of conveyance, a form of deed restriction, restrictive covenant, deed of trust or other legal instrument, approved by the City that fulfills long-term affordability controls and recapture requirements described in this Article. Monitoring completed sales. Upon receipt of a settlement statement for an Affordable Home, the Department of Community Development will determine if the completed Affordable Home sale complies with the approved Affordable Housing Plan and the requirements of this Article, and if not, respond to the non-compliance as provided in §_____ of this Article. Rentals of Lower-Priced Homes prohibited, with exceptions. Lower-Priced Homes shall not be rented to a second party, since the intent of the program is to provide these homes only for income-qualified owner occupants, with the exception of rentals necessitated by a family hardship or a temporary move for one year or less, if approved in advance by the City. There is no such prohibition for Moderate-Priced Homes. 38.43.150. – Alternative means of compliance; payments of fees-in-lieu. Alternatives to building Lower-Priced Homes. In some circumstances, a Developer otherwise required to provide Affordable Homes on-site within a development may be allowed to provide an alternative means of compliance of equal value to the City. Such alternative, if approved by the City, will apply only if a Developer has chosen not to select, fully or in part, the option of building and selling Moderate-Priced Homes and is therefore left with the requirement to build and sell Lower-Priced Homes. Alternatives could include contributions of cash, undeveloped land, or partially developed land. Allowable alternative means of compliance. Only certain Alternative Means of Compliance will be allowed by the City, under certain conditions, as approved by the City Commission from time to time based on an evaluation of current market conditions and as described in the City’s Instructions for Preparing Affordable Housing Plans. If a Developer proposes not to build and sell the required number of Moderate-Priced Homes and/or Lower-Priced Homes, the shortfall of Affordable Homes must be measured as a shortfall of Lower-Priced Homes. Therefore, alternative means of compliance must provide for cash or in-kind contributions of equivalent value for each required Lower-Priced Home that has been excluded from the Affordable Housing Plan. In-kind contributions may include donations of land within the proposed development or on another site suitable for construction of Affordable Homes, such donations to be made to the City or a non-profit housing organization designated by the City. Payment of fees in lieu. If and when fees-in-lieu are allowed by the City, the amounts of such payments for each Lower-Priced Home not provided will be described in the Instructions for Preparing Affordable Housing Plans. The City will determine the amounts of such payments based on a market analysis and formulas which will result in a good-faith estimate of the amount of funds required to subsidize the purchase of a modest, new Market-Rate Home within Bozeman to achieve approximately the same effective price as would have been required for each Lower-Priced Home. The Instructions for Preparing Affordable Housing Plans will describe procedures for calculating fees-in-lieu for different circumstances, such as developments providing some or no Affordable Homes on-site. Credits for donation of house lots or multi-family parcels. At the City’s discretion, it may accept donations of: (a) ready-to-build house lots or (b) parcels of land suitable for construction of affordable multifamily housing, whether condominiums or Very Low-Cost Rentals. Such donations, if approved, will provide credits against this Article’s requirements for building Lower-Priced Homes. The credits will be determined as follows. House lots. To determine the credits, the City will conduct an appraisal of the proposed lots to be donated. The appraised value of the lot or lots will be divided by the City’s then-current average of fee-in-lieu payments for homes of different sizes. The product of that division to two decimal points will constitute the credit against the otherwise required number of Lower-Priced Homes. Multifamily parcels. The Department of Community Development shall create and maintain written instructions governing the valuation for donation of parcels of land intended for multifamily development, for purposes of determining credits against the number of Affordable Homes that would otherwise be required in a development subject to this Article. 38.43.160. Qualifying and certifying eligibility of buyers of Lower-Priced Homes. The City will use a reasonable and prudent method of qualifying and certifying the eligibility of buyers of Lower-Priced homes as described in the City’s Instructions for Preparing Affordable Housing Plans. With regard to determining qualifying incomes of prospective buyers of Lower-Priced homes, such method may (but is not required to) make adjustments for such household financial circumstances such as extraordinary medical expenses, dependent care expenses, and ownership of significant non-income-producing assets. 10.09.072. Subsidy recapture for Lower-Priced Homes. The requirements for subsidy recapture are as follows. Requirement for repayment of subsidy. It is assumed that most or all Lower-Priced Homes will be sold at a discount from market value, which is defined as the difference between the appraised value and the maximum allowed price of a Lower-Priced Home at the time of the initial sale to a qualified buyer. Such appraisal may be the appraisal obtained by the buyer’s mortgage lender or, if that is not available, a professional appraisal ordered and paid for by the City. The City considers this price discount as an in-kind subsidy to the buyer that has a cash value. Therefore, upon resale or transfer of a Lower-Priced Home, the City aims to perpetuate housing affordability by recapturing the principal amount of the subsidy by use of a lien in favor of the City in that amount, which will be due and payable to the City, at 0% interest, when the home is sold or transferred or when the initial lower-income buyer has failed to abide by the terms of this Article by remaining an owner-occupant, except for extenuating circumstances as described in §_____ of this Article. Use of repayments to the City. The City shall use repayments of the lien amounts only to fund: (a) mortgage assistance for buyers of new or existing homes in Bozeman with household incomes at or below 80% of area median income, or (b) if such a program is not operating in Bozeman, any other use that increases affordable homeownership opportunities for residents of Bozeman with income at or below 80% of area median income or affordable rental opportunities for residents of Bozeman with incomes at or below 50% of area median income. 38.43.170. – Administration The Department of Community Development shall be responsible for fulfilling all administrative functions of the requirements of this Article except for those which are specifically described as the responsibilities of other City boards, departments, or officials. The Department shall be responsible for reviewing Developers’ proposals for compliance with this Article, administering those provisions that permit or require the city to approve waivers or refunds of certain fees, and other administrative functions required to implement the intent of this Article. Notwithstanding any other provisions of this Article, the City Commission has the discretion to approve special compliance provisions for development projects with regard to unique circumstances that were not contemplated in this Article or the City’s Instructions for Preparing Affordable Housing Plans, so long as such special provisions are reasonable and based upon the intent of this Article. 38.43.180 – Noncompliance; Sanctions. Discovery of noncompliance. If the City determines that a Developer subject to an Affordable Housing Plan has failed to comply with any terms or conditions of that agreement, the Department of Community Development shall notify the Developer of the noncompliance in writing and order compliance by the most reasonable and expeditious means. This notification shall describe a date certain by which the Developer shall be in full compliance (which may not be less than one week or more than one year from the date of the notice), and shall describe: (i) the exact nature of the noncompliance, and (ii) the possible sanctions for noncompliance with this notification. Sanctions for noncompliance. If on a date certain by which compliance has been ordered by the City, the Developer is still considered in noncompliance, the Department of Community Development shall notify the City Attorney of the noncompliance and request that sanctions be imposed. The City shall have the authority to impose one or more of the following sanctions which the City deems most effective and appropriate considering the nature of the noncompliance: Withholding the recording of plats, Withholding or revoking building permits, Issuing stop-work orders, and/or Withholding or revoking certificates of occupancy. Legal action and fines. When requests for compliance or subsequent sanctions have not resulted in compliance with an Affordable Housing Plan, the Director of Community Development may request that the City Manager instruct the City Attorney’s office to pursue enforcement in the appropriate court of law. The failure to comply with the provisions of an executed Affordable Housing Agreement is declared to be a violation of this Article and, upon proof thereof, shall subject the Affordable Homes Developer to the fines and penalties set forth in §_____ of the Code of Ordinances of the City of Bozeman. Enforcement outside the city limits. If after having been given notice as set forth in §17-4-4, a Developer subject to an Affordable Housing Plan, as a condition of the extension of or connection to City utilities beyond the city limits, fails to comply with said agreement, the Director of Community Development may request that the City Manager direct the City Attorney’s office to pursue enforcement of specific performance requirements in accordance with the Affordable Homes Agreement in an appropriate court of law. Enforcement by other means. Nothing herein shall limit the city’s ability to enforce the provisions of this Article by any other legal means.