18.23.080 Sale of Accessory Dwelling Units for Low- and Moderate-Income Housing.
A. Definitions. For purposes of this section, the following definitions apply:
1. “Qualified buyer” means persons and families of low or moderate income, as that term is defined in Cal. Health and Safety Code Section 50093.
2. “Qualified nonprofit corporation” means a nonprofit corporation organized pursuant to Title 26 Internal Revenue Code Section 501(c)(3) that has received a welfare exemption under Cal. Rev. and Tax Code Section 214.15 for properties intended to be sold to low-income families who participate in a special no-interest loan program.
B. Notwithstanding Larkspur Municipal Code Section 18.23.060(Q), an accessory dwelling unit may be sold or conveyed separately from the primary residence to a qualified buyer upon receipt of a conditional use permit from the Community Development Director pursuant to Cal. Gov’t Code Section 65852.26. The City Council may establish a fee for the permit. The Planning Director shall issue the permit upon receipt of evidence demonstrating the following requirements have been met:
1. The accessory dwelling unit or the primary dwelling was built or developed by a qualified nonprofit corporation.
2. There is an enforceable restriction on the use of the land pursuant to a recorded contract between the qualified buyer and the qualified nonprofit corporation that satisfies all the requirements specified in Cal. Rev. and Tax Code Section 402.1(a)(10).
3. The property will be held pursuant to a recorded tenancy in common agreement that includes all the following:
a. The agreement allocates to each qualified buyer an undivided, unequal interest in the property based on the size of the dwelling that each qualified buyer occupies.
b. A repurchase option that requires the qualified buyer to first offer the qualified nonprofit corporation to buy the accessory dwelling unit or primary dwelling if the buyer desires to sell or convey the property.
c. A requirement that the qualified buyer occupy the accessory dwelling unit or primary dwelling as the buyer’s principal residence.
d. Affordability restrictions on the sale and conveyance of the accessory dwelling unit or primary dwelling that ensure the accessory dwelling unit and primary dwelling will be preserved for low-income housing for forty-five (45) years for owner-occupied housing units and will be sold or resold to a qualified buyer.
e. Separate water, sewer, or electrical connection to a utility providing service to the primary residence, if required by that utility.
f. Delineation of all areas of the property that are for the exclusive use of a co-tenant. Each co-tenant shall agree not to claim a right of occupancy to an area delineated for the exclusive use of another co-tenant; provided, that the latter co-tenant’s obligations to each of the other co-tenants have been satisfied.
g. Delineation of each cotenant’s responsibility for the costs of taxes, insurance, utilities, general maintenance and repair, improvements, and any other costs, obligations, or liabilities associated with the property. This delineation shall only be binding on the parties to the agreement, and shall not supersede or obviate the liability, whether joint and several or otherwise, of the parties for any cost, obligation, or liability associated with the property where such liability is otherwise established by law or by agreement with a third party.
h. Procedures for dispute resolution among the parties before resorting to legal action.
4. A condition of approval shall require a grant deed naming the grantor, grantee, and describing the property interests being transferred to be recorded with the Marin County Clerk and a preliminary change of ownership report to be filed concurrently with the grant deed pursuant to Cal. Rev. and Tax Code Section 480.3. (Ord. 1066 § 6 (Exh. A), 2023)