Resolution 05-2021
A RESOLUTION TO ADOPT AFFORDABLE HOUSING GUIDELINES AND STANDARDS FOR PARK CITY, UTAH, AND TO REPEAL AND REPLACE RESOLUTION 25-2020 IN ITS ENTIRETY
WHEREAS, the livability and viability of Park City is directly affected by the availability of a sufficient amount of housing affordable to the workforce and residents; and
WHEREAS, based on Community Critical Priorities, the City Council desires to establish policies to ensure a reasonable opportunity for a variety of housing and which bears an essential nexus to maintaining the social, economic, and cultural fabric of the community; and
WHEREAS, the 2019 Regional Housing Needs Assessment concluded that housing costs continue to outpace wages in the service sector areas of the resort-based economy and has resulted in making housing unaffordable to working residents of the City; and
WHEREAS, the 2019 Regional Housing Needs Assessment projects that the Leisure and Hospitality employment sector will continue to drive the demand for additional workforce housing in Park City; and
WHEREAS, it is in the best interest of the community and a legitimate government interest to formulate guidelines and standards to establish a consistent criteria for review of Master Planned Development applications and annexation petitions where affordable housing is needed to mitigate the impact of the project on the community; and
WHEREAS, the cost of providing affordable housing should be equitably apportioned, based on impact generation, growth inducement, and the underlying goal to provide a diversity of housing types and prices in the community, in order to maintain a healthy economy and diverse population.
NOW, THEREFORE BE IT RESOLVED by the City Council of Park City, Utah as follows:
SECTION 1. ADOPTED HOUSING STANDARDS AND GUIDELINES. The following housing standards and guidelines are hereby adopted. Unless otherwise defined separately herein, all words and terms shall have the same meaning as defined in the Land Management Code, as amended.
SECTION 2. APPLICABILITY. These standards shall apply to all new Housing and Commercial Development created under Title 15, Chapter 6 Master Planned Developments, and Title 15, Chapter 8 Annexation, of the Park City Land Management Code. These standards shall apply to prior agreements on density or configuration unless specifically addressed within Development Agreements.
SECTION 3. PURPOSE. The purpose of this Resolution is to ensure that new development does not adversely affect the supply of affordable housing in the City and to maintain the social, economic, and cultural fabric of Park City’s community character. It is intended that the requirements imposed herein are roughly proportionate and reasonably related to the impacts of the Development.
SECTION 4. REVIEW. This Resolution shall be reviewed by the City Council at least biennially to ensure that these standards are meeting the housing goals and objectives.
SECTION 5. DEFINITIONS.

1. Affordable For Sale Housing: Housing that is priced affordable to households with incomes at or below 80% of AMI.
2. Affordable Housing Cost: Monthly housing costs that consume no more than 30 percent of a household’s income. Housing costs include rent or mortgage, basic utilities, and any Homeowners or Condo Association dues.
3. Affordable Housing Unit or Housing Unit: Dwelling units that are deed restricted to the housing size and type for individuals meeting occupancy guidelines approved by the Park City Council.
4. Affordable Rental Housing: Housing that is priced affordable to households with incomes ranging up to 80% of AMI.
5. Affordable Unit Equivalent (AUE): A two-bedroom unit with 900 square feet of Net Livable Space shall be considered one Affordable Unit Equivalent.
6. Alter or Alteration: Alter or alteration means any change, addition, or modification in construction or occupancy.
7. Annual Compliance Report: A report, as amended from time to time by the City or its designee, required to be provided to the City by each Unit Owner yearly to certify compliance with deed restrictions on a unit.
8. Applicant: A Household that has submitted the required application either for qualification as a Buyer or for placement on the Ownership Waiting List, as the context requires.
9. Assets:
   1. Assets: Anything owned by an individual that has commercial or exchange value. Assets consist of specific property or claims against others, in contrast to obligations due others.
   2. Gross Assets: Anything which has tangible or intangible value, including property of all kinds, both real and personal; includes among other things, patents and causes of action which belong to any person, as well as any stock in a corporation and any interest in the estate of a decedent; also, the entire property of a person, association, corporation, or estate that is applicable or subject to the payment of debts. Gross Assets shall include funds or property held in a living trust or any similar entity or interest, where the person has management rights or the ability to apply the assets to the payment of debts. Assets are evaluated at current fair market value, not accounting book value.
   3. Household Gross Assets: Combined Gross Assets of the Household.
   4. Household Net Assets: Gross Household Assets less Gross Household Liabilities.
   5. Net Assets: Gross Assets minus liabilities. Retirement accounts will be reviewed on a case-by-case basis to determine whether or not they shall be included as a net asset.
10. Area Median Income (AMI): Area Median Income is a calculation of annual household income determined by the US Department of Housing and Urban Development (HUD).
11. Attainable Housing: Housing that is priced affordable to households with incomes between 81 and 150 percent of AMI.
12. Bedroom: Designed to be used for sleeping purposes and which contains closets and meets all applicable City Building Code requirements for light, ventilation, sanitation, and egress.
13. Buyer: A person who is buying or has purchased a Housing Unit.
14. Capital Improvements: Material improvements or structural changes to a Unit that are more than repairs or cosmetic changes, including changes that would adapt a Unit to a new or different use or materially affect the value or use of the Unit and including, but not limited to all Permitted Capital Improvements.
15. CC&Rs: The Declaration of Covenants, Conditions, and Restrictions, commonly known as the CC&Rs, is a legal document that is filed with the county recorder’s office which are part of the governing documents for the project, subdivision or condominium. City Code: The Municipal Code of Park City, Utah, as amended.
16. Commercial Property: Property which is used for any commercial uses as defined by the Park City Land Management Code.
17. Community Critical Priority: Community Critical Priorities provide a framework for planning, targeting resources and establishing goals. Prioirties are established periodically by the City Council based on feedback from the community at large through planning and assessment exercises.
18. Co-signer: A joint signatory of a promissory note whose obligations are the same as those of the primary borrower. If the primary borrower does not repay the loan, the co-signer accepts responsibility for the debt.
19. Deed Restriction: A contract entered into between Park City Municipal Corporation and the owner or purchaser of real property identifying the conditions for occupancy and resale.
20. Dependent: A minor child (18 years or younger) or other person related by blood or adoption to a Tenant or Owner of a Housing Unit declared as a dependent for federal income tax purposes by such Tenant or Owner, or by Tenant’s or Owner’s present or former spouse.
21. Designee: A person or entity who is named and authorized to act in place of the person or entity granting the designation.
22. Developed Residential Property: Property that contains at least one (1) dwelling unit as defined in the Park City Land Management Code.
23. Disability: A physical or mental impairment that substantially limits one or more of a person’s major life activities, including a person having a record of such an impairment or being regarded as having such an impairment.
24. Domicile: The place where an individual has a fixed permanent home and principal establishment to which the individual, if absent, intends to return and in which the individual and/or his or her family voluntarily reside not for a special or temporary purpose but with the intention of making a permanent home for a minimum of nine (9) months out of each calendar year.
25. Dormitory Unit: Living quarters designed for seasonal employees and meet standards defined in Section 9.D of this Resolution.
26. Down Payment: The initial payment one makes to establish debt or otherwise paid in installments. Buyer may convert personal assets held for two (2) years or greater to cash for use as a Down Payment without said cash considered Income for purposes of Qualification. Additionally, a one-time gift of up to 30% of the Original Purchase Price used exclusively as a down payment for the purchase of a Housing Unit may be considered as a net asset and not as earned income for the purposes of initial qualification.
27. Financial Statement: A statement detailing all personal assets, liabilities, and net assets (the difference between gross assets and liabilities) as of a specific date.
28. Fixture: 1) A tangible thing which previously was personal property and which has been attached to or installed on land or a structure thereon in such a way as to become a part of the real property; 2) Any non-portable lighting device built in or attached securely to the structure; 3) The permanent parts of a plumbing system and fixtures.
29. Household: All individuals that are or will be occupying a unit regardless of legal status.
30. Housing costs: Monthly housing costs that consume no more than 30 percent of a household’s income. Housing costs include rent or mortgage, basic utilities, and any Homeowners or Condo Association dues.
31. Housing Unit: See Affordable Housing Unit.
32. Household Income: Combined income of all individuals, excluding dependents, who are or will be occupying the unit regardless of legal status. Adjustments to the gross for business expenses can be made for persons who are self-employed.
33. Immediate Family: Spouse, siblings, parents and/or offspring, either biologically, by marriage, civil union, or by legal adoption, regardless of age.
34. Income:
    1. Earned Income:
       1. Income derived from one’s own labor or through active participation in a business and including retirement funds, Social Security benefits, alimony, and child support; and
       2. Net income derived from a business or from income-producing property, after reasonable deductions for expenses, depreciation, taxes, and similar allowances.
       3. Retirement and/or pension income for Qualified Elderly, regardless of origin, is considered earned within the Park City School District boundaries.
    2. Household Income: Combined Gross Income of all individuals in the Household excluding dependents.
35. Initial Sale Price: The Original Purchase Price [OPP] of that Housing Unit at the time the original Deed Restriction for the Housing Unit is executed and recorded.
36. Land: All land or water surfaces, whether public or private, including lots, parcels, or other ownership categories and all rights (including: surface, subsurface, or air) that may be attached or detached from the land.
37. Lease: A written agreement between an Owner and a tenant Household that creates a Leasehold Interest.
38. Maximum Rental Rate: The total amount per month according to Section 20 that a Qualified Owner is allowed to charge to a Household in leasing a Housing Unit.
39. Maximum Resale Price: The price above which a Unit may not be Sold as calculated by the City, its designated agent, department, or assign, using the formula set forth in Section 10.A.5.
40. Micro Unit: A unit that is between 250 – 600 square feet designed around a single room incorporating features of a living room, bedroom, dining room/kitchen, and bathroom.
41. Net Livable Square Footage: Calculated on interior living area and measured interior wall to interior wall, including all interior partitions. Also included, but not limited to, habitable basements and interior storage areas, closets, and laundry areas. Exclusions include, but are not limited to, uninhabitable basements, mechanical areas, exterior storage, stairwells, garages (either attached or detached), patios, decks, and porches.
42. Net Worth: The amount of total assets of an applicant that exceed total liabilities, as determined by the City.
43. Non-qualified Buyer: A buyer of a Unit that is not a Qualified Buyer.
44. Non-qualified Tenant: A tenant of a Unit/Space that is not a Qualified Tenant.
45. Option to Purchase: A legal document signed by the Mortgagee, acknowledging the provisions of the Deed Restriction and granting a right to the PCMC or to the Park City Housing Authority to purchase the Housing Unit default.
46. Owner-Occupied: A Unit that is occupied by the Unit Owner as the Unit Owner’s Primary Residence.
47. Park City School District Boundaries: The latest school district boundaries as duly adopted and as reflected on the most current mapping issued by the Utah State Automated Geographic Reference Center school district map.
48. PCMC: Park City Municipal Corporation. As used in this Resolution, PCMC may also mean the Board of Directors of the Park City Housing Authority, or PCMC Staff as the context requires.
49. PCMC Board: The Board of Directors of the Park City Housing Authority.
50. PCMC Staff: The person or persons who Park City Municipal or the Park Housing Authority employs for the purpose of administering this Housing Resolution.
51. Permitted Capital Improvements: Capital Improvements made by a Unit Owner to the Unit Owner’s Unit with the prior written consent of the City; are completed with all necessary building permits, including final inspections required by such permits, and deemed completed by the City building department; and that may increase the Maximum Resale Price subject to Section 10.
52. Primary Residence: The place where Domicile has been established as the sole and exclusive place of residence.
53. Property: Includes all real estate of any kind, developed or undeveloped, including but not limited to land, commercial property, investment property, and residential property.
54. Qualifications: The minimum standards of employment, residency and/or net assets that are applied to a Qualified Household according to Section 16 as well as any additional qualifications under a particular Housing Program.
55. Qualified Buyer: Qualified Buyer shall be a person or persons who are determined by the City to meet the criteria defined in Section 16.
56. Qualified Tenant: Qualified Tenant shall be a person or persons who are determined by the City to meet the criteria defined in Section 20.
57. Residential Unit Equivalent: In accordance with the Park City Land Management Code, Title 15, Section 6-8 Unit Equivalents, one Residential Unit Equivalent (RUE) is equal to 2,000 square feet of Multi-Family Dwelling floor area or one single family lot.
58. Sale: For purposes of this Resolution, a sale is the exchange of a Housing Unit for an agreed amount of money not to exceed the Maximum Resale Price in a single transaction in which title to the Housing Unit is transferred to a new Qualified Household.
59. Senior: A person who is over the age of 65.
60. Single Room Occupancy (SRO): Living quarters designed for one person and meet standards defined in Section 9.D of this Resolution.
61. Storage Space: Space intended and commonly utilized as location for preservation or later use or disposal of items.
62. Studio: See Micro Unit
63. Target Income: The specific household income to be served by affordable or attainable units which is determined by PCMC based on current need at the time units are put in service.
64. Tenant: A person who has the temporary use and occupation of real property owned by another subject to deed restrictions and/or this Resolution.
65. Volunteer Community Service: Work which is performed for recognized non-profit community organizations for which no monetary or other material compensation is received.

SECTION 6. EXEMPTIONS. The development of affordable housing units that are not part of any housing obligations resulting from a Master Planned Development or an Annexation Agreement are exempt from the requirements of this Resolution. This may also include projects developed by or sponsored by nonprofit organizations and/or projects for which agreements have been executed that provided affordable housing or land for said purpose.
SECTION 7. FEE WAIVERS. Title 11, Chapters 12 and 13 of the Municipal Code provides that “any part of the fees included in this Title may be waived by the City Council upon recommendation of the City Manager, for those projects which are deemed to serve a beneficial public purpose that would be harmed by the City requiring the payment of such fees, such as low income housing projects.” Pursuant to Title 11, Chapter 13-4(A) of the Municipal Code, the City Council may waive impact fees for construction of affordable housing. Affordable housing projects that fulfill housing obligations resulting from Master Planned Developments and/or Annexations are not eligible for fee waivers. SECTION 8. CALCULATION OF MINIMUM AFFORDABLE HOUSING REQUIREMENTS

1. Residential Development. For projects where dwelling units are offered for sale or rent, the Developer shall provide affordable housing units in an amount equal to twenty percent (20%) of the total RUEs in the project. Affordable Housing Units developed on-site in fulfillment of this requirement are not included in the density calculation for the project.
   RESIDENTIAL GENERATION CALCULATION EXAMPLE An Applicant has received approval for a 128-unit Master Planned Development. The dwelling units are of varying sizes totaling 328,000 square feet which equals 164 RUEs.
   1. 164 RUEs (total units approved) multiplied by.20 (residential mitigation rate) equals 32.8 Affordable Unit Equivalents (AUEs).
   2. One AUE equals 900 square feet of net livable space.
   3. The total approved units for this Master Planned Development is 128 market rate units plus 32.8 AUEs equaling 29,520 total net square feet of additional livable space.
2. Commercial Development. The Developer shall be required to mitigate 20 percent of the employees generated. For projects with a commercial component, the minimum affordable housing requirements shall be determined according to the following formulas:
   Table 1: Employee Generation by Type of Use.

   Type of Use	Full Time Equivalents (2080 hours) per 1,000 Net Leasable Square Feet
   Restaurant/Bar	6.5
   Education	2.3
   Finance/Banking	3.3
   Medical Professional	2.9
   Other Professional Services	3.7
   Personal Services	1.3
   Real Estate/Property Management	5.9
   Commercial/Retail	3.3
   Recreation/Amusements	5.3
   Utilities	2.9
   Lodging/Hotel	0.6/room
   Condominium Hotel	Greater of lodging/hotel calculation or residential mitigation rate
   Overall/General	4.4

   The Overall/General Type of Use shall apply to any use not listed in the Employee Generation Table if an Independent Calculation is not performed.
   EMPLOYEE GENERATION CALCULATION EXAMPLE An application for a Master Planned Development of 20,000 square feet of commercial space and 100 hotel rooms has been submitted. The commercial uses include:
   • 10,000 square feet of retail space • 5,000 square feet of restaurant/bar space • 5,000 square feet of professional services Using the above Employee Generation Table, the project will generate 144 employees.
   Retail at 3.3 employees per 1,000 square feet equals 33 employees.
   Restaurant/Bar at 6.5 employees per 1,000 square feet equals 32.5 employees.
   Professional Services at 3.7 employees per 1,000 square feet equals 18.5 employees.
   Hotel at 0.6 employees per unit equals 60 employees.
   144 (total number of employees) multiplied by .20 (mitigation rate) equals 28.8 employees.
   
   28.8 employees divided by 1.5 (workers per household) equals 19.2 AUEs required.
   The Developer is required to provide 19.2 AUEs or a total of 17,280 net square feet of livable space in addition to approved commercial and hotel density.
   
3. Reduction of Employee Generation for Institutional/Nonprofit Use. The City Council may reduce the base employee generation rate by up to fifty percent for uses that are “non-commercial or non-residential in nature, which provide educational, social or related services to the community and which are proposed by public agencies, nonprofit agencies, foundations and other similar organizations” upon finding that the benefits/impacts of such Development as they relate to the Community’s Critical Priorities and/or General Plan goals outweigh the housing impacts.
4. Independent Calculation. An applicant may submit an independent calculation of the number of employees to be generated by a proposed development, to be used in place of the Employee Generation Table. The independent calculation must be described in detail as to formulas used and the basis for those formulas. The City Council may choose to accept the independent calculation if the Council determines the calculation constitutes compelling evidence of a more accurate calculation of employee generation than Table 1: Employee Generation Table. Should the independent calculation not be accepted, then the applicable employee generation factor from the Employee Generation Table shall be applied to the proposed Development. Any acceptance of an Independent Calculation shall be site and use specific, non-transferable, and be memorialized in a Development Agreement between the developer and the City. Such Agreement shall be executed prior to the issuance of any building permit.
5. Redevelopment: Additions and Conversions of Use. Redevelopment or remodeling of an existing structure or a change in use that results in additional employee generation shall require additional housing mitigation. In order for this Section to apply, the original structure and use must have resulted from an approved Master Planned Development or Annexation Agreement. Any new area or unit or any change in use or amendment to an existing approved Master Planned Development which creates additional Employee Generation as determined in Table 1: Employee Generation by Type of Use shall be subject to a recalculation of housing obligation. Mitigation shall be required for the employees generated by the proposed total square footage (including addition) minus the original employment generation prior to the change. Example 1: a conversion of a 1,000-square-foot. retail establishment with an employee generation rate of 3.3 FTEs per 1,000 square feet to a restaurant or bar with a generation rate of 6.5 FTEs per 1,000 square feet results in a net increase in 3.2 FTEs and would require additional mitigation. Example 2: a bar-restaurant enlarges their space by expanding the building into parking area, adding 1,000 square feet which is a net increase of 6.5 FTEs and would require additional mitigation.
6. Final Unit Requirement Calculations. The final calculations for the number of affordable units and the rental or sales price for these units shall be made by staff utilizing the calculation formulas in Section 8 and Section 20 of this Housing Resolution. All calculations are subject to approval by the Park City Housing Authority prior to the issuance of building permits for the covered project.

SECTION 9. METHODS TO FULFILL HOUSING OBLIGATIONS

1. Methods of Meeting Minimum Requirements. The following methods, in order of priority, may be used to meet the minimum affordable housing mitigation requirements.
   1. Construction of unit(s) on the site on which the development is proposed. Affordable housing units shall be constructed on the project site, unless the developer can demonstrate compelling evidence that an alternative method would result in a better design, enhanced level of affordability or that the construction on-site would adversely affect the design of the project.
   2. Construction of the unit(s) within the Park City corporate limits provided such land, site or structure had not been previously deed-restricted for affordability.
   3. Dedication of existing units within Park City corporate limits provided such units have not been previously deed-restricted for affordability. Developers may deed restrict units by purchasing an open-market unit, placing a Deed Restriction on that unit, and renting or reselling the unit to a Qualified Household. It is the developer’s responsibility to demonstrate approval by the homeowners association for the open-market unit proposed for deed restriction, including any limitations on the homeowners association dues for the Housing Unit. It is the developer’s responsibility to demonstrate approval by the jurisdiction in which the proposed unit is located for any unit proposed to be deed restricted to provide Affordable Housing, including approval of the provisions of the deed restriction. Units so deed restricted are subject to all size and construction standards and notes, except that PCMC may consider an exception to the size standards on a case-by-case basis. An exception to the size standards shall not be greater than 100 square feet from the minimum or maximum allowable square footage per Section 9.C. A developer may request this exception in its Housing Mitigation Plan, or may apply for such exception as an amendment to the Housing Mitigation Plan. Any existing unit which is to be deed restricted must be in a good state of repair and condition. Acceptance of existing units shall be at the sole discretion of the Park City Housing Authority. If accepted by the Park City Housing Authority, existing units must meet the following criteria, unless a variance from these requirements is approved by the Park City Housing Authority:
      1. Units must be freshly painted in the interior, and exterior walls shall be freshly painted within one year of approval;
      2. All appliances must be in good condition and working order;
      3. Yards and landscaping, windows, heating, plumbing, and electrical systems and equipment shall be in good condition and working order;
      4. Units must meet the Energy Efficiency requirements set out in Section 9.F below;
      5. The roof must have a remaining useful life of at least ten (10) years and Units shall meet applicable building codes in effect at the time, pursuant to inspection and approval by a qualified Building Inspector accepted by PCMC;
      6. The Applicant shall bear the costs and expenses of any required upgrades as well as any structural/engineering reports required by PCMC to assess the suitability for occupancy and compliance with required standards;
      7. In order to complete an inspection and to receive approval for deed restricting an existing unit, the Developer may be required to pay an Inspection Fee to PCMC, which is not refundable. Payment to place deed restrictions on existing units owned by a third party is allowed with the following requirements:
         1. No more than 25% of a housing obligation resulting from one particular Development Agreement may be fulfilled by placing deed restrictions on already constructed units owned by a third party;
         2. Must demonstrate approval by the homeowners association for the open-market unit proposed for deed restriction, including any limitations on the homeowners; association dues for the Housing Unit; and
      8. Units must meet the health, safety and energy efficiency standards set out in this Section 9.A.3.
   4. Construction of units outside Park City, but within the Park City School District boundary as it stands on January 1, 2015.
   5. Conveyance of land within the Park City School District boundary as it stands on January 1, 2015 provided such land has not been previously deed-restricted for affordability. The developer may elect to (a) convey land to the City or its designee that is of equivalent value to the fee in lieu contributions required under this Resolution, plus an additional 25 percent to cover costs associated with holding, developing, improving, or conveying such land; or (b) convey land to the City or its designee that is of equivalent value (as of the date of conveyance) to that land upon which required units would otherwise have been constructed and properly zoned such as to allow construction of at least that number of units for which the obligation of construction is being satisfied by the dedication of the land. Land conveyance shall occur prior to the issuance of any building permit for the free market portion of the development. Should the City Council later elect to sell the land, all proceeds from the sale of the land shall be placed in a dedicated housing fund.
   6. Payment of Fees in Lieu of Development. If the Park City Housing Authority determines that (1) no other alternative is feasible, or (2) such a payment would result in more immediate development of housing, or (3) such a payment would leverage additional resources, then a Payment of Fees in Lieu of Development may be accepted. The collected funds may only be expended for projects located within the corporate limits of Park City or within the Park City School District boundary as it stands on January 1, 2019. The In Lieu Fee shall be based on the actual cost of construction in the prior year and published annually in June on the City’s affordable housing webpage. Updates may occur more frequently at the request of the City Council to reflect changing real estate conditions. Any Fees in Lieu collected and any interest accrued shall be used only for the purpose of planning for, subsidizing, or developing affordable housing.
2. Unit Types: The distribution of dwelling unit types that meet the deed restricted affordable unit requirements of this section shall be as follows:
   1. Single-Family: In developments where only single-family detached dwelling units are being produced, the required on-site Affordable Unit Equivalents shall also be single-family detached dwelling units.
   2. Multi-Family: In developments where only multi-family buildings are being produced, the required on-site Affordable Unit Equivalents shall also be within the multi-family building or buildings.
   3. Mixed: In developments where there is a mix of dwelling unit types such as: detached single-family, townhomes, duplexes or attached single-family, or multi-family condominium or apartment buildings, or other types of units, the required on-site Affordable Unit Equivalents shall also be a mix in the same proportion as the market rate dwelling units.
   4. Alternative Distribution Ratios: Different unit distribution among the Affordable Unit Equivalents may be permitted by the Park City Housing Authority on a case-by-case basis if doing so would accomplish additional benefits or result in a better design than not using the distribution of units provided for in this section.
3. Minimum Square Footage Standards: In order to assure livability, the standard net livable square footage for affordable units shall be as follows:
   
   

   UNIT TYPE	MINIMUM SQUARE FEET	MAXIMUM SQUARE FEET
   Micro Unit/Studio	200	600
   1 Bedroom	600	800
   2 Bedroom	800	1,100
   3 Bedroom	1,100	1,300
   4 Bedroom	1,300	1,600

   
   
   1. Minimum square footage is the actual minimum square footage allowed to be constructed or otherwise provided under the provisions of the Park City Land Management Code. Maximum square footage is the maximum amount of square footage which may be credited against the required square footage for a given unit type, regardless of the actual size of the unit provided. For projects which have Affordable Housing comprised of single family, duplex, or triplex structures, Park City Housing Authority may, at its sole discretion, approve increases to Maximum Square Footage for each Unit Type up to twenty five (25) square feet per bedroom if it is demonstrated and the Park City Housing Authority finds the variance will benefit the overall affordable housing program.
   2. All newly constructed deed restricted Affordable Housing Units must comply with the applicable building codes in effect in Park City and with all rules, regulations and codes of all governmental bodies and agencies having jurisdiction.
   3. All deed restricted Affordable Housing Units must have a fully equipped kitchen (Sink, Refrigerator, Stove Top, Microwave) and a full bathroom (Sink, Shower/Tub, and toilet), areas for living and sleeping and designated areas for storage. Areas designated for sleeping and/or bedrooms shall be a minimum of 100 square feet, with a minimum width dimension of 10 feet. PCMC shall be the final judge of the adequacy of facilities provided in the unit.
   4. Any deviation from these standards shall be approved by Park City Housing Authority as part of the applicable Affordable Housing Mitigation Plan. The Building Department prior to the issuance of any building permits for either the free market or employee housing component of the project must verify square footage. The Building Department may check the actual construction of the Affordable Unit Equivalents.
4. Seasonal Units. Pursuant to the applicable City codes, an applicant for a development may, at the sole discretion of the City and subject to certain requirements, satisfy the employee housing requirements by provision of dormitory/Single Room Occupancy (SRO) units designed for occupancy by seasonal employees. The dormitory/Single Room Occupancy (SRO) units must satisfy all requirements of the applicable Guidelines and shall be required to meet the following minimum standards:
   1. Occupancy of a dormitory unit shall be limited to no more than 8 persons.
   2. There shall be at least 150 square feet of net livable square footage per person.
   3. At least one bathroom shall be provided for shared use by no more than four persons. The bathroom shall contain at least one toilet, one wash basin, one bathtub with a shower and a total area of at least 60 net leasable square feet.
   4. A kitchen facility or access to a common kitchen or common eating facility shall be provided subject to the Building Department’s approval and determination that the facilities are adequate in size to service the number of people using the facility.
   5. Use of 20 net leasable square feet per person of enclosed storage area located within, or adjacent to, the unit.
   6. Rents for dormitory units will be approved by the Park City Housing Authority in conjunction with approval of the Housing Mitigation Plan.
5. Special Needs Emergency/Transitional Housing. Pursuant to the applicable City codes, an applicant for a development may, at the sole discretion of the City and subject to certain requirements, satisfy a portion of its employee housing requirements by provision of special needs emergency/transitional housing units through either direct construction, land donation or the donation of existing units. There must be a quantified, demonstrated need for the emergency/transitional housing within the Park City boundaries. The housing must be developed in collaboration with a federally recognized, 501(c)(3) nonprofit organization. The housing must comply with all applicable local, state and federal requirements. Given the unique and varying characteristics of the population to be served, the rents for emergency/transitional housing must be approved in advance by the Park City Housing Authority.
6. Minimum Green Building Requirements. All appliances and products including light bulbs shall be Energy Star qualified products for all new construction or substantial rehabilitation. Developers are encouraged to meet Park City Resolution 28-2017, Net Zero Energy Performance Requirements.
7. Affordable Unit Amenities. Affordable units may differ from the market units with regard to interior amenities and gross floor area provided that:
   1. These differences, excluding differences related to size differentials, are not apparent in the general exterior appearances of the project’s units;
   2. These differences do not include insulation, windows, heating systems, and other improvements related to the energy efficiency of the project’s units; and
   3. The gross floor area of the affordable units is not less than the minimum requirements listed in Section 9.C above, unless waived by the City.
8. Homeowners Association Dues
   1. Affordable/Employee units within Market Buildings. To protect the affordability of the Affordable Housing Units within a market building, the declaration of covenants, conditions and restrictions CCRs shall state that the Affordable Housing Unit shall only be assessed monthly dues and other shared assessments based on whichever of the following two (2) formulas result in the lower cost or option C:
      1. Size: the pro rata share of the assessments based on the size of the Affordable Housing Unit in square feet as compared to the total size of all the other units in the development; or
      2. Par Value: the Affordable Housing Unit pays a pro rata share based on its initial list price at the initial sale of the unit compared to the aggregate initial list price at the initial sale of all units in the project. This method is preferred for units mixed within market units in order to recognize the Affordable Housing Units are not substantially the same as market units. For the avoidance of doubt, any subsequent reduction or increase in list price or a discount or premium on the listing price to a particular purchaser shall not have an effect on, or cause a recalculation of, the par value of the particular unit or the total value of all units in the project. Example: if an Affordable Housing Unit was initially listed at a price of 150,000 dollars for the initial sale of the unit, and the total initial list price of all units in the complex at their initial sale was 2 million dollars, then the Affordable Housing Unit would pay a ratio of 7.5% of the community’s total HOA fees. This calculation would not change if an individual purchased a unit for a price less or more than 150,000 dollars or upon resale of the unit.
      3. Separate HOA: Affordable Housing Units within market rate developments may have the option to create their own separate HOA to determine their fees and assessments separate from the market rate units within the same development. Refer to Section 2 below to see the procedure for 100% affordable properties.
   2. Affordable/Employee units within 100% affordable properties: The declaration of covenants, conditions and restrictions of the homeowner’s association shall state that the annual common operating assessment shall not exceed one- and one-half percent (1.5%) of the initial list price of the Affordable Housing Unit. If utilities for individual units are included in HOA dues, then the dues less the cost of utilities for individual units may not exceed 1.5% of the initial list price.
      Example: List price of an Affordable Housing Unit is $300,000. Annual common operating assessment for this unit shall not exceed $4,500 ($300,000 x .015) or $375 per month.
      Exceptions or changes to this rule may be granted by (i) the affirmative vote of no less than 67% of the owners or, (ii) after delivery by the HOA to the Housing Authority of a letter justifying the necessity of the excess increase to the Housing Authority’s satisfaction in its sole discretion, by an affirmative majority vote of the Housing Authority.
   3. Limits to Annual Increases. The declaration of covenants, conditions and restrictions of the homeowner’s association shall state that annual increases in common operating assessments shall not exceed 4% of the prior year’s assessment. Exceptions to this rule may be granted by (i) the affirmative vote of no less than 67% of the owners or, (ii) after delivery by the HOA to the Housing Authority of a letter justifying the necessity of the excess increase to the Housing Authority ’s satisfaction in its sole discretion, by an affirmative majority vote of the Housing Authority.
   4. Special Assessments. The declaration of covenants, conditions and restrictions of the homeowners association shall state, in market buildings that include Affordable Housing Units, that Special Assessments must be apportioned to the Affordable Housing Units in accordance with the size of the unit or based on par value whichever is less calculated in accordance with the formula set forth in H.1. of this section. In properties that are made up of 100% Affordable Housing Units, Special Assessments must be approved by no less than 67% of the owners. If less than 67% of the owners vote for the Special Assessment and, then a presentation can be given to the Housing Authority in the form of a letter detailing the need for the Special Assessment, , the Housing Authority may, in its sole discretion, approve the Special Assessment by an affirmative majority vote. Exceptions to this rule may be granted by an affirmative majority vote of the Housing Authority.

SECTION 10. DEED RESTRICTION. Prior to the plat recordation, provisions to ensure continued affordability of affordable and attainable units shall be embodied in legally binding deed restrictions, which shall be prepared by the developer to meet the requirements outlined in this Resolution. PCMC Staff shall provide the Developer with template deed restriction documents for review. The deed restrictions shall not be recorded until reviewed and approved by the City Attorney with such modifications as may be deemed necessary to carry out the purpose of this Resolution. In addition, prior to issuance of any Certificate of Occupancy, the deed restrictions shall be amended, if necessary, to reflect changes approved by PCMC and governing bodies which may have occurred during construction or conversion of the units(s) (e.g., net livable square footage). Deed Restrictions for Affordable Units must meet the requirements of the Park City Municipal Land Management Code in addition to the general requirements of this Resolution. No building permit application shall be accepted in the absence of proof of the execution of requirement agreements and covenants.

1. The Deed Restriction shall specify:
   1. The definition of a “Qualified Buyer” and/or a “Qualified Renter”.
   2. For sale units must be owner occupied.
   3. Unit Owner of Owner Occupied units shall not rent or lease all or any portion of their Units, including nightly rentals; provided, however, that only with the prior written consent of the City, Unit Owners may rent or lease their Units under the following circumstances:
      1. Subject to other zoning and land use regulations, each Unit Owner may rent out a portion of his or her Unit to a roommate for a minimum term of six (6) months and a maximum term of twelve (12) months, and the amount of respective rent a Unit Owner may charge such roommate per month shall not exceed forty-five percent (45%) of the sum of the mortgage payment, Project association assessments, and utilities owed per month for such Unit.
      2. At a rate determined by the City after accounting for the Unit Owner’s costs, a Unit Owner may rent out the Unit Owner’s Unit for a period not to exceed twelve (12) months if the Unit Owner is unable to Sell the Unit after one-hundred-and-twenty (120) days of Reasonable Effort. The option to rent under this Subsection shall not be exercised by any Unit Owner more than once.
      3. At a rate determined by the City after accounting for the Unit Owner’s costs, a Unit Owner may rent out the Unit Owner’s Unit if the Unit Owner is required to relocate for a period not to exceed two (2) years by the Unit Owner’s employer; for religious, civic, or community service; or for military service.
      4. Other circumstances as may be required by law.
   4. The process for resale of the unit in accordance with the PCMC Housing Resolution.
   5. The method of calculation of the allowed Maximum Resale Price (“MRP”). MRP shall include:
      1. An increase in price of three percent (3%) per year from the date of purchase to the date of Owner’s notice of intent to sell (compounded annually and prorated at the rate of .25 percent per each whole month of any part of a year);
      2. PLUS, The costs of Qualified Capital Improvements as defined, not to exceed five percent (5%) of the MRP for the current owner or as determined by PCMC on a project specific basis provided that:
         1. Improvements are pre-approved by PCMC prior to commencement of any work or installation.
         2. Proof of homeowners association approval must be provided to PCMC prior to commencement of work.
         3. Improvements must be properly permitted and inspected by the Park City Municipal Corporation Building Department if applicable.
         4. Improvements are documented by the Owner and submitted to PCMC via final detailed paid invoices.
      3. LESS, the Depreciation on Permitted Capital Improvements
      4. LESS, any costs to bring unit up to Minimum Standards for MRP.
   6. The Housing Unit may be used in a Home Occupation if:
      1. Proof of compliance with the Park City Municipal Code, as amended, or its successor document, is provided to PCMC;
      2. HOA approval of the specific Home Occupation is filed with PCMC, if applicable;
      3. The business holds a current PCMC business license; and
      4. The business holds current state and federal tax identification numbers, if applicable.
   7. PCMC does not make any guarantees of the Owner’s ability to sell the Housing Unit for its MRP or rent the Housing Unit for the Maximum Rent Allowed.
   8. Violation of any of the covenants, conditions and terms of the Deed Restriction shall also be a violation of the Housing Resolution whether or not a corollary provision exists.
   9. An Option to Purchase shall be granted by the Lender to PCMC to redeem the Housing Unit in the event of default by purchasing the unit from the holder of the trustee’s deed at the redemption price plus reasonable costs of the holder.
   10. The Deed Restriction shall be binding on all Owners, successors and assigns including any holder of a deed in lieu of foreclosure.
   11. The Deed Restriction, Option to Purchase, and any amendments thereto must be recorded in the property records of Summit County. The original executed and recorded documents must be returned to PCMC for their files.
   12. Deed Restrictions may not be transferred off the property unless otherwise approved through the Park City Housing Authority.
   13. All Deed Restrictions must be approved by PCMC. No modification or amendment to the Deed Restriction shall be effective unless agreed to in writing by PCMC.

SECTION 11. TIMING OF OCCUPANCY. The affordable units shall be ready for occupancy no later than the date of the initial or temporary occupancy of the free market portion of the project. If the free market units are to be developed in phases, then the affordable housing can be developed in proportion to the phasing of the free market units as approved in the Housing Mitigation plan.

SECTION 12. APPLICABILITY OF RESOLUTION TO PRIOR APPROVALS OR PENDING APPLICATIONS.

1. Prior Development Agreements. Developments, which received development plan approvals prior to the adoption of this housing resolution, shall conform to the provisions of the resolution in place at the time of applicable complete application. Any modifications to an existing Development Agreement that results in an increase in housing units or employee generation shall be subject to the provisions of this Resolution.
2. Prior Annexation. Unless otherwise provided in Conditions of Approval or a Development Agreement, Developments subject to affordable housing requirements imposed by annexation agreements entered into prior to the effective date of this Resolution may develop in conformity with the Resolution in place at the time the Annexation Agreement was approved.
3. Pending Project Approval Actions. Developments for which complete applications were filed prior to the effective date of this Resolution, but have not been reviewed by the appropriate body, must conform to the Resolution in place at time of application.

SECTION 13. HOUSING MITIGATION PLAN. The Applicant shall submit a Housing Mitigation Plan. The Housing Mitigation Plan shall be developed using the Housing Mitigation Checklist, reviewed by the Planning Commission as part of the application to the City for the Annexation or Master Planned Development with a recommendation forwarded to the City Council. The Housing Mitigation Plan shall include the following:

1. Calculation and Method. The calculation of, and method by which housing is to be provided, in compliance with Section 8 “Calculation of Minimum Affordable Housing Requirement” and Section 9 “Methods to Fulfill Housing Obligations.”
2. Unit Descriptions. If affordable housing units are to be developed, a site plan and building floor plans (if applicable), illustrating the number of units proposed, their location, the number of bedrooms in and square footage of each unit, and the rental/sale mix of the development. The proposed sale prices and rent levels shall also be included.

SECTION 14. CONSTRUCTION TIMING.

1. Construction of Market Units. Affordable units shall be made available for occupancy on approximately the same schedule as a project’s market units; except that Certificates of Occupancy (temporary or permanent) for the last ten percent of the market units shall be withheld until Certificates of Occupancy have been issued for all of the affordable units. Other phasing agreements may be accepted, if doing so would accomplish additional benefits for the City consistent with the purposes of this Resolution. A schedule setting forth the phasing of the total number of units in a covered project, along with a schedule setting forth the phasing of the required affordable units shall be approved prior to the issuance of a building permit.
2. Fulfillment in Advance of Obligation. Affordable units may be completed in advance of development that triggers an affordable housing obligation. In instances where a residential or commercial developer wants to build and deed restrict units in advance of incurring an affordable housing obligation, the units will be valued as to number of AUEs under the Housing Resolution in existence at the time the market development occurs. The future development shall be identified within the recorded deed restriction document. The units shall be built in accordance with prevailing Land Management Code and deed restricted at the time of approval. The total square footage of deed restricted units will be converted to Affordable Unit Equivalents in compliance with the Housing Resolution in effect at the time a plat is approved for the development that triggers the housing obligation. If for some unforeseen reason, the development triggering the obligation is not completed, the City will entertain a request that the recorded deed restriction(s) on the affordable units be removed.

SECTION 15. GOOD FAITH MARKETING REQUIRED. All sellers or owners of deed restricted affordable units shall engage in good faith marketing efforts each time a deed restricted unit is rented or sold such that members of the public who are qualified to rent or purchase such units have a fair chance of becoming informed of the availability of such units. A public marketing plan shall be submitted by the developer for the initial sale or lease of the units.

SECTION 16. HOUSEHOLD QUALIFICATIONS

1. “Qualified Household” Defined. Qualified Households must:
   1. meet the Employment Requirement;
   2. meet the Income Limits;
   3. meet the Residency Standard;
   4. meet the Property Ownership Standard; and
   5. meet the Net Assets Standard.
2. Employment Requirement
   1. Qualified Households must include a minimum of one adult in his or her Household who meets one of the following criteria:
      1. A full-time (aggregate of 30 hours of employment per week) employee of an entity or entities located within the Park City School District Boundaries for a minimum of two years; or
      2. An owner of a business or entity with a primary place of business within the Park City School District Boundaries for a minimum of two years; or
      3. A full-time (aggregate of 30 hours of employment per week) worker who is self-employed or works out of their home and can provide proof that a minimum of 75% of their clients are based within the Park City School District Boundaries for a minimum of two years.
      4. Remote work will only be considered if the applicant has been a local, Park City resident for a minimum of five years prior to application.
   2. Qualifying Volunteer Hours: Up to ten percent (10%) of the required employment hours may be filled by verifiable Volunteer Community Service within the boundaries of the Park City School District.
   3. Exemptions. Those who have been determined by PCMC to be Qualified Retired or Qualified Disabled prior to application for ownership or rental, as well as Immediate Family of a Qualified Employee are exempt from the required employment hours.
      1. Qualified Disabled: A person who is unable to work or does not have a work history required due to a disability as defined by the Americans with Disabilities Act.
      2. Qualified Retired: Those who are 65 years or older may apply to be Qualified Retired by providing a verifiable history of employment meeting the ownership or rental occupancy Employment Requirements for at least two (2) years immediately prior to retirement.
3. Earned Income Standard
   1. Households must earn a minimum of seventy-five percent (75%) of their Gross Income (public assistance or benefits are assumed to be earned income) within the Park City School District Boundaries. To qualify for ownership of a Housing Unit, Household Income is limited to 80% of AMI for Affordable Units and 150% of AMI for Attainable Units. Income limits change with size of household. Area Median Income is a calculation of annual household income determined by the US Department of Housing and Urban Development (HUD).
   2. Exemptions – The following are exempt from the earned income standard:
      1. Those who are Qualified Disabled per the provisions of Section 16.B.3a; and
      2. Those who are Qualified Retired per the provisions of Section 16.B.3b.
4. Residency Standard
   1. Applicants purchasing or renting must intend to occupy, and will be required on an ongoing basis to occupy the Housing Unit, as their sole and primary residence.
5. Property Ownership Standard
   1. At the time of application, a Household may own other undeveloped or developed residential or commercial property. The fair market value less remaining mortgage loan against such property will be taken into consideration when determining Household Net Assets.
   2. Ownership of undeveloped or developed residential or commercial property is restricted.
      1. At the time a Real Estate Purchase Contract is signed, the Household will be required to sell the property prior to closing on the Housing Unit.
      2. Households that desire to acquire developed residential property after taking ownership of a Housing Unit must sell the Housing Unit to a Qualified Individual prior to any acquisition of additional undeveloped or developed residential or commercial property.
6. Net Assets Standard
   1. The combined Net Worth of the persons eighteen years of age and older in the Household shall not exceed four times the AMI for the household size. Assets include business assets, real estate, stocks, bonds, cash and retirement accounts. See “Definitions” for further information.
   2. A one-time gift of up to thirty percent (30%) of the Housing Unit purchase price used for the purchase of a Housing Unit may be considered in Net Assets, and not as Income, for the purposes of initial qualification.
   3. Disposition of Assets – Any member of a Household who has assigned, conveyed, transferred or otherwise disposed of property or other assets within the last two (2) years without fair consideration in order to meet the net asset limitation or the property ownership limitation shall be ineligible.
7. Household Size – The total number of people in a Household shall comply with Park City Building Code regarding occupancy limits based on square footage.

SECTION 18. APPLICATION PROCESS. In order to address the priorities and goals of the City, all sales and resales of units must be in accordance with the process outlined in this section.

1. Household Application & Selection Process. PCMC has created an application and selection process for the sale and resale of all units in the City’s housing program. The initial creation of a waitlist was done through a lottery process. Selection for future sales and resales of units will be done utilizing the established waitlist. People wishing to be placed on the waitlist must complete the online pre-application.
   1. Pre-Application: Pre-Applications provided by the Housing Office shall be submitted. Pre-Applications may be completed online, scanned and submitted via email, or submitted in hard copy form. Submission of the Pre-Application form shall consist of the one-page form plus the signed Indemnification form, plus a pre-approval letter from a qualified lender. Qualified pre-applications will be placed at the bottom of the established waitlist in the order they are received.
   2. Full Application: When selected, the applicant will be requested to submit a Full Application in the form provided by PCMC. In addition, PCMC may request any combination of documentation reasonably related to proof of income, assets, and employment. The Full Application includes a release of information form which must be signed by the Household so that PCMC may obtain such information. The Full Application also includes a sworn statement of the facts contained in the application including at least the following certifications:
      1. that the facts contained in the application are true and correct to the best of the Applicant’s knowledge;
      2. that the Applicant has been given the standard application information packet by PCMC or its designee; and,
      3. that the Applicant, on the basis of the application presented, believes that the Household qualifies to occupy the Housing Unit in question according to the Deed Restriction, this Resolution and all other applicable procedures, rules and regulations.
2. Verification of Qualification: Verification of Qualification and Eligibility Standards will be completed once a Full Application is received. Full Applications are not accepted on a rolling basis. The City will notify those on the waitlist when applications are being accepted and for what property or project.
3. Misstatement of Fact or Deliberate Fraud: Any material misstatement of fact or deliberate fraud by the Household in connection with any information supplied to PCMC shall be cause for immediate expulsion from the application process and/or forced sale or vacation of the Housing Unit. In addition, any material misstatement of fact or deliberate fraud by the Household shall be considered as intent to commit affordable housing fraud as defined in City Code § 8-3-6. Ordinance 14-47 was ratified to “ensure that any fraud and unjust enrichment in the process is stopped and that buyers, sellers, and other intended beneficiaries of deed restricted affordable housing are protected from any fraudulent acts or statements.” A violation of City Code § 8-3-6 is subject to criminal prosecution.
4. Confidentiality: All personal and financial information provided to PCMC will be kept strictly confidential, except as follows:
   1. Signed contracts between the Applicant or Household and PCMC including but not limited to Contracts to Purchase a Housing Unit, Deed Restrictions, any document to be recorded with the sale of the Housing Unit along with the Deed Restriction, and any document that would customarily be a matter of public record in the property records of the applicable jurisdiction;
   2. The names and lottery positions of all persons who have participated in any ownership lottery held by PCMC;
   3. Any other information that a court of competent jurisdiction rules must be released under the Freedom of Information Act or the Utah Government Records Access and Management Act;
   4. Personal and private information necessary for an independent audit of PCMC records, provided such person or entity provides authorization; and
   5. Personal and private information to the extent PCMC determines the information is necessary for its deliberation of a request for an Exception or for consideration during a violation hearing.
5. Third Party Verification: PCMC may require third-party verification for all self-employed Applicants at initial qualification and during compliance checks. PCMC may also employ outside accounting expertise to evaluate the reasonability of an Applicant’s or Household’s representations of Income and Assets.

SECTION 19. CALCULATION OF SALE PRICE In general, the initial sales price for an affordable unit in any one development shall average a price affordable to a household earning 80 percent of Summit County AMI. Target Household Income Sale Price shall be calculated according to the following guidelines: mortgage payment for the Owner Occupied Unit, including principal, interest, taxes and insurance (“PITI”), and HOA Operating Dues shall not exceed 30% of the Target Household Income. The assumptions used to calculate the sales price shall be: (i) a 5% down payment; (ii) a 30-year term; and (iii) an interest rate equal to the prevailing FirstHome rate, or its program equivalent, of the Utah Housing Corporation (www.utahousingcorp.org) at the time of the offer.

SECTION 20. RENTAL PROCEDURES. In cases where rental of Housing Units is allowed, the general Rental Procedures contained in this section are required.

1. Standards for the rental of Housing Units:
   1. Affordability Standards are based on Maximum Rental Rates which are targeted at thirty percent (30%) of Household Income for the target group. Maximum Rental Rates and methodology for calculating Maximum Rental Rates are found in this section.
   2. Maximum Rental Rates may include the cost of utilities and HOA fees. Owner shall submit a lease which includes the proposed monthly rental rate along with proof of utility costs to PCMC staff. PCMC staff will evaluate the lease and either approve or deny the rental rate proposed based on the standards established herein.
   3. Rental rates shall apply whether the units are provided furnished or unfurnished.
   4. The Owner of Affordable Housing rental units, at its cost and expense, must keep and maintain the interior and exterior of the total structure (including all residential units therein) and the adjacent open areas in a safe and clean condition and in a state of good order and repair, reasonable wear and tear and negligent or intentional damage by tenants excepted.
2. Occupancy: In calculating the rents or carrying charges of affordable units, the relationship between unit size and household size in Section 16 shall apply.
3. Households: Households shall include all Tenants occupying the Housing Unit.
   1. Households shall meet the Household Initial Qualification criteria as set forth in Section 16.
   2. Household Qualification shall be recertified by PCMC Staff at Lease renewal and any time there is a change in Household.
4. Tenants:
   1. All tenants shall meet the employment qualifications found in Section 16.
   2. PCMC Staff shall certify the qualification of all Tenants prior to tenancy and/or the signing of a lease.
   3. Tenants shall meet the Income Eligibility Criteria designated by the Housing Unit’s Income Eligibility at time of tenancy.
5. Leases: Rental and or occupancy of Housing Units must be memorialized by a written Lease.
   1. Leases must include reference to applicable provisions of the Deed Restriction including but not limited to restrictions on rental rates.
   2. Leases must be for a minimum of six (6) months with a maximum of twelve (12) calendar months.
   3. Executed copies of Leases shall be on file with PCMC at all times during the period in which rental of the Housing Unit is required or has been approved.
6. Lease Renewal: At the time of any Lease renewal, Maximum Rental Rate may be adjusted up or down in conformity with amendments to this Resolution. Requirements for Occupancy of a Room or Portion of a Housing Unit
   1. Unit Owner may charge such roommate an amount per month not to exceed forty-five percent (45%) of the sum of the mortgage payment, Project association assessments, and utilities owed per month for such Unit.
   2. A Lease between Owner and Tenant must be executed and filed with PCMC.

SECTION 21. TERM OF AFFORDABILITY. The Term of Affordability shall be for a period of not less than forty (40) years. At the expiration of the initial forty (40) year term, Affordable Housing Units shall be reviewed for additional consecutive ten (10) year terms, unless the City shall determine, based on an independent housing needs assessment, that the Unit is no longer necessary to satisfy the affordable/employee housing needs in Park City. If the City makes no such determination, the Term of Affordability shall automatically renew for one or more additional consecutive ten (10) year terms.

SECTION 22. WAIVERS. The City Council may waive all or part of the requirements of this Resolution in exchange for enhanced project affordability or livability including but not limited to the incorporation of sustainable building practices and systems in the unit design and development.

SECTION 23. ADMINISTRATIVE RELIEF. The City Council may waive all or part of the requirements of this Resolution where the applicant can establish by clear and convincing financial data and other evidence relating to the character of the development or surroundings that the imposition of the requirements set forth in this Resolution shall create an economic hardship. The Council shall use the same standards that it applies to historic properties in making a determination of economic hardship. A waiver under this section shall be granted only to the extent necessary to relieve the hardship or difficulty that serves as the basis for the requested waiver and shall not be considered precedent for future requests for administrative relief.

SECTION 24. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate distinct and independent provision and such holding shall not affect the validity of the remaining portions of the Resolution.

SECTION 25. EFFECTIVE DATE. This Resolution shall take effect upon adoption by the City Council. All prior Housing Resolutions and parts of Resolutions in conflict with the provisions of this Resolution are hereby repealed. This Resolution repeals and replaces all prior housing resolutions including Resolutions 37-91, 8-93, 6-94, 7-95, 17-99, 10-2006, 20-07, 25-12, 02-15, 13-15, 03-2017, and 25-2020.

PASSED AND ADOPTED this 1st day of April, 2021.