§ 20.30.130. Procedures for sale and rental of MPDUs.

A.

Every MPDU required under this chapter shall be sold or rented to eligible persons to be used for his or her or their own residence except as otherwise provided in this section.

B.

Before offering any MPDU for sale or rent, the applicant shall notify the Department of Planning and Zoning of the proposed offering and the date on which the applicant will be ready to begin marketing to eligible persons. The notice shall include:

1.

The address of each MPDU offered for sale or rent;

2.

Identification of which MPDUs shall be sold and which shall be offered for rent;

3.

The number of bedrooms in each MPDU offered;

4.

The floor area for each MPDU;

5.

A description of the amenities in each MPDU;

6.

A vicinity map of the offering; and

7.

Other information or documents as the Department of Planning and Zoning finds necessary for compliance with this chapter.

C.

The Department of Planning and Zoning shall maintain a list of eligible persons and shall send written notice to solicit interest from eligible persons of an MPDU offering by mail and by newspaper prior to the start of the marketing period. This solicitation by the Department of Planning and Zoning shall be issued within thirty days of the date on which the applicant provided its notice to commence marketing pursuant to Paragraph B of this section.

D.

The Department of Planning and Zoning will develop a list of eligible persons interested in the MPDU's and forward said list to the applicant or the applicant's sales agent. If there is sufficient interest, the Department of Planning and Zoning will pick two to two and one-half times as many names as there are MPDUs available. Should the applicant have MPDUs available for sale or rent after contacting all names on the list provided, the applicant shall contact the Department of Planning and Zoning for more names.

E.

The marketing period shall end one hundred eighty days after the Department of Planning and Zoning has forwarded the names of all eligible persons interested in the MPDU's to the applicant. The Department of Planning and Zoning shall supply the applicant with written notice of the marketing period end date.

F.

If no eligible person has entered into a contract of sale for any MPDU offered for sale by the end of the marketing period, the City may purchase the MPDU at the purchase price established for the MPDU.

1.

If the City purchases an MPDU under these circumstances, the status of the MPDU as a for sale MPDU shall not change. The City shall only sell the City owned MPDU to an eligible person and the City owned MPDU shall be subject to the provisions of this chapter.

2.

If the City declines to purchase an MPDU, it shall notify the applicant of its decision promptly, and no later than fourteen days after the end of the marketing period. A new marketing period shall commence upon the end of the prior marketing period or the City's declaration that it will not purchase the MPDU, whichever is later.

G.

The deposit required with the sales contract for the purchase of an MPDU shall not exceed one thousand dollars.

H.

Every buyer or renter of an MPDU shall occupy the MPDU as his or her or their primary residence during the occupancy period. Every buyer and renter shall certify before taking occupancy that he or she or they shall occupy the MPDU as his or her primary residence during any occupancy period. The Director of Planning and Zoning may require an MPDU owner who does not occupy the MPDU as a primary residence to offer the unit for resale under the provisions of this chapter or may require a renter who is not an eligible person to vacate.

I.

An owner of a rental MPDU shall not rent the MPDU unless the renter is an eligible person, and the rental is approved in writing by the Department of Planning and Zoning annually. All annual rental renewals shall be governed by Title 17 of the Annapolis City Code.

J.

Any MPDU owner who rents an MPDU to an ineligible person shall pay all such rent into the City's Homeownership Assistance Trust Fund thirty days after the Department of Planning and Zoning notifies the owner of the rental violation. The Department of Planning and Zoning may assess the owner a monthly fee that is equal to the HUD fair market rent for the MPDU for each month that rent was charged and received in violation of this chapter.

K.

An applicant or MPDU owner who sells an MPDU to an ineligible person shall pay all proceeds of the sale into the City's homeownership assistance trust fund thirty days after the Department of Planning and Zoning notifies the applicant or owner of the violation.

L.

Notwithstanding any other provisions, the City Council may adopt written regulations to address MPDU foreclosure proceedings. If an MPDU is sold in foreclosure proceedings that a lending institution holding a note secured by a mortgage or deed of trust has initiated, then the City shall terminate the MPDU controls and execute a release of the restrictive covenants if any and all proceeds of the sale are paid to the homeowner assistance trust fund. If a foreclosure MPDU sale occurs during the first ten years after the original sale or rental, then any price paid at the foreclosure sale that exceeds the MPDU's original sale price plus any reasonable costs and fees of foreclosure shall be paid into the homeowner assistance trust fund.

(Ord. O-37-05 Amended § 1 (part), 2006: Ord. O-7-03 § 1 (part), 2004)

(Ord. No. O-28-12 Amended, § I, 6-10-2013; Ord. No. O-32-17 Amended, § I, 7-31-2017)

Editor's note

Section II of Ord. No. O-32-17 Amended, adopted July 31, 2017, states "Any development applications submitted prior to the effective date of this ordinance shall be evaluated based on Chapter 20.30 as it existed at the time the application was submitted to Planning and Zoning; and development applications submitted after the effective date of this ordinance shall be governed by Chapter 20.30 as amended by this ordinance."