(a) Notwithstanding any other provision of law, a developer shall not sell a unit constructed pursuant to a local inclusionary zoning ordinance that is intended for owner-occupancy by persons or families of extremely low, very low, low, or moderate income to a purchaser that is not a person or family of extremely low, very low, low, or moderate income, except that if such a unit has not been purchased by an income-qualifying person or family within 180 days of the issuance of the certificate of occupancy a developer may sell the unit to a qualified nonprofit housing corporation that will ensure owner occupancy pursuant to the income limitation recorded on the deed or other instrument defining the terms of conveyance eligibility.

(b) Every unit sold in a manner inconsistent with subdivision (a) shall constitute a violation of this section.

Terms Used In California Civil Code 714.7

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • will: includes codicil. See California Civil Code 14

(c) A person who violates this section is subject to a civil penalty of not more than fifteen thousand dollars ($15,000) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the county counsel or city attorney for the jurisdiction in which the violation occurred in a court of competent jurisdiction. This subdivision shall be the exclusive enforcement mechanism used against violators of this section.

(d) For purposes of this section, a qualified nonprofit housing corporation means a nonprofit corporation that meets all of the following requirements:

(1) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.

(2) The nonprofit corporation is based in California.

(3) All of the board members of the nonprofit corporation have their primary residence in California.

(4) The primary activity of the nonprofit corporation is the development and preservation of affordable home ownership housing in California.

(Added by Stats. 2023, Ch. 738, Sec. 1. (AB 323) Effective January 1, 2024.)

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