Affordability Period. Period Defined. The affordability period for MPDUs is thirty (30) years and begins on the date of original sale. If an MPDU is sold within thirty (30) years after its original sale, the MPDU must be treated as a new sale and a new affordability period must begin on the date of the sale, unless the MPDU is bought and resold by a government agency. Rentals Prohibited. During the affordability period, an MPDU owner must not rent the MPDU to another party unless the Director finds sufficient cause to allow temporary rental of the MPDU under applicable regulations, which may include maximum rental levels. Remittance of unauthorized rent. Any rent obtained for an MPDU without the Director's authorization must be paid into the CHOICE Special Revenue Fund by the owner within ninety (90) days after the Director notifies the owner of the rental violation. Remedies for late remittance. Any amount unpaid after ninety (90) days is grounds for a lien against the MPDU. The Director may obtain judgment and record the lien or may reduce the resale price of the MPDU by the amount owed to the CHOICE Special Revenue Fund, or pursue other remedies provided by law. Covenant Required. During the control period, any deed, mortgage, or deed of trust conveying a moderately priced dwelling unit or an interest in a moderately priced dwelling unit shall contain a covenant running with the land declaring that use, resale, and foreclosure of the unit is subject to the requirements of this Division and that the Director shall have the right to enforce the covenant. Initial Sale. Maximum Price. MPDUs must not be sold at prices that exceed the maximum prices established under this Section. Annual Price Setting. The maximum sales price for MPDUs shall be set annually by the Director within sixty (60) days of publication of the MWSA income limits by the U.S. Department of Housing and Urban Development. Affordability Rate. The maximum sales price of MPDUs shall be set at a rate affordable to households earning sixty-percent (60%) to one hundred percent (100%) of the area median income. Affordability shall be based on the appropriately sized household for a particular MPDU assuming market rate interest with no more than thirty percent (30%) of the annual gross household income being applied toward the cost of housing. Sale to Eligible Households. Every MPDU required under this Division must be offered for sale solely to eligible households to be used for their primary residence. Offering Notice. Before offering any MPDU for sale, the applicant must notify the Department of the proposed offering and the date on which the applicant will be ready to begin marketing to eligible households. The offering notice shall include: Notice of Available MPDUs. The Department shall maintain a list of eligible households interested in MPDUs and send written notice to solicit their interest in an MPDU offering by electronic mail and displaying such offering on the Department's website fifteen (15) days prior to the start of the marketing period. Marketing Period. Applicants must make a good-faith effort to enter into contracts with eligible households during the priority marketing period and for an additional period necessary to negotiate with eligible households who indicate a desire to buy an MPDU during that period. The marketing period shall end ninety (90) days after the Department has forwarded to the applicant the names of all eligible households interested in the MPDU. The Department shall supply the applicant with written notice of the marketing period end date. If no eligible household has entered into a contract of sale for any MPDU offered for sale by the end of the marketing period, the Department may extend the marketing period for an additional ninety (90) days. Sale to Certified Households. An applicant may not sell any MPDU without first obtaining a certificate of eligibility from the prospective buyer unless the applicant determines: There is no first-time buyer qualified to buy that MPDU; and The proposed buyer has not previously owned another MPDU. Certification of Primary Residence. Each buyer of an MPDU must certify before taking occupancy that they will occupy the MPDU as their primary residence during the affordability period. The Director may require an owner who does not occupy the MPDU as their primary residence to offer the MPDU for resale to an eligible household under the resale provisions in Subsection (c) below. Resales during affordability period. During the affordability period, no MPDU shall be sold except as follows: Resale Price. Any MPDU offered for sale during the affordability period must not be sold for a price greater than the original selling price plus: A percentage of the MPDU's original selling price equal to the increase in the cost of living since the MPDU was first sold, as determined by the Consumer Price Index or other index as identified in Department regulation; An allowance for capital improvements made to the MPDU between the date of the original sale and the date of resale, provided that the Director may disallow the value of costs solely attributable to the maintenance and upkeep of the MPDU, or for luxury items; If approved by the Director, an allowance for closing costs which were not paid by the original seller, but which will be paid by the original buyer for the benefit of the later buyer; and A reasonable sales commission. Resale Price Adjustments. The resale price of an MPDU may be reduced if the physical condition of the unit reflects abnormal wear and tear because of neglect, abuse, or insufficient maintenance. Any personal property transferred in connection with the resale of an MPDU must not be included in the resale price of the MPDU. New Affordability Period. If an MPDU is resold within thirty years from the date of its initial sale, the unit must be treated as a new MPDU and a new occupancy period begins on the date of the resale. Foreclosures and court-ordered sales. If an MPDU is sold through a foreclosure or other court-ordered sale, all MPDU covenants must be released, and a payment must be made to the CHOICE Special Revenue Fund as follows: If the sale occurs during the affordability period, any amount of the foreclosure sale price which exceeds the total of the approved resale price under subsection (b), reasonable foreclosure costs, and liens recorded against the MPDU among the land records, must be paid to the CHOICE Special Revenue Fund. If the sale occurs after the affordability period, the payment to the Fund must be calculated under subsection (c), less reasonable foreclosure costs and liens recorded against the MPDU among the land records. Waivers. The Director may waive the restrictions on resale for MPDUs if the Director finds that the restrictions conflict with regulations of federal or state housing programs and thus prevent eligible households from buying MPDUs. Bulk Transfers. This section does not prohibit the bulk transfer or sale of all or some of the MPDUs in a subdivision within thirty (30) years after the original offering for sale if the buyer is bound by all covenants and controls on MPDUs.