Regulatory Agreements Required for Affordable Unit Restrictions

Description of steps required to establish a Regulatory Agreement for unit affordability restrictions.

Residential property developers may apply for design incentives or requirement waivers through the Planning process in exchange for providing units affordable to low-income residents. If a development proposal meets the requirements of the Density Bonus incentive law and/or the Affordable Housing Impact Fee On-Site option, additional units, fewer parking spaces, and reduced fees or alternative development standards may be possible.

To proceed, a City of Oakland Regulatory Agreement must be completed and recorded on title to document the owner's responsibilities to market, lease, and maintain the units according to the agreed upon terms.

Steps to complete and record a Regulatory Agreement are outlined below and in the image to the right. This process should begin immediately after issuance of Planning Conditions of Approval. Note that this agreement must maintain a senior position to all other private liens on title throughout the period of affordability.

The Regulatory Agreement process requires the following steps: 

  • Issuance of Planning Conditions of Approval
  • Submission of Regulatory Agreement Application and Documentation
  • Document preparation, revision, and final approval
  • Notarized signatures from the owner, City Administrator, and lenders, as applicable.
  • Recordation on title with the County Recorder.
  • Submission to the Permit Center to release the associated permit hold.

City of Oakland Planning Approval

Approval for Density Bonus incentives or an Affordable Housing Impact Fee waiver for your development must be obtained before applying for the regulatory agreement. Contact Oakland Planning and Zoning for more information.

City of Oakland Planning and Zoning

Regulatory Agreement Application 

Once Planning Conditions of Approval have been issued, submit a complete application with all required information and documentation including:

  • Ownership/Developer contact information
  • Planning Conditions of Approval
  • Recent Title Report (last 30 days)
  • Deed(s) of Trust to be subordinated, if existing or pending. (Regulatory Agreement must become senior lien.)
  • Escrow/Title Contact for recording
  • Plans showing type and location of restricted units
  • Count of all property units by type and level of restriction
  • Information about which utilities will be paid by the tenant 

Document Revisions, Signatures, and Recordation

Approved applicants will be provided with draft Regulatory and Subordination Agreements for negotiation, acceptance, and recordation by their chosen escrow officer with the Alameda County Recorder's office. Recorded documents can then be provided to the Bureau of Building to release the associated permit hold. Once all other requirements have been met, the permit can be issued.

Initial and Ongoing Affordability Compliance

Once permits are issued, the developer must complete periodic progress reports as instructed by City Staff until construction is completed and 50% of affordable units are occupied. This includes the following requirements:

  • Progress Reports three times a year.
  • Marketing & Management Plan: 180 Days to construction completion.
  • Notice of Tenant Marketing & Selection: 30 days before marketing begins.
  • Amendment to Regulatory Agreement: once 50% of affordable units are occupied.
  • A final Housing Completion Report to transfer the project to Asset Monitoring Services for ongoing compliance

Ongoing Compliance 

As occupancy nears 100%, Asset Management Services (AMS) will work with Property Management to establish the schedule needed to monitor ongoing compliance through annual reports, unit level occupancy data, and inspections. Refer to the details of the specific regulatory agreement and see the AMS site for more information.

Asset Management Services

 

 

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