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9 <br />occupancy by qualifying households in accordance with <br />the following eligibility criteria. <br />i) Family income, as defined in Article 22 of this <br />ordinance, at the time of purchase shall not exceed <br />the limits set forth in Article 7.14.4.2. <br />Qualifying renters may also own up to $5,000 in net <br />assets, as defined in Article 22 of this Ordinance, <br />at the time of initial rental. <br />ii) At least one member of a qualifying household must <br />have lived or worked in Orange County for the past <br />12 months. <br />iii) Families whose income increases above the <br />eligibility requirements may continue to occupy the <br />rental unit, unless otherwise required through terms <br />of the rental agreement between the lessor and <br />lessee. <br />b. Every change in occupancy during the 15 -year term of the <br />contract shall be approved by HCD to assure continued <br />compliance with eligibility criteria. <br />C. The maximum rent allowed shall be computed by <br />multiplying the applicable percentage of median income <br />by the value of median income at the time of the <br />transaction, then multiplying the resulting value by the <br />maximum percentage of income spent for housing, as <br />recommended by the mortgage banking industry. <br />The value for median income used in calculating maximum <br />allowable rent shall be adjusted to reflect the maximum <br />family size appropriate for the number of bedrooms, as <br />determined by HCD. <br />.14.4.5 Disclosure of Contract Terms to Potential Some -Bu ers <br />a) Staff from the Planning Department and the Department of <br />Housing and Community Development shall meet with the <br />prospective buyer prior to the purchase to assure that <br />all terms of the contract are fully understood. <br />Explanation of the terms of the contract shall include <br />the following implication: <br />i. Building permits for the improvements to the <br />structure may be obtained if the owner wishes to <br />remodel or construct an addition, or construct <br />accessory structures. However, there is no <br />assurance that the investment will be regained if <br />the unit is sold prior to the expiration of the <br />contract due to the requirement that it be purchased <br />by a moderate income household. <br />