Penalties for breaking affordable housing subsidy rules

(a) An owner who received a pre-construction subsidy under this article will be subject to the penalty provisions set forth in this section. (b) If the director of planning and permitting determines at any time that: (1) The affordable rental housing project fails to satisfy any of the requirements of this chapter; or (2) The use of the affordable rental housing project is abandoned prior to the expiration of the required affordability period; the owner will be subject to the administrative enforcement provisions in § 21-2.150-2 ; provided that in addition to the civil fines specified in § 21-2.150-2 (e)(2)(D) and 21-2.150-2 (e)(2)(E), and the penalty amounts specified in § 32-1.6 (a), the owner will be subject to a penalty equal to the total pre-construction subsidy amount the owner received from the city, together with a penalty in the form of interest at 10 percent per year, from the date the pre-construction subsidy moneys were paid to the owner. Any pre-construction subsidy amounts not yet paid will be forfeited. (c) If the director of planning and permitting determines at any time that the owner breached any of the terms of the pre-construction subsidy agreement, including but not limited to that the pre-construction subsidy moneys received were used or expended for improper purposes, the owner will be subject to a penalty equal to the total pre-construction subsidy amount the owner received from the city, together with a penalty in the form of interest at 10 percent per year, from the date the pre-construction subsidy moneys were paid to the owner. Any pre-construction subsidy amounts not yet paid will be forfeited.