(a) Persons seeking the exemption shall submit an application on a form provided by the City prior to or concurrently with submittal of any applications for building permits.

(b) An ADU receiving an exemption may not be used as a short-term rental for a period of 10 years following approval of the application for exemption of storm drain SDCs permitted under this section. A restrictive covenant and compliance agreement documenting this restriction, in a form approved by the City, shall be recorded with Jackson County, at applicant’s expense, and submitted to the City prior to issuance of certificate of occupancy of the ADU for which the exemption was approved.

(c) The owner of an ADU receiving the exemption shall complete and submit to the City an annual compliance questionnaire during the 10-year exemption period. The questionnaire will seek information documenting the monthly rental amount charged for the ADU, and confirming that the ADU is not being used as a short-term rental. If the owner of an ADU fails to submit a completed annual compliance questionnaire with accurate information within 60 days from the date of mailing, the City may, at its option, seek to terminate the compliance agreement and recover the exempted storm drain SDCs pursuant to the terms of the restrictive covenant and compliance agreement referenced in subsection (b) of this section.

(d) “Short-term rental” means rental of a residential dwelling unit, or any portion thereof, to overnight guests for fewer than 30 consecutive days.

(e) Appeals of any administrative decisions made by the City pursuant to this section are subject to the appeal procedures set forth in Section 1.025, Uniform Appeal and Hearing Procedure.