9, 2006 without complying with the requirements of Sections 151.22 through 151.28 shall be subject to a penalty to be adopted by Council. (Added by Ord. No. 184,873, Eff. 6/4/17.) B. Exemption from the Rent Stabilization Ordinance with Replacement Affordable Units. (Amended by Ord. No. 184,873, Eff. 6/4/17.) An owner who replaces the number of demolished rental units with a number of affordable housing units at least equal to the number of withdrawn rental units subject to the Rent Stabilization Ordinance on a one-for-one basis or at least 20% of the total number of newly constructed rental units, whichever is greater, may apply to the Department for an exemption of the newly constructed rental units from the provisions of the Rent Stabilization Ordinance. The affordable housing units must be located in the newly constructed accommodations. The Department shall issue an exemption where it finds all of the following to exist: 1. The owner executed and recorded a covenant and agreement, in a form satisfactory to the Department, guaranteeing that the replacement affordable housing units, affordable for low or very low households with an income at or below 80% of Area Median Income as established by the California Department of Housing and Community Development or any successor agency, shall remain affordable for 55 years from the date the covenant and agreement is recorded. The covenant and agreement must contain provisions as required by the Department to ensure the effective administration and enforcement of this subsection. 2. The replacement affordable housing units shall be reasonably dispersed throughout the newly constructed accommodations and shall not be segregated in a portion of the accommodations dedicated to affordable housing units. 3. The replacement affordable housing units shall be comparable to the market rate units and contain, on average, the same number of bedrooms, bathrooms and square footage as the market rate units. The replacement affordable housing units shall be comparable in architectural style to the average of the market rate units. Units that are used to qualify for a density bonus pursuant to the provisions of either California Government Code Section 65915 or Sections 12.22 A.37., 12.22 A.38., or 12.22 A.39.