2.__Number of building permits under ordinance.__The municipality may set the annual number of residential building permits that are issued in a calendar year to a level no lower than 50% the average number of residential building permits issued during the preceding 2 calendar years or the average number of residential building permits issued during the preceding 7 calendar years, whichever is lower.__The municipality may assign a higher proportion of the allowable permits to area designated as growth areas in its comprehensive plan and a lower proportion to areas designated as rural areas.

3.__Duration of ordinance.__A municipalitywide rate of growth ordinance may be put in place for up to 5 years.__If predicated on infrastructure needs that are being remedied by new construction that is in progress but not yet complete, the rate of growth ordinance may be phased out over a period of up to an additional 3 years, with the allowable number of building permits increasing by 1/3 per year.__A rate of growth ordinance may not be in place for a period longer than 8 consecutive years.__A municipality may not have a rate of growth ordinance in place for more than 8 years in any 15-year period.

4.__Exemptions.__Notwithstanding subsection 3, the following categories of housing may not be included in any numerical building permit limitation under a rate of growth ordinance:

A.__The construction of a house by the original grantee of a parcel created under the exemption to the definition of a subdivision in section 4401, subsection 4, paragraph D-4 for a gift to a person related to the donor; and

B.__Affordable housing, as defined in this chapter, when the affordable housing is proposed for growth areas as designated in the municipality's comprehensive plan.

5.__Allocation of building permits under ordinance.__In any municipality adopting a rate of growth ordinance, the number of building permits to be issued in any calendar year must be divided in half and issued commencing January 1st and July 1st of that year.__Unused permits from the first half of the year must be carried over to the 2nd half of the year.__Unused permits from the year must be carried over to the next year if a rate of growth ordinance is in place the next year.__All permits must be issued on a first-come, first-served basis, and there may be no preference for local residents or local builders.__If the number