HomeMy WebLinkAbout049-98RESOLUTION NO. 49-98
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AMENDMENT TO THE
EXISTING RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE
FOR THE SINGLE FAMILY RESIDENTIAL UNIT LOCATED AT 78 HASKINS
RANCH DRIVE (CARY AND HELEN PORTER - PROPERTY OWNERS)
WHEREAS, in December, 1991, the Town Council approved Resolution No. 232-91, authorizing
the execution of a resale restriction agreement and option to purchase (Agreement) involving a
project being developed by bas of Tassajara II; and
WHEREAS, the 73-unit project included 14 affordable duet units and was constructed on the south
side of Camino Tassajara, west of Rassani Drive (SD 7604/PUD 90-7); and
WHEREAS,.the Agreement formalized the obligation to have 14 units in the project designated, set
aside and retained as moderate income units for a period of 20 years and represented the first
affordable housing agreement the Town and a residential builder had executed reflecting the Town's
inclusionary housing policies~ and
WHEREAS, the construction of the 14 affordable units in the project was subsequently completed
and the units were sold, with the units being sold to households whose household income aligned with
the then current moderate income levels for a four-person household; and
WHEREAS, one of the 14 affordable units sold was the unit at 78 Haskins Ranch Circle, which was
sold to C. J. Finn in August, 1993 for $202,000 and was subsequently resold in March, 1997 to the
current owners Cary and Helen Porter for $217,500; and
WHEREAS, the Agreement stipulates that the unit may not be rented out by the owners of the
property; and
WHEREAS, the Porters are requesting the Town authorize an amendment to the Agreement to
allow them to rent the unit for the period of time that their jobs force them to relocate out of the Bay
Area (would require an amendment to Section 3(b) of the existing Agreement); and
WHEREAS, a staff report was submitted to the Town Council which provided background
information regarding the matter and recommended that the request to allow the unit to be rented on
a temporary basis be conditionally approve& and
WHEREAS, it was recommended that an amendment to the existing Agreement be authorized which
would allow the unit to be rented on a temporary basis, with the requirement that the unit be rented
to a household whose combined household income does not exceed that of a four-person household
earning 110% of the published median income and that the rental rate charged to be set at, or below,
a rate that does not exceed 30% of the renting household' s annual gross income; and
WHEREAS, staff indicated that the amendment to the existing Agreement would allow the intent
of the original Agreement to be met (i.e., provision of affordable housing) without placing an undue
financial burden on the Porters; and
WHEREAS, it was recommended that additional changes to the existing Agreement be made to
bring it in line with the most recently approved affordable housing agreements authorized by the
Town; and
WHEREAS, given the above considerations, an amendment to the original Agreement to allow the
unit to be rented on a temporary basis cannot be construed as setting a precedent for other affordable
units subject to resale restrictions; now, therefore, be it
RESOLVED, that the Danville Town Council hereby finds that amendment of the existing
Agreement to allow short term rental of the unit to qualifying households is consistent with the goals
and policies of the Town's Housing Element and is consistent with the intent of the existing
Agreement for the subject property; and, be it further
RESOLVED, that the Danville Town Council directs that additional changes be made to the existing
Agreement:
Removal of the option to purchase language providing the Town with the first right
to purchase the unit when it is made available for resale;
Inclusion of language that enhances the ability to re-sell the unit by including language
reflecting FNMA requirements CFannie-Mae");
Change to the maximum allowable income level of subsequent owners of the unit -
changing the maximum allowable household income f~om 120% to 110% of the
published median income of the area;
,
Inclusion of language that directs that the amended Agreement be recorded against
this individual property;
Additional minor adjustments to reflect changes to the affordable housing agreements
that have evolved since the execution of the existing agreement in 1992.
PAGE 2 OF RESOLUTION NO. 49-98
RESOLVED, that the Danville Town Council hereby authorizes the Town Manager to execute an
amendment to the existing Resale Restriction Agreement and Option to Purchase for 78 Haskins
Ranch Circle reflecting the changes authorized in this Resolution.
APPROVED by the Danville Town Council at a regular meeting on March 17, 1998 by the following
vote:
AYES: Waldo,
NOES: None
ABSTAIN: None
ABSENT: None
Arnerich, Doyle, Greenberg, Shimansky
MAYOR
FORM:
CITY ATTORNEY
ATTEST:
CITY CLERK
PAGE 3 OF RESOLUTION NO. 49-98