HomeMy WebLinkAbout030-05RESOLUTION NO. 30-2005
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AMENDMENT
TO THE EXISTING RESALE RESTRICTION AND OPTION TO PURCHASE
AGREEMENT FOR THE BELOW MARKET RATE SINGLE FAMILY
RESIDENCE 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 and Option to Purchase Agreement
(Agreement) involving a project developed by bas of Tassajara II; and
WHEREAS, the 72-unit project included 14 below market rate duet residences
constructed south of Camino Tassajara and west of Rassani Drive reflecting the
approval granted to Planned Unit Development'- Rezoning request PUD 90-7; and
WHEREAS,.the Agreement formalized the obligation to have 14 residences in the
project designated, set aside and retained as moderate income residences for a period
of 20 years, being the first affordable housing agreement the Town and a residential
builder executed reflecting the Town's inclusionary housing policies; and
WHEREAS, the construction of the 14 below market rate residences in the project was
subsequently completed and the residences were sold, with the residences 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 below market rate residences was 78 Haskins Ranch Circle,
purchased in March, 1997 by the current owners, Cary and Helen Porter; and
WHEREAS, the Agreement stipulates that the residence may not be rented out by the
owners of the property; and
WHEREAS, the current property owners have requested the Town authorize an
amendment to the Agreement and allow them to rent the residence for the period of
up to four years, with this period of time aligning with the anticipated reassignment
of Cary Porter in his position with the Coast Guard to Coast Guard Headquarters in
Washington D.C.; and
WHEREAS, this temporary reassignment will move the Porters out of the Bay Area,
forcing them to either sell their residence or to secure Town approval to amend the
Agreement to allow them to rent their residence for the length of the job
reassignment; and
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WHEREAS, a staff report was submitted to the Town Council recommending the
Council approve the request to allow the residence to be rented on a temporary basis;
and
WHEREAS, it was recommended that the amendment to the Agreement require the
residence be rented to a household whose combined household income does not
exceed 110% of the published median income (adjusted for household size) and
setting the maximum rental rate at, or below, a rate that does not exceed 30% of the
renting household's annual gross income and reflecting credit for an appropriate
utility allowance; and
WHEREAS, amending the existing Agreement allows the intent of the original
Agreement to be met (i.e., assures the below market rate unit is occupied by a
qualifying moderate-income household) without placing an undue financial burden
on the Porters who indicate an intent and desire to move back to the residence after
the job assignment; 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 residence to be rented on a temporary basis does not set an
inappropriate precedent for other below market rate 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 residence to a qualifying
moderate-income household to be consistent with the goals and policies of the
Town's Housing Element and to be consistent with the intent of the existing
Agreement; and, be it further
RESOLVED, that the Danville Town Council directs that the following changes be
made to the existing Agreement:
Removal of the option to purchase language providing the Town with the first
right to purchase the residence when it is made available for resale;
Inclusion of language that enhances the ability to re-sell the residence by
including language reflecting FNMA requirements ("Fannie-Mae");
o
Change to the maximum allowable income level of subsequent owners of the
residence - changing the maximum allowable household income from 120 % to
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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;
and, be it further
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 in the form as submitted to the City Clerk,
together with such changes as may hereafter become necessary, provided such
changes do not materially increase the obligations of the Town.
APPROVED by the Danville Town Council at a regular meeting on April 5, 2005 by
the following vote:
AYES: Doyle,
NOES: None
ABSTAIN: None
ABSENT: None
Stepper,
Andersen,
Arnerich, Shimansky
APPROVED AS TO FORM:
CITY ATTORNEY
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