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HomeMy WebLinkAbout092-2014RESOLUTION NO. 92-2014 AUTHORIZING THE TOWN MANAGER TO EXECUTE AN ADDENDUM TO THE AFFORDABLE HOUSING AGREEMENT ASSOCIATED WITH 438 ANTELOPE RIDGE WAY TO ALLOW THE OWNER OF THIS BELOW MARKET RATE TO TEMPORARILY NOT RESIDE IN THE UNIT AND ALLOWING THE OWNER TO TEMPORARILY MAKE THE UNIT AVAILABLE AS A RENTAL UNIT TO A QUALIFYING MODERATE INCOME HOUSEHOLD WHEREAS, on September 17, 1996, the Town Council approved Resolution No. 124 -96, authorizing the execution of a Resale Restriction Agreement (Agreement) involving a 146 -unit residential project located along the south frontage of Camino Tassajara at its intersection with Jasmine Way and developed by Tassajara Investors, Inc.; and WHEREAS, the project included affordable residential units, developed as duet units, consistent with the approval granted to Planned Unit Development - Rezoning request PUD 93 -5 and Major Subdivision request SD 7876 (Project); and WHEREAS, the Agreement formalized the project obligation to have 14 residences designated, set aside and retained as for -sale Below Market Rate (BMR Units) for a period of 20 years, consistent with the Town of Danville's inclusionary housing policies in place at the time of Project approval; and WHEREAS, the construction of the 14 BMR Units was subsequently completed and the BMR Units were individually sold to households whose household income was determined to align with the then current moderate income levels for four - person households; and WHEREAS, one of the 14 BMRs Units was placed on the property identified as 438 Antelope Ridge Way, which was purchased in June, 1998 by Bette Bennett; and WHEREAS, Ms. Bennett has retained ownership of the BMR Unit at 438 Antelope Ridge Way; and WHEREAS, the Agreement established a requirement that the Project's BMR Units may not occupied as rental units, requiring that the BMR Units be owner - occupied units; and WHEREAS, Michelle McBee, the conservator asking on behalf of Ms. Bennett who is the property owner for the BMR Unit at 438 Antelope Ridge Way, has submitted a request that the Town authorize an amendment to the Agreement to allow her to not reside in the BMR unit so she may take residency in an assisted living facility due to poor health; and WHEREAS, the need to reside in an assisted facility means Ms. Bennett must secure the requisite approvals to amend the Agreement to allow her to rent her BMR Unit; and WHEREAS, it is anticipated that Ms. Bennett will sell her residence at market rate upon contract expiration, allowing her to use the proceeds to pay for her continued care; and WHEREAS, a staff report was submitted to the Town Council recommending the Council approve the request to allow the Bennett BMR Unit to be rented out for the remaining time on her contract which expires on June 28, 2018; and WHEREAS, it was recommended that the amendment to the Agreement require the BMR Unit to be rented to a household whose combined household income is certified by the Town to not exceed 110% of the published area median income (adjusted for household size); and WHEREAS, it was recommended that the amendment to the Agreement set the maximum rental rate that may be received by Ms. Bennett while her BMR Unit is used as a rental unit be at, or below, a rate that does not exceed 35% of the qualifying 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 BMR unit is occupied by a qualifying moderate - income household) without placing an undue financial burden on the Ms. Bennett who is not in a position financially to cover housing expenses for the BMR Unit while at the assisted living facility; and WHEREAS, given the above considerations, an amendment to the original Agreement to allow the residence to be rented does not set an inappropriate precedent for other BMR Units subject to occupancy and resale restrictions; now, therefore, be it RESOLVED, that the Danville Town Council hereby finds that amendment of the existing Agreement allowing short term rental of the BMR Unit at 438 Antelope Ridge Way to a qualifying moderate - income household to be consistent with the goals and policies of the Danville 2007 -2014 Housing Element and to be consistent with the intent of the existing Agreement; and, be it further PAGE 2 OF RESOLUTION NO. 92-2014 RESOLVED, that the Danville Town Council hereby authorizes the Town Manager to execute an amendment to the existing Resale Restriction Agreement for 438 Antelope Ridge Way in the form as submitted, 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 December 16, 2014 by the following vote: AYES Doyle, Stepper,Arnerich, Storer, Morgan NOES NONE ABSTAIN NONE ABSENT: NONE APPROVED AS TO FORM: CITY ATTORNEY I V)- �) MAYOR ATTEST: Cf 0 CITY CLERK PAGE 3 OF RESOLUTION NO. 92 -2014