HomeMy WebLinkAbout083-2017RESOLUTION NO. 83-2017
APPROVING THE RELEASE FROM THE 20 -YEAR TERM RESTRICTION
IMPOSED AS A PART OF THE RESALE RESTRICTION AGREEMENT FOR
THE BELOW MARKET RATE UNIT LOCATED AT 438 ANTELOPE RIDGE
WAY TO ALLOW SALE OF THE UNIT AT A MARKET RATE PRICE IN
RECOGNITION OF DEMONSTRATED FINANCIAL NEED AND THE
PROPERTY OWNER'S ONGOING HEALTH ISSUES
WHEREAS, on September 17, 1996, the Town Council approved Resolution No.
124-96, authorizing the execution of a Resale Restriction Agreement (BMR
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 in the
project 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 BMR 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 the project's approval; and
WHEREAS, the construction of the 14 BMR Units was subsequently completed and
the BMR Units were individually sold to households whose gross household
income was determined to align with the then current moderate income levels for
four -person households; and
WHEREAS, one of the 14 BMR Units was placed on the property identified as 438
Antelope Ridge Way, which was purchased on July 14,1998 by Bette Bennett; and
WHEREAS, Ms. Bennett has retained continuous ownership of the BMR Unit at 438
Antelope Ridge Way since her purchase of the unit in 1998; and
WHEREAS, the BMR Agreement established a requirement that the BMR Units be
owner -occupied units, precluding the owners of the units from renting out their
units; and
WHEREAS, in 2014 Michelle McBee, in her capacity as conservator for Ms. Bennett,
requested that the Town authorize an amendment to the BMR Agreement to allow
Ms. Bennett's release from the owner -occupant provisions of the agreement so she
could take residency in an assisted living facility due to her failing health; and
WHEREAS, through its approval of Resolution No. 92-2014, the Town Council
approved the request and authorized Ms. Bennett to rent out her BMR Unit for the
remaining portion of the 20 -year term of her BMR Agreement; and
WHEREAS, it was understood that, upon expiration of the 20 -year term, Ms.
Bennett would have then been in a position to sell her BMR Unit at a market rate
price, generating substantial proceeds to pay for her continued care; and
WHEREAS, absent securing Town authorization to temporarily lift the owner -
occupancy requirement for her BMR Unit, it was reasonable to assume that Ms.
Bennett would have had no recourse but to have sold her unit at a below market
rate price; and
WHEREAS, the approval of Resolution No. 92-2014 required the execution of an
Addendum to the BMR Agreement that imposed a requirement that the property
owner document the income eligibility of the tenants occupying the unit, verifying
they qualified as a moderate income household earning <110% of median income
for the area; and
WHEREAS, the Addendum further directed that the rent assessed to a qualified
moderate income household occupying the unit be capped at a maximum of 35% of
the gross household income of the occupying household; and
WHEREAS, by way of the letter dated July 14, 2017 from Lisa M. Zaragoza, legal
counsel for Michelle McBee who continues in her capacity as conservator for Bette
Bennett, a request for the release from the .20 -year term restriction of the. BMR
Agreement for Ms. Bennett's BMR Unit is now requested; and
WHEREAS, the BMR Agreement provides for Town Council waiver, relaxation or
amendment of the restrictions contained in the agreement upon demonstration of
diligent efforts by the property owner to comply with the provisions of the
agreement; and
WHEREAS, a staff report was submitted to the Town Council recommending the
Council approve the release from the 20 -year term restriction; and
WHEREAS, release from the 20 -year term restriction does not compromise the
intent of the BMR Agreement as such action avoids placing an undue financial
burden on 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, based on the Town's review of documentation submitted, the request
for an early release appears to be reasonable and would not set an inappropriate
PAGE 2 OF RESOLUTION NO. 33-2017
precedent for other BMR Units given the length of Ms. Bennett's ownership of the
SMR Unit (i.e., in excess of a 19 year portion of the original 20 -year term), her
ongoing health issues, and the potential financial hardship associated with a denial
of the request; now, therefore, be it
RESOLVED; that the Danville Town Council hereby approves the release from the
20 -year term restriction imposed as part of the Resale Restriction Agreement for the
below market rate unit located at 438 Antelope Ridge Way to allow the sale of the
unit at a market rate price in recognition of demonstrated financial need and the
property owner's ongoing health issues.
APPROVED by the Danville Town Council at a regular. meeting on October 3, 2017
by the following vote:
AYES: Arnerich, Blackwell, Morg<
.NOES: None
ABSTAIN: None
ABSENT: None
APPROVED AS TO FORM:
CITY ATTORNEY
PAGE 3 OF RESOLUTION NO. 83-2017