HomeMy WebLinkAbout054-2022DocuSign Envelope ID: 1 FBC4ABF-DA30-4CBE-89FC-DB074FD2E918
RESOLUTION NO. 54-2022
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 79 HASKINS RANCH CIRCLE
(APN 206-410-049)
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 79 Haskins Ranch Circle,
purchased in October 2012 by the current owner, Kristi Anderson; and
WHEREAS, a revised Agreement was approved at that time, extending the term of the
Agreement until October 2032; 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 a period of up to
four years, due to Ms. Anderson's temporary relocation due to financial hardship; and
WHEREAS, this temporary relocation will move Ms. Anderson out of the Bay Area,
forcing her to either sell the residence or to secure Town approval to amend the
Agreement to allow her to rent the residence for the length of time she will be relocated;
DocuSign Envelope ID: 1 FBC4ABF-DA30-4CBE-89FC-DB074FD2E918
and
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
120% 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 Ms.
Anderson who indicates an intent and desire to move back to the residence when
financially feasible; 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:
1. Inclusion of language that enhances the ability to re -sell the residence by including
language reflecting FNMA requirements ("Fannie -Mae");
2. Inclusion of language that directs that the amended Agreement be recorded
against this individual property;
PAGE 2 OF RESOLUTION NO. 54-2022
DocuSign Envelope ID: 1 FBC4ABF-DA30-4CBE-89FC-DB074FD2E918
3. Additional minor adjustments to reflect changes to the affordable housing
agreements that have evolved since the execution of the existing agreement in
2012;
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 79 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 July 5, 2022, by the
following vote:
AYES:Arnerich, Fong, Morgan, Stepper, Storer
NOES: None
ABSTAINED: None
ABSENT: None
DocuSigned by:
7095EBBD2D04475...
MAYOR
APPROVED AS TO FORM: ATTEST:
DocuSigned by:
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71735A3F04C942F...
CITY ATTORNEY CITY CLERK
PAGE 3 OF RESOLUTION NO. 54-2022