HomeMy WebLinkAboutMINUTES - 08121997 - C92 .L Contra
Costa
TO: BOARD OF SUPERVISORS 'P
Coin
J Co
FROM: Harvey E. Bragdon rC
Director of Community Development
DATE: August 12, 1997
SUBJECT: Property at 503 Conejo Court, Danville
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director, Redevelopment, or his designee to: ( 1)
waive the County' s right of first refusal to acquire the property
located at 503 Conejo Court in the unincorporated area near Danville;
and (2 ) execute required legal documents for this purpose.
FISCAL IMPACT
None. No General Funds are involved. To not waive the County's
rights would require the County to purchase the property.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In exchange for approval of a density bonus, Dame Construction agreed
to reserve 15 percent of the townhomes to be built i Somerst omes
CONTINUED ON ATTACHMENT: YES SIGNATURE:
_,4
'
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAO OF BO D COMMITTE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Kathleen K. Hamm
335-1257 ATTESTED
cc : County Administrator PHIL ATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Community Development AND COUNTY ADMINISTRATOR
A. Gonzalez via Community
Development BY§d C DEPUTY
for moderate income households (the "Affordable Units" ) .
Purchasers of the Affordable Units were required to enter into a
Buyer' s Purchase Agreement which provided the County with the right
of first refusal to acquire or assign the right to acquire the unit
at a predetermined price in the event of resale ( "affordable resale
price" ) . The purpose of the resale restrictions is to provide the
County with an opportunity to maintain the affordability of the
unit by assigning the right to acquire to another moderate income
household.
The townhome located at 503 Conejo Court in the unincorporated area
near Danville was acquired by a moderate income household in June
of 1995 and is one of the Affordable Units . The owner has informed
the Community Development Department of her intent to sell .
Experience has shown that a minimum price difference of 10 percent
between the affordable price and the market price of a unit is
necessary in order for a household to accept affordability
restrictions without some form of additional homebuyer subsidy.
There are no homebuyer subsidy programs available for use in
acquiring this home. In addition, the Department has determined
that the affordable resale price (estimated at $211, 000) is
approximately 5 percent less than the current market price. At
this level and without some form of homebuyer subsidy, it is
unlikely that the County will be able to identify a qualified
moderate income household willing to accept the affordability
restrictions within the required time periods . If the County
informs the owner of its intent to acquire the unit and cannot find
a qualified purchaser within the required time periods, the County
must acquire the unit. No potential source of County funds for
this purpose has been identified. Staff is evaluating alternative
approaches and sources of funding for handling these types of
matters in the future.
As a result of this assessment, it is recommended that the County
waive the right of first refusal to acquire this property and
permit the owner to sell the unit on the open market.
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