HomeMy WebLinkAboutMINUTES - 04212009 - C.88RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Conservation and Development or designee, to allow the rental of
property located at 442 Karelian Street in Danville.
FISCAL IMPACT:
No General Fund impact.
BACKGROUND:
On July 9, 2002, the Board of Supervisors approved the Camino Tassajara Affordable Housing Program (CTAHP).
The CTAHP sets forth requirements to be met by the Camino Tassajara developers (Shapell, Braddock and Logan,
and Ponderosa Homes). On January 9, 2006, Shapell and the County entered into a Developer Sales Agreement
(Agreement). This Agreement placed conditions on the 127 unit townhome development known as Willow at Alamo
Creek. All 127 units were required to be sold to moderate income homebuyers.
In addition, the Agreement stated that all buyers must enter into a Buyer’s Resale Restriction Agreement (Resale
Agreement) with the following requirements:
• The units would have 20 year resale restrictions;
• The homes must be
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 04/21/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYES 5 NOES ____
ABSENT ____ ABSTAIN ____
RECUSE ____
Contact: Kara Douglas, 335-7223
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of
the Board of Supervisors on the date shown.
ATTESTED: April 21, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: Katherine Sinclair, Deputy
cc:
C.88
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:April 21, 2009
Contra
Costa
County
Subject:Camino Tassajara Affordable Housing Program, Willow, waiver to allow property
rental
BACKGROUND: (CONT'D)
sold at a restricted price to an income eligible buyer (“Eligible Purchaser”); and
• The units must be owner occupied for 20 years
Willow owners may sell their home at any time. The resale restriction includes a maximum sales price. There is also a
minimum marketing period. If the units cannot be sold, then the County may release the resale requirement. The
home can then be sold at market price to any buyer. The County will receive 94% of any profit over the restricted
price. This provision is to prevent windfall profits to the seller. In the event of a sale funds are provided to the County
Housing Trust Fund to use for other affordable housing activities. The built in flexibility in the resale restriction
allows the County to respond to market conditions when the owner wishes to sell on a case by case basis. The stated
policy preference of the Board with respect to these inclusionary units has been to retain them as affordable whenever
possible.
Muhammad Farooq purchased his property on October 31, 2007, at which time he also signed the Resale Agreement.
As a result of the recent economic downturn, he experienced circumstances that required him to sell the house. The
Resale Agreement requires that he notify the County of his intent to sell; the Department received his notice on April
28, 2008. The County informed him that it will not exercise its right of first refusal to purchase the home and
provided him with a maximum sales price. Pursuant to the Resale Agreement, Mr. Farooq had 120 days to market the
home to an eligible household at the restricted sales price, which began on May 12, 2008.
Mr. Farooq had his home on the market until November, 2008 and after extensive marketing efforts he failed to
locate an eligible purchaser at the restricted sales price. On November 24, 2008 the County agreed to let Mr. Farooq
sell the home on the open market to any buyer, whether or not that person would qualify as an Eligible Purchaser
under the Resale Agreement.
As of April, Mr. Farooq’s home has still not sold and he has requested that the County allow him rent the home. Due
to Mr. Farooq’s hardship staff recommends the County allows him to rent his home.