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HomeMy WebLinkAboutMINUTES - 08162011 - C.66RECOMMENDATION(S): APPROVE and AUTHORIZE the Director of Conservation and Development or designee, to allow the rental of property located at 381 Karelian Street in Danville, for up to two (2) years. Monthly rents shall not exceed current mortgage payments, including taxes and insurance. 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 APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/16/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Alicia Smith, 925-335-7217 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: August 16, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.66 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:August 16, 2011 Contra Costa County Subject:Allow Property Rental located at 381 Karelian Street in Danville Restriction BACKGROUND: (CONT'D) Agreement (Resale Agreement) with the following requirements: • The units would have 20 year resale restrictions; • The homes must be 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. Sohaila Azimi purchased her property on October 5, 2007, at which time she signed the Resale Agreement. Ms. Azimi is working at a military base in Afganistan as a linguist for a government contractor. She is a single mother of three children who for the past eighteen months have lived in the home. Now, one has graduated high school and will be attending college, another has just graduated college and will be moving away for work and the third is enlisting in the US Navy. Therefore, no one will be living in the home. In view of the applicable deed restrictions, the owner is seeking authorization from the County to rent the unit. The term of this temporary rental shall be for up to two (2) years. Monthly rents shall not exceed current mortgage payments, including taxes and insurance. The new tenant shall not be entitled to relocation expenses when the lease terminates. The unit must remain affordable for another low income homebuyer. Due to Ms. Azimis’ hardship, staff recommends that the County allow her to rent her home. CONSEQUENCE OF NEGATIVE ACTION: Should this not be approved, the property owner would not be allowed to rent this unit. CHILDREN'S IMPACT STATEMENT: Not Applicable