HomeMy WebLinkAboutMINUTES - 11152011 - C.58RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Conservation and Development or designee,
to allow the rental of property owned and currently occupied by Ming Chen and Eric Tam
and located at 18 Channi Court in unincorporated Danville, for up to two (2) years. Monthly
rents shall not exceed current mortgage payments, property taxes and hazard 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: 11/15/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
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: November 15, 2011
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.58
To:Board of Supervisors
From:Catherine Kutsuris
Date:November 15, 2011
Contra
Costa
County
Subject:Allow Property Rental located at 18 Channi Court 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 homes 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.
Ming Chen and Eric Tam purchased their property in May, 2008, at which time they signed
the Resale Agreement. 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, property taxes and hazard insurance. A review of
current apartment and townhome rents in the Danville and the Alamo Creek area indicate
that market rents are affordable to moderate income renters (i.e. A moderate income
household of four can afford a rent of $2,800 per month. Apartment and townhome rents
currently range from $1,900 to $2,500 per month.) Rents are expected to remain affordable
to moderate income renters for the next two years. The new tenant shall not be entitled to
relocation expenses when the lease terminates. The unit must remain affordable for another
moderate income homebuyer.
Due to financial hardship, Ming Chen and Eric Tam request, and staff recommends, that the
County allow them to rent their 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