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HomeMy WebLinkAboutMINUTES - 06151999 - C169 k4 Contra t4 t TO: BOARD OF SUPERVISORS ray FROM: Dennis M. Barry, AICT Cc Director of Community Development DATE: June 15, 1999 SUBJECT: Somerset Homes Development----Density Bonus Affordable Units SPECIFIC REQUEST(S) (III.I.tECO END,ATIONS( ) & BACKGROUND AND JUSTIFICATION RECONP0ENDATI©N TS ACCEPT a report from the Community Development Department on a recommended approach for maintaining affordability of homes in the Somerset Density Bonus Program for affordable housing (Danville area); ADOPT Resolution to FIX July 13, 1999 at 9:00 a.m. for a public hearing to consummate the purchase of real property at 225 Tortola Dave to retain as part of the County's Somerset Affordable Housing Program(Danville area). FISCAL,IMPACT No General Fund impact. The proposed program utilizes the Affordable Housing Special Revenue Fuad (Fund 111300, Org. 1596) to acquire the properties from sellers; the properties are resold to,eligible buyers. The Affordable Housing Special Revenue Fund is reimbursed net of minor transaction. costs. BACKGROUND REASONS FOR RECO N7DATIONS In accordance with the terms of Development Agreement between the County and Dame Construction Company(1993), Dame agreed to provide 23 Affordable Units in the Somerset Homes development in exchange for development approvals received from.the County. As required by the Agreement, I 11 / CONTINUED ON ATTACHMENT: _� YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR� C �ENDAT 'OF BOARD CDM TTEE —APPROVE — OTHER # " x s SIGNATURE(S): ACTION OF BOARD ON dune 15 , 1999 APPROVED AS RECOMMENDED xx OTHER The Board of supervisor DECLARED their INTENT to ADOPT the Intention of Purchase Real Property For the County Affordable Housing Program by Resolution No ; 99/338 . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT __ #4 AND CORRECT COPY OF AN ACTION TAKEN A'L'ES: — NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: _ ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Kara Douglas, 335-1253 cc: County Administrator ATTESTED ua 1 _ 1 County Counsel PHIL BATCHELOR, CLERK OF THE BOARD Auditor--Controller OF SUPERVISORS&COUNTY A.DzMINISTRATO Community Development F BY x § DEPUTY the Affordable Units were sold to qualified moderate-income households at below-market pries providing a homeownership opportunity to the purchaser. 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 to assign its right to acquire the unit at a predetermined price, in the event of resale. Purchasers are required to notify the County when they intend to sell their units. The purpose of the resale restriction 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 first notification of intent to sell was received in the summer of 1997. The County determined the restricted sales price was not far enough below the market price to attract a purchaser who would be willing to enter into an agreement restricting use and occupancy of the unit; that unit was released from the program. A second affordable unit owner decided in the fall of 1995 to sell her unit. In this case the County attempted to assign its right to purchase; however, the County was unable to identify an eligible purchaser in the time allowed (90 days). This unit was released in February, 1999 at which time the Board requested staff to propose a strategy to maintain the affordable units. The challenges in finding eligible purchasers as these units came onto the market were not foreseen when the development and buyer's purchase agreements were executed. Through experience gained in working with affordable unit owners, staff`is developing approaches to facilitate the sales of future units. County staff recommends the following approach: 1. If the restricted sales price is far enough below market to attract a buyer, the County should first try to identify an eligible purchaser and assign its right to acquire to that purchaser, 2. If the County can not identify an eligible purchaser in the time allowed, the County should purchase the property with fordable housing Special Revenue Funds. 3. The County would then identify an eligible purchaser and sell the unit. The County would incur transactions costs and car:�ying costs. (Staff time, marketing costs, sales commission, and possibly property taxes and homeowner association fees.) 4. County staff is currently revising the Buyer's Purchase Agreement which will clarify the roles and responsibilities of the interested parties. Where is currently no incentive for the owners to cooperate with the County in identifying eligible households. In the past seven months the County has received an additional four notices of intent to sell: a One intent to purchase was withdrawn when the owner received the restricted price (she did not want to sell at a below market price). a One unit is currently on the market; County staff is working to identify an eligible purchaser. s An intent to purchase was received by County staff, however, staff has not received all of the information required to make a recommendation of whether to exercise or assign its right to purchase. 9 The final unit, 225 Portola Drive is the subject of this and a companion resolution (Resolution of Intent to Purchase Real Property). Staff recommends that the County purchase this unit to maintain the affordable housing stock in the Somerset Homes development. The unit will be sold to an eligible purchaser who will be required to enter into a Buyer's Purchase Agreement. The approaches outlined in this board, order should perserve the affordable units in the Somerset Domes development. The lessons learned in this program will be used in structuring any future for-sale density bonus programs. D:\DA':r MPSG\B- 7 ?\1999\Si STBRD2.'th'PD CONTRA COSTA COUNTY BOARD OF SUPERVISORS Adopted this Resolution on Jure 15, 1999, by the following vote: AYES: SUPERVISORS CIOIA, UILKEMA, GERBER and CANCIAMILLA NOES: NONE ABSENT: NONE RESOLUTION NO. 99/ 3 3 S ABSTAIN : NONE Government Code § 25350) SUBJECT: Intention to Purchase Reel Property For County Affordable Housing Program 225 Portoia Drive, Danville, CA (1596-3540) Danville Area (CR No: 99-8) RESOLUTION OF INTENTION TO PURCHASE REAL PROPERTY The Board of Supervisors of Contra Costa County RESOLVES THAT: It intends to purchase from Marsha K. Walker, as part of the County's Affordable Housing Program, certain real property described in Exhibit"A" attached hereto, for$238,367, in accordance with the terms and conditions of the "Buyer's Purchase Agreement for Affordable Units, Somerset Homes Development," recorded on March 30, 1994 by Instrument Number 94-87422 at the Office of the County Recorder. This Board will meet on July 13, 1999, at 9:00 a.m. in the Board's Chambers, County Administration Building, Martinez, California, to consider the consummation of this purchase and the Clea of this Board is DIRECTED to publish the attached notice in the Contra Costa Times pursuant to Government Code Section 6063. The Board hereby FINDS that the proposed acquisition will not have a significant effect on the environment and that it has been determined to be exempt from the California Environmental Quality Act under State CEQA guidelines Section 15061 (b) (3). This Board DIRECTS the Director of Community Development to file a Notice of Exemption with the County Clerk and DIRECTS the Public Works Director to arrange for payment of a $25.00 handling fee to the County Clerk and a $25.00 fee to Community Development for processing of the Notice of Exemption. G:\GrpData\RealProp\1999-Rtes\99-6\BRportoIa.doc I hereby certify that this is a true and correct ®rig. Dept.: Public works Depart. (RIP) copy of an action taken and entered on the Contact: Nancy wenninger(313- 227) minutes of the Board of Supervisors on the date shown. cc: Count Administrator t Auditor-Controlier ATTESTED: d i n e 1 -5 1 9 9 9 Community Development PML BATCHELOR. Cleric of the Board of Grantor(via RIP) Survlsors and County�droinistrato P.W,Accounting (via RIP) >, ,., By .! ` b � t �' Deputy RESOLUTION NO. 99/ 3 3 8 �°' NOTICE OF INTENTION TO CONSIDER PURCHASE OF REAL PROPERTY The Board of Supervisors of Contra Costa County declares its intention to consider the purchase from Marsha K. Walker, at a price not to exceed $236,367.00, the real property located at 226 Portola give in Manville (APN 203-061-022), more particularly described in Resolution No. 99/338 of the Board, and will meet at 9:00 a.m. on July 13, 1999, in its Chambers, County Administration Building, 651 Pine Street, Martinez, California, to consider the consummation of said purchase. PHIL BATCHELOR, Clerk of the Board of Supervisors and Cc unty Administrat r B Deputy Cl rk Date(s) sof Publication: June 28 , 1999 July 5 19 9 ,cul 12 . 1999 - GAGrpBata\Rea1Prop\1 999-R(les-99-61Brporto1a.doc RESOLUTION NO. 9913 3 8