AgdaPkt 2009-01-26 clsd and reg - Laserfiche WebLink

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6.1C For purposes of determining the maximum income and monthly housing costs Page 3 necessary to support the sales price of the affordable units: Eligible Households for participation shall be households earning no more than 12001<> of median who pay no more than 3001<> of their household income for housing costs. For example: Moderate Household income for two people at 1200/0 of median income is $90,600. The maximum this household can pay for housing costs is 300/0 of their household income. Income $90,600 Maximum Housing Costs 300/0 Available for housing costs $27,180 Proposed Rental Limitations At the January 12, 2009 meeting, the Council expressed concerns regarding the length of time that the Project units would exist as rentals. In order to address this concern, some council members proposed a period of years, while others suggested utilizing an economic index to signal the return of favorable marketing conditions in order to prompt the sale of the condominium units. Unfortunately, the City does not have the authority or the leverage to compel the Developer to agree to the time limit r~strictions because the Developer's development rights have vested, and the relevant appeal periods have expired. Because the Final Map has already been approved and the Developer has performed substantial work pursuant to City issued grading and foundation permits, the Developer's development rights have vested. In addition, the imposition of the Time Limit Restrictions would be an unreasonable restraint on the Developer's property rights. Every person has the right to acquire and use real property including the ability to rent their own property to others. However, if the Developer voluntarily agrees to the Time Limit Restrictions, then the City may want to consider memorializing these restrictions in a separate agreement which is recorded against the Property. This approach would protect the integrity of the Affordability Restrictions in the event of a challenge to the Time Limit Restrictions. ALTERNATIVES Do not approve the Declaration of Rental Affordability Covenants for 885 Woodside Road Housing Project and the project construction will likely be stalled until the housing market recovers. Do not approve the Declaration of Ownership Affordability Covenants and the 6 units in question will ultimately be sold at market rate. Without a regulatory agreement, the project would not support the City's affordable housing requirements, nor guarantee that the units remain affordable for 45 years. FISCAL IMPACT Redwood City is not responsible for funding development of the affordable housing project. The City may, however, decide to provid~ some form of homeownership assistance to Qualified Eligible Buyers when the units are available for sale. Various homebuyer assistance options may be provided to Council as part of the numerous programs proposed in the City1s updated Housing Element.