AgdaPkt 2009-05-18 - Laserfiche WebLink

Browse Search

REPORT 6.1G Page 1 I To the Honorable Mayor a:nd City Council From the City Manager May 18, 2009 SUBJECT Affordable Housing Covenant Deed Restrictions for 885 Woodside Road Condominium Housing Project ReCOMMENDA nON Adopt, by motion, the Declaration of Affordability Covenants ("Affordability Covenants") and Resale Restriction agreement and Option to Purchase for 15% (six units) of. the 43- unit condominium housing project at 885 Woodside Road. BACKGROUND As a development requirement pursuant to the Precise Plan for the 885 Woodside Road development project, the developer was required to set-aside 150/0 (six units) of the 43 condominium units as affordable units in the very-low, low, or moderate income categories as defined by the County of San Mateo average median income (AMI). This Precise Plan was approved by the City Council on November 19, 2007 I and the rezoning was completed by December 10, 2007 by approval of the second reading of the ordinance providing the necessary entitlements to proceed with the project. The developer then obtained a grading permit along with a foundation permit and began the site preparation and construction of the foundation and underground parking structure which is now complete. The Final Subdivision Map, together with the condominium plan and conditions, covenants and restrictions (CC&R's), was approved by City Council on January 12, 2009. 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. As such, the developer has the right to continue the project and is seeking the necessary construction loans to do so. As a condition of the lender for the construction loan, the developer has been required to provide an alternative plan in the event that the current housing market continues its downward spiral and ownership is not feasible for prospective residents of the project, particularly the affordable units. Thus, the affordability covenants (required by the Precise Plan) that are before the Council for approval, allow for the units to be rented until such time as the developer can find qualified buyers, at which time the covenants can be converted to ownership with the appropriate resale restrictions. The staffs goal is to ensure that the six units will be secured as affordable for moderate income households under any scenario, rental or ownership, but also to provide some flexibility to the developer so that the project may proceed on schedule.. Furthermore, based on the developer's vested rights, it is in the City's best interest to ensure that the construction of this project is completed as soon as possible.