AgdaPkt 2011-09-19 - Laserfiche WebLink

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6.1.D. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager September 19, 2011 SUBJECT Amendment to the Affordability Covenant for the 885 Woodside Road Condominium Project RECOMMENDATION 1. Approve, by motion, the First Amendment to the Declaration of Affordability Covenants. 2. Approve, by motion, an Estoppel Certificate for 885 Woodside. BACKGROUND As a development requirement pursuant to the Precise Plan for the 885 Woodside Road development (approved by Council November 19, 2007), the developer was required to set -aside 15% (six units) of the 43 units as affordable units. Council approved the Affordability Covenants ( "covenants ") for the 885 Woodside Condominium project on May 18, 2009 and the covenants were recorded on June 4, 2009. The covenants are deed restrictions that include the specific requirements for the rental or sale of the six affordable units for the term of the covenant. Analysis There are two minor amendments to the covenants necessary to clarify inconsistencies in the stated level of affordability and the unit square footage. The covenants approved by Council specified that the six units would be affordable for moderate income households under the terms of rental or ownership. At the time of recordation, the covenants did not include the accurate reference to moderate income households, as intended and instead referenced low and very low income households. The amendment replaces all references to low and very low income households with moderate income households. The second item being modified by the amendment is the reference to the square footage of the affordable units. The original covenant stated the six units would consist of approximately 650 to 1000 square feet. Upon completion of the project the developer became aware that the as -built square footage of three of the affordable units deviated slightly from the square footage specified in the covenants and measured 598 square feet. The City acknowledged and agreed that the actual size of the three units did not constitute a default in the performance of the covenant in a letter dated September 27,