AgdaPkt 2011-09-19 - Laserfiche WebLink

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6. 1. D. - Page 2 2010, as attached to the amendment (Attachment 1). Staff is now requesting that Council formalize this conclusion by approving the amendment to the affordability covenants. One additional item included in the amendment is the Restricted Resale Agreement. The original declaration did not include the form of Resale Restriction Agreement that was to be attached as Exhibit "B" at the time of recordation and by the letter agreement dated September 27, 2010 the developer agreed to the form of Resale Restriction Agreement to be attached as Exhibit "B" of the original covenants. Corrections were also made to the Resale Agreement after the letter agreement to correct inaccurate references before execution and recordation of the amendment which incorporates the amended Resale Agreement by reference. Estoppel The developer recently sold the 885 Woodside Road development. As part of the due diligence process, the developer (seller) and buyer requested an Estoppel Certificate from the City, certifying that the project is in compliance with all City requirements. With one exception, the project is in compliance with the obligations of the covenants, engineering, planning and building requirements. The exception is related to a two bedroom unit which was leased to a moderate income household, instead of a one bedroom unit. Staff provided a summary of corrective action that will resolve this situation as referenced in the letter agreement between the City and the developer dated August 23, 2011 (Attachment 3). The buyer was fully informed of this requirement through the assignment and assumption agreement which was recorded when the property was sold. The Estoppel Certificate assumes that the corrective action, which is the obligation of the owner, will be enforced. The City monitors the status of the affordable units on an annual basis and thus will ensure that the corrective action occurs at the appropriate time. ALTERNATIVES Do not approve the First Amendment to the Declaration of Affordability Covenants for 885 Woodside. FISCAL IMPACT None. ENVIRONMENTAL REVIEW The environmental review has already occurred for this project. The California Environmental Quality Act (CEQA) does not regulate social or economic project impacts and therefor the amendment to the affordability covenant is not within CEQA purview or scope. Approval of an amendment to an affordability covenant is not a "project" under CEQA (CEQA Guidelines, 15378).