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Home My WebLink AboutAGENDA REPORT 1991 0515 CC REG ITEM 11C17 0(3a1 ITEM %, 10 61 MOORPARK';<, CALIFORNIA 799 Moorpark Avenue Moorpark, California 9303 _ ACTION: M E M O R A N D U M TO: The Honorable City Council FROM: Patrick J. Richards, Director of Community Development DATE: May 8, 1991 (CC meeting of 5/15% 91) SUBJECT: WESTLAND COMPANY RESIDENTIAL PROJECT AFFORDABLE HOUSING AGREEMENT (GPA-90-1, Z-90-2, TR-4726, TR-4738, RPD-90-2, RPD-90-3, AND RPD-90-4) Background At the City Council's April 17, 1991, meeting, staff was directed to schedule an agenda item on the May 15, 1991, Council meeting for conceptual approval of the Westland Company Project affordable housing agreement prior to allowing the project to proceed with the entitlement processing.Although it was the Council's intention to review a final draft affordable housing agreement at the May 15th meeting, there was insufficient time to accomplish that task. Staff met with the applicant on April 19th and May 3rd and with the Affordable Housing Committee on May 7th. Discussion The Affordable Housing Committee, the applicant, and staff have reached agreement on the main components of the project's affordable housing and resale agreements. The ultimate agreement will be similar to the one between Griffin Homes and the City. The City will generally use the terms of the Griffin Homes Affordable Agreement. Following is a list of these main agreement components which have been generally agreed upon: Project consists of 90 affordable condominium and 10 affordable detached single-family units and 85 market rate condominium and 100 market rate detached single-family units. The affordable sales price of a condominium unit shall be $120,000 and the affordable sales price of a detached unit shall be $180,000. Affordable condominium units will initially be available to first time home buyers with a combined maximum income for all household members of 110 percent or less of the Area Median Income. Affordable detached units will be available to first time home buyers with a combined maximum income for all household members of 125 percent or less of the Area Median Income. PAUL W. LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK Mayor Mayor Pro Tem Councilmember Councilmember Councilmember The Honorable City Council May 8, 1991 Page 2 In addition to income criteria, priorities for selection of eligible first time home buyers shall be as follows: 1. City residents who have lived in Moorpark for the past one year or more. 2. Persons employed within the City limits for the past one year or more. 3. All Ventura County residents Priority selection drawings shall be held for each phase of construction of units for Tracts 4726 and 4738. City has authority to determine the required number of selection drawings based on the construction phasing of the affordable units. If at the end of 60 days, after commencing sales for each construction phase of the affordable units, the Developer has not identified a sufficient number of buyers, who are target income households, to purchase all of the affordable units then available for sale, Developer shall be entitled to offer and sell the affordable units based on the following schedule: Affordable Condominium Units Days After Income First Time Home Commencing Sales Restriction Buyer Restriction 60 120 180 240 125% or less of Area Median Income 150% or less of Area Median Income 110% or less of Area Median Income No home/property ownership for 5 years No home/property ownership for 5 years No home/property ownership for 1 year No restriction on No home/property income (Resale ownership for 1 year Agreement applicable) The Honorable City Council May 8, 1991 Page 3 Affordable Detached Units Days After Income First Time Home Commencing Sales Restriction Buyer Restriction 120 .N 150% or less of Area Median Income 125% or less of Area Median Income No home/property ownership for 5 years No home/property ownership for 1 year No restriction on No home/property income (Resale ownership for 1 year Agreement applicable) Developer shall phase project construction so that affordable condominium and exempt condominium units are constructed and available for occupancy on a ratio of at least one affordable condominium unit built for every one exempt condominium unit built, and so that at least one affordable detached unit is constructed and available for occupancy in conjunction with construction of every twelve exempt detached units. That there will be a set ratio of the number of detached homes that may be constructed vs. the number of affordable condominiums that are built. Developer agrees to pay one half of the closing costs not to exceed 1 percent of the sales price. City shall carry a second trust deed of $12,000 for the affordable condominium units and a second trust deed of $30,000 for the affordable detached units, representing the difference between the developer's agreed upon base selling price ($132,000 for condominium and $210,000 for detached units) and the selling price under this program ($120,000 for condominium and $180,000 for detached units). City can increase the amount of the Second Trust Deed if it desires to cover any costs incurred by the City in closing the escrow and/or loan buy -down and it's related costs. The Honorable City Council May 8, 1991 Page 4 No interest payments shall be required on the City held second trust deed for 5 years unless the home is sold, default occurs, or there is a violation of the Program rules. Shared appreciation for the affordable condominium units shall be as follows: Years 1-5 -- 10 percent of that sum of money in excess of $132,000 minus the City's proportional share of any real estate commission on the sale. Years 6-15 -- 5 percent of that sum of money in excess of $132,000 minus the City's proportional share of any real estate commission on the sale. Shared appreciation for the affordable detached units shall be as follows: Years 1-5 -- 14 percent of that sum of money in excess of $210,000 minus the City's proportional share of any real estate commission on the sale. Years 6-15 -- 10 percent of that sum of money in excess of $210,000 minus the City's proportional share of any real estate commission on the sale. Years 16-30 -- 5 percent of that sum of money in excess of $210,000 minus the City's proportional share of any real estate commission on the sale. The City may unilaterally change this agreement so long as it does not directly effect the developer. An example would be changes to the Deed of Trust or a less restrictive buyer qualification. Subsequent to approval of Tentative Tract Maps Nos. 4726 and 4738 and Residential Planned Development Permits Nos. RPD-90- 2, 90-3, and 90-4, the City shall schedule a public hearing before the City Council to consider granting Developer surplus Residential Development Management Allocations from prior years for all of the Project condominium and detached housing units. City will also consider any other eligible projects at this special hearing for surplus development allocations. City agrees that no action will be taken by the City Council to rescind all or part of any Residential Development Management Allocations granted for the Project within thirty- six (36) months after award of the development allotments. The Honorable City Council May 8, 1991 Page 5 Developer agrees to provide full paveout along the south side of Los Angeles Avenue between the easterly Project boundary and Liberty Bell Road, to provide full paveout between the westerly Project boundary and Belltramo Road, and to provide full intersection improvements (may include curb and gutter and sidewalk west of Maureen Lane) to correct the drainage problem that exists at Maureen Lane. This may include some needed right-of-way. Recommendation 1. Approve in concept the identified main components of the affordable and resale agreements of the Project. 2. Allow Project to proceed to Planning Commission for public hearings on entitlement requests. That the Affordable Housing Agreement be in final form prior to any City Council public hearing regarding these entitlement proposals. PJR/DST • � ♦ R IdE=,TLtif, WeStlana company - —.. 'fit lc5h-j`'FI:_1l_i ; - May 15, 1991 Mr. Pat Richards Planning Di ector City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 RE: May 8th Memorandum to City Council on Westland Project GPA-90-1 Z-90-2 Dear Pat: We are in basic agreement with the provisions as outlined in the above referenced memorandum to the City Council and feel that this memorandum can serve as the outline for the final document. Sinc rel --Glenn Hart General Partner GH/ps:A49