HomeMy WebLinkAboutAGENDA REPORT 2013 1204 CCSA REG ITEM 09A ITEM 9.A.
env OF MOORPARK,CALIFORNIA
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MOORPARK CITY COUP CI
AGENDA REPORT
To: Honorable City Council
From: David C. Moe II, Redevelopment Manager voik''
Date: November 20, 2013 (CC Meeting of 12/4/13)
Subject: Consider Amending the City's First Time Home Buyer Program to
Limit the Number of Persons Allowed to Purchase and Take Title of
the Affordable Housing Unit
BACKGROUND
The City of Moorpark (City) has successfully assisted 57 low and very low income
families purchase homes through the City's First Time Home Buyer (FTHB) program
from January 2003 to April 2013. The majority of these homes, with the exception of
four, were provided by residential developers to satisfy the affordable housing
requirement of their development agreement with the City.
As a direct result of new home construction in the Moorpark Highlands and Canterbury
Lane housing projects, 25 low income affordable units will become available through the
City's FTHB program. The first of these units will be ready for occupancy starting in the
spring of 2014 and continuing for the next few years. Staff has also met with TRI Pointe
Homes and City Ventures to discuss the construction of an additional 17 and 12,
respectively, affordable units as required by their approved development agreements.
DISCUSSION
During the process of identifying the first 57 buyers in the FTHB program, staff has
encountered the occasional situation of a non-married or unrelated couple/household
attempting to jointly purchase their first home through the FTHB program. Staff has
processed the unrelated first time home buyers the same as any other buyers in the
FTHB program, but has not encountered more than two unrelated or related people
trying to purchase a home together. Staff understands that two or more unrelated
people, or for that matter a married couple and one or more relatives may wish to jointly
purchasing a home together, but staff does have a concern allowing more than two
people to jointly purchase a home through the FTHB program.
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Honorable City Council
12/4/2013
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Staff's concern focuses mainly on the interest in the title of the property, even if title is
joint tenancy. For example, if four people purchased a home through the FTHB
program, each person would have a 25% interest in the property. If someone on title
moved out of the area for a new job, this would be a violation of the City's Affordable
Housing Resale and Refinance Restriction Agreement, because the unit would no
longer be the primary residence of the person who moved out of the unit. The person
who moved out of the affordable unit must be removed from title of the property and
from the City's FTHB program documents. The only way to accomplish this would be to
sell the unit and have everyone split the proceeds or the other owners could purchase
the 25% interest from the person who moved out (assuming the other owners have the
financial resources to purchase the 25% interest in the property).
In order to avoid situations of multiple ownership interest in a single property, staff
recommends the City Council establish a limit of two people jointly purchasing an
affordable unit through the FTHB program. Staff believes this action will help to prevent
the administrative burden of preparing new City documents each time a partial interest
of the property is sold due to an owner moving out of the unit.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
1. Approve a limit of no more than two persons for joint purchase of a home through
the City's First Time Home Buyers Program; and
2. Direct staff to amend City Council Policy No. 3.5 at the next update to reflect this
limitation.
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