HomeMy WebLinkAboutAGENDA REPORT 2006 1206 CC REG ITEM 10MnlEm 10-M.
MOORPARK CITY COUNCIL+ •._
AGENDA REPORT
To: Honorable City Council
From: Nancy Burns , Senior Management Anal st
Date: November 20, 2006 (CC Mtg. of December 6, 2006)
Subject: Approve Shea Homes Amendment to Affordable Housing
Purchase and Sale Agreement
BACKGROUND
The City Council approved an Affordable Housing Purchase and Sale Agreement
July 7, 2006, to specify the provision of low income units in Tract 5133, a market rate
project developed by Shea Homes.
DISCUSSION
The Affordable Housing Purchase and Sale Agreement stipulated that the Developer
would pay the buyer's closing costs for each affordable unit, to a maximum of
$6,000.00 per unit. Financing arranged by the City's consultant, Cabrillo Economic
Development Corporation (CEDC) through Neighborhood Housing Services of
America (NHSA) provided that the lender (Citibank) will contribute $3,000.00 per unit
toward each low income buyer's non - recurring closing costs.
First Time Home Buyers who closed escrow approximately 1'/2 years ago have
received notices of assessment of their affordable units at $360,000.00 (estimated
market value at time of sale). The Affordable Sales Price paid by the buyers was
$158,000.00. In the event that the units in Canterbury Lane that are in escrow now
are similarly assessed, this amendment will allow all or a portion of the Developer's
$6,000.00 contribution to be used to pay a portion of the increased property tax for a
maximum of 2 years.
STAFF RECOMMENDATION
Approve Amendment to Affordable Housing Purchase and Sale Agreement, subject
to final language approval by City Attorney and City Manager, and direct the City
Clerk to send the Amendment for recordation.
,jR
RECORDED AT REQUEST OF:
CITY OF MOORPARK
WHEN RECORDED MAIL TO:
City Clerk's Division
799 Moorpark Avenue
Moorpark, CA 93021
EXEMPT FROM RECORDER'S FEES
Pursuant to Government Code § 6103
(FOR RECORDER'S USE ONLY)
AMENDMENT TO
AFFORDABLE HOUSING PURCHASE AND SALE AGREEMENT
BY AND BETWEEN
THE CITY OF MOORPARK
AND
SHEA HOMES, LIMITED PARTNERSHIP
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AMENDMENT TO
AFFORDABLE HOUSING PURCHASE AND SALE AGREEMENT
This amendment to the Affordable Housing Purchase and Sale Agreement dated
July 7, 2006, by and between Shea Homes, Limited Partnership, and the City of
Moorpark and recorded as Document No. 20060717 - 0150613, is made and entered into
this day of December 2006 by and between SHEA HOMES, LIMITED
PARTNERSHIP (hereinafter referred to as "Developer "), and the City of Moorpark
( "City ").
WITNESSETH
WHEREAS, DEVELOPER and CITY entered into An Affordable Housing
Purchase and Sale Agreement ( "Agreement ") on July 7, 2006; and
WHEREAS, said Agreement stipulates the provision of affordable dwelling units
within Tract 5133, consistent with California Health and Safety Code sections as cited in
Agreement and the Conditions of Approval of this project, as defined in said Agreement;
and
WHEREAS, said Agreement further specifies additional requirements related to
the transfer of ownership from Developer to the low income buyers; and
WHEREAS, Section 4.6 of said Agreement stipulates that Developer shall pay all
of the buyer's closing costs for each of the low income buyers, not to exceed Six
Thousand Dollars ($6,000.00) per unit, with provision for an annual increase in said
amount by the percentage increase in the Consumer Price Index (CPI) for all Urban
Consumers for Los Angeles /Orange County /Riverside metropolitan area during the prior
year, beginning October 2007; and
WHEREAS, additional resources have been identified to assist low income
buyers with escrow closing costs, and such resources include a maximum of Three
Thousand Dollars ($3,000.00) per affordable unit; and
WHEREAS, in the event that property tax assessed on the affordable units is
based on a higher valuation than that for which said affordable units may be sold, the
property tax burden to low income buyers will be increased substantially.
NOW, THEREFORE, IT IS AGREED by and between Developer and City as follows:
SECTION 4.6 of the herein referenced Agreement shall be amended by adding
the following text : Developer further agrees that any of the aforementioned $6,000.00
per unit not needed for escrow costs (as such may be increased per this Section 4.6)
will be refunded out of escrow to City and will be used by City to reimburse the initial
buyer for payment of property taxes for regular and supplemental property tax payments
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due on or before December 30, 2008, for such taxes that exceed one per cent (1 %) of
the Affordable Sales Price paid by the buyer.
City agrees to provide Developer with an accounting of all property tax payments made
pursuant to the above paragraph for each unit by March 31, 2009, and to refund any
balance for each unit to Developer by June 30, 2009.
Except as expressly amended herein, the remaining provisions of the Agreement are
and remain in full force and effect.
CITY:
CITY OF MOORPARK
Patrick Hunter
Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
City of Moorpark
799 Moorpark Avenue
Moorpark, California 93021
DEVELOPER:
SHEA HOMES, LIMITED PARTNERSHIP
a California limited partnership
BY: J. F. Shea, L.P.,
a Delaware limited partnership
Its General Partner
By: JFS Management, L. P.
a Delaware limited partnership
Its General Partner
BY: J. F. Shea Construction
Management, Inc.,
a Delaware corporation
Its General Partner
By:
Carol A. Ryan
Its: Assistant Secretary
In
David Lauletta
Its: Assistant Secretary
Shea Homes, Limited Partnership
30699 Russell Ranch Road, Suite 290
Westlake Village, California 91361
Attn: David Lauletta, Asst. Secretary