HomeMy WebLinkAboutResolution 2010-015 RESOLUTION NO 2010-015
aw RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ESTABLISHING A PROVISION
FOR SHORT SALES IN THE MODERATE INCOME
AFFORDABLE HOUSING PROGRAM
WHEREAS, the Atascadero General Plan and Housing Element recognize the importance
of providing a range of affordable housing units for the residents and employees of Atascadero, and,
WHEREAS, the City of Atascadero has adopted an inclusionary housing policy that
requires certain development projects to provide 20% of the dwelling units as deed restricted
affordable units, and,
WHEREAS, the City has approved projects with over 200 mclusionary units as a condition
of development; and,
WHEREAS, the City created an equity sharing program for moderate income inclusionary
housing units that permit the units to be converted to market rate units, and,
WHEREAS, a severe national recession occurred in 2008 with significant impacts on the
value of housing and the construction industry; and,
WHEREAS, a reduction in home values may impact the program and the ability of
Program Participants to sell their homes, and,
WHEREAS,the City's Program objective is to assist moderate-income households in home
ownership, and not to unreasonably prevent home sales due to the households' lack of ability to
repay the City's loan on the home due to decreased home values and demonstrated financial
hardships of moderate-income households.
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of
Atascadero
SECTION 1. Program Participants that can demonstrate financial hardship and have
suffered a loss of income, a serious medical condition, death of a Participant, or other hardship may
petition the City to short sell their home and may request partial or complete relief of the City
Program loan,
SECTION 2. Program Participants requesting relief through short sale will be subject to a
Financial Means Test which will include an analysis of debt to income ratio, assets and liabilities,
and demonstrated hardship;
SECTION 3. Program Participants will be required to submit documents as requested by
City for the purpose of determining qualification of relief;
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City of Atascadero
Resolution No. 2010-015
Page 2 of 2
SECTION 4. City will evaluate the petition in accordance with established Financial
Means criteria. Based on the established Financial Means criteria, the City Manager or designee
may make a determination to forgive an amount up to the total Program loan amount as a result of
the short sale,
SECTION 5. In the event of an approved short sale, the Program Participant will remain
responsible for paying off the principal mortgage loan, property taxes, payoff interest on the
principal mortgage loan, any excess real estate sales commission above 6%, and any other costs not
specifically identified above as being the responsibility of the City In extreme financial hardship
cases where foreclosure is imminent,the City Manager may waive this requirement.
SECTION 6. City Manager or designee is authorized to execute all documents required for
execution of the short sale.
On motion by Council Member O'Malley and seconded by Mayor Fonzi the foregoing
Resolution is hereby adopted in its entirety on the following roll call vote
AYES Council Members Beraud, Clay,Kelley, O'Malley and Mayor Fonzi
NOES None
ABSENT None
ADOPTED- March 23, 2010
CITY OF ATASCADERO
By- 9/-�j-/1— � , :L-1,
Roberta Fonzi,Mayor
ATTEST
Marcia McClure Torgerson, C.M.C.,
City Clerk
APPRO AS TO M.
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Brian A. Pienk, City Attorney
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