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HomeMy WebLinkAbout2007-023 RESOLUTION NO. 2007-023 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO RETAIN 8985 CASON COURT IN THE CITY'S AFFORDABLE HOUSING INCLUSIONARY PROGRAM WHEREAS, 8985 Cason Court (Lot 16, Tract 2557) was incorporated into the City's Affordable Housing Inclusionary Program (Inclusionary Program) on June 29, 2004, prior to the implementation of the City's current equity sharing inclusionary program; and, WHEREAS, 8985 Cason Court was sold to the current owner on February 25, 2005 for the maximum price allowed by the Affordable Housing Standards of San Luis Obispo County plus closing costs; and, WHEREAS, the current owner now wishes to sell 8985 Cason Court, and the City Council desires that the unit be incorporated into the City's equity sharing inclusionary program and remain an affordable unit, restricted at the Moderate Income level; and, WHEREAS, the City Council has determined that the current owner has not refinanced or obtained additional loans that exceed the original selling price of 8985 Cason Court; and, WHEREAS,the City Council considered the purchase and re-sale of 8985 Cason Court at it public meeting on May 29, 2007; and, WHEREAS, the City Council does not desire to set precedent for converting all affordable units incorporated in the Inclusionary Program prior to implementation of the equity sharing Inclusionary Program; and, WHEREAS, the City Council has directed City staff to develop an ordinance and policies to resolve future conflicts between the pre-equity sharing inclusionary program and the current, equity sharing inclusionary program; and, WHEREAS, the City Council has determined that until such ordinance is adopted, the City Council reserves the right to review affordable units on a case by case basis and to enforce all provisions and regulations of existing affordable housing agreements; and, NOW THEREFORE, the City Council, hereby makes the following Findings: 1. 8985 Cason Court (unit) is a residential unit subject to the regulations and policies of the City's Non-equity Sharing Affordable Housing Inclusionary Program. 2. The current owner has not refinanced or obtained other financing that exceeds the original purchase price of the unit. 3. It is in the best interest of the City to retain the affordability of the unit in order to continue to provide affordable housing options within the City's jurisdiction. ow 4. Placing the unit within the equity sharing Inclusionary Program is in the best interest of the City and any future buyers of the unit because it allows both the City and the buyer to reduce the risks to the investment in the property. Resolution No. 2007-023 City of Atascadero Page 2 of 2 5. This action is not precedent setting and any future units at risk of converting to market rate will be reviewed on a case by case basis until such time as an ordinance addressing affordable housing is adopted. NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The City Council does hereby authorize the City Manager to purchase 8985 Cason Court for an amount not to exceed $325,000, including closing costs. SECTION 2. The City Council hereby authorizes the City Manager to sell 8985 Cason Court under the provisions of the City's current Inclusionary Housing Program, to a qualified buyer at the Moderate restricted price level. SECTION 3. The City Council hereby authorizes the Director of Administrative Services to appropriate $325,000 from the Inclusionary Housing Program In-lieu fees for the purchase of 8985 Cason Court. SECTION 4. The City Council hereby directs all proceeds from the sale of 8985 Cason Court to be returned to the Inclusionary Housing Program In-lieu fee fund. On motion by Council Member Beraud and seconded by Council Member Brennler, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: Council Members Clay, Beraud, Brennler and Mayor Luna NOES: None ABSENT: Council Member O'Malley ADOPTED: May 29, 2007 CI OF ATASC ERO By: vc�r,�� r. Geo e Luna, Mayor ATTEST: Marcia McClure Torgerson, C.M.0 City Clerk APPROVED AS TO"^ . r rr.r Patric L Enrich , Uty Attorney