HomeMy WebLinkAboutAgenda Statement 1986/01/21 Item 10 COUNCIL AGENDA STATEMENT
Item 10
Meeting Date 1/21/86
ITEM TITLE: Resolution �a � Approving Housing Cooperation Agreement
with Financial Scene, Incorporated for Affordable Housing Units
SUBMITTED BY: Community Development Directoroths Vote: Yes No X )
REVIEWED BY: City Manager
On January 8, 1985, the City Council established in Resolution No. 11895, as a
condition of approval of the Beacon Cove residential project on East "H"
Street in the Terra Nova Subdivision, a requirement that an agreement be
entered into between the City and Financial Scene, Incorporated, the
owner/developer, providing for the delivery and maintenance of 20% of the
dwelling units of the project for occupancy by low income households for ten
years. The delivery and maintenance of those units is intended to satisfy, in
part, the affordable housing obligation of the entire Terra Nova Subdivision.
The project is nearing completion of construction and the required agreement
has been prepared.
RECOMMENDATION: That the Council adopt the resolution approving the Housing
Cooperation Agreement with Financial Scene, Incorporated controlling occupancy
of certain units of Beacon Cove residential rental project.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION: The Housing Cooperation Agreement formalizes the housing
benefit conditions offered by the property owner and accepted by the Council
at the approval of the project' s development plan. The agreement will require
the developer to provide 20% of the 177-unit project, or 35 units, for
occupancy by lower income households for ten years. Additionally, the
agreement will establish a monitoring system to assure compliance with that
requirement.
The Housing Cooperation Agreement is substantially similar to others executed
between the City Coucil and housing project developers. In summary, the main
points of the agreement are as follows:
1 . 20% of the units, or 35 units, are reserved for low-income occupancy.
Twelve of the restricted units will be one-bedroom units and 23 the
restricted units will be two-bedroom units. This is roughly proportional
to the total project distribution of one- and two-bedroom units.
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Chula Vista, California
Dated 7- /
Page 2, Item 10
Meeting Date 1/21/86
2. The rent for the restricted one-bedroom units will be no more than 30% of
the monthly income of a two-person household making 80% of the area median
income. At the existing median income figures for the San Diego region,
the current maximum allowable one-bedroom rent would be $458.00.
The rent for the restricted two-bedroom units will be no more than 30% of
the monthly income of a four-person household making 80% of the area
median income. At the existing median income figures for the San Diego
region, the current maximum allowable two-bedroom rent would be $573.00.
3. If the property owner offers proof that a diligent effort to lease the
restricted units to households has not yielded eligible tenants, a
temporary waiver of the unit restriction can be granted by the City
Manager.
4. The property owner will obtain supplemental rental agreements and income
verifications from each tenant of a restricted unit and will retain those
documents for two years after that tenant' s occupancy ceases.
5. The property owner will submit semi-annual certified rent roles to the
City disclosing occupancy information on the restricted units. If the
City reasonably suspects discrepancies, an audit can be required at the
owner' s expense.
The Housing Cooperation Agreement will be recorded against the subject
property and will bind any successors to the property owner for the ten-year
term.
FISCAL IMPACT: Monitoring of the property owner' s compliance with this
agreement will involve small amounts of staff time.
WPC 2053H
Attachment
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