HomeMy WebLinkAboutAgenda Statement 1984/12/18 Item 21 COUNCIL AGENDA STATEMENT
Item 21
Meeting Date 12/18/84
ITEM TITLE: Resolution //( Approving a Memorandum of Understanding with
Gardner Investment Properties relative to Chula Vista Woods Subdivision
SUBMITTED BY: Community Development Director t (4/5ths Vote: YES NO X )
REVIEWED BY: City Manager
The Chula Vista Woods tentative subdivision map was approved by the City Council
on November 20, 1984. During the discussion, the Developer offered to impose
certain ownership requirements upon purchasers of the housing units. A Memorandum
Of Understanding (MOU) has been prepared which specifies those requirements.
RECOMMENDATION: Adopt resolution approving a Memorandum Of Understanding between
the City of Chula Vista and Gardner Investment Properties, developer of Chula Vista
Woods Subdivision.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
During the tentative map public hearing, the Developer offered to provide mechanisms
which would guard against speculative purchase of the project units. What has been
proposed is language in the home purchase agreements requiring the buyer's statement
of intent to be an owner-occupant for a minimum of two years. The MOU calls for
the Developer to secure an affidavit from each unit buyer which states that:
1 . The Mortgagor intends to occupy the home as his or her principal
residence within not to exceed sixty (60) days after final closing.
2. The Mortgagor intends to maintain the home as his or her principal
residence for not less than two (2) years.
On project units financed with mortgages from the City's Single-Family Mortgage
Revenue Bond Issue, approximately 70% of the Project, such an affidavit is
required by Federal Law. Falsification of the affidavit constitutes perjury, and
falsification or failure to maintain the home as principal residence for two years
results in the trust deed being immediately due and payable. Therefore, the City
has assurance that the primary residence requirement will be exacted and enforced
on the bond issue units.
The remainder of the project units would be sold with primary residence affidavits
as a result exclusively of the MOU. Enforcement of the primary residence clauses
would have to be a matter of buyer good faith and the weight of a sworn affidavit.
No financial benefit exists which can be withdrawn to gain compliance, as with
bond-funded units. The strength of the proposed mechanism is to rely upon the
Developer and his agents to initially screen and enforce against non-owner-occupants
and investors, as the Developer has volunteered to do.
FISCAL IMPACT: No expenditure of funds is necessary.
DKG:rd
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