SR 06:078 - Laserfiche WebLink

Steven Bocian commented on the resale restrictions. He stated that I) the City can purchase the home, 2) the owner can sell the home to an eligible buyer, or, 3) the City can sell the home to an eligible buyer. The City has experience with options 2 and 3. Most recently, the City conducted a "mini-lottery" for a resale, Commissioner Hodgett asked if there was a limitation on the ability of the owners to refinance the property, Steven Bocian stated that they can refinance the property, but overall debt is limited to 90% of the maximum resale price (not the market price). Chairperson Stark asked staff to schedule a workshop regarding the pertinent documents that are used with these transactions. Steven Bocian stated that staff will provide copies of all of the documents as an informational item on the next agenda. John McMorrow of Silverstone Communities made a presentation. Mr. McMorrow clarified for the Commission the meaning of "commercially reasonable efforts." He indicated that it is a legal term that means the best efforts will be used to hold and sell these units. What typically happens is that they release units in lots of twelve and price them to sell in a weekend. If the "affordable by design" units do not sell that weekend, they will be held open for 30 days. However, from his experience he does not believe it will take long to sell those units. Mr. McMorrow states that he supports the adjustment based on the AMI so it will be perceived as an investment. They have looked extensively at the density, and would like to increase it, but there are significant impediments related to the shape and orientation of site. A neighborhood meeting was held, and even with this size project, there are concerns among neighbors regarding traffic and parking. He is convinced that from both a physical and a practical standpoint, they have maximized the density for this site. Vice Chairperson Harris asked what the "affordable by design" units will sell for. Mr. McMorrow estimated that will probably sell for approximately $500,000, but that price may change. Chairperson Stark thanked Mr. McMorrow for attending the meeting and working with staff on details. He acknowledged the effort to provide more low-income units versus moderate-income units, It was moved by Vice Chairperson Harris, seconded by Commissioner Jones, that the Commission recommend approval of the Affordable Housing Agreement to the City Council. Chairperson Stark suggested amending the motion to include a recommendation that the City Council consider increasing the density. Vice Chairperson Harris indicated heswanted to put that into a separate motion as the Commission is only being asked to approve the agreement. Chairperson Stark retracted his amended motion, Page - 6 -