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<br />Honorable Mayor and Members of the City Council: <br /> <br />BACKGROUND <br /> <br />The Stoneridge Condominium project, located at 6250 Stoneridge Mall Road, is a 520 <br />residential unit project approved by the City in the 1980's and constructed in 1988. Although <br />approved as a condominium project, the then project owner did not intend to sell the units <br />individually. Moreover, the City also required that 78 of the 520 units be designated as lower <br />income units and rented for 10 years to lower income households. Even though that requirement <br />expired in 1998, the units in the project have continued to be rented. <br /> <br />Recently, representatives of the current owner (Stoneridge Associates) contacted City staff <br />indicating that the owner now wishes to begin selling the individual units. Concerned about the <br />loss of 520 rental nnits within the City, staff entered into negotiations with the owner's <br />representatives concerning the sale of these units. Those negotiations have led to the attached <br />Affordable Housing Agreement. <br /> <br />DISCUSSION <br /> <br />The salient terms of the Agreement are: <br /> <br />Affordable Housing <br /> <br />The owner will provide affordable nnits consistent with the City Home Ownership Assistance <br />Program as follows: <br /> <br /> Number of Units Sales Price <br />Unit Types Low Income ~oderateIncome Low Income ~oderate Income <br />Studio 3 0 $180,000 N/A <br />One Bedroom 4 20 $197,000 $298,000 <br />Two Bedroom 3 5 $221,000 $336,000 <br />Total 10 25 <br />Total All Units 35 <br /> <br />The sales price for these units is very favorable when compared to the projected sales price for <br />these units as market rate. For example, the studio units are projected to sell at $257,000, the <br />one bedroom units at $335,000, and the two bedroom units at $489,000. <br /> <br />The owner shall assume responsibility for marketing and selling the low and moderate <br />affordable units consistent with City guidelines. The City will conduct a public lottery for the <br />purpose of establishing the order that applications will be considered. For financing purposes of <br />the affordable units, the owner may use its preferred lender, provided purchasers have the option <br /> <br />SR:6:162 <br />Page 2 <br />