REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment to Covenants, Conditions, and Restrictions for Casa del Rey Homeowner Association Located at 1303 Karmen Court
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The City’s subdivision ordinance, Santa Clara City Code (SCCC) Chapter 17.05, provides that the City shall review draft declarations of covenants, conditions and restrictions (CC&Rs) for proposed subdivisions. One common provision in such CC&Rs provides that if a homeowners’ association (HOA) subsequently proposes to amend its CC&Rs, the HOA must first file the amendment with the City Council, which then has an opportunity to veto the proposed amendment. If the Council takes no action, the amendment automatically becomes effective, 60 days after filing.
This item concerns proposed amendments to the CC&Rs for the Casa Del Rey HOA, a 40-townhome development located at 1303 Karmen Court. The Council previously considered the CC&Rs at the May 10, 2022, Council meeting, after resident Keith Stattenfield, submitted a written petition to address proposed revisions recommended by the City Attorney’s Office (CAO). The agenda report from the May 10th meeting is attached, which contains a full history of this matter. The question at the May 10th meeting was whether to require the HOA to make the two revisions to the CC&Rs recommended by the CAO. At the conclusion of the hearing, the Council voted to inform the HOA that revisions consistent with the CAO’s direction would be required.
When City staff notified Mr. Stattenfield of the result of the May 10th hearing, he responded that he had not received any notification of the hearing and requested that it be agendized again.
DISCUSSION
The City Council and City staff have already devoted a significant amount of time to the CC&Rs of this HOA. Rather than take up additional Council time at another meeting, the CAO asked the HOA whether it would be willing to submit the two requested revisions to its homeowners at the time of its next board election, which will take place within two years. In exchange, the CAO would support adopting the CC&Rs with no revisions in the interim, and place the item on the Council’s consent calendar, like most CC&R revisions. This would likely achieve the City’s goals within two years without taking the time to conduct an additional hearing.
On June 8, 2022, the attorney for the HOA indicated that the HOA Board of Directors had voted in support of the compromise. If the Council approves the CC&Rs, the HOA will record the CC&Rs in their current form, and then submit the CAO’s revisions to the homeowners at its next election. Assuming the homeowners vote in favor of those revisions, the HOA would then record the revised CC&Rs shortly thereafter.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Quality Act (CEQA) Guidelines 15378(a) as it has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable change in the environment.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative staff time and expense typically covered by processing fees paid by the applicant.
COORDINATION
This report was coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Approve two versions of the proposed amendments to the CC&Rs for the Casa del Rey Homeowner Association: (1) the version originally proposed by the HOA, for immediate recordation, and (2) the version containing the two revisions required by the CAO; with a condition that the HOA shall submit the second version for a vote to its residents at its next board election.
2. Veto the proposed amendments to the CC&Rs as proposed by the HOA, and require the HOA to make the two revisions required by the CAO prior to recordation.
3. Direct staff to schedule an additional hearing on this matter.
RECOMMENDATION
Recommendation
Alternative 1:
Approve two versions of the proposed amendments to the CC&Rs for the Casa del Rey Homeowner Association: (1) the version originally proposed by the HOA, for immediate recordation, and (2) the version containing the two revisions required by the CAO; with a condition that the HOA shall submit the second version for a vote to its residents at its next board election.
Staff
Reviewed by: Andrew Crabtree, Director of Community Development
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. May 10, 2022 Council Agenda Report
2. September 10, 2021 Cover Letter from HOA Attorney
3. Amended and Restated Declaration of Covenants, Conditions and Restrictions
4. Nov. 29, 2021 memorandum listing revisions required by CAO
5. Site Map