REPORT TO COUNCIL
SUBJECT
Title
Action on an Amendment to an Affordable Housing Agreement with Legend SantaClara, LLC for Condominium Housing at 1890 El Camino Real and Delegation of Authority to the City Manager to Execute Basic AHAs.
Report
BACKGROUND
On September 27, 2016, the City Council approved land use entitlements for a 56-unit condominium housing project submitted by Legend GC, Inc., for the property located at 1890 El Camino Real. The property and entitlements were transferred to Legend SantaClara, LLC who is the developer. The City's inclusionary housing policy, at the time, required private development projects with more than 10 units to include 10 percent of new housing units as affordable. As a condition of the land use entitlements, the developer was required to enter into an Affordable Housing Agreement (AHA) to designate 10-percent of the total units (i.e. 5.6 dwelling units) as Below Market Purchase (BMP) units to be sold to qualified first-time homebuyers at an affordable price based upon the Area Median Income (AMI).
On May, 22, 2018, the Developer and the City entered into an Affordable Housing Agreement (AHA) which was recorded on June 26, 2018. The condominium sales prices in this agreement were based on the 2018 AMI levels.
A fire at the project in 2019 delayed construction for several years. Construction has since resumed and the parties wish to amend the original AHA to update the BMP unit sales prices so they align with current 2022 area median income levels. The BMP housing units will be sold at prices deemed affordable to households with incomes that do not exceed 110% of AMI. The resulting Affordable Sales Prices will be $401,000 for two 1-bedroom, 1-bath BMP units and range from $441,000 to $509,000 for three 2-bedroom, 2-bath BMP units. See Attachment 1 for the developer's signed amendment to the agreement. All other terms of the Original Agreement will remain unchanged in full force and effect.
DISCUSSION
Approval ...
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