Title
Human Services Department, Community Services Division, recommending the Director of said Department, or successor, be authorized to sign Amendment I to the Affordable Housing Agreement (Developer's Agreement) with Lesarra Attached Homes, LP to reduce the down payment required by the affordable home buyer from 5 percent to 3 percent and to change the property tax rate from a not to exceed amount of 1.04% to a not to exceed amount of 1.25% of the purchase price.
RECOMMENDED ACTION: Approve.
Body
BUDGET SUMMARY:
Total Estimated Cost $0.00
Funding
Budgeted $
New Funding $
Savings $
Other $
Total Funding Available $
Change To Net County Cost $0.00
Fiscal Impact/Change to Net County Cost: No change.
Reason for Recommendation:
On December 5, 2006 the Board approved a format for an Affordable Housing Agreement (Developer’s Agreement) to be used to encourage affordable housing projects and preserve affordable housing units. The Developer’s Agreement was initially prepared to meet requirements set forth by the Planning Commission for the Lesarra Attached Homes, LP. project which provides twelve units of affordable housing to first-time homebuyers with incomes in the moderate income level for a period of no less than twenty years. The Developer’s Agreement with Lesarra Attached Homes, LP was executed on December 19, 2006 as authorized by the Board. Currently, buyers of market rate units provide an average down payment of 5 percent based on the purchase price. It has now been determined that homebuyers with income levels in the moderate range can be reasonably expected to provide only a 3 percent average down payment based on the purchase price of an affordable unit in this Project. A revision to the property tax rate changes the maximum not to exceed rate from 1.04% to 1.25% in the Developer’s Agreement to more closely reflect current property tax rates. Risk Management and County Coun...
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