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HomeMy WebLinkAboutOrdinance 1435 N.C.S. 09/15/1980s:`~ ~ ~:~ -. ~ QRDINANCE TABLED :, ;,. ~ Septem.ber 15, 1980 ORDINANCE N0.1435 N.C.S-. TNTRODI'1C'ED BY COUNC I LMAN COUNCILMAN BOND _ SECONDED BY COUNCILMAN AN ORDINANCE ADDING CHAPTER: 8.24_TO THE PETALUMA MUNICIRRL CODE,TO RROVIDE FOR REGULATION OF THE RESALE PRICE OF HOMES INCLUDED IN THE LOW AND MODERATE INCOME PROGRAM CREATED TNEREBY. PLKsmv 8-14-80 AUG 1 4 1980 ~ BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Chapter 8.24 as hereby added to the Petaluma Municipal Code to read as follows: "8.24 Resale of Low and Moderate Income Homes. 8.24.010 FINDINGS - The City Council of the City of Petaluma finds and decl.ares that: . (a) There is a scarcity,;of low and moderate cost housing in the City of Petaluma; and ( b) The Leg i sl~a>tu.r. e of 'the; State of. Cal i forni a has decl ared the provision of housing for all economic segments.of each community to be of great statewide importance; and ; (c) Facilitating the provision of and preserving the supply of low and moderate cost housing is a legitimate, public ~rpose reasonably rel ated to the promo~ti on of the publ i c health, safety and welfare; and (d). E~eonomic and political forces render a private solution to the housing shortage impossible and render a public solution mandatory; and -1- 1435 Y~ . .>=~ . PLK:mv 8-14-80 ~ ~ {e) I'n order to provide homes for sale which are at the low- and moderate-cost level such homes mus,t be priced at below the ~ prevailing market rate; and (f) In order to prevent losing low- and moderate-eost homes to the open market e`ach time one is resold, it is necessary to formulate a procedure to preserVe the low or moderate cost character of the home on resale; and - • (g) That the proposed resa,le price regulation imposed by this ordinance may be inherently ant~icompetiti~'e but nonetheless . necessary. ' 8.24.020. A. The City Council is hereby established as the Resale Price Review Board, established for the.purpose of administering the program which is the sabject ofi t'hi`s ordinance,. In the alternative, the Council may appoint a separa.te~Board, consta.tuted of five (5) members including a City Council member selected by the City Council~, a Planning Commissioner selected by the Planning Commission, and three (3) public members selected by~agreement-between the City Council member 'and Planning Commissioner so s;elected:. _Each applicant fo.r public membership must indicate his/her experience and interest in the housing needs of low- and moderate-income families. Selection shall reflect those persons best able to serve tiie City of Petaluma in its attem pts to meet housing needs of its citizens. B. The Resale Rrice Review Board shaJl have the following powers and duties: -~2- Ord. 14~3~5 ia ; PLK:mv 8-14-80 1. To establish a screeni'ng procedure and to screen all applicants for below market rate housing constructed in the City of Petaluma in conformance with the eligible purchase guidelines as established by Council resolution. 2. To review and comment upon any and all proposals to construct below market rate housing in the City of Petaluma. Any and all such proposals shall be referred to the Board prior to final action being taken by the appropriate legislative body. The Board shall refer its written comments relatave to any and all such proposals to the Ci ty Council ; 3. To mai'ntai n a pool of el i'g i bl e purcfiasers of bel ow market rate housing who may be designated purchasers from time to time upon the resale of a below market unit; 4. To determ,i:ne the prie:e on resal e,of each bel ow market unit subject to th'is ordinance pu"rsuant~ to Section 3 of ~ this ordinanceg; ` 5. To reco:rd such certificate or other evidence `of termination of the restrictions im posed by Section 3 of this ordinance pursuant to Sec-tion 8.24.050E in the event that neither ~ Ci`ty nor a designated ~xarchaser wishes to purchase a below market rate unit; 6. To monitor compliance with Section 8.24.050 of this Ordinanee and to refer to the City Counci'1 for appropriate action any persons violating the provisions of this chapter. -3- Ord~r 1435 ~ . PLK:mv 8-14-80 7. To survey quarterly the.range of prevaili;ng market rates of fo:r-sal.e homes in the City of Pe:taluma and to report in writi'ng its findings to the Ci'ty Council indicating a description.of homes by ty pe (including square footage, number of~ bed,rooms and ameni'ties inc.luded distinguishing one home from another as determined by the Board) and correspondi;ng preva;iling market pr:ice.; 8. Any and all powers granted to the Board by ordinance from time to time~:;~ 9. Any and all powers necessary and proper for the effective implementation of these powers,. 8.24.030. U pon recei pt of the survey pre'pared. by "tfie Board pursuant to Section 8.24.020 of thi;s~chapter, the City Co_uncil Shall adopt a resolution, quarterly, de"claring the ran:ge of prevail'ing market rates of for-sale homes by ty pe esta'blished by the ResaTe Fri,ce Review Board survey and corresponding prevailing market price. Each quarterly resolation so adopted sha11 repeal, by its terms, any and all previously ado:pted resolutions: 8.24.040. For the purposes of this or.di;nance, "below prevailing market rate unit" shall be housin,g units offered for sale in the City of Petaluma and o:ffered by the owner for inclusion~ in the program at a price below the corresponding prevailing market rate for homes; of t'hat type es.tabli.shed by resolution of the City Counci'1 pursuant to Section 8,24:030 of this Cha pter. 8.24.050. Included in the grant deed or~co.~enants, conditions or restrictions appli`cable. to any beTow prevaili''ng market rate unit shall. be the fol1owing: : -4= .' - ' • . . , Ord-. 14'35 PLK:mv 8-14-80 ' A. The owner of the unit, on its sa_Te; must fi~rst offer, for sale in writ~ing, the.unit ~to the City wfiich, withi~n siXty ,(60) days ~~ of the date of such offer. may elect'(but i;s not obligated to ~ elect)• either to pu,rchase the:unit or seleet a designee to pu rchase i t;: . Suc'h :el ecti on shal T. be~ ~ev i d`enced by the mai 1 i ng of a wri t~ten noti'ce to the own:er wi~th i n such ~s~i xty ( 60 ) days . B. The pu,rchase p"rice o.f the unit for the~ Ci~ty or its designee wi'Tl be (1)~ the ori;ginal price of the .home less the cost of improvements necessary to being the home into compliance with any and al l.app1 i cabl~:e: Gi ty ord i nance~s ~and U~ni form Codes ; mul ti pl i ed by; ('2') a faetor equa.l t'o the U, S. Bu reaa of Labor Statisties' Consumer Price Index for the San Francisco-Oakland ~ area for the month immedi;ately preced`i;ng the mon~th of the offer . . to the Housing Cor-porati'on of.the home fo:r sale divided by such Consumer Pri"ce I'ndex for the month the owner purchased such home; plus ,(3) the cost of° any su'bs.tantial improvement:s the .owner has made to the pro~pe'rty (other than ;norma:T u.pk'eep) and (4) al l sel l ing costs i`ncludi'ng, but not limited to; 'pre,payment penalties, termite work, and broke'rage fees. C, De:termination of °the. resale pri'ce under ,subsec~ti`on 5.b. shall be made by the Board and shall be conclu°sive. D. The owners.wilT refra;in from renti'ng the.unit except as consen°ted to by :tiiea~Board. Vi ol ati.on, o.f th'i s~ subsecti on shal l~ . , . , ., _ .. . . be and i;s..hereby.decl;ared'; an ~n.fraetion. Any owner viola,ting ~-~ thi_s subsection shall pay to the Caty a dail,y fi:ne ,equal to one-twentieth o:f one percent (1/20}.of 1~) of the amount which '~ ~. Ord. 1435 PLK:mv 8-14-80 would be the then current purchase price of the home determined pursuant to subsection B. hereof. Such fine shall commence upon the day the owner violates this subsection and continue until the viola tion is cured. E. In the event th'e City does not make an election Ew rsuant to subsection A. in a timely fashion, the offered home shall be free thereafter from the restrictions of subsections B. through D. and such restrictions thereupon sha1T be void and of no further force or effect. City shall record such certificate or other evidence of the termination of such restrictions as the homeowner.may'reasonably requir:e to clear such restrictions from the home's legal ti'tle. 8.24.060. Any person constructing ar developi°ng (hereinafter referred to as "developer"):below prevailing market r.a;te units shall submit covenants, conditi;ons: and re~stricti.ons applicable to such units for approval by the City of 'Petaluma. If a,pproved, sucfi person must submit to the City of Petal:uma evidence of recordation of any and all covenants, conditions and restrictions pri`or to the issuance of building permits for these units. 8.24.070. In the e~en.t that conditions, covenants and restrictions are not drafted or recorded for any below prevailing market rate unit(s), and the restriction enumerated in Section 8.24.050 are included in the grant deed for the below prevailing market rate unit, the developer of the below prevailing market rate unit(s) shall enter into an agreement with the City of Petaluma in,wh'ich the devel.oper agrees to place the restrictions enumerated in Section 8.24.050~of this Cha,pter in each grant deed for each below prevailing market rate unit. Such agreement - 6- ~ - oza. 1435 ~ .. - . " ' ~ ~~ , . ," ~ PLK:mv 8-14-80 , ~sha;ll be executed prior to the issuance of the building permit for any be~low prevailing market rate unit to which this Section appli,es," Section 2. If any sect.ions, subsection, sentence, claase or phrase or word of this_ordinance is for any reason held unconstitutiona1 by a court of competent..,j:u~ri~sdict`ion, -such deci:si:on shall not affect the validity of the remaini.ng 'portions of of this ordi'nance. The City Council of the City of Peta.luma.hereby declares that~~i~t wquld have passed and adopted th'i~s ordi.nance and eacti'-and al~l'.provisi:ons thereof irrespective of the fact that any one or more of said provisions be declared unconst'itutional:~ ~' ~~~ - ~. ~ Section 3. The City C.lerk be, and she is hereby,, directed to post/publish th'is ordin;ance for the peri.od and in the manner required by the City Charter. INTRODUGED AND ORDERED ~/ ublish~ thi.s `18thday of August , 1980. ~ TABLED. ~j~~~ th15 15 th d'ay of Se~tember ~ 1980, by the fo11 owi ng vote : AYES: Harberson, Bond, Balshaw:,. Ma•yor Mattei NOES: Perry, Vice Mayor B:a.t:taglia, Councilman Cavanagh ABSENT: None Attest: Gi ty~ Cl_erk Mayor Approved.: . City Attorney -7- O.RD. N0. 1435 N.C.S.