HomeMy WebLinkAboutOrdinance 2625 N.C.S. 10/02/20171
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EFFECTIVE DATE
OF ORDINANCE
November 2, 2017
Introduced by
Kathy Miller
ORDINANCE NO. 2625 N.C.S.
Seconded by
Dave King
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL DOCUMENTS RELATING TO THE ASSIGNMENT AND EXERCISE OF REPURCHASE OPTION
FOR 1008 MADISON STREET (A.P.N. 007 - 650 -002), TRANSFER OF THE LAND TO THE HOUSING LAND
TRUST OF SONOMA COUNTY AND SALE OF THE IMPROVEMENTS TO A QUALIFIED BUYER SUBJECT TO
AFFORDABILITY RESTRICTIONS AND AN AFFORDABILITY AGREEMENT WITH THE HOUSING LAND TRUST
TO MAINTAIN THE PROPERTY IN PETALUMA'S FIRST TIME HOMEBUYER PROGRAM
WHEREAS, since 1985 the City Council has developed housing goals to address the broad
range of housing needs within the community, including the City's initial General Plan Housing
Element; and
WHEREAS, the City Council adopted the 2015 -2023 General Plan Housing Element on
December 1, 2014 pursuant to Resolution No. 2014 -190 N.C.S., including several programs to
promote the development of affordable housing; and
24 WHEREAS, the City's First Time Homebuyer program was established as a silent second
25 mortgage program under which the City would subsidize approximately 30 -40% of the sale of
26 the unit without re -sale restrictions on the property; and
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28 WHEREAS, since 1988, the City, in partnership with nonprofit developers, has helped build
29 169 units of for -sale housing for first time homebuyers, and has provided homeownership to 287
30 families, including initial sales and re- sales; and
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32 WHEREAS, in 2008, with the downturn of the real estate market, the City lost over 20 First
33 Time Homebuyer properties to foreclosure, and currently lacks funds to maintain the First Time
34 Homebuyer Program in its current form; and
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36 WHEREAS, Policy 4.3 of the Housing Element in the City's General Plan calls for helping
37 facilitate the entry of low and moderate income households into the housing market by
38 partnering with the Housing Land Trust; and
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Ordinance No. 2625 N.C.S. Page 1
1 WHEREAS, the City's previous First Time Home Buyer subdivision, Frates Square, was built in
2 partnership with Housing Land Trust of Sonoma County, which uses ground leases to keep homes
3 affordable in perpetuity, subject to resale restrictions on the price of the home through donation
4 of land to the Housing Land Trust as an inclusionary requirement of the developer; and
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6 WHEREAS, where appropriate market conditions exist, through coordination with Burbank
7 Housing, which holds repurchase options for the City's First Time Homebuyer properties, and the
8 Housing Land Trust, it is possible to maintain properties affordable within the First Time
9 Homebuyers program through assignment of repurchase and mortgagor rights to the City,
10 repurchase of the property by the City through application of the mortgage value, grant of the
11 land to the Housing Land Trust and sale of the home to a qualified buyer subject to affordability
12 restrictions and an affordability agreement between the City and the Housing Land Trust; and
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14 WHEREAS, Section 46 of the Petaluma City Charter provides that certain City Council
15 actions must be taken by ordinance, including certain actions for acquisition, sale or lease of
16 real property;
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18 NOW, THEREFORE, be it ordained by the council of the City of Petaluma as follows:
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20 SECTION 1: The City Manager is hereby authorized and directed to execute all
21 documents relating to the assignment and exercise of repurchase option for 1008 Madison
22 Street, (A.P.N. 007 - 650 -002) ( "Property ") and transfer of the land to the Housing Land Trust of
23 Sonoma County and sale of the improvements to a qualified buyer subject to affordability
24 restrictions and an affordability agreement with the Housing Land Trust to maintain the Property
25 in Petaluma's First Time Homebuyer Program.
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27 SECTION 2: The City Manager is hereby authorized and directed to execute on behalf of
28 the City documents substantially in accordance with those attached as Exhibit A to this
29 ordinance, and /or revised versions of such documents and /or additional documents as may be
30 recommended and approved by the City Attorney to accomplish the repurchase of 1008
31 Madison Street to maintain affordability of the property as part of the City's First Time Homebuyer
32 program consistent with the purposes of the City's General Plan Housing Element, the First Time
33 Homebuyer Program and this ordinance.
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35 SECTION 3: If any part of this Ordinance is for any reason held to be unconstitutional,
36 unlawful or otherwise invalid by a court of competent jurisdiction, such decision will not affect
37 the validity of the remaining parts of this Ordinance. The City Council of the City of Petaluma
38 hereby declares that it would have passed and adopted this Ordinance and each of its
39 provisions irrespective of any part being held invalid.
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Ordinance No. 2625 N.C.S. Page 2
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SECTION 4: The City Council finds that this Ordinance is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Section 15060(c) (2) of the CEQA Guidelines
because the activity has no potential for resulting in a direct or reasonably foreseeable indirect
physical change in the environment, and pursuant to Section 15060(c)(3) of the CEQA
Guidelines because the activity is not a project as defined in Section 15378) of the CEQA
Guidelines.
SECTION 5: This Ordinance will become effective thirty days after the date of its
adoption by the Petaluma City Council.
SECTION 6: The City Clerk is hereby directed to post and /or publish this Ordinance or a
synopsis for the period and in the manner required by the City Charter.
INTRODUCED, and ordered posted /wed, this 18th day of September, 2017.
ADOPTED this 2nd day of October, 2017, by the following vote:
Ayes: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
Noes: None
Abstain: None
Absent: None
ATTEST:
LOLU, t
Claire Cooper, City Clerk
f
f
avid Glass, Mayor
APPROVED AS TO FORM:
Eric Danly, City Attorney
Ordinance No. 2625 N.C.S.
Page 3