City of Brentwood
Home PageContact Us!Back

City Administration

2010 Council Goals and Strategic Plan | City Council Members | Calendar of Events | Elections
eNotification | Sub-Committees| Pledge of Allegiance Sign Ups | Invocation Sign Up
Live Streaming Council Meeting | Streaming PC Help |
Streaming Mac Help |

Current Council Agenda and Past Meeting Information

CITY COUNCIL AGENDA ITEM NO. 3


Meeting Date: October 14, 2008

Subject/Title: Adopt a Resolution approving and authorizing the City Manager to sign Amendment No. 1 to Affordable Housing Agreement between the City of Brentwood and Discovery Builders, Inc., for Subdivision 8954 (Prewett Ranch)

Prepared by: Kwame P. Reed, Sr. Community Development Analyst

Submitted by: Casey McCann, Community Development Director


RECOMMENDATION
Adopt a Resolution authorizing the City Manager to sign Amendment No. 1 to Affordable Housing Agreement between the City of Brentwood and Discovery Builders, Inc., for Subdivision 8954 (Prewett Ranch) and such other documents as may be needed to complete the transaction.

PREVIOUS ACTION
Ordinance 842 was adopted by the City Council on April 24, 2007 making certain amendments to Chapter 17.725, the affordable housing program.

At its meeting of June 26, 2007, the City Council authorized the City Manager to sign an Affordable Housing Agreement with Suncrest Homes for Subdivision 8954.

On June 26, 2008, an Assignment and Assumption Agreement between Suncrest Homes and Discovery Builders, Inc. was recorded at the County.

At its meeting on August 18, 2008, the Land Use and Development Subcommittee recommended approval of the Amended Affordable Housing Agreement.

BACKGROUND
The final map for Subdivision 8954 was approved by the City Council on June 26, 2007. The subdivision is located between Lone Tree Way on the north and Grant Street on the south. The original Affordable Housing Agreement was entered with Suncrest Homes on June 26, 2007 and included the following obligation:

Suncrest Development meets the criteria in Section 5, subsection 2(a) of the Ordinance as they had a RGMP application deemed complete prior to the effective date of Ordinance 790, and they also meet the requirements of Section 5, Subsection 2(b) 2, in that the all 240 lots exceed 8500 square feet. Therefore, Suncrest Development is allowed to fee out of the affordable housing obligation at the 5% level. Their obligation is as follows:

240 units x 5% = 12 units
12 X 30% = 3.6 rounded to 4 units of very-low income
12 X 70% = 8.4 rounded to 8 units of low income

Ordinance 842 requires that in-lieu fees be paid at the time of the issuance of the first building permit; therefore the fees due at the current rate would be as follows:

4 X $ $269,666= $1,078,664
8 X $ 201,963= $1,615,704

Therefore, the total in-lieu fee payment would equal $2,694,368 (if paid prior to June 30, 2009).

At the August 18, 2008, Land Use and Development Subcommittee meeting, Discovery Builders requested to pay a portion of their agreed-upon in-lieu fee amount based on the total number of approved units in the first of three final maps, rather than the in-lieu fee for the entire 240-unit development. According to Discovery Builders and confirmed by the Engineering Department, 98 units or 41% of the 240 totals units were approved on the first of three final maps when the City Council took action approving Final Map 8954 on June 26, 2007. The Land Use and Development Subcommittee recommended an amendment to the Affordable Housing Agreement that would provide the following amended calculation based on the number of units approved on the first final map:

Amendment to the calculation:

98 units / 240 total units = 41%
12 units X 41% = 4.92 or 5 units
5 X 30% = 1.5 units or 2 units
5 X 40% = 2 units, we will round this up 3 units

2 X $269,666 = $539,332
3 X $201,963 = $605,889

Total fees due with first Phase = $1,145,221(if paid prior to June 30, 2009).

The affordable obligation for future phases of this project would be calculated the same as above and in accordance with the in-lieu fee in effect at the time of building permit issuance for that phase.

FISCAL IMPACT
As noted above, an estimate of $1,145,221 will be collected at the time of building permit issuance for Phase 1 or the first 41% of the project. The entire Phase 1 affordable in-lieu fee is due with the first permit issued for that phase. As prescribed by Ordinance 842, 80% of the in-lieu will be deposited into Housing Fund for future projects and 20% will be deposited in the Housing Administration Fund.


Attachments
Resolution
Affordable Housing Agreement

RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN AMENDMENT NO. 1 TO AFFORDABLE HOUSING AGREEMENT BETWEEN THE CITY OF BRENTWOOD AND DISCOVERY BUILDERS, INC., FOR SUBDIVISION 8954 (PREWETT RANCH) AND SUCH OTHER DOCUMENTS AS MAY BE NEEDED TO COMPLETE THE TRANSACTION


WHEREAS, on January 11, 2005, the City Council adopted Ordinance 790, an Ordinance of the City Council of the City of Brentwood approving an amendment to the Municipal Code adding Chapter 17.725 that establishes an Affordable Housing Program; and

WHEREAS, on April 24, 2007, the City Council adopted Ordinance 842, an Ordinance of the City of Brentwood Amending in part Chapter 17.725 of the City of Brentwood Municipal code and Ordinance No. 790 Relating to the City’s Affordable Housing Program; and

WHEREAS, Discovery Builders, Inc. entered into an Assignment and Assumption Agreement with Suncrest Homes, accepting all rights, title and interest in and to the property known as Subdivision 8954; and

WHEREAS, Discovery Builders, Inc. assumed the Affordable Housing Agreement dated June 26, 2007 which included an affordable housing obligation of twelve (12) units (4 very low and 8 low); and

WHEREAS, Ordinance 842 allows developers who comply with Section 5 of the Ordinance to pay an in-lieu fee for the entire affordable housing obligation and Discovery Builders is subject to this in-lieu fee obligation; and

WHEREAS, Discovery Builders, Inc. requested payment of the affordable housing in-lieu fee in phases, with the first to be based upon the total number of units shown on Final Map 8954 (Map 1 of 3) approved by the City Council on June 26, 2007, for a total of 98 units or 41% of the 240 units total; and

WHEREAS, the Land Use and Development Subcommittee recommended approval of the partial payment request with an amendment to the original Affordable Housing Agreement stating that all payments will be made in full at the first building permit issuance for each of the three final maps. The payment for the first final map for Subdivision 8954 is $1,145,221 (if paid prior to June 30, 2009).

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve and authorize the City Manager or her designee to sign Amendment No. 1 to Affordable Housing Agreement between the City of Brentwood and Discovery Builders, Inc., for Subdivision 8954 (Prewett Ranch) in the form of Exhibit A attached hereto, subject to minor revisions approved by the City Attorney.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 14th day of October, 2008 by the following vote:


 
City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov