HomeMy WebLinkAboutR-11497 conversion of one Below Market Rate Rental Unit to a Home Ownership Unit within the City’s Below Market Rate Housing Program (Garden Street Terraces)R 11497
RESOLUTION NO. 11497 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO APPROVE THE CONVERSION OF ONE
BELOW MARKET RATE RENTAL UNIT TO A HOME OWNERSHIP UNIT
WITHIN THE CITY’S BELOW MARKET RATE HOUSING PROGRAM
WHEREAS, on March 4, 2014, the City Council approved Resolution Number
10504, to allow for the construction and operation of a mixed-use building located at 1119
Garden Street, referred to as Garden Street Terraces, and
WHEREAS, the project approval included a public benefit provision to provide 2
Moderate-Income rental units located off-site, and
WHEREAS, an Affordable Housing Restriction Agreement and Declaration of
Restrictive Covenants was entered into on March 26, 2018 (the “Agreement”), to deed
restrict 2 Moderate-Income rental units, and
WHEREAS, the owner has requested to convert one of the units to an ownership
unit so that it may be sold to an eligible buyer subject to the City’s Below Market Rate
Housing Standards and Purchase Guidelines, and
WHEREAS, the City Council of the City of San Luis Obispo conducted review of
the request on June 4, 2024, as a consent agenda item and has duly considered all
evidence and recommendations by staff.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Determination. The City Council finds and determines that the
request is consistent with implementing the City’s Housing Element and Major City Goals
to expand housing opportunities for all and approves of the conversion, subject to the
following conditions:
1. The Agreement shall be amended to convert one moderate-income rental unit
to an ownership unit and shall be deed restricted for no less than 45 years upon
sale to an eligible buyer.
2. The home shall not be sold until the amendment to the Agreement, in a form
satisfactory to the Community Development Director, is executed by all parties.
The Community Development Director is authorized to execute the
amendment, and any other agreements necessary to carry out the purposes of
this request, on behalf of the City.
3. In order to ensure housing stability for the existing tenant and upon confirmation
of eligibility for the City’s below market rate homeownership program, the
existing tenant shall be offered a first option to purchase the unit. Facilitation of
this option shall be the responsibility of the Community Development Director
or their designee.
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Resolution No. 11497 (2024 Series) Page 2
R 11497
4. In the event that the existing tenant is not an eligible buyer or decides not to
purchase the home, they shall be entitled to reside in the unit for the remainder
of the lease agreement or reside in the unit for 90 days after approval of this
resolution, whichever is date is later.
5. The eligible buyer of the homeownership unit shall execute a Promissory Note,
which shall be secured by a Deed of Trust in favor of the City. The Promissory
Note shall include provisions restricting the occupancy, resale, and refinancing
of the unit.
Upon motion of Council Member Shoresman, seconded by Council Member
Francis, and on the following roll call vote:
AYES: Council Member Francis, Marx, Shoresman, Vice Mayor Pease, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 4th day of June 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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6/11/2024 | 11:12 AM PDT