HomeMy WebLinkAboutReso 22-12 RRA Not Exercity Citys Option
RES.oLUTI.oN N.o. 22 - 12
ARES.oLUTI.oN .oF THE CITY C.oUNCIL
.oF THE CITY .oF DUBLIN
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AUTH.oRIZING THE ,CITY ivlANAGER T.o N.oT EXERCISE THE 'CITY'S OPTI.oN!O CURE A
IOEFAUL T aN ANY'REsIDENC~S~ SUBJECT T.o A RESALEiRESTRitTl.oN AGREEMENT
;AND T.o N.oT EXERCISE THE CITY'S .oPTI.oN T.o PURCHASE SUCH RESIDENCES IN
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. iC.~~TAINCIRCUM$TAN~FS .
;WHEREAS, the City of Dublin'slnclusionary Zoning Ordinance (Inclusionary Ordinance)
requires developers of residential development projects consisting of 20 or more units to
'construct 12.5% pf the units in the project as below market-rate units ("BMR Units"); and
'WHEREAS, the BMR Units must be reserved for occupancy by, and at prices affordable
to, low- and mod,erate-income households for 55 years; and .
'VvHEREAS', purchasers of ownership BMR Units are required to ,execute a Resale
Restriction and Option to Purchase Agreement ("Resale Restriction AgreelT!ent") with the City,
which is recorded against the ul')it; and'
-WHERAS, said Resale 'Restriction Agreements permit the City to make payments to
remedy any default of an obligation owed by an owner of such a ~nit to any third party that
,maqe a mortgage lo.an to said owner; and
WHEREAS, said Resale Restriction Agreements also permit the 'City to exercise an
"option to purchase .such units in the event of certain circumstances; and
i,WHEREAS, in many cases the City's Option Price exceeds either the fair market value of
:the unit in question or the total amount owed on the unit; and
'WHEREAS, it is not in the City's interest to pay more for a property th~n it is worth.
N.oW, THEREF.oRE, the City Council of the City of Dublin does'~ES.oLVE as follows:
Where the "Affordable Unit Cost" of a BMR Unit, as that term is used in the Resale Restriction
Agreement relating to said, unit, or the amount owed on said BMR Unit exceeds the market
value of said unit, the City Manager is hereby authorized to not exercise the City's option to
remedy any default of an owner of a BMR Unit, and is further authorized to not exercise the
'City's option to purchase any such BMR Unit.
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PASSED, APPROVED AND ADOPTED this 21st day of February, 2012, by the following
vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
~~,
Mayor
ATTEST:
. awl'!?9a
-.:\ City Clerk
Reso No. 22-12, Adopted 2-17-12, Item 83
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