R 4493 RESOLUTION NO. 4493
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AUTHORIZING THE CITY MANAGER TO AMEND THE LOAN
DOCUMENTS FOR THE AFFORDABLE HOUSING UNIT AT 266
ASPEN STREET
WHEREAS, Parcel 2 of Parcel Map No. AG 95-068 was created in 1995 as part of a
density bonus approved by the City that required the developer to commit the housing
unit at 266 Aspen Street ("unit") to affordable housing for a minimum of 30 years,
secured by a deed restriction; and
WHEREAS, the existing promissory note requires the property owner to pay the City
$30,000 with interest at an annual rate of 6% if the unit is sold and converted to an
unrestricted market rate unit prior to 2032; and
WHEREAS, as a result of the significant downturn in the housing market, the maximum
affordable sales price for the unit is above the market rate; and
WHEREAS, the market sales price of the unit will not be sufficient to pay off the existing
mortgage; and
WHEREAS, foreclosures result in blight and negative economic conditions and will
eliminate any repayment of the loan to the City; and
WHEREAS, the City Council, in an attempt to maintain the affordable housing deed
restriction on affordable housing units and avoid foreclosures, deems that it is in the best
interest of the City to authorize the City Manager to amend the interest rate on the loan
and take other actions necessary to protect the City's investment in the unit.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
that the City Manager shall be vested with the authority to protect the City's investment in
the real property located at 266 Aspen Street, Arroyo Grande, by amending the interest
rate and taking other actions as necessary.
RESOLUTION NO. 4493
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On a motion by Council Member Brown, seconded by Council Member Guthrie, and by
the following roll call vote to wit:
AYES: Council Members Brown, Guthrie, Ray, and Mayor Ferrara
NOES: None
ABSENT: Council Member Costello
the foregoing Resolution was passed and adopted this 13th day of November 2012.
RESOLUTION NO. Li q93
PAGE 3
•
TONY FE A , MAYOR
ATTEST:
KELLY T RE, CITY CLERK
APPROVED AS TO CONTENT:
1
STEVE ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TII J THY J. C`ArtFMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4493 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the
13th day of November 2012.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of
November 2012.
' / ,
KELLY ETM RE, CITY CLERK