HomeMy WebLinkAboutADRIAN ODP - 42-03B - CORRESPONDENCE - AFFORDABLE HOUSING MEMO.__ _.`
Steve Olt -affordable housing questior � Page 1
From: Joe Frank
To: nethshelley@hotmail.com; sandyk11224@peoplepc.com
Date: 9/16/04 10:56AM
Subject: affordable housing questions
I promised to get back to you with answers to questions that I was not able to respond to at yesterday's
meeting. Here are the questions and responses:
1. You wanted a complete list of owner -occupied affordable housing projects.
Response:
Maurice Head reported to me that the most current list of owner occupied affordable housing projects is
on page 126 of the Priority Affordable Housing Needs and Strategies report. Also, the list on page 131
(appendix II) give a list of projects under construction, approved for construction, and under development
review.
2. You asked if a affordable housing project was purported to be owner -occupied only, could the owners
rent the housing units?
Response: As we discussed at our meeting, the response to this question is complicated and depends
upon the requirements of the agency, and sometimes the program, providing financial assistance to a
particular affordable housing project. However, according to Maurice, if City incentives are used, the
developers of owner -occupied project must commit via a deed restriction and/or by contract, that the
dwelling unit will be maintained as owner -occupied (not rented), for low income persons, for a minimum of
20 years. Exceptions to this are for the Home Buyers Assistance Program (down payment assistance)
and Habitat for Humanity Homes (which has its own special arrangement with the City regarding the term
and type of affordability). In the case of the Adrian project, the developer will commit to low income
affordability, 20-year term and owner -occupancy only via a deed restriction (a copy of a template deed
restriction was given to you at our meeting).
3. You asked how is "affordability' of these units monitored?
Response:
In regards to when City funds are used, the above deed restriction is attached to the property's title. As
part of the "due diligence" on the part of the seller and title company, the prospective purchaser is
informed of the affordability requirements. The City is also notified by the title company when a deed
restricted property is being transferred to a new owner. A title company will check to be sure that the new
owner is in compliance with the deed restrictions and will not close on a property that is in violation of the
deed restrictions.
>>> Joe Frank 09/16/04 08:25AM >>>
is this list up to date?
>>> Maurice Head 09/15/04 04:17PM >>>
Joe,
The deed restriction is attached to the property's title and carries forward until we release it. Any release of
this requirement would need to be approved by the City and recorded in the Larimer County Clerk's Office.
The City is notified by the title company when a deed restricted property would be transferred to a new
owner. At that point, we can reiterate the terms of the deed restrictions. However, the deed restriction
continues to be in force at all times.
Maurice