RECOMMENDATION TO COUNCIL
Staff recommends that City Council adopt a resolution approving an Affordable Purchase Housing Agreement (APHA) with DF Properties, Inc. for Sierra Vista Specific Plan Parcel DF-20 and authorize the City Manager to execute the agreement and any related documents on behalf of the City of Roseville.
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BACKGROUND
The City of Roseville's General Plan Housing Element requires a 10% affordable housing obligation for residential development and recommends that developers provide a distribution of the required affordable housing as follows: 40% very low; 40% low and 20% middle income. Since the 1980's, the City's Housing Division has implemented the General Plan’s recommended distribution for compliance with the 10% affordable housing obligation. The proposed Affordable Purchase Housing Agreement (APHA) will assist the City in meeting its affordable housing policy goals and Regional Housing Needs Allocation (RHNA).
On November 11, 2020, the Planning Commission approved the DF Properties – Sierra Vista Specific Plan Parcel DF-20 tentative subdivision map. A condition of approval of the map requires the developer, DF Properties, to enter into an APHA with the City to implement the affordable housing obligations. Based on the 10% affordable housing policy, it is determined that the developer has an obligation to provide 4 affordable purchase units and 18 affordable rental units. The developer will build 4 of the subdivision's 103 homes as affordable to middle income households and the affordable rental units will be moved from DF-20 to Infill parcels, owned by the developer, as outlined in the agreement.
The proposed APHA establishes the methods and terms of which the affordable housing is sold to income-qualified affordable buyers, see Attachment 1. The subsidies to buyers are captured as a silent second loan on title that gets repaid to the City's affordable housing funds upon resale or thirty (30) years, whichever comes first. The subsidies for the program are funded by the developer and do not impact the General Fund. The repayment is then used to assist new income-qualified buyers to purchase and/or can assist in other affordable housing development.
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FISCAL IMPACT
The subsidies for implementing the SVSP DF-20 APHA are funded by the developer and do not impact the General Fund. The subsidies to buyers are captured as a silent second loan on title that is repaid to the City's affordable housing funds upon resale or thirty (30) years, whichever comes first. The repayment is then reinvested into the community to assist new income-qualified buyers to purchase and/or can assist in other affordable housing development.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
Approval of an Affordable Purchase Housing Agreement meets the above criteria and is not subject to CEQA. No additional environmental review is required.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal D - Enhance economic vitality
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Respectfully Submitted,
Trisha Isom, Housing Manager
Laura Matteoli, Economic Development Director |
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Dominick Casey, City Manager
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