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HomeMy WebLinkAboutA026 - Council Action form dated December 29, 2021 ITEM # 1 DATE:12-29-21 COUNCIL ACTION FORM SUBJECT: MODIFIED RESTRICTIVE COVENANTS AND REGULATIONS FOR BAKER SUBDIVISION SINGLE FAMILY HOMES (321 STATE AVENUE) BACKGROUND: The City owns a 10.86-acre site located at 321 State Avenue known as the Baker Subdivision. This property is being developed to support the affordable housing goals of the City as a mixed income development with a minimum of 51% of the homes affordable to low- and moderate-income households. The final plat for the subdivision (Attachment A) includes the development of 27 lots and was adopted at the May 26, 2020, City Council meeting. Of the 27 lots, 26 are for the construction of single-family homes. At the August 25, 2020, City Council meeting, the City Council awarded a contract for the installation of the public improvements to Con- Struct of Ames. Project improvements began in late September 2020 and to date approximately 90% percent of the project has completed (including the geothermal wells). The next step before lots and construction of homes should begin is the adoption of Restrictive Covenants and Regulations for the 26 single-family lots (Attachment B). In working with the Legal staff, the proposed covenants address both the initial construction of homes on the affordable and market rate single-family lots and ongoing requirements. Many of the terms are based upon common language seen within market rate subdivision covenants across Ames. Approval of the covenants will allow for staff to proceed with construction of housing and the sale of lots. Some highlights of the covenants are: 1. The following lots are designated as Affordable Housing: Lots 1 through 8, 10-13, 15, 24, and 25. 2. The following lots are designated as Market Rate Housing: Lots 9,14, 16 through 23 and 26. 3. All lots are residential, and shall not be improved, used, or occupied for other than single-family residential purposes, this includes a prohibition against rental of homes. 4. Timeframe of 18 months to start and complete the construction of homes upon deed conveyance. 5. Affordable housing developer minimum experience of constructing 3 homes within the past 7 years. 6. Market rate housing developer minimum experience of constructing 3 homes within 3 years of the past 5 years. 7. Minimum size for affordable housing homes for a one-story is 1,100 sq. ft. and 1- 1/2 story, two story and split/bi-level is 1,150 sq. ft. 8. Minimum size for market rate housing homes for a one-story is 1,200 sq. ft. and 1- 1/2 story, two story and split/bi-level is 1,250 sq. ft. 9. All homes are required to have at least one garage parking space and a basement. Lot 27, which is planned for future Low Income Housing Tax Credit (LIHTC) multi-family buildings, is not subject to these covenants. At the December 14, 2021, City Council meeting staff reviewed revised language with the City Council and also directed staff to modify the Baker Subdivision Covenants to include the following additional language: •Under item 7p., "chickens" were added as acceptable as pets and "an underground, invisible fence" was deleted in order to clarify that any type of fencing was okay to meet the standards. In response to the request to investigate the creation of a Homeowners Association (HOA) for the Baker Subdivision, the City Attorney has prepared a response (see Attachment C). In addition to the above added language, staff is restating the revisions that were presented at the December 14t" meeting: ✓ Under item 4d., For the Affordable lots, "all residences shall include basements with at least one egress window" was added. ✓ Under item 6., "side yard" was added. ✓ Under item 7i, "which shall not be granted if the tonnage exceeds 3.25 tons", was deleted, thereby a builder is referred to Ames Electric for required calculations. ✓ Under item 71, "or street" was deleted. ✓ Under item 7o, "annoyance" was deleted. ✓ Under item 7q. shall be sodded within "six months" was added ✓ Under item 7r. shall be constructed within twelve (12) months was replaced with "eighteen (18) months". ✓ Under item 7u, Christmas was replaced with "Holiday" In addition to the above added language, staff is making the following revision to the version presented at the December 21 st meeting: ✓ Under item 7i, "The HVAC sizing calculation shall not exceed 3.25 tons," was added. ALTERNATIVES: 1. Approve the attached modified restrictive covenants and regulations for single- family homes in the Baker Subdivision (321 State Avenue). 2. Approve the restrictive covenants and regulations for single-family homes in the Baker Subdivision (321 State Avenue) with additional modifications. 3. Do not approve the proposed restrictive covenants and regulations and refer back to staff for additional information. CITY MANAGER'S RECOMMENDED ACTION: Adoption of Restrictive Covenants and Regulations for the Baker Subdivision (321 State Avenue) is the final step before the sale of lots and construction of homes should begin. Once covenants are adopted, staff can continue to proceed with soliciting and qualifying potential first time homebuyer applicants, finalize the required housing counseling services, finalize a partner lender(s), and solicit partnership with a modular housing company(ies) to be in position to construct housing structures by spring/summer 2022. 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