CITY COUNCIL AGENDA ITEM NO.

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1 CITY COUNCIL AGENDA ITEM NO. Meeting Date: December 3, 2013 Subject/Title: Prepared by: Submitted by: A Resolution approving and authorizing the City Manager to sign a Partial Assignment and Assumption of Affordable Housing Agreement and City Consent to Assignment between the City of Brentwood and Barrington Investors LLC, a Delaware limited liability company and Tri Pointe Homes, Inc., a Delaware corporation for Barrington Estates (Subdivisions 8548, 9095, 9096, 9097, and 9098) Sylvia Elias, Senior Community Development Technician Casey McCann, Community Development Director RECOMMENDATION Adopt a Resolution authorizing the City Manager to sign a Partial Assignment and Assumption of Affordable Housing agreement and City Consent to Assignment between Barrington Investors LLC and Tri Pointe Homes, Inc. for Barrington Estates (Subdivisions 8548, 9095, 9096, 9097, and 9098). PREVIOUS ACTION Ordinance 790 was adopted by the City Council on January 11, 2005 amending the City of Brentwood Affordable Housing Program. At its meeting of June 17, 2013, the Land Use and Development Committee reviewed the partial assignment and assumption for Barrington Estates with Barrington Investors LLC and Tri Pointe Homes, Inc. for Subdivisions 8548 (Hawthorne), 9095 (Penrose), 9096 (Wynstone), 9097 (Berkshire), and 9098 (Marquette). BACKGROUND Barrington Estates is located in the vicinity of Jennifer Street and Garin Parkway, consisting of approximately acres of partially improved real property. Barrington Estates subdivided into five (5) neighborhoods containing four hundred ninety-four (494) single family residential lots. On September 26, 2006, Barrington Estates, LLC entered into an Affordable Housing Agreement against the total property. The Affordable Housing Agreement requires that 24 dwelling units be affordable. Developer agreed to satisfy obligation by building affordable units on site and paying in-lieu fees. On March 28, 2013, a Purchase and Sale Agreement and Joint Escrow between Barrington Investors LLC and Tri Pointe Homes, Inc. conveyed and transferred all rights, title and interest in the total property, including affordable housing obligations, to Tri Point Homes, Inc., which included the entirety of the Hawthorne, Wynstone, Berkshire, and Marquette subdivisions, and a portion of the Penrose subdivision consisting of 29 lots (Barrington Investors LLC had previously Agenda Item A.5 - Page 1 of 14

2 sold the 84 lots in the Penrose subdivision). The purchase agreement therefore transferred a total of four hundred ten (410) single family residential lots within the total property. Tri Pointe Homes, Inc. will assume remaining obligations under the Affordable Housing Agreement, which include the construction of 11 restricted units on site. All in-lieu fees have been previously paid. (The original obligation required the developer to provide for 24 units; Barrington Estates LLC has built/sold 3 affordable units and paid in-lieu fees for 8 units, leaving Tri Pointe Homes, Inc. with the obligation to provide for the remaining 11 restricted units.) FISCAL IMPACT A total of $1,348, in in-lieu fees have been collected as a result of the original agreement. As prescribed by the housing ordinance, all in-lieu fees collected are deposited into the Housing In-lieu Fund. The in-lieu fees provide funding for the City s housing programs and projects. The expenses for administration of the City s housing programs have been budgeted for in the 2013/14 Operating Budget. No amendment is required as a result of this agreement. Attachments Resolution Partial Assignment and Assumption of Affordable Housing Agreement Agenda Item A.5 - Page 2 of 14

3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN A PARTIAL ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING AGREEMENT AND CITY CONSENT TO ASSIGNMENT THE CITY OF BRENTWOOD AND BARRINGTON INVESTORS LLC, A DELAWARE LIMITED LIABILITY COMPANY AND TRI POINTE HOMES, INC., A DELAWARE CORPORATION FOR BARRINGTON ESTATES (SUBDIVISIONS 8548, 9095, 9096, 9097, AND 9098) AND ANY SUPPORT DOCUMENTS NEEDED TO COMPLETE THE TRANSACTION WHEREAS, on January 11, 2005, the City Council adopted Ordinance 790, an Ordinance of the City Council of the City of Brentwood approving an amendment to the Municipal Code adding Chapter that establishes an Affordable Housing Program; and WHEREAS, On September 26, 2006, Barrington Investors LLC for Barrington Estates LLC entered into an Affordable Housing Agreement against the total property; and WHEREAS, a Purchase and Sale Agreement and Joint Escrow between Barrington Investors LLC and Tri Pointe Homes, Inc. conveyed and transferred all rights, title and interest in the total property, including the remainder of the affordable housing obligations; and WHEREAS, On June 17, 2013, the Land Use and Development Committee recommended approval of the partial assignment and assumption for Barrington Estates. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve and authorize the City Manager to sign the Partial Assignment and Assumption of Affordable Housing Agreement and City Consent to Assignment and any support documents needed to complete the transaction. PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 3 rd day of December, 2013 by the following vote: Agenda Item A.5 - Page 3 of 14

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