HomeMy WebLinkAbout20- Amendment 1 to Affordable Housing Agreement - Human Resources Development Council, Disctrict IX (HRDC) - Willow Springs Subdivision Inter-office Original to:
City of Bozeman
City Clerk
PO Box 1230 P
Bozeman MT 59771-1230 CAT TFd /
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AMENDMENT 1 TO AFFORDABLE HOUSING AGREEMENT
WILLOW SPRINGS SUB/(DIVISION
THIS AGREEMENT made and entered into this �q th day of 2020,
by and between the CITY OF BOZEMAN, a self-governing municipal corporation organized and
existing under its Charter and the laws of the State of Montana with offices at 121 N. Rouse Avenue,
Bozeman, Montana 59771-0640, hereinafter referred to as "City", and Human Resources Development
Council of District IX, 32 S Tracy Avenue, BOZEMAN MT 59715, hereinafter referred to as
"Landowner."
WITNESSETH:
WHEREAS, Landowner is owner in fee of a tract of real property, hereinafter referred to as the
WILLOW SPRINGS SUBDIVISION situated in Gallatin County, Montana, and more particularly
described as follows:
The East Half(El/2) of the West Half(W 1/2) of the Southeast Quarter(SE 1/4) of the Southwest
Quarter (SW1/4) of Section 35, Township One South (TOIS), Range Five East (R05E), Less a
I
Portion of the Baxter Square Subdivision Phase 1 and 2, P.M.M., City of Bozeman, Montana. j
Amendment 1 to Willow Springs Subdivision Affordable Housing Agreement Page 1 of 8
WHEREAS, it is the intent and purpose of the Subdivider to meet the conditions of preliminary
plat approval, Planning Application No. 17117, for the Final Plat application of WILLOW SPRINGS
SUBDIVISION (application 19229), to subdivide 2.72 acres and create twenty-four (24) single
household residential townhome lots,three(3)common open space lot,and the remaining areas as public
streets and alleys; and
WHEREAS, paragraph 38.380.100.E of the Bozeman Municipal Code requires recordation of
the affordable housing plan in conjunction with final plat; and
WHEREAS, an Affordable Housing Agreement and Affordable Housing Plan was recorded on
August 19, 2019 at the Gallatin County Clerk and Recorder as document #2654871, with the Willow
Springs Subdivision final plat; and
WHEREAS, Section 8 of the recorded Affordable Housing Agreement allows for amendments
to the Agreement to be made in writing; and
WHEREAS, the parties have determined that amendments to the recorded Affordable Housing
Plan are required for the Willow Springs Subdivision to accurately reflect the pricing method utilized
for the sale of townhomes in Phase I and the future sales of townhomes in Phase H; and
WHEREAS,the parties have determined that it is in the best interests of the City and Landowner,
and in furtherance of the public health, safety and welfare of the community to enter into and implement
this Agreement.
WITNESSETH :
Amendment 1 to Willow Springs Subdivision Affordable Housing Agreement Page 2 of 8
IN CONSIDERATION of the mutual covenants and agreements herein contained, the parties
hereto agree as follows:
1. Recitals
The above recitals are true and correct.
2. Agreement
The Landowner proposed and the City did approve an amended affordable housing plan which
is attached as Exhibit A to this Agreement and by this reference is hereby incorporated herein. . The
amended Affordable Housing Plan attached hereto as Exhibit A shall replace the Affordable Housing
Plan recorded as document #2654871. Recording of this Agreement including Exhibit A to this
Agreement satisfies the requirements of 38.380.100.E of the Bozeman Municipal Code for the Willow
Springs Subdivision. Landowner agrees the Affordable Housing Plan is a binding agreement between
Landowner and the City and the City may enforce the Affordable Housing plan against the Landowner
or its successors in interest to any lot or parcel subject to the Affordable Housing Plan.Landowner agrees
the Affordable Housing Plan is binding on Landowner's successors. The Landowner is required pursuant
to 38.380.100.13, BMC to implement the Affordable Housing Plan.
3. Additional Terms
The parties recognize this Agreement must be filed and of record with the Gallatin County Clerk
and Recorder prior to the sale of any land within Phase II of the Willow Springs Subdivision.
4. Governing Law and Venue
This Agreement shall be construed under and governed by the laws of the state of Montana. In
the event of litigation, venue is in the Eighteenth Judicial District Court, in and for County of Gallatin,
State of Montana.
Amendment 1 to Willow Springs Subdivision Affordable Housing Agreement Page 3 of 8
5. Attorney's Fees
In the event it becomes necessary for either party to this Agreement to retain an attorney to
enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to
reasonable attorney's fees and costs, to include the salary and costs of in-house counsel including City
Attorney.
6. Waiver
No waiver by either party of any breach of any term, covenant or agreement shall be deemed a
waiver of the same or any subsequent breach of this same or any other term, covenant or agreement. No
covenant, term or agreement shall be deemed waived by either party unless waived in writing.
7. Invalid Provision
The invalidity or unenforceability of any provision of this agreement shall not affect the other
provisions hereof, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted.
8. Modifications or Alterations
No modifications or amendment of this Agreement shall be valid unless evidenced by a writing
signed by the parties hereto.
8. No Assiinment
It is expressly agreed that the Landowner shall not assign this Agreement in whole or in part
without prior written consent of the City.
9. Successors
Amendment 1 to Willow Springs Subdivision Affordable Housing Agreement Page 4 of 8
This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties
hereto and their respective heirs, successors and assigns and specifically to any subsequent purchaser of
the WILLOW SPRINGS SUBDIVISION.
10. Covenants to Run with the Land
The parties intend that the terms of this Agreement shall benefit the Willow Springs Subdivision
and shall be covenants running with the land.
The undersigned Landowner affirms that they have authority to enter into this Agreement and to
bind themselves to this Agreement.
**End of Agreement except for Signatures**
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and
year first above written.
Amendment I to Willow Springs Subdivision Affordable Housing Agreement Page 5 of 8
LANDOWNER
Hf C
By: Heather Grenier, President/CEO
STATE OF MONTANA )
:ss
COUNTY OF GALLATIN )
On this Y. day of St&1M b-(✓ , 2020, before me, the undersigned, a Notary Public
for the State of Montana,personally ppeared Heather Grenier known to me to be the President of Human
Resources Development Council of District IX, and acknowledged to me that she executed the same for
and on behalf of HRDC.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first above written.
(SEAL) �7
"�11!% DAVID C BRUCE �c� \j C_ ll VU L�p
QP, P� Notary Public
�orngrq�. _for the state of Montansi (Printed Name Here)
*03','_SEAL * Residing at: Notary Public for the State of KA7
Q: Bozeman, Montana
9 ' ' M Residin at�'= y Commission Expires: Residing at
October 23,2021 1 My Commission Expires: f v z3 Z oz
(Use 4 digits for expiration year)
Amendment 1 to Willow Springs Subdivision Affordable Housing Agreement Page 6 of 8
THE CITY OF BOZEMAN
BYrf4ARTIN MICTSEN,
DIRECTOR OF COMMUNITY DEVELOPMENT
CITY OF BOZEMAN
STATE OF MONTANA )
:ss
County of Gallatin )
On this M Ilk dayof S2p}w y- 2020, before me, a Notary Public for the State
of Montana, personally appeared Martin Matsen, known to me to be the person described in and
who executed the foregoing instrument as Director of Community Development for the City of
Bozeman, whose name is subscribed to the within instrument and acknowledged to me that he
executed the same for and on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the day and
year first written above.
--: — '�VNmm
`. SI &ML4 KLOOSTERHOF
Notary Public
r Anl,'I: for the State of Montana
- -- Residing at: (Printed Name Here)
��.Si::t{,.:.Z;= Bozeman, Montana NotaryPublic for the State of Montana
My Commission Expires:
March 17,2021 Residing at
My Commission Expires: 3-\-I-IDI1
(Use 4 digits for expiration year)
Willow Springs Affordable Housing Agreement Page 7 of 8
EXHIBIT A
AFFORDABLE HOUSING PLAN
WILLOW SPRINGS SUBDIVISION
Willow Springs Affordable Housing Agreement Page 8 of 8
Willow Springs Subdivision Affordable Housing Plan
Amendment 1
Development Name: Willow Springs Subdivision
Project Location: Sartain Street and Hoover Way, Bozeman, MT
Legal Description: E1/2, W1/2, SW %, SW%, Section 35, T.1S, R5E, of PMM
Current Zoning: R-3
Current Use: Vacant
Community Plan Designation: Residential
Property Owner and Applicant:
Human Resource Development Council of District IX 32 S Tracy Ave., Bozeman, MT 59715
Contact: Heather Grenier, President/CEO
406-585-4840
hgrenier@thehrdc.or
Introduction:
HRDC seeks the use of affordable housing incentives for the Willow Springs Subdivision
development. The development is 100% affordable. This affordable housing plan contains
amendments to the plan submitted for the Willow Springs townhomes to reflect necessary
changes identified by City and HRDC staff. WS will consist of 24 townhomes, with a mix of 2 and
3 bedroom homes provided. All 24 units will be priced to be affordable to families and
individuals making 70% of the area median income, using the City's maximum pricing schedule.
HRDC intends to place the subject property into their Community Land Trust in order to
maintain the affordability of the units in perpetuity. HRDC will place a deed restriction on all
units. HRDC has requested $20,000 per unit to act as a permanent subsidy that will remain
with the home in perpetuity and require no subsidies from the City in the future.
As discussed further in this plan the requested one time grant from the City would result in the
following.
• None of the 24 units would be eligible for City funded down payment assistance
• None of the homes would be eligible for impact fee reimbursement
• None of the homes would require a non-cash subsidy lien at the time of closing
1. Number of affordable homes proposed in each affordable home category and number
of market-rate homes:
1
Willow Springs townhomes
Total number of homes for development 24
Total Number of market-rate homes 0
Total Number of affordable homes 24
*it is the developer's intent to make these homes perpetually affordable by inclusion in a
community land trust(CLT).
2. The number of bedrooms in each affordable home
Willow Spring Subdivision Project- Home Type and
bedroom mix of Lower-Priced Homes
Studio and/or 1 bedroom homes 0
2 bedroom homes 10
3 bedroom homes 14
Total Units 24
3. Pricing and deed restrictions
The "transfer price" for all Willow Springs homes is the AHO price by bedroom size as
set by the City of Bozeman. This is also the "base price" that is set out in the Ground
lease, and represents the base from which owners will receive the 2% annual
appreciation limit that impacts subsequent sales and ensures permanent
affordability. The difference between "transfer price" and appraised value is recognized
as the subsidized amount held by the Community Land Trust via the deed restriction.
Regardless of appraisal method, this difference is realized as the subsidy. The base price
is always the AHO limit, meaning that all 2 bedroom homes will have the same base
price, and all 3 BR homes will have the same base price.
Willow Springs Pricing Schedule
2 bedroom homes $217,322
3 bedroom homes $243,227
4. Location of affordable homes in the development (lots in the plat or units within a site
plan):
All 24 units in Willow Springs will be affordable to individuals and families making 70%
of the area median income.
2
5. Timing of delivery of the affordable homes in relation to the market-rate homes in the
development:
The entire project is considered affordable; therefore, no market-rate homes will be
provided.
6. Marketing plan describing how affordable homes will be offered to the public:
HRDC engaged a real estate agent through a competitive RFP process to sell Willow
Springs homes. As the CLT process is different than the typical fee simple purchase,
HRDC will produce a FAQ sheet to help buyers and their representatives understand the
unique financing and ownership structure for the Community Land Trust.
7. Plan for construction of affordable homes in phased developments:
Willow Springs will be constructed in 2 phases of 12 homes each; all homes will be
affordable.
8. Any other information that is reasonably necessary to evaluate the compliance of the
affordable housing plan with the requirements of this article:
HRDC's investment of Neighborhood Stabilization funds to purchase the property and
develop the lots provides the opportunity to create a development that exceeds the
City's affordable housing ordinance by providing 100% affordability in perpetuity. The
land trust model supports the family to attain and sustain homeownership by taking
land and site development costs out of the sales price. In return, the homeowner agrees
to sell the home at an affordable price to another lower-income homebuyer in the
future. Consequently, the family is able to successfully own a home and build wealth,
while the land trust is able to preserve the investment in the home permanently to help
family after family and requires no future re-subsidization of the homes.
While HRDC is the developer of the Willow Springs it is understood that the request for
a lump sum per unit that will remain with the home in perpetuity will preclude the
homes from receiving impact fee reimbursement. It is also understood that down
payment assistance (DPA) through the City of Bozeman will not be permitted for first
time or subsequent sales of Willow Springs units.
The ground lease governing the property and home includes language that addresses
the situation in which HRDC were to sell the land to an institution or individual resulting
in the ground lease being lifted. That language reads as follows:
3
3.3 CLT SALE. If the CLT transfers its interest in the Land, this Lease continues and
the Homeowner becomes the tenant of the transferee under this Lease. If the CLT
wants to transfer the Land to anyone other than a similar institution that shares
the Goal, a nonprofit organization, charitable trust or government agency, the
CLT hereby grants the Homeowner a right of first refusal to purchase the Leased
Land Interest, the details of which are in the attached Exhibit: First Refusal. Any
transfer of the Leased Land Interest contrary to this section is void.
This Affordable Housing Plan proposes that the non-cash subsidy required by the
ordinance would not apply to any of the proposed units. The issue will also be
addressed in the grant agreement between HRDC and the City. It is understood that the
city may want to further protect the municipal investment in the homes. HRDC would
agree to a deed restriction, grant agreement or covenant which would grant the city the
right to intervene and arrange a new owner/leaseholder agreement and further ensure
that municipal funds invested in the home, meant to stay with the home in perpetuity,
would be returned to the city in the event of a land sale resulting in the home no longer
being affordable.
9. List of Approved Relaxations—Willow Springs
Numbe, w Ratacwacq 6en4ral t?vaulptlan AptpKteble t0ahrutlon
Lot:Area:2SU0 sf minimurn lavr:raging of lot Z1W sf avorar lot size for three dni,
areas alha wed for to`++nhame dusters far tawnhamL clusturs and 23ODsr aye,aeu
1 3S.320,030A affordable housing deueopmenuj lot site for four unit tovrnhome cluste's
Watercourse Setbacks:A 54 setback must The connected wetlands setback may be
2 3$_410.1CQ.A•?•[14;{d) hdi,de ct•nnemd wetlands reduced
Waterwwrse Setback Zone Widths:
;cthack4 arc,to be omdod Irta-,one 1(60%
clmntitwat rcnuw)and7.one2(40% The watertuursesetbysfr tor aswrdths
3 38,410.100.&2.e farthest frarrs watvtourse► may be,altered
Trolls In Zone 1:lhnited,non-looping
developed spur trolls to the water's edge 4 nay-spur traPi is allowed In tone 1
4 38,410-101)A.Z.el2}14) may cross 0 zonrs (Open Sparc tot 31
R.O.W.Wi ttt: M]'dudicador.requlrnd for
5 38,40.050 Iriral itte'c!t= Seduced widbi of 50'for Hoover Way
Front Yard Setback;iv frontyard setback
l: U.320,03OX adlacen:to Iota l street Reduced f wit Yatd setback for of 6
Radurad garage entry setback for lot 6,
7 38.320.430.f. Garage Entry Setback:6/lhrimuM of 2.0' lltack 2
Minimum Parking Spate Lenxth: 1V Reduced minimum nwkirt1 space lent;h
8 38 540020.A minlm o m.Inngth. for Lot 6,Mck 1
Afrarrrolc method wed points ocf+leved
are mt foiPows:5 tiiaan 8Awrate
Minimum tstxhcape Performance Points. method dwowth preservation of ex:tting
5 points are reavired,wilow 5prIms mature aid?stah+ahed vii1pt2 ion,10
proposes a conbinadon of apwrrato amd paints aclhkvtd:hroLb-h standwil
standard mcthads to Achieve these points rnethud>
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