HomeMy Public PortalAboutAB 08-176 community housing appreciation capMcCALL CITY COUNCIL
AGENDA BILL
Number
Meeting Date
216 East Park Street
McCall, ID 83638
AB08-176
August 14, 2008
AGENDA ITEM INFORMATION
SUBJECT:
McCall Avenue Homes Appreciation Cap
Approvals: Department/
Committee/Individual
Initials
Remarks
(Originator/
Support)
Mayor / Council
City Manager
originator
Community Development
Treasurer
Clerk, Deputy City Clerk
Police Department
Public Works
Golf Operations
COST IMPACT: n/a
Parks & Recreation
FUNDING SOURCE: n/a
Airport
Library
TIMELINE: ASAP
City Attorney
Grant Coordinator
SUMMARY STATEMENT:
The Community Housing Covenants, applicable to the nine McCall Avenue homes, set a maximum
appreciation cap of 4% per year. That cap is found in Section 5.2 of the Covenants, on page 6. Each lot has
separate recorded Covenants, although they are all identical except for the description of the lot to which
they apply. Attached are the Covenants for Lot 2 as an example.
Staff from VARHA, NHS and the City all believe that raising the appreciation cap will make the McCall
Avenue homes more marketable. On the other hand, raising the appreciation cap will tend to narrow the
difference between the cost of the McCall Avenue homes and market -rate homes.
City Attorney Bill Nichols is preparing an amendment to the Covenants which will increase the appreciation
cap from 4% to 8%. That amendment will be provided to the Council.
RECOMMENDED ACTION:
Approve the increase in the appreciation cap from 4% to 8% and authorize the Mayor to sign all
necessary documents.
RECORD OF COUNCIL ACTION
Meeting Date
ACTION
July 10, 2008
AB08-143: Council discussed the McCall Avenue Homes and NHS
July 24, 2008
AB08-154: Council discussed the McCall Avenue Homes and NHS
August 14, 2008
AB08-163 : Council approved the First Amendment to the ground lease