Subject
title
Authorization for the City Manager to Execute the Moderately Priced Dwelling Unit Homeownership Program Agreement and Approval of and Authorization for the City Manager to Execute the Declaration of Restrictive Covenants for the Flats at Northside Phase 2 between the Mayor and Council of Rockville and Pulte Home Company, LLC., Subject to Approval as to Legal Form by the City Attorney.
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Department
Housing and Community Development
Recommendation
Staff recommends that the Mayor and Council authorize the City Manager to execute the Moderately Priced Dwelling Unit (MPDU) Program Agreement and approve and authorize the City Manager to execute the Declaration of Restrictive Covenants between the Mayor and Council of Rockville and Pulte Home Company, LLC (Pulte).
Discussion
Per Section 13.5-5(a) of the City Code on Moderately Priced Housing, prior to obtaining a building permit, an applicant must submit a written MPDU program agreement that has been approved by the Mayor and Council and the City Attorney to the building permit application. A substantially final version of the MPDU Homeownership Program Agreement is attached, ready for the Mayor and Council to approve and to authorize the City Manager to execute on the Mayor and Council’s behalf.
The attached MPDU Homeownership Program Agreement (Attachment 1) is for the second phase of the Flats at Northside, located on Lot 126. During the second phase, Pulte will be constructing one (1) six (6) story building on Lot 126. Phase one includes the construction of one (1) six (6) story building on Lot 125. Both of the buildings will consist of five (5) stories over one (1) level of garage parking. Lot 125 will contain 47 residential units, including seven (7) MPDUs, and Lot 126 will contain 48 residential units, including eight (8) MPDUs.
Per Section 13.5-5(l), the application must execute and record covenants. This is to assure that the restrictions included in Section 13.5-5 run with the land for the entire period of control and bind the applicant, any assignee, mortgagee, or buyer, and all other parties that receive title to the property. The covenants are to be senior among the instruments for securing permanent financing. Staff and the City Attorney’s Office drafted the Declaration of Restrictive Covenants (Attachment 2) for the Pulte Home Company, LLC.
Mayor and Council History
The MPDU Homeownership Program Agreement between the Mayor and Council and Pulte Home Company, LLC for Flats at Northside Phase 1 was approved on August 5, 2024.
Next Steps
The MPDU Homeownership Program Agreement and Declaration of Restrictive Covenants between the Mayor and Council and Pulte Home Company, LLC for Flats at Northside Phase 2 will be finalized for execution by all parties.