Subject
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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 Potomac Woods Phase 2 Development between the Mayor and Council of Rockville and EYA Development LLC, Subject to Approval as to Legal Form by the City Attorney
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Department
Housing and Community Development
Recommendation
Staff recommend that the Mayor and Council authorize the City Manager to execute the Moderately Priced Dwelling Unit Homeownership Program Agreement and approve and authorize the City Manager to execute the Declaration of Restrictive Covenants between the Mayor and Council and EYA Development LLC.
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 Moderately Priced Dwelling Unit (MPDU) program agreement that has been approved by the Mayor and Council and the City Attorney to the building permit application.
The attached MPDU Homeownership Program Agreement (Attachment 1) is for Potomac Woods Phase 2. The applicant will be constructing 33 townhomes, including five townhomes designated as MPDUs. 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.
Additionally, the building permit 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 EYA Development LLC.
Mayor and Council History
This matter has not previously gone before the Mayor and Council.
Boards and Commissions Review
On August 11, 2021, the Planning Commission approved STP #2020-00399 to allow for 1) the demolition of an existing office building, 2) the construction of a four-story parking garage with 376 spaces to serve the existing Lifetime Fitness health club, and 3) the construction of approximately 99 townhomes, 96 multifamily residential units, and 213 multifamily senior housing residential units on an approximately 13.15 acre site.
Next Steps
The Moderately Priced Dwelling Unit Homeownership Program Agreement and Declaration of Restrictive Covenants between the Mayor and Council and EYA Development LLC will be finalized for execution by all parties.