Subject
title
Approval of, and authorization of the City Manager to Execute the Moderately Priced Dwelling Unit Homeownership Program Agreement; and Approval of, and authorization of the City Manager to Execute the Declaration of Restrictive Covenants for Rockshire Project between the Mayor and Council of Rockville and EYA Development LLC, Subject to Approval as to Legal Form by the Acting City Attorney
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Department
Housing and Community Development
Recommendation
Staff recommend that the Mayor and Council approve and 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 A) is for Rockshire Project. The applicant will be constructing 31 single-family detached dwelling units and 29 townhomes, including nine 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 B) for EYA Development LLC.
Mayor and Council History
On May 20, 2024, the Mayor and Council adopted Resolution No. 09-24 approving Project Plan Application PJT2024-00017 for the development of the Rockshire Project, allowing for, among other things, the development of 31 single-family detached dwelling units and 29 townhomes, and up to 5,200 square feet of commercial and office use, a neighborhood park and associated amenities and infrastructure on an area consisting approximately 7.32 acres of land located at 2401 Wooton Parkway.
Boards and Commissions Review
On October 23, 2024, the Planning Commission approved the Level 2 Site Plan Application STP2024-00493 to allow for the construction of the Rockshire Project, subject to compliance with certain conditions set forth in the approval letter, including a requirement to provide nine MPDUs at certain varying levels of income and minimum square footage.
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.