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 Phase III Flats at Northside Condominium Units between the Mayor and Council of Rockville and Pulte Home Company, 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 Pulte Home Company, 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 Phase III Flats at Northside Condominium Units. The applicant will be constructing 48 residential condominium units, including seven condominiums 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 Pulte Home Company, LLC.
Mayor and Council History
The Mayor and Council approved the MPDU Homeownership Program Agreements for the Flats at Northside phases one and two on August 5, 2024 and December 16, 2024, respectively.
Boards and Commissions Review
The Planning Commission approved the Level 2 Site Plan application #2020-00399 on August 11, 2021 for the Potomac Woods Multi-Use Development Project, which includes: i) the demolition of an existing office building, ii) the construction of a four-story parking garage, iii) the construction of approximately 99 townhomes, 96 multifamily residential units, and 213 multifamily senior housing residential units.
On April 11, 2022, the Planning Commission approved the Final Record Plat Condition for Phase III Northside Condominium Real Property, which will include the construction of a five-story condominium building with 48 residential units.
On January 24, 2025, the Planning Commission approved a Minor Site Plan Amendment for Phase III Northside Condominium Real Property.
Next Steps
The Moderately Priced Dwelling Unit Homeownership Program Agreement and Declaration of Restrictive Covenants between the Mayor and Council and Pulte Home Company, LLC will be finalized for execution by all parties.