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 Village at Upper Rock Development between the Mayor and Council of Rockville and Toll Mid-Atlantic LP Company, Inc., 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 Toll Mid-Atlantic LP Company, Inc.
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 the Village at Upper Rock Development. The applicant will be constructing 136 townhomes, including 17 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 Toll Mid-Atlantic LP Company, Inc.
Mayor and Council History
On April 29, 2019, the Mayor and Council adopted Resolution No. 7B-19 approving Project Plan Application PJT2017-00007 for the 31.3 acre site, which includes this 11.5 acre site, allowing for, among other things, the development of 136 townhouses in this first phase, as well as associated amenities and infrastructure.
Next Steps
The Moderately Priced Dwelling Unit Homeownership Program Agreement and Declaration of Restrictive Covenants between the Mayor and Council and Toll Mid-Atlantic LP Company, Inc. will be finalized for execution by all parties.