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 Tower Preserve between the Mayor and Council of Rockville and Michael Harris at Tower, 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 Councill 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 Michael Harris at Tower, 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 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 Tower Preserve Development. The applicant will be constructing 82 townhomes, including 13 townhomes designated as moderately priced dwelling units, among other associated improvements at 2000 and 2200 Tower Oaks Boulevard.
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 Michael Harris at Tower, LLC.
Mayor and Council History
On October 30, 2023, the Mayor and Council adopted Resolution No. 15-23 approving Project Plan Application PJT2023-00015, allowing for, among other things, the development of 82 townhouses, associated amenities and infrastructure, and a parking reduction for the existing office building located at 2000 Tower Oaks Boulevard.
Next Steps
The MPDU Homeownership Program Agreement and Declaration of Restrictive Covenants between the Mayor and Council and Michael Harris at Tower, LLC for Tower Preserve will be finalized for execution by all parties.