City staff say they will buy back noncompliant Ashley Muse unit to restore affordability
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Summary
Attorney Vargas told council that eight Ashley Muse units carry recorded restrictive covenants requiring owner-occupancy and income limits (80% AMI); staff investigated unit at '105', found likely noncompliance and recommended the city purchase and resell to an income-eligible buyer.
Council discussion of consent agenda item CA 8 (resolution to exercise right of first refusal to purchase and resell an affordable unit at 105 Ashley Muse) included an explanation from Attorney Vargas about how the city enforces owner-occupancy covenants.
Vargas said there are eight units at Ashley Muse set aside as affordable, each with a recorded restrictive covenant requiring sale at a restricted price to income-qualified purchasers (80% AMI or lower) and requiring the unit be used as the owner's primary residence. The Office of Community and Economic Development referred units for investigation when there was suspicion of noncompliance; staff investigated and determined the owner of the unit at '105' was no longer using it as a primary residence. Vargas said the city believes the most efficient way to regain compliance is to purchase the unit and resell it to an income-eligible buyer.
Council approved the consent agenda with CA 8 pulled for discussion; later the council voted to approve the consent agenda except for CA 8 and staff provided the covenant enforcement explanation during the meeting. The transcript indicates city staff are continuing investigations into multiple units and that regaining compliance has required locating owners and negotiating sales.
What happens next: CA 8 remains pulled; staff follow-up and possible use of the city's right of first refusal were discussed but no final purchase transaction is recorded in this transcript segment.
