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County adopts master deed restriction for affordable housing; board debates resale rules and enforcement
Summary
Lake County approved a master deed restriction intended to govern affordable housing units in perpetuity, delegating enforcement to the regional housing authority and leaving unresolved questions about resale mechanics, CPI caps and lottery procedures to be implemented or clarified by the housing authority.
The Lake County Board of County Commissioners approved Resolution 20-26-29, adopting a master deed restriction for affordable housing units intended to be recorded in perpetuity and aligned with the county’s community housing guidelines.
County Attorney Matt Hobbs led the presentation, repeatedly stressing the legal weight of a recorded deed restriction. “The master deed restriction, it'll be recorded in perpetuity,” Hobbs said, and he urged caution because deed restrictions are much harder to amend than policy guidelines. He walked the board through key differences between the deed restriction and the Regional Housing Authority (RHA) community housing guidelines, noting the county could reference the guidelines in the deed restriction to preserve some flexibility.
Key provisions discussed included which parcels would be encumbered, delegation of enforcement authority to the RHA (a new section 18 in the draft), whether resale should be lottery-based or otherwise administered and how to set a maximum resale price. The acknowledgement form (exhibit B) was described as the mechanism for setting an initial resale price and recording related CPI or 2% annual caps; staff discussed allowing documented improvements and special assessments to factor into resale calculations.
Board members questioned whether to require a lottery to choose among multiple qualified buyers and whether to put lottery requirements in the deed restriction or leave administration to the RHA guidelines. Michael (S8), who spoke from experience with other mountain communities, said he would favor a lottery to avoid under-the-table deals: “I personally would tell you to do a lottery.” The county attorney and staff said the draft language allows the RHA to dictate resale procedures per the guidelines but that the board can place a lottery requirement into the deed restriction if it prefers.
Commissioner (S3) moved to approve the master deed restriction as presented, subject to discussion points in the county attorney’s memorandum and with authority for the county attorney in consultation with the RHA to make non-substantive technical edits; Commissioner (S2) seconded and the motion passed by voice vote.
Why it matters: Recording deed restrictions in perpetuity carries long-term legal consequences for affordable-housing units, including resale limits and enforcement mechanisms. The board’s decisions shape who can buy, how prices are capped, and which public entities can enforce restrictions in the event of default or a dissolved housing authority.
What happens next: County attorney’s office, planning staff and the RHA will finalize technical edits, confirm legal descriptions and coordinate recording; any substantive changes must return to the board.
