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Lake County adopts master deed restriction to govern affordable housing units, delegates enforcement to regional housing authority
Summary
The board approved Resolution 20 26-29 adopting a master deed restriction for specified affordable housing units, aligning deed terms with regional housing guidelines where possible, setting a resale cap formula (purchase price plus up to 2% per year/CPI elements), and delegating enforcement authority to the Lake County Regional Housing Authority (or successor).
The Lake County Board of County Commissioners approved Resolution 20 26-29, adopting a master deed restriction intended to govern several affordable housing units. County Attorney Matt Hobbs described the deed restriction as recorded "in perpetuity," and emphasized the importance of aligning the deed restriction with the existing community housing guidelines to preserve flexibility where the guidelines may change.
Hobbs said the draft expands the properties encumbered by the deed restriction, includes an acknowledgement form (Exhibit B) to record resale pricing at transfer, and adds a section (section 18) delegating enforcement authority to the Regional Housing Authority (RHA) or a successor third-party beneficiary. He said the deed restriction will make it harder to revise terms once recorded, and recommended referencing the community housing guidelines where flexibility is desired.
Board members extensively discussed how resale would work under the deed restriction, including an example cap based on purchase price plus 2% per year (or CPI-based adjustments) and whether to require a lottery to assign buyers when multiple qualified buyers exist. Staff and the board noted fair-housing and lender constraints and said the draft allows the RHA to set resale procedures via its guidelines; some commissioners said they prefer a lottery to reduce the potential for informal preferential deals.
A commissioner moved to approve the master deed restriction as presented, subject to the discussion points identified in the county attorney's memorandum and direction from the BOCC, and authorized the county attorney's office, in consultation with the Lake County Regional Housing Authority, to make non-substantive technical or confirming revisions needed to finalize the document for execution and recording. The motion was seconded and passed on voice vote.
Why it matters: the deed restriction will establish long-term legal controls over resale pricing and buyer eligibility for affordable units, affect lender processes and potential foreclosure responses, and delegate enforcement responsibilities to the RHA.
What happens next: the county attorney's office and the RHA will finalize technical edits, consult with lenders on title and recording issues, and return any substantive changes to the board before recording.
