Politics & Government

Foreclosed City-Owned Properties, Second Units on Novato City Council Agenda

Tuesday's meeting starts at 6:30 p.m. at Novato City Hall.

The Novato City Council on Tuesday is set to discuss the purchase of foreclosed affordable housing units and incentives to urge residents to build second units to count toward the city’s quotas on affordable housing.

City staff is seeking approval from the council and the Novato Redevelopment Agency board to authorize the purchase of moderate-income housing news that were formerly in the agency’s program at a foreclosure auction. The proposed purchase price is not to exceed a predetermined amount.

Through the years, the redevelopment agency invested more than $34 million in the development of affordable housing at Hamilton, including 351 units at Meadow Park and 67 at the Villa Entrada senior complex, according to a city staff report. The deed restrictions are in perpetuity, but the restrictions are lost in foreclosure and other limited instances.

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Some of the affordable housing unit prices exceed market rates for homes elsewhere in the city, making the deed-restricted units difficult to sell. Four units at Meadow Park have been foreclosed this year and a few Villa Entrada units are in short sale.

The redevelopment agency has a purchase option that survives foreclosure for 60 days. It can buy down the affordability of moderate-income units to low income units at no cost to the agency or city. If no action is taken, the units will be lost to foreclosure and deed restrictions would be lost as well.

Find out what's happening in Novatowith free, real-time updates from Patch.

As part of its general plan housing element, the city needs to encourage second-unit construction to help meet housing mandates overseen by the state Department of Housing and Community Development. At a quarterly agenda planning session in June, the council expressed interest in a fee amnesty program for second units attached to single-family residences. Staff has suggested that if amnesty is desired, incentives could be given to encourage second-unit development.

The council also will discuss a graffiti abatement ordinance when it meets at 6:30 p.m. at .


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