Sterling Park Developer Agrees to Pay City $8 Million For Affordable Housing
Following a closed session of the City Council on Oct. 27, City Attorney Molly Stump announced that the City Council has approved a settlement in litigation with Sterling Park, L.P., and the developer has agreed to pay $8 million into the City's Residential Housing Fund. The Residential Housing Fund is derived from fees paid in lieu of providing affordable housing units in residential developments under the City’s Below Market Rate (BMR) housing program. The deposit will bring the fund balance up to $9.2 million. However, some funding is committed to other activities or projects. The City also has a Commercial Housing Fund which collects an affordable housing impact fee for new commercial development. The current balance of the Commercial Housing Fund is approximately $8 million.
"We are pleased that the settlement of this lawsuit means that there will be $8 million available to be used for the development of affordable housing," said City Attorney Molly Stump. “That is the objective of the BMR housing program, and it remained the City’s goal throughout this legal process.”
In 2005, Sterling Park, L.P. and Classic Communities, Inc. submitted an application for a 96-unit townhouse development on West Bayshore Road. Because the project was over five acres in size, Sterling Park was required to sell 20% of the units at Below Market Rate prices or pay fees equal to 10% of the market rate sales prices. In 2006, the City and Sterling Park entered into an agreement that Sterling Park would satisfy the BMR program through a combination of on-site BMR units and in-lieu fees.
The full press release can be viewed here.
Last Updated: October 28, 2014