Homes Not Such a Deal at Resale
Thousand Oaks officials hope to devise a compromise with the owners of six townhomes bought under a city affordable-housing program who want to change the rules restricting the resale price.
The units at Westlake Vista, a gated, hillside complex off Hillcrest Drive and east of Conejo School Road, originally sold in 2001 for $255,000 -- a $50,000 discount from the market rates then. Those units were appraised last fall at more than $430,000, and larger models in the 36-unit development were valued at more than $500,000.
But owners of the affordable units signed agreements requiring them to resell their townhomes only to others who meet certain income limits. Prices can only go up at the rate the area’s median family income increases, which would cap the sales price at about $275,000, not including Realtor fees and marketing costs, officials said.
The owners, some whose current incomes are too high to qualify for affordable units elsewhere, balked at the sales limits. They said the modest profit would make it impossible for them to buy another home in Thousand Oaks, where the median price is generally in excess of $530,000.
“Clearly, nobody could have imagined the double-digit price increases,” said John Davidson, whose son is among the Westlake Vista owners.
At one point, the homeowners offered to share their anticipated profits with the city. In a January letter, they said that in exchange for allowing them to sell at the market rate, 20% of their townhomes’ built-up equity, which totals about $210,000, would be turned over to the city to support its affordable housing programs.
The city’s affordable housing ad hoc committee suggested leaving the sales covenants in place, because it would be difficult to replace the 1,600-square-foot units. The committee is also concerned that changes at Westlake Vista might prompt owners at three other developments -- that together have about 130 affordable units -- to request similar exemptions.
“We don’t want to set a precedent for the other affordable housing units,” Davidson said. Instead, the Westlake Vista owners now hope the city will consider revising their covenants to make them similar to those at two other affordable developments in town.
Russ Watson, the city’s housing and redevelopment manager, said this would allow for sale prices closer to $320,000 or $325,000.
This week, the City Council directed the affordable housing committee to further study the matter to determine whether an arrangement could be reached to protect the number of affordable units in the city while providing the homeowners some financial relief.
“I certainly would be in favor, if they want to move, to try to figure out a way to help them,” said Mayor Bob Wilson Sr. “My end goal is to have six moderate-income families in town able to afford a home.”
Wilson said he would keep an open mind about the homeowners’ request, but that he didn’t support any change that would cause the city’s affordable housing stock to diminish. Since 1990, about 1,200 dwellings that received city assistance have reverted to market-rate prices or rents.
Councilman Ed Masry said if current residents no longer qualified as lower-income owners, the city should consider a method to help them move and replace them with owners whose income didn’t exceed moderate status, currently $92,000 for a family of four.
“I don’t know the answer, but I think we need to look at this,” Masry said. “I don’t know if it will pencil out in the end, but it’s worth looking at.”
Douglas Tapking, executive director of Ventura County’s Area Housing Authority, is a member of the affordable housing committee. Unlike other homeowners, those in the affordable units at Westlake Vista shouldn’t consider their properties -- acquired with a city-imposed price reduction -- as a way to generate a windfall, he said.
“It’s clearly not a wealth-building issue,” he said. “It’s an income-limit question. I want to see the units remain affordable for future families, pure and simple.”
