In 2005, the Village of Arlington Heights approved the Timber Court condominium development with a 20% density increase and required 7 affordable housing units in each of the development’s three proposed buildings. Since only two of the three buildings were constructed, there are 14 designated deed restricted affordable housing units.
In 2006, the Village Board approved a Resolution to enter into an Affordable Housing Agreement with the developer which deed-restricted the 14 affordable units. Each purchaser of an affordable housing units was then required to sign a Buyer’s Occupancy Resale and Restriction Agreement with Option to Purchase which contained provisions concerning the restricted ownership and sale of the units in order to maintain the units as affordable housing.
On August 24, 2021, the Timber Court development was purchased by a new owner. This purchase included the purchase of the 14 designated affordable units. The new owner’s plan is to deconvert the development from condominium ownership to a rental development.
The Village cooperated with the sale of the development under the condition that the 14 affordable units be maintained as affordable units. Upon deconversion, the 14 affordable units must be provided as affordable rental units in compliance with the Inclusionary Affordable Housing Ordinance and Guidelines. The new owner agreed to the Village’s conditions and this agreement has been formalized in a Declaration prepared by the Village’s legal counsel and reviewed and approved by Village staff.
In order to complete the transition from the original condominium ownership to a rental development, it is necessary that the Village Board take the actions as stated in the following Staff recommendation.
RECOMMENDATION
It is recommended that the Village Board approve the attached Resolution:
- Terminating the original Affordable Housing Agreement, dated as of March 20, 2006, between the Village and Timber Court, L.L.C., an Illinois limited liability company and predecessor-in-interest to the new owner, recorded in the land records of the County of Cook, Illinois on April 20, 2006, as Document Number 0611034004; and
- Terminating any Buyer's Occupancy and Resale Restriction Agreement with Option to Purchase agreements recorded against the Property.