11-20-2002 Regular Meeting and Public Hearing

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Zoning Board of Adjustment March 27, 2003 #V 03-001 Page 2 ❖ That the granting of the variance will not be contrary to the best public interest. ❖ . That literal enforcement of the chapter will result in unnecessary hardship because of exceptional narrowness, shallowness, shoe, topography or other extraordinary or exceptional physical situation unique to the specific piece of property in question. "Unnecessary hardship" shall mean physical hardship relating to the property itself as distinguished from a hardship relating to convenience, financial considerations or caprice, and the hardship must not result from the applicant or property owner's own actions; and ❖ That by granting the variance, the spirit of the chapter will be observed The Board must decide if the applicant's variance request to Section 106-150 is reasonable. The Board is charged with deciding whether all of the above conditions were met. To determine if granting the applicant's request would be contrary to the general public, Staff contemplated accepting the Reserve Fund in lieu of the bond/letter of credit. Over the life of the loan, the fund would contain over $1.8 million for maintenance. Although the City could not access the fund as stated in Section 106-150, annual HUD inspections would dictate that the property is maintained to HUD's standards. If the inspection resulted in a score below 70, the applicant would create a maintenance plan and use monies from the Reserve Fund to ensure that the property is brought up to standards. The lending institution assures that HUD's standards are not contrary to the general public. In addition, the applicant may, at any time, obtain funds to use for normal maintenance. when looking at the next test, Staff determined that granting the variance would still observe the spirit of the law. The spirit of the law is to ensure that property is properly maintained and does not fall into disarray. To meet the ordinance, Mr. Helm attempted to secure bond insurance but was unsuccessful. (See Exhibit D.) As an alternative, he offered the Reserve Fund. Staff believes the Reserve Fund partially meets the spirit of the ordinance; however, issues arise after the 40-year loan ends. At that time, the Reserve Fund is returned to the applicant; as a result, no mechanism is in place to ensure that the property will continue to be maintained to City standards. The final test involves unnecessary hardship. Staff believes that Mr. Helm's request does not meet the physical hardship test, as there is nothing unique about his property. However, Staff believes that a hardship does exist. When the bonding requirement was established, it was believed that securing the bond/letter of credit was possible. The City of Pasadena's ordinance contains a similar bonding requirement. Pasadena's staff indicated that many developers encounter problems trying to secure a bond. To