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C11Y OF COLTON <br />0 <br />For Council Meeting of August 7. 1990 <br />TO: Honorable Mayor and City Council G <br />FROM: Jaime R. Agullera, Community Developmen <br />SUBJECT: Urgency Ordinance to Require a Security E <br />Deposit for New Home Construction <br />BACKGROUND <br />I'm sure the Council recalls the problems which we encountered with <br />the builder Nordic Development. In response to problems with this D <br />builder and other builders in the area, local cities have banded <br />together to create new legislation to protect homeowners. At a <br />recent meeting to discuss a legislative solution, the City of Corona A <br />shared their ordinance provisions with us. The City of Corona's or- <br />dinance requires, among other things, that all builders pay a security <br />deposit in the amount of $350 per house. At the end of the construc- <br />tion, the money (except for an administrative fee) is refunded to the <br />builder if no problems were encountered. The City, however, has the R <br />option to use that deposit to cover repairs to be made if the builder <br />is uncooperative. <br />Unfortunately, the regulation will affect all builders, good and bad. <br />Staff doesn't believe we can be discriminatory with this ordinance, <br />however, it must be applied equally. <br />There also exists the possibility *that under normal ordinance adoption <br />procedures several homes could be occupied without this security 0 <br />deposit being charged. It is therefore necessary to adopt the or- <br />dinance as an urgency matter. <br />Fail, <br />al <br />1. Do not adopt the ordinance. <br />2. Adopt the ordinance and change the fees. T <br />00M."ii <br />V, 0 C. <br />FILE NO -101-J- .................. <br />