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Item No. 2 PC: 10-21-93 TA-93-3 Page 2 and individuals were reviewed and discussed by the Subcommittee. After assessing the problem, the Subcommittee proposed an ordinance change which would have allowed the creation of homesite parcels for financing purposes only. Under this version of the Text Amendment, homesite parcels could be created, but they could not be sold separately from the remainder of the farm except in the case of a foreclosure action by an institutional lender. Once the loan was repaid, the homesite parcel and the remainder parcel would again become one parcel. The Planning Commission considered this version of the Text Amendment at a public hearing on August 12, 1993. After hearing all public and written testimony, the Commission referred the Text Amendment back to the Ordinance Review Subcommittee for additional revisions. The Subcommitte met twice more, on September 2 and September 30, 1993, and produced the current version of the Text Amendment. As worded, the proposed Text Amendment would permit the creation of not more than four homesite parcels from an existing parcel in the AG zone. Homesite parcels created under these conditions would still be subject to the limitations imposed by the General Plan. For example, if a property owner wished to create four homesite parcels in an AG-40 zone but had only 80 acres, the maximum number of homesite parcels which the property owner could create would be three (80 acres divided by the General Plan density of one primary dwelling for each 20 acres yields three homesite parcels, each of which could accommodate a residence, plus a remainder parcel, which could also accommodate a residence). In calculating the number of homesite parcels, all homesite parcels created from an existing parcel from the date of adoption of the Text Amendment would be determined. Thus, after the fourth homesite parcel is created, no more homesite parcels would be permitted. This would hold true even if the existing parcel was divided down to the zone minimum and the resulting parcels sold to separate buyers, each of whom desired to create a homesite parcel. To illustrate, a 320-acre parcel in an AG-40 zone could conceivably be split into eight 40-acre parcels. Without the limitation on the number of homesite parcels, each of these 40-acre parcels could be divided into a homesite parcel plus a remainder parcel, for a total of eight homesite parcels. However, because of the cap on the number of homesite parcels, the owners of four of these 40-acre parcels would be precluded from creating a homesite parcel. To discourage speculation, the Text Amendment would require that a property owner own the land for at least five years before being allowed to create a homesite parcel. In addition, the property owner could not sell the homesite parcel for a period of five years following the date of its approval. The Text Amendment would also permit the creation of a homesite parcel for financing purposes only, regardless of the size of the original parcel. This parcel, however, could not be sold separately from the remainder of the farm (i.e., the'remainder parcel') unless an institutional lender had to foreclose on either parcel. Once the loan on the homesite parcel is repair, the owner would be required to merge the homesite parcel with the remainder parcel, thus reconstituting the original parcel. During the period in which the homesite parcel exists, the remainder parcel would remain a nonbuildable site for (primary) single-family dwellings. All of the restrictions noted above for the creation of homesite parcels would be noted by a separate instrument recorded concurrently with the parcel map. They would also be noted on the face of the parcel map itself. Lastly, the Text Amendment would eliminate the creation of 10-acre homesite parcels from property under Williamson Act Contract, which is allowed under current regulations. However, two-to five-acre homesite