HomeMy WebLinkAbout05 THA - AUTHORIZATION TO SELL 14554 NEWPORT AVE. #3Agenda Item 5
AGENDA REPORT Reviewed
City Manager
Finance Director TXA
MEETING DATE: DECEMBER 3, 2013
TO: JEFFREY C. PARKER, CITY MANAGER & HOUSING AUTHORITY
EXECUTIVE DIRECTOR
FROM: TUSTIN HOUSING AUTHORITY
SUBJECT: AUTHORIZATION TO SELL THE TUSTIN HOUSING
AUTHORITY -OWNED AFFORDABLE MODERATE INCOME
HOME AT 14554 NEWPORT AVENUE #3
SUMMARY
The Tustin Housing Authority ( "Authority ") is seeking authorization to sell the Authority -
owned affordable moderate income home at 14554 Newport Avenue, #3, to the
moderate income eligible household of Kevin and Christina Lam.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission ( "Commission ") authorize
the sale of the Authority -owned affordable moderate income home at 14554 Newport
Avenue, #3, for $360,000 and authorize the Housing Authority Executive Director, or his
designee, to execute all documents required to complete the transaction and as
recommended by the City Attorney.
FISCAL IMPACT
The former Tustin Community Redevelopment Agency ( "Agency') purchased the
affordable moderate income home at -risk of foreclosure for $362,477 with Low and
Moderate Income Housing Funds. With the dissolution of Redevelopment through the
passage of AB1X 26 and AB 1482, all housing assets were transferred from the Agency
to the Authority. To date, the Authority has expended an additional $8,220 in housing
funds for painting, cleaning, carpet cleaning and HOA dues. The Authority listed the
home at $365,000 and received an offer for $360,000. In compliance with Dissolution
Law, the balance of funds upon close of escrow will be deposited into the Low and
Moderate Income Housing Asset Fund.
Agenda Report
December 3, 2013
Page 2
BACKGROUND
On March 1, 2011, the City Council authorized the Agency to purchase 14554 Newport
Avenue #3, located in the Arbor Walk development, in order to cure an affordable
moderate income homeowner's default. The Agency closed escrow on the purchase on
May 26, 2011. In purchasing the home prior to Foreclosure, the Agency preserved the
moderate income affordability restrictions through 2050. One month later, the Governor
signed AB1X 26, setting in motion the dissolution of Redevelopment. As a result, all
assets, including housing assets, were frozen. On September 13, 2012, the State of
California Department of Finance approved the transfer of the housing assets to the
Authority. On March 19, 2013, as the real estate market began to improve, the
Commission authorized the Authority to list the unit for sale.
The Authority has entered into a Purchase Agreement conditioned upon Commission
approval to sell the property to Kevin and Christina Lam, a moderate income household,
for $360,000. Staff has reviewed and approved the Lam's application as a moderate
income household who meet the 35% income housing cost requirement. In the past six
(6) months, six (6) three - bedroom moderate income homes have been sold at an
average price of $351,000. Given where the market was for Arbor Walk homes when
the unit was purchased and considering current market conditions, staff is seeking
Commission approval and is available for any questions the Commission may have.
Jerry Craig
Economic D el m Housing Manager
Tustin H Authority