HomeMy WebLinkAbout17 AUTHORIZATION TO SELL THE TUSTIN HOUSING AUTHORITY-OWNED HOME AT 14542 NEWPORT AVE #3Agenda Item 17
Reviewed:
AGENDA REPORT City Manager
Finance Director /A
MEETING DATE: AUGUST 16, 2016
TO: JEFFREY C. PARKER, HOUSING AUTHORITY EXECUTIVE DIRECTOR
FROM: TUSTIN HOUSING AUTHORITY
SUBJECT: AUTHORIZATION TO SELL THE TUSTIN HOUSING
AUTHORITY -OWNED HOME AT 14542 NEWPORT AVENUE #3
SUMMARY
The Tustin Housing Authority ("Authority") is seeking authorization to sell 14542
Newport Avenue #3 to Mark and Liliana Kiesselbach.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission:
1) Approve the California Residential Purchase Agreement And Joint Escrow
Instructions ("Purchase Agreement") for the sale of the Authority -owned home at
14542 Newport Avenue #3, located in the Arbor Walk development; and
2) Authorize the Housing Authority Executive Director ("Executive Director") to
negotiate terms as deemed necessary by the Executive Director to conclude the
transaction; and
3) Authorize the Executive Director to execute all transaction documents, including the
Purchase Agreement.
FISCAL IMPACT
The Tustin Housing Authority utilized Low and Moderate Income Housing Asset Funds
("LMIHAF") to purchase 14542 Newport Avenue #3, an affordable moderate income
home at -risk of foreclosure, for $354,927. Upon sale of the unit at the recommended
price, the Authority will recover an amount in excess of the LMIHAF funds utilized to
purchase the home. The proceeds will be deposited into the LMIHAF.
BACKGROUND
On April 16, 2013, the Tustin Housing Authority Commission ("Commission") authorized
the Authority to purchase 14542 Newport Avenue #3, in order to cure an affordable
moderate income homeowner's default. The Agency closed escrow on the purchase on
Agenda Report
August 16, 2016
Page 2
August 13, 2013. On June 7, 2016, the Commission authorized the sale of 14542
Newport Avenue #3 at a market rate price.
The Authority engaged The Stepanian Group with Keller Williams Realty to market the
property. The Stepanian Group has represented numerous buyers and sellers
associated with the Authority's affordable housing program. After receiving multiple
offers, the Authority is recommending acceptance of the offer from Mark and Liliana
Kiesselbach. The price and terms will be discussed in Closed Session and the
Purchase Agreement will be distributed at the time of the meeting.
Under Health and Safety Code Section 34176.1, LMIHAF's first priority is to monitor and
preserve the long-term affordability of units subject to affordability covenants. The
market rate sale of this home increases the Authority's LMIHAF and insures funding is
available to continue monitoring and preserving the long-term affordability of our units.
Staff is available for any questions the Commission may have.
Jerry Craig
Economic Dprvelo*meaHousing Manager
Tustin Ho uthority