HomeMy WebLinkAbout09 AUTHORIZATION TO SELL TUSTIN HOUSING AUTHORITY-OWNED HOME AT 27 LOOK OUT LANEAgenda Item 9
Reviewed.
AGENDA REPORT City Manager
Finance Director N/A
MEETING DATE: NOVEMBER 1, 2016
TO: JEFFREY C. PARKER, HOUSING AUTHORITY EXECUTIVE DIRECTOR
$ CITY MANAGER
FROM: TUSTIN HOUSING AUTHORITY
SUBJECT: AUTHORIZATION TO SELL THE CITY OF TUSTIN-OWNED
HOME AT 27 LOOK OUT LANE
SUMMARY
The Tustin Housing Authority is seeking authorization to sell 27 Look Out Lane to
William Lan and Wei -Ling Chang.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission:
1) Approve the sale of the City of Tustin -owned home at 27 Look Out Lane, located in
the Tustin Field I development; and
2) Recommend the City Council take the necessary steps to authorize the transaction.
It is recommended the City Council:
1) Approve the California Residential Purchase Agreement And Joint Escrow
Instructions ("Purchase Agreement") for the sale of the City -owned home at 27
Look Out Lane, located in the Tustin Field I development; and
2) Authorize the City Manager to negotiate terms as deemed necessary by the City
Manager to conclude the transaction; and
3) Authorize the City Manager 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 27 Look Out Lane, an affordable very low income home at -risk
of foreclosure, for $127,157. 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.
Agenda Report
November 1, 2016
Page 2
ALIGNMENT WITH STRATEGIC PLAN
The sale of 27 Look Out Lane as a market rate unit supports Goal C: sustaining long-
term financial strength and enhancing capacity to provide a sustainable level of City
services.
BACKGROUND
On March 15, 2011, the City Council approved Resolution No. 11-20 establishing the
Tustin Housing Authority ("Authority') in accordance with the California Housing
Authorities Law. As a result of Redevelopment Dissolution, on January 17, 2012, the
Housing Authority Commissioners adopted Resolution HA No. 12-01, approving the
assumption of housing assets and functions previously performed by the former Tustin
Community Redevelopment Agency, including 27 Look Out Lane. The assumption of
assets and functions became effective February 1, 2012.
On November 3, 2015, the Tustin Housing Authority Commission ("Commission")
authorized the purchase of 27 Look Out Lane at a Trustee's Sale, in order to preserve
an affordable very low income unit. The City closed escrow on the purchase on
November 24, 2015. On June 7, 2016, the Commission authorized the sale of 27 Look
Out Lane at a market rate price.
The Authority engaged Cherrill Cady with Barrhomes Real Estate to market the
property. After receiving two offers, the Authority is recommending acceptance of the
offer from William Lan and Wei -Ling Chang. 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 and City Council may have.
Jerry Craig
Economi eve�Auth
Housing Manager
Tusti u . ority