HomeMy WebLinkAbout12 AUTHORIZATION TO SELL 1345 SUN DIAL DRIVEAgenda Item 12
Reviewed:
AGENDA REPORT
City Manager
Finance Director N/A
MEETING DATE: SEPTEMBER 19, 2017
TO: JEFFREY C. PARKER, HOUSING AUTHORITY EXECUTIVE DIRECTOR
FROM: TUSTIN HOUSING AUTHORITY
SUBJECT: AUTHORIZATION TO SELL CITY OF TUSTIN-OWNED
AFFORDABLE HOME AT 1345 SUN DIAL DRIVE AT MARKET
RATE
SUMMARY
The Tustin Housing Authority ("Authority") is seeking authorization to sell a City of
Tustin -owned affordable home at 1345 Sun Dial Drive at market rate.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission:
1) Authorize the sale of the City -owned very low income affordable home at 1345 Sun
Dial Drive, located in the Tustin Field II development, at a market rate price; and
2) Authorize the Housing Authority Executive Director to negotiate a sales price at the
market rate; and
3) Direct the Housing Authority Executive Director to schedule a Closed Session
Meeting when a prospective purchaser is identified in order to receive Commission
approval for the negotiated sale.
FISCAL IMPACT
The Tustin Housing Authority utilized Low and Moderate Income Housing Asset Funds
("LMIHAF") to purchase 1345 Sun Dial Drive, a very low income affordable home at -risk
of foreclosure, for $107,680. The Tustin Housing Authority is seeking to recover these
funds through the sale of this unit at market rate and depositing the proceeds into the
LMIHAF.
Agenda Report
September 19, 2017
Page 2
COORELATION TO THE STRATEGIC PLAN
The sale of 1345 Sun Dial Drive 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 May 16, 2017, the Tustin Housing Authority Commission ("Commission") authorized
the Authority to purchase 1345 Sun Dial Drive, in order to cure a very low income
affordable homeowner's default. The Authority closed escrow on the purchase on
August 24, 2017.
The Authority is proposing to convert the affordable unit to a market rate unit and sell
the unit as such. The City Attorney's Office and Special Counsel to the Authority have
confirmed the Commission has the authority under Health and Safety Code ("HSC")
Section 33334.3(f)(B) to sell the units in excess of the otherwise permitted affordable
price as long as the funds are deposited into the LMIHAF and spent in accordance with
HSC Section 34176.1.
Under HSC Section 34176.1, the first priority of the LMIHAF is to monitor and preserve
the long-term affordability of units subject to affordability covenants, of which there will
be 280 affordable ownership units in Tustin after the recommended action removes this
unit from the Authority's inventory. Since there is no other funding source to
supplement the LMIHAF, the proceeds from the market rate sale of this unit will
increase the current LMIHAF balance of approximately $2,000,000 and insure
continued funding for these activities. As a result, staff is recommending the
Commission approve the market rate sale of this unit for the purpose of increasing the
LMIHAF and providing operational funds for an additional one to two years before funds
are exhausted.
When a prospective purchaser is identified for the unit, a Closed Session meeting will
be scheduled to discuss and receive approval for the negotiated sales price. Staff is
available for any questions the Commission may have.
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