HomeMy WebLinkAbout11 AUTHORIZATION TO SELL THE CITY OF TUSTIN-OWNED HOME AT 1345 SUN DIAL DRMEETING DATE: FEBRUARY 6, 2018
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 1345 SUN DIAL DRIVE
SUMMARY
The Tustin Housing Authority is seeking authorization to sell 1345 Sun Dial Drive to An
Truong and Vangie Tran.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission:
1) Approve the sale of the City of Tustin -owned home at 1345 Sun Dial Drive, located
in the Tustin Field II 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 1345
Sun Dial Drive, located in the Tustin Field II 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 1345 Sun Dial Drive, an affordable very low income home at -
risk of foreclosure, for $111,435. 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
February 6, 2018
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 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 1345 Sun Dial Drive. The assumption of
assets and functions became effective February 1, 2012.
On May 16, 2017, the Tustin Housing Authority Commission ("Commission") authorized
the purchase of 1345 Sun Dial Drive at a Trustee's Sale, in order to preserve an
affordable very low income unit. The City closed escrow on the purchase on August 24,
2017. On September 19, 2017, the Commission authorized the sale of 1345 Sun Dial
Drive 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 thirteen
offers, the Authority is recommending acceptance of the offer from An Truong and
Vangie Tran. 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.
n Buchanan Jerry Craig
c or of Economic Development Deputy Dire r outhority
c4)nic Development
Tustin Housing Authority Tustin Homan