HomeMy WebLinkAbout12 AUTHORIZATION TO SELL THE CITY OF TUSTIN-OWNED HOME AT 370 FLYERS LANE�YAGENDA REPORT
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MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY
JUNE 19, 2018
Agenda Item 12
Reviewed:
City Manager
Finance Director N/A
JEFFREY C. PARKER, HOUSING AUTHORITY EXECUTIVE DIRECTOR
& CITY MANAGER
TUSTIN HOUSING AUTHORITY
AUTHORIZATION TO SELL THE CITY OF TUSTIN-OWNED
HOME AT 370 FLYERS LANE
The Tustin Housing Authority is seeking authorization to sell 370 Flyers Lane to Annicia
Chihying Chen and Emma Kao.
RECOMMENDATION
It is recommended the Tustin Housing Authority Commission:
1) Approve the sale of the City of Tustin -owned home at 370 Flyers 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 370
Flyers Lane, located in the Tustin Field I development; and
2) Authorize the City Manager to negotiate terms as deemed necessary 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 370 Flyers Lane, an affordable low income home at -risk of
foreclosure, for $116,719. 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
June 19, 2018
Page 2
COORELATION TO THE STRATEGIC PLAN
The sale of 370 Flyers 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 370 Flyers Lane. The assumption of
assets and functions became effective February 1, 2012.
On January 16, 2018, the Tustin Housing Authority Commission ("Commission")
authorized the purchase of 370 Flyers Lane at a Trustee's Sale, in order to preserve an
affordable low income unit. The City closed escrow on the purchase on March 1, 2018.
On March 7, 2018, the Commission authorized the sale of 370 Flyers Lane 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 five offers,
the Authority is recommending acceptance of the offer from Annicia Chihying Chen and
Emma Kao. 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.
John uchanan Jerry Craig
ctor of Economic Development Deputy Dire for o c mic Development
Tustin Housing Authority Tustin Ho s' Authority