HomeMy WebLinkAboutMINUTES - 03232010 - SD.4RECOMMENDATION(S):
HOLD public hearing on the sale of Redevelopment Agency-owned property located at
239 Ruby Avenue, North Richmond, identified as Assessor’s Parcel Number
408-230-080; and
1.
2.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/23/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
Supervisor
Contact: D'Andre Wells,
925-335-7236
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: March 23, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: D'Andre Wells
SD. 4
To:
From:David Twa, Redevelopment Agency Executive Director
Date:March 23, 2010
Contra
Costa
County
Subject:Sale of Agency Owned Property at 239 Ruby Avenue, Richmond
RECOMMENDATION(S): (CONT'D)
ADOPT Resolution No. 2010/155 authorizing the conveyance of Redevelopment
Agency-owned real property located at 239 Ruby Avenue, North Richmond, APN
408-230-080, to Jorge Munguia, for the purchase price of $167,000.
DETERMINE that the project is California Environment Quality Act (CEQA) Class 12
Categorical Exemption, and DIRECT the Redevelopment Director to file a Notice of
Exemption and pay the $50 filing fee to the County Clerk.
FISCAL IMPACT:
No General Fund revenues are involved with the sale of 239 Ruby Avenue, North
Richmond. Redevelopment Set-Aside funds were used to purchase this site as part of the
Agency’s Affordable Housing Program. Proceeds from the sale will reimburse the
Agency's Affordable Housing Program.
BACKGROUND:
This public hearing is required by subdivision (c) of Health and Safety Code Section
33433. Under this section, a public hearing must be held prior to the sale by the
Redevelopment Agency of certain Agency-owned real property that is proposed to be
conveyed to persons and families of low or moderate income.
On February 12, 2008, the Redevelopment Agency exercised its right to acquire the
property at 239 Ruby Avenue, North Richmond. The property was a deed restricted
affordable housing unit. The Agency purchased the property pursuant to its Resale
Requirements, Homebuyer Covenants, and Option to Purchase Agreement (Resale
Restrictions) for a price of $196,000. Since the Agency acquired the property residential
values in North Richmond have continued to decline. According to Data Quick the
average value of home sales in the North Richmond area have decreased by as much as
55 percent. Moreover, foreclosures have nearly tripled, qualified buyers are scarce, and
most first time homebuyers are unable to secure bank financing for new home loans.
In November of 2009, Jorge Munguia completed North Richmond’s First-Time
Homebuyer Counseling Program. In December, he made an offer for 239 Ruby Avenue
in the amount of $167,000. Although this offer is less than what the Agency paid for the
property and incurred in transaction fees, staff is recommending that the Board, as the
Governing Board of the Redevelopment Agency, accept the offer of $167,000. Accepting
this offer allows the Agency to reduce its real estate holdings, while preserving this unit
as affordable for another First-Time Homebuyer. It also enables the Agency to continue
fulfilling its affordable housing goals and overall production count.
In order to establish a basis for acceptance of this offer, Community Housing Developer
Corporation of North Richmond (CHDC), a local non-profit housing developer, was
retained to research comparable sales in the area. CHDC found that the average value of a
4 bedroom home in North Richmond is $158,000, with variation depending upon the
condition of the unit. The County’s Public Works Department-Real Properties Division
was also commissioned to research comparables using MLS and other sources such as
Data Quick and Metro Scan. Real Property’s findings are in agreement with CHDC’s
findings. Several comparable sales provided by the County’s Real Property Division sold
for well under $100,000, less than half the market value of comparable properties three
years ago. Ninety percent of all comparable sales are lower than the current offer being
considered. In view of this data, and given the condition of the property, the offer appears
to be representative of fair market value today.
When a dwelling unit is sold pursuant to Health and Safety Code Section 33433(c), the
dwelling unit must be used and occupied by persons and families of low or moderate
income for at least 30 years. This property is subject to the Agency’s Resale
Requirements, Homebuyer Covenants, and Option to Purchase Agreement, which is a
recorded instrument that requires the unit to be occupied by persons and families of low
or moderate income, and restricts future sales of the unit to persons and families of low
or moderate income.
The Resale Restriction Agreement set forth conditions that must be met, including but not
limited to the following requirements: 1) The buyer must live in the home as the main
place of residence; 2) the Agreement establishes control on the sale of the home; and 3)
the Agency has an option to purchase the home at a restricted sales prices when it
changes title or is sold.
The purpose of the Resale Restriction Agreement is to make sure that the County’s goal
of providing affordable homeownership opportunities for very low and lower income
buyers continues to be met.
CONSEQUENCE OF NEGATIVE ACTION:
The unit will remain vacant and the Agency will continue to incur holding costs and other
financial obligations. The unit will also not qualify for production count under the
Agency's affordable housing program.
CHILDREN'S IMPACT STATEMENT:
CLERK'S ADDENDUM
CLOSED the hearing; ADOPTED Resolution No. 2010/155 ( as amended to correct
agency names) authorizing the sale of Redevelopment Agency owned property located
at 239 Ruby Avenue, North Richmond; DETERMINED that the project is California
Environmental Quality Act (CEQA) Class 12 Categorical Exemption; and DIRECTED
the Redevelopment Director to file a Notice of Exemption and pay the $50 filing fee to
the County Clerk.
ATTACHMENTS
Resolution No. 2010/155
Resolution No. 2010/155
Agreement
DOT