HomeMy WebLinkAboutMINUTES - 01152013 - SD.8RECOMMENDATION(S):
OPEN the public hearing, ACCEPT testimony, and CLOSE the public hearing by the Contra Costa County Board of
Supervisors, serving in the capacity of Housing Successor to the former Contra Costa County Redevelopment Agency
(Agency), pursuant to Health and Safety Code Section 34176, to consider ADOPTING Resolution No. 2013/38
authorizing the sale of Agency owned property at 96 Enes Avenue, Bay Point (Assessor’s Parcel Number
097-037-007) to Cody Marshall Burton, in the amount of One Hundred Thousand Dollars ($100,000) (Fidelity Title
Company Escrow Number # 263598).
FISCAL IMPACT:
No General Fund revenues are involved with the sale of 96 Enes Avenue, Bay Point. Redevelopment Housing funds
were used to purchase the property as part of the Agency's Affordable Housing Program. Proceeds from the sale will
be deposited with the Successor Housing Agency.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 01/15/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:John Gioia, District I
Supervisor
Contact: Maureen Toms 674-7878
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: January 15, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Carrie Del Bonta, Deputy
cc:
SD. 8
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development
Date:January 15, 2013
Contra
Costa
County
Subject:Sale of Successor Housing Agency-Owned Property at 96 Enes Avenue, Bay Point
FISCAL IMPACT: (CONT'D)
BACKGROUND:
In 2007, the former Contra Costa County Redevelopment Agency (Dissolved RDA) exercised its right to acquire
the property at 96 Enes Avenue, Bay Point, to help provide affordable housing in the unincorporated area of the
County. The property was a deed restricted affordable housing unit where the Dissolved RDA provided a
first-time homebuyer loan of $48,500 to the buyers for a ten-year deed restriction. The term of the deed restriction
was expired and the house could then be sold as an unrestricted unit. The Dissolved RDA purchased the property
pursuant to its Resale Requirements, Homebuyer Covenants, and Option to Purchase Agreement (Resale
Restrictions) for a price of $368,775; the appraised value at the time. The Agency received the initial $48,500,
plus compounded interest for a total of $112,334 at the close of escrow. Since the Dissolved RDA acquired the
property residential values in Bay Point have declined. According to Assessor Records the average value of home
sales in the Bay Point area have decreased by more than 65 percent. Since 2007, the foreclosure crisis impacted
Bay Point significantly and most first time home buyers were unable to secure financing to purchase homes. The
Dissolved RDA rehabilitated the property using housing funds and then relisted it for sale.
On January 17, 2012, the Board of Supervisors declared that the County of Contra Costa would act as the housing
successor entity to the Dissolved RDA effective February 1, 2012. On that date the housing successor assumed the
housing assets, housing obligations and housing functions of the Dissolved RDA.
The County, as Housing Successor, worked with Community Housing Development Corporation (CHDC) of
North Richmond to list the property for sale to an income-qualified buyer. CHDC received six offers on the
property, three of which were qualified buyers. On October 30, 2012, Cody Marshall Burton made an offer for 96
Enes Avenue, Bay Point in the amount of $100,000. Although this offer is less than the amount paid by the
Dissolved RDA for the property and incurred in transaction fees, staff is recommending that the Board of
Supervisors, acting as the Housing Successor to the Dissolved RDA, accept the offer. Accepting this offer allows
the Housing Successor to reduce its real estate holdings, while preserving this unit as affordable for another
first-time home buyer. It also enables the Housing Successor to continue fulfilling its affordable housing goals
and overall production count. In recent years, the Dissolved RDA had exercised its option to purchase properties
to keep them in the stock of affordable housing units. The most recent was a unit purchased and resold in North
Richmond in 2010. The Enes Avenue property is the last of these units that have been purchased. The new buyer
will be required to enter into the Housing Successor's Resale Restriction and Buyer’s Disclosure Statement.
Sale of this property is a Class 12 Categorical Exemption of the California Environmental Quality Act.
Following sale of the property, the Director of the Conservation and Development Department will deliver the
grant deed to Fidelity Title Company, file a Notice of Exemption and pay the $50 filing fee to the County Clerk.
CONSEQUENCE OF NEGATIVE ACTION:
The housing unit will remain vacant and the Housing Successor Agency will continue to incur holding costs and
other financial obligations. The unit will also not qualify for production count under the affordable housing
program.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Resolution No. 2013/38
Option Agreement
Grant Deed
NOE