HomeMy WebLinkAboutMINUTES - 05152007 - C.65 TO: REDEVELOPMENT AGENCY eE .........0 Contra
FROM: John Cullen, Executive Directorgi AnX Is Costa �—
DATE: May 15, 2007 v�k County
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SUBJECT: APPROVE PURCHASE OF REAL PROPERTY LOCATED AT 140 MALCOLM DRIVE,
NORTH RICHMOND, CA.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
Recommended Action:
1. DECLARE that the Agency intends to exercise its right of first refusal to purchase the affordable housing
unit located at 140 Malcolm Drive,North Richmond,APN#408-230-019(the"Property")from Anthony
J. and Gail D. Dart (the "Owner") pursuant to the Resale Requirements, Homebuyer Covenants, and
Option to Purchase Agreement dated as of December 20, 1999 between the Owner of the Property and the
Agency (the "Agreement"); and
2. AUTHORIZE the Director of the Agency (the"Director") or his designee to negotiate with the Owner of
the Property for the purchase of the Property in an amount not to exceed Two Hundred Two Thousand
Dollars and No/100ths ($202,000); and
CONTINUED ON ATTACHMENT: ® YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR ❑ R OM ENDATIO O AGENCY COMMITT E
[APPROVE ❑ OTHER
i
SIGNATURE(S):
ACTION OF AG ON � Fel
APPROVED AS RECOMMENDED Vf OPER ❑
VOTE OF COMMISSIONERS: I HEREBY CERTIFY THAT THIS IS A TRUE AND
CORRECT COPY OF AN ACTION TAKEN AND
UNANIMOUS(ABSENT ) ENTERED ON THE MINUTES OF THE
AYES: NOES: REDEVELOPMENT AGENCY ON THE DATE SHOWN.
ABSENT: ABSTAIN: ATTESTED MX G, 2,6D7
Contact: D'Andre Wells(335-7236) JOHN CULLEN, GENCY SECRETARY
Orig: Redevelopment Agency
cc: CAO
County Counsel
Redevelopment Agency By: Deputy
PW Real Property-Karen Laws
SUBJECT: APPROVE PURCHASE OF REAL PROPERTY LOCATED AT 140 MALCOLM DRIVE,
NORTH RICHMOND, CA.
DATE: May 15, 2007
PAGE: 2
3. AUTHORIZE the Director to agree to an extension of the 90-day period of time required by the Agreement
to consummate the purchase of the Property from May 29, 2007 to no later than July 15, 2007; and
4. AUTHORIZE the Auditor-Controller to issue a check for the purchase price of the Property in an amount
not to exceed $202,000, made payable to Financial Title Company, to be forwarded to the Public Works
Department Real Property Division for delivery into escrow; and
5. ACCEPT the Grant Deed from Anthony J. Dart and Gail D. Dart; and
6. DIRECT the Public Works Real Property Division to have the above referenced Grant Deed recorded in the
Office of the County Recorder; and
7. AUTHORIZE the Director to assign its right to purchase the Property to an eligible purchaser as provided
for in the Agreement; and
8. FIND that this project is exempt from the California Environmental Quality Act(CEQA)pursuant to CEQA
guidelines Section 15061(b)(3); and
9. DIRECT the Director,or designee,to file a Notice of Exemption for this project with the County Clerk and
arrange for payment of the$50 handling fee to the County Clerk for filing such Notice of Exemption.
Fiscal Impact:
Norte. No General Fund revenues are involved. Redevelopment Agency Housing Set-Aside funds (Fund
289301/Org 7885),will be used to purchase,hold,and resale this home. The Agency may assign its right to another
eligible lower income homebuyer.
Reasons for Recommendations and Background:
From 2000 through 2002,the Community Housing Development Corporation of North Richmond sold 87 homes in
the Parkway Estates development. Twenty-five of those homes,including this Property,received Agency assistance
and were sold to low income,first-time homebuyers. In exchange for Agency assistance,homebuyers,including the
Owner, signed the Agreement. The purpose of the Agreement is to provide the Agency with an opportunity to
maintain the affordability of the units for another low-income household when a unit is sold or transferred. The
Agreement provides that the Agency may exercise its option to purchase the Property from the Owner in the event
the Owner provides the Agency with a written notice of intention to sell.The Agreement also gives the Agency the
option to assign its right to a low income homebuyer.
On February 28,2007,Anthony Dart and Gail Dart notified the Agency of their intent to sell their home located 140
Malcolm Drive in North Richmond, CA. Pursuant to the Agreement, the Agency wishes to exercise its right to
acquire the property thereby preserving the unit as affordable for another low income homebuyer.
The Dart's also requested a time extension beyond the standard 90 day period because the Darts will not be ready to
vacate the Property until June 30.The Agency wishes to grant this extension and establish July 15,2007 as the date
of purchase for the property. The Agency may grant a further extension if requested by the Darts.
The Purchase Agreement sets the maximum sales price as the lower of(1) the Fair Market Value of the Home, or
(2)the Restricted Future Sales Price. The Restricted Future Sales Price is calculated by taking the sales price of the
SUBJECT: APPROVE PURCHASE OF REAL PROPERTY LOCATED AT 140 MALCOLM DRIVE,
NORTH RICHMOND, CA.
DATE: May 15, 2007
PAGE: 3
Home at the time of purchase by the Owner and increasing such amount by the percentage increase in the median
income for the geographic area until the date of the receipt by the Agency of the Owner's Notice of Intent to Sell,
and, where applicable, adjusted pursuant to section 10 (a)(ii) of the Agreement to reflect the value of Eligible
Capital Improvements or the cost of deferred maintenance. The maximum purchase price of up to $202,000 was
established using the guidelines outlined above under Section 10 of the Agreement.The actual acquisition price may
be lower.
Consequences of Neeative Action:
The Agency will not be able to keep affordable units in its program in order to satisfy Redevelopment law
affordable housing production requirements. A subsequent recommendation will be made to the Board of
Commissioners when a new buyer has been identified.