HomeMy WebLinkAbout2013-03-12; City Council; 21147; Authorization Sell Affordable Housing 577 LagunaCITY OF CARLSBAD - AGENDA BILL
AB# 21.147 REPORTING OUT DEPT.DIRECTOR
MTG. 3/12/13 AUTHORIZATION TO SELL
AFFORDABLE HOUSING UNIT AT 577
LAGUNA DRIVE, CARLSBAD AND
APPROPRIATING RELATED FUNDS
CITY ATTY. f7 DEPT. HNS
AUTHORIZATION TO SELL
AFFORDABLE HOUSING UNIT AT 577
LAGUNA DRIVE, CARLSBAD AND
APPROPRIATING RELATED FUNDS
CITY MGR. / ^S5
RECOMMENDED ACTION:
Report Out on closed session of September 11, 2012 and adopt City Council Resolution No.
2013-052 authorizing the City Manager to execute all documents associated with
the sale of 577 Laguna Drive, Carlsbad, California for affordable housing, and appropriating
$16,000 from the Housing Trust Fund for costs related to the sale of said property.
ITEM EXPLANATION:
Pursuant to the City's Inclusionary Housing Ordinance, the Laguna Point condominium
development was required to sell three units at an affordable price to lower income persons.
The City's Resale Restriction Agreement for affordable housing units gives the City the option
to purchase the unit at an affordable price if the owner defaults on the agreement or defaults
on their mortgage loan, to ensure that the unit remains restricted as affordable housing for up
to 45 years.
A one bedroom affordable unit was purchased in the development in 2007 for $123,500. The
buyer received a first mortgage loan from Bank of America for $122,500 for the purchase.
After the buyer defaulted on their loan, the City Council, in a closed session meeting on May
8, 2012, authorized staff to execute the City option to purchase the unit and avoid a trustee
sale and possible loss of the affordable housing unit from the City's inventory. On August 23,
2012, the City acquired the unit for a total of $150,984.
Staff is currently working with a real estate agent to find another low income buyer for the
unit. The maximum affordable sales price for the property is now $147,850. It is estimated
that seller closing costs, including real estate commission, and other expenses related to the
sale will total approximately $16,000.
FISCAL IMPACT:
Sale of the unit for $147,850 will help to offset the $150,984 cost to the City for the purchase
ofthe unit. Closing costs will be paid from the City's Housing Trust Fund.
DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch@carisbadca.aov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED X
DENIED •
WITHDRAWN •
AMENDED •
CONTINUED TO DATE SPECIFIC •
CONTINUED TO DATE UNKNOWN •
RETURNED TO STAFF •
COUNCIL RECEIVED THE •
REPORT/PRESENTATION
OTHER-SEE MINUTES •
Page 2
ENVIRONMENTAL IMPACT:
The recommended action is exempt from environmental review pursuant to CEQA
Guidelines Section 15061 (b) (3). since it can be seen with certainty that there is no potential
that the recommended action will cause a significant effect on the environment.
EXHIBITS:
1. Resolution No. 9ni3-Q52 authorizing the City Manager to execute all documents
associated with the sale of 577 Laguna Drive, Carisbad, California for affordable
housing, and appropriating up to $16,000 from the Housing Trust Fund for costs
related to the sale of said property.
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RESOLUTION NO. 2013-052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
DOCUMENTS ASSOCIATED WITH THE SALE OF 577 LAGUNA DRIVE,
CARLSBAD, CALIFORNIA FOR AFFORDABLE HOUSING, AND
APPROPRIATING FUNDS FOR COSTS RELATED TO THE SALE OF
SAID PROPERTY.
WHEREAS, the City has an interest in maintaining affordable housing; and
WHEREAS, the affordable housing located at 577 Laguna Drive was purchased
to prevent loss of the affordable housing due to a trustee sale as a result of a default on
a mortgage on the property; and
WHEREAS, Policy C.I of the Implementing Policies and Action Programs for
residential uses in the City's General Plan Land Use Element encourages the provision
of low and moderate income dwelling units to meet the objectives of the City's Housing
Element; further, Goal 1 of the Housing Element is "Carlsbad's existing housing stock
preserved, rehabilitated, and improved with special attention to housing affordable to
lower-income households;" and
WHEREAS, the City Council has taken all testimony into account.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council authorizes the City Manager to execute all documents
associated with the sale of 577 Laguna Drive, Carisbad, California, assessor's
parcel number 203-101-37-13, to a low income household for affordable
housing.
3. That an appropriation of up to $16,000 from the City's Housing Trust Fund is
approved for payment of all expenses related to the sale of 577 Laguna Drive,
Carisbad, California and the Finance Director is authorized to disburse said
funds.
4. That the City Council hereby makes the finding that sale of property at 577
Laguna Drive, Carisbad, California is consistent with Policy C.I of the
Implementing Policies and Action Programs for residential uses in the City's
General Plan Land Use Element encouraging the provision of low and
moderate income dwelling units.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council
ofthe City of Carlsbad on the 12th day of March 2013, by the following vote to wit:
AYES: Council Members Hall, Packard, Wood, Blackburn, Douglas.
NOES: None.
ABSENT: None.
MATT/HALL, Mayor
ATTEST:
SON, City CleKc QT
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