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Public Hearing - Sale of <br />Agency -Owned Property Located <br />at 1633 E. Sixth Street <br />December 20, 2004 <br />Page 2 <br />In 1999, the Agency provided financing to facilitate the development of <br />1633 E. Sixth Street (Exhibit 1) as an affordable, for -sale single - family <br />home. The property was developed as part of the Agency's obligation to <br />replace affordable housing units that were removed from the City's <br />housing stock as a result of the Bristol Street widening project. The <br />initial owners purchased the property in 1999 at the affordable price of <br />$150,000. As part of the sales agreement, the owners agreed to resale <br />restrictions that required any future sale be affordable to a low- income <br />household. <br />This past year, personal issues resulted in the initial property owners <br />needing to sell the home and move out of state. The Agency acquired the <br />home in August 2004 for the maximum affordable sales price of $158,000 <br />with the intent of facilitating the sale of the property to another <br />income eligible family. <br />Households who are participating in the Family Self Sufficiency Program <br />(FSS) operated by the Santa Ana Housing Authority were invited to <br />participate in a pre - qualification process conducted by the Neighborhood <br />Housing Services of Orange County (NHS) Homeownership Center. The <br />criteria to participate in the lottery were that the household must have <br />graduated or is currently participating in the FSS program, and they need <br />to have completed all required classes, which include homeownership. In <br />addition, there were requirements regarding household size and the <br />ability to pay a minimum of $10,000 of their own funds toward the <br />purchase. Seven FSS participants met these criteria. Of the seven, five <br />households were pre - qualified based on income and credit scores as <br />determined by NHS. One household decided not to proceed, so there were <br />four households remaining to participate in the lottery. The City's <br />Treasury Manager conducted the lottery drawing on November 4, 2004. <br />As a result of this lottery, a priority list of the families was <br />established, and Carlos Morales and Ana Viera were selected and are being <br />recommended to purchase the 1633 E. Sixth Street property for the <br />affordable sales price of $158,000. <br />`� eGe <br />