4 - PUBLIC HEARING- AGREEMENT FOR SALE OF REAL PROPERTY

Home Browse Search

PH — Agreement and Escrow Instructions for Sale of Real Property at 542 E. Central Avenue September 6, 2016 Page 2 At that time, staff informed the Church that due to the property being purchased with the former Community Redevelopment Agency's Low and Moderate Income Housing Funds, the property must be used for affordable housing development or be sold at market value with the proceeds used for the development of affordable housing only. In February 2016, the Church made an offer to the Authority for the market value of 542 E. Central Avenue. Since receiving the offer, the Authority requested an appraisal for the market value of the land. The appraisal determined the market value to be $270,000. The Church agreed to purchase the land under the Authority's condition that the parcel does not remain vacant or be used for parking. By allowing the sale of the property, the Church will be able to expand to accommodate its growing congregation as well as enable the Authority to meets its deadline with the State of California for disposing of Housing Authority -owned property. The property (APN # 016-082-48) was transferred to the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency to the former Redevelopment Agency of the City of Santa Ana, upon dissolution of the former Community Redevelopment Agency in 2012. Because the property is owned by the Housing Authority, it must be purchased at the appraised market value with minimal transaction costs, unlike other privately owned parcels. The proceeds from the sale are to be used solely for affordable housing development. Prior to the Redevelopment Agency owning the property, the Church owned the property. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement and Sustainability, Objective #3, (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT Proceeds from the sale will be received into the Housing Authority's Sale of Land Fund (Account No. 60718002-57071). All proceeds will be used solely for affordable housing development. Judson Brown Housing Division Manager Community Development Agency JB/NV/II Exhibits: 1. Location Map 2. Purchase and Sale Agreement and Joint Escrow Instructions 3. Resolution of the Housing Authority 4. Proposed Sale Summary