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Home My WebLink About122004 PH Sale of Agency Prop 1633 E. 6th StREQUEST FOR COUNCIVAGENCY�"ITi ACTION MEETING DATE: DECEMBER 20, 2004 G PUBLIC HEARING - SALE OF AGENCY - OWNED PROPERTY LOCATED AT 1633 E. SIXTH STREET RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ® As Recommended 6 ❑ As Amended 4,r, sty ❑ Ordinance on 1 st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing the sale of Agency -owned property at 1633 E. Sixth Street to Carlos Morales and Ana Viera in the amount of $158,000 and authorize the Executive Director to execute all required documents. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution authorizing the sale of Agency -owned property at 1633 E. Sixth Street to Carlos Morales and Ana Viera in the amount of $158,000 and authorize the Executive Director to execute all required documents. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION Recommended that the Community Redevelopment Agency adopt a resolution authorizing the sale of Agency -owned property at 1633 E. Sixth Street to Carlos Morales and Ana Viera in the amount of $158,000 and authorize the Executive Director to execute all required documents. By a vote of 5:0 (Rodriguez absent) at its Regular Meeting of December 7, 2004. 41 g Public Hearing - Sale of Agency -Owned Property Located at 1633 E. Sixth Street December 20, 2004 Page 2 In 1999, the Agency provided financing to facilitate the development of 1633 E. Sixth Street (Exhibit 1) as an affordable, for -sale single - family home. The property was developed as part of the Agency's obligation to replace affordable housing units that were removed from the City's housing stock as a result of the Bristol Street widening project. The initial owners purchased the property in 1999 at the affordable price of $150,000. As part of the sales agreement, the owners agreed to resale restrictions that required any future sale be affordable to a low- income household. This past year, personal issues resulted in the initial property owners needing to sell the home and move out of state. The Agency acquired the home in August 2004 for the maximum affordable sales price of $158,000 with the intent of facilitating the sale of the property to another income eligible family. Households who are participating in the Family Self Sufficiency Program (FSS) operated by the Santa Ana Housing Authority were invited to participate in a pre - qualification process conducted by the Neighborhood Housing Services of Orange County (NHS) Homeownership Center. The criteria to participate in the lottery were that the household must have graduated or is currently participating in the FSS program, and they need to have completed all required classes, which include homeownership. In addition, there were requirements regarding household size and the ability to pay a minimum of $10,000 of their own funds toward the purchase. Seven FSS participants met these criteria. Of the seven, five households were pre - qualified based on income and credit scores as determined by NHS. One household decided not to proceed, so there were four households remaining to participate in the lottery. The City's Treasury Manager conducted the lottery drawing on November 4, 2004. As a result of this lottery, a priority list of the families was established, and Carlos Morales and Ana Viera were selected and are being recommended to purchase the 1633 E. Sixth Street property for the affordable sales price of $158,000. `� eGe Public Hearing - Sale of Agency -Owned Property Located at 1633 E. Sixth Street December 20, 2004 Page 3 Pursuant to Health and Safety Code 33433, before an Agency can sell property, the legislative body must hold a public hearing. On December 9 and December 16, 2004, public notices were placed in the Orange County Register stating that a public hearing is scheduled for the purpose of considering the sale of Agency -owned property located at 1633 E. Sixth Street, Santa Ana, to Carlos Morales and Ana Viera. ENVIRONMENTAL IMPACT The project is exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines. ER number is 2004 -233. FISCAL IMPACT Proceeds from the sale of this property will be placed in the Agency's Housing Set -Aside account (account no. 504 -01- 5721). po /"� C 6 1/, Patricia C. Whitaker Executive Director Community Development Agency PCW /SK /mlr APPROVED AS TO FUNDS AND ACCOUNTS: Finance & Management Services Agency H:Actions \2004CC \JT PH CC -CRA SaleAgncyProp1633E.Sixth 12 -20 -04 43 1633 East Sixth Street Exhibit 1 6 44 0 0 z n O AqT 9�c�q ST LLI z 9FFT w a w as U" mN SIXTH STREET w w cc cn w w 0 (n F- N 4 w TRINIDAD WAY F N O 1633 East Sixth Street Exhibit 1 6 44 12/14/04 LES RESOLUTION NO. CRA 2004 -15 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE SALE OF AGENCY OWNED PROPERTY LOCATED AT 1633 E. SIXTH STREET BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. Pursuant to Sections 33334.2(a) and 33334.6(c) of the California Community Redevelopment Law (California Health and Safety Code Section 33000 Pt =.) not less than 20 percent of all taxes which are allocated to the Community Redevelopment Agency of the City of Santa Ana ( "Agency ") are set aside by the Agency in a Low- Moderate - Income Housing Fund and used by the Agency for the purpose of increasing, improving and preserving the community's supply of low and moderate housing available at affordable housing costs to persons and families of low- and moderate - income, including very -low- income persons. B. Five years ago the Agency provided financing to facilitate the development of 1633 E. Sixth Street (the "Property ") as an affordable, for -sale, single family residence. The Property was developed as part of the Agency's obligation to replace affordable housing units that had beer removed from the City's housing stock due to the Bristol Street widening. As part of the initial sales agreement, the owners agreed to resale restrictions that required any future sale must be affordable to a low - income household. C. The initial owners needed to sell their home, and the Agency purchased the Property at the affordable price of $158,000, with the intent to facilitate the sale of the Property to another income eligible family. 45 12/14/04 LES D. The Agency invited households that were participating in the Family Self Sufficiency Program ( "FSS ") operated by the Santa Ana Housing Authority, to participate in a pre - qualification process conducted by the Neighborhood Housing Services of Orange County. As a result of this process, which included certain criteria and requirements to be performed by the prospective buyers, four families became pre - qualified. A lottery was held to determine the family that would be able to purchase the Property, and Carlos Morales and Ana Viera were selected. E. In order to implement the Redevelopment Plan, the Agency has agreed, subject to the approval of the City Council, to sell said Agency owned real property, pursuant to the terms and provisions of a Purchase /Sale Agreement and an amended Agreement Containing Covenants (Including Affordable Housing Restrictions) (hereinafter referred to collectively as the "Agreements ") between the Agency and Carlos Morales and Ana Viera, which are on file in the office of the Executive Director of the Agency, in which said real property and the terms and conditions of the purchase of the Property are more fully described. F. The Agreements contain all of the provisions, terms, conditions and obligations required by the state and local laws, as well as long term affordability covenants. G. The proposed sale of the Property is exempt from further review and in accordance with the California Environmental Quality Act ( "CEQA ") in accordance with Section 15061 (b)(3) of the CEQA Guidelines. Categorical Exemption ER No. 2004 -233 will be filed for this project. H. Pursuant to the provisions of the California Redevelopment Law (Health and Safety Code section 33433) the Agency and the City Council have held a duly noticed joint public hearing on the proposed sale of the Property. I. The Agency finds that the consideration the Agency will receive for the sale of the Property is not less than the fair reuse value given the use and with the covenants and restrictions authorized by the sale and recorded against the Property. Section 2. The Purchase /Sale Agreement is hereby approved, and the Executive Director of the Agency is hereby authorized to execute the Agreement, with such non - substantive changes as may be approved by Agency's General Counsel. Section 3. The Amended Agreement Containing Covenants (Including 2 6 12/14/04 LES Affordable Housing Restrictions) is hereby approved, and the Executive Director of the Agency is hereby authorized to execute the Agreement, with such non - substantive changes as may be approved by Agency's General Counsel. Section 4. The Executive Director of the Agency is hereby authorized to take all steps, and to sign all documents and instruments necessary to implement and carry out the Agreement(s) on behalf of the Agency. ADOPTED this day of 2004. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. CRA 2004 -15 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on 1010 Secretary City of Santa Ana 3 47 48