HomeMy WebLinkAbout070604 AA Rel Prop Escrow Inst 1633 E. 6th StREQUEST FOR
AGENCY ACTION
AGENCY BOARD MEETING DATE:
JULY 6, 2004
TITLE:
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Edtiranon lar
AGREEMENT FOR ACQUISITION OF REAL
PROPERTY AND ESCROW INSTRUCTIONS
FOR 1633 EAST SIXTH STREET
EXECUTIVE DIRECTOR
RECOMMENDED ACTION
AGENCY SECRETARY USE ONLY:
APPROVED
❑
As Recommended
❑
As Amended
❑
Ordinance on 1" Reading
❑
Ordinance on 2nd Reading
❑
Implementing Resolution
❑
Set Public Hearing For
CONTINUED TO
FILE NUMBER
Direct the Agency General Counsel to prepare and authorize the Executive
Director to execute an agreement for the acquisition of real property and
escrow instructions acquiring the real property located at 1633 E. Sixth
Street, Santa Ana, and identified as Assessor Parcel Number 398 - 051 -19
from Aldo Sotelo and Betzabeth Garcia for the amount of $159,000 plus
normal escrow and closing costs.
DISCUSSION
The Community Redevelopment Agency has an obligation to replace
affordable housing units that are removed from the City's housing stock
as a result of its activities. As part of an effort to meet the
replacement housing obligation that arose from the Bristol Street
widening project, the Agency entered into an agreement in 1997 with the
Southland Economic Development Corporation (SEDC), a nonprofit developer,
for the purchase of five Agency -owned lots and subsequent development of
affordable homes on those lots. SEDC built a three - bedroom, two -bath
home on the lot at 1633 E. Sixth Street (Exhibit 1) , and sold it to the
current owners in 1999 at the affordable price of $150,000.
Due to personal issues, the owners now need to relocate and sell their
home. The recorded deed restrictions on the property require that the
home be sold to a low- income household at an affordable price. The
affordable sales price is based on the area median income limit for
Orange County. Currently, the maximum affordable sales price is
$158,000. If the family were to sell the home to another low- income
3 45
Agreement for Acquisition of Real
Property and Escrow Instructions
for 1633 East Sixth Street
July 6, 2004
Page 2
household on their own, they would be in a negative financial position
after paying realtor and closing cost fees. Staff is therefore
recommending that the Agency purchase the property for the full
affordable sales price and pay all closing costs. Once approved, the
home will be marketed and sold to a qualified low- income family at the
affordable price. Occupancy and resale of the home will continue to be
restricted to low- income households at an affordable price until June 1,
2029.
FISCAL IMPACT
Funds are available in the Housing Set -Aside account (account no. 502-
936- 6611/61503).
e J P. Reekstin
ecutive Director
JPR /TG /kla
H:ACtions\2004CRAWgeeAcquiEs 1633ESixthSt- 7 -6 -04
5 4
APPROVED AS TO FUNDS AND ACCOUNTS:
4& t a&n4' / ,
Rod R. Coloma /&A lav
Executive Director
Finance & Management Services Agency
1633 East Sixth Street
Exhibit 1
5
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