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Home My WebLink About75A - SALE OF 1633 E. SIXTH ST. REQUEST FOR COUNCIUAGENCY ACTION MEETING DATE: ~ ~ CLERK OF COUNCIL USE ONLY: DECEMBER 20, 2004 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 1 st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For PUBL:IC HEAR:ING - SALE OF AGENCY- OWNED PROPERTY LOCATED AT 1633 E. S:IXTH STREET [lfd ~~ ~ ~ #tZ fo- (:t. CITY MANAGER XECUTIVE DIRECTOR CONTINUED TO FILE NUMBER RECOMMENDED ACTION C:ITY COUNC:IL ACT:ION 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. COMMUN:ITY REDEVELOPMENT AGENCY ACT:ION 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. COMMUN:ITY REDEVELOPMENT AND HOUS:ING COMM:ISS:ION RECOMMENDAT:ION 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. 75A-1 Public Hearing - Sale of Agency-Owned Property Located at 1633 E. Sixth Street December 20, 2004 Page 2 D:ISCUSS:ION 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 Ci ty' s Treasury Manager conducted the lottery drawing on November 4, 2004. As a result of this lottery, a established, and Carlos Morales and recommended to purchase the 1633 affordable sales price of $158,000. priority list of the families was Ana Viera were selected and are being E. Sixth Street property for the 75A-2 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. ENV:IRONMENTAL :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. F:ISCAL :IMPACT Proceeds from the sale of this property will be placed in the Agency 's Housing Set-Aside account (account no. 504-01-5721). APPROVED AS TO FUNDS AND ACCOUNTS: cvJJ} patricia C. Whitaker Executive Director Community Development Agency Ro. 0 Executive Finance & Services Agency PCW/SK/mlr H:Actions\2004CC\JT PH CC-CRA SaleAgncyProp1633E.Sixth 12-20-04 75A-3 w c en ~ en c( w w :;:) z w ~ i-= en w a: a: ~ SIXTH ~ w w a: ~ en 'i C) ~ ~ 1- 1633 East Sixth Street Exhibit 1 75A-4 12/13/04 les RESOLUTION NO. 2004-098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SALE OF AGENCY-OWNED PROPERTY LOCATED 1633 E. SIXTH STREET TO CARLOS MORALES AND ANA VIERA; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE DOCUMENTS AS NECESSARY; AND MAKING CERTAIN FINDINGS WITH RESPECT THERETO, ON BEHALF OF THE CITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council 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 et sea.) 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-Iow- income persons. B. Pursuant to Section 33334.2(e) of the Community Redevelopment Law, the Agency may exercise any and all of its powers to carry out this purpose. C. Pursuant to Section 33334.6(a) of the Community Redevelopment Law, the California State Legislature has found and declared that the provision of affordable housing outside of redevelopment project areas can be of direct benefit to those projects in assisting the accomplishment of project objectives. D. In connection with the Redevelopment Plan, the Agency has established a Low and Moderate Income Housing Fund in accordance with California Health and Safety Code Section 33334.2 et sea. (the "Housing Funds"), to provide funding for housing within the City of Santa Ana that is affordable to persons and families of very-low, low- or moderate- income. E. Pursuant to Section 33334.2(g) of the Community Redevelopment Law, Housing Funds may be used to assist in the provision of housing for low- or moderate-income households outside the Redevelopment Project area if such use will be of benefit to the Redevelopment Project. F. The Agency has used Housing Funds to purchase certain real property located at 1633 East Sixth Street (the "Property"), which is located outside the Redevelopment Project area. 75A-5 G. The Agency proposes to sell the Property, at an affordable housing price, to Carlos Morales and Ana Viera, qualified buyers. The Amended Agreement Containing Covenants will be recorded against the Property establishing a forty-five year term of affordability. H. The Agency has duly considered all of the terms and conditions of the proposed sale, and believes that the proposed sale is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purpose and provisions of applicable state and local laws and requirements. I. The City and Agency held a public hearing on the proposed Project and the Agreement as required for the sale of Agency owned property by Section 33433 of the Community Redevelopment Law, after having duly provided notice of such public hearing in accordance with state law. J. The proposed sale of the Property is exempt from further review and in accordance with the California Environmental Quality Act, categorical exemption ER No. 2004-233 will be filed for this project. K. The City recognizes that it has received and heard all oral and written objections to the proposed sale, and to other matters pertaining to this transactions, and that all such oral and written objections are hereby overruled. L. The City hereby finds and determines that the information set forth herein is true and correct. M. The City hereby finds and determines that the sale of the Property will provide housing for a low-income household. N. The City hereby 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. O. The City hereby approves the sale of the Property. Section 2. The Executive Director of the Community Development Agency or his/her designee ("Executive Director") is hereby authorized, on behalf of the City, to execute such documents that are to be signed by the City in connection with the sale, and to make such changes of a non-substantive nature to such documents as the Executive Director shall deem appropriate. A copy of any such documents, when executed, shall be placed on file in the office of the Secretary of the Agency. Section 3. The Executive Director is hereby authorized, on behalf of the City, to sign all documents necessary and appropriate to carry out and implement the sale and to administer the Agency's obligations, responsibilities and duties to be performed. Section 4. The Clerk of the Council shall attest to and certify the vote adopting this Resolution. 75A-6 ADOPTED this day of ,2004. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lisa E. Storck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2004-098 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of Council City of Santa Ana 75A-7 75A-8