HomeMy WebLinkAboutAGENDA REPORT 2002 0227 CC SPC ITEM 11CMOORPARK CITY COUNCIL
AGENDA REPORT
ITEM-1 t - C- -
CITY OF MOORPARK. CAT.IFORNTA.
r;4- rn„nr;l Meptinv
To: Honorable City Council
From: Nancy Burns, Senior Management Analyst
Date: February 15, 2002
(Special City Council Meeting of February 27, 2002)
Subject: CONSIDER AUTHORIZING THE USE OF $217,000 IN COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AFFORDABLE HOUSING
FUNDS FOR PROPERTY ACQUISITION (6479 PENN AVENUE #B)
BACKGROUND
Currently, the City has five hundred eighteen thousand seven
hundred twenty dollars ($518,720) in its CDBG line of credit.
HUD regulations limit the unexpended funds that may be retained
in this line of credit to one and one half (11,�) times the
current annual grant amount. The City has been notified of
HUD's intention to reduce future grants if funds exceeding this
limit remain unexpended sixty (60) days prior to the end of the
program year, which is June 30 for Moorpark's program. The
minimum expenditure to meet compliance with the above
requirements by April 30, 2002, is approximately two hundred
thousand dollars ($200,000).
DISCUSSION
The acquisition of a residential dwelling unit for the purpose
of providing affordable housing for a low income household is an
eligible use of CDBG funds. If the unit is deed restricted and
sold to a low income household, the unit may be counted toward
the City's inclusionary housing requirements. CDBG funds
totaling approximately two hundred sixty -eight thousand four
hundred fifty -four dollars ($268,454) have been allocated for
Affordable Housing.
W0154
Honorable City Council
Date 02/15/02
Page 2
The City Council is requested to approve the attached resolution
for the acquisition of 6479 Penn Avenue, Unit #B, in the Varsity
Park condominium development, at a purchase price of two hundred
seventeen thousand dollars ($217,000) , and the subsequent re-
sale of the unit to a qualified low income household. To make
the unit available at an affordable price to a low income
household, a "silent second" mortgage will be provided, in favor
of the City. Additional secondary financing also will be
sought, to leverage this investment. Guidelines and covenants
similar to those being developed for the affordable units
required in certain market rate residential developments need to
be developed for this purpose. If the City is successful in its
application for HOME funds for Down Payment Assistance, the
guidelines developed for that program will be applicable for
this purpose.
The funds realized at resale of the property become eligible for
re -use for another CDBG project.
STAFF RECOMMENDATION (ROLL CALL VOTE)
1. Approve Resolution No. 2002- , authorizing the acquisition
of 6479 Penn Avenue, Unit #B, Moorpark, California 93021 with
CDBG Affordable Housing funds and the re -sale of same, with
deed restrictions consistent with HUD requirements, to a
qualified low income household; and
2. Direct
property
Attachment
the City Clerk to accept an interest in the real
which is the subject of this report.
®W00:15 i
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, AUTHORIZING THE
ACQUISITION FOR AFFORDABLE HOUSING PURPOSES OF
CERTAIN REAL PROPERTY DESCRIBED AS 6479 PENN
AVENUE, UNIT #B; APN 514 -0- 093 -155 AS THE SAME
IS MORE PARTICULARLY DESCRIBED IN EXHIBITS "A"
AND "B" ATTACHED HERETO AND INCORPORATED
HEREWITH
WHEREAS, the City of Moorpark, a municipal corporation,
wishes to encourage the availability of Affordable Housing for
low income households within the City; and
WHEREAS, Community Development Block Grant (CDBG) funds
of approximately $268,454 previously have been allocated for
the purpose of providing Affordable Housing; and
WHEREAS, the City submitted an offer to purchase 6479
Penn Avenue, Unit #B, for $217,000, for the purpose of re-
selling this unit, with deed restrictions to ensure ongoing
affordability, at an affordable housing price to a low income
household; and
WHEREAS, the owner of said property accepted the City's
purchase offer.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The real property that is the subject of this
resolution consists of 6479 Penn Avenue, Unit #B, APN 514 -0-
093 -155 and as described on Exhibit "A" which is attached
hereto and incorporated herein, and as more particularly
depicted on Exhibit "B" which is also attached hereto and
incorporated herein.
SECTION 2. The City Council hereby declares its
intention to purchase said property for the purchase price of
two hundred seventeen thousand dollars ($217,000), to deed
restrict said property to ensure ongoing affordability to low
income households, and to re -sell said property to a qualified
low income household.
SECTION 3. This resolution shall become effective
immediately upon its adoption.
W1 X156
Resolution No. 2002 -
Page 2
SECTION 4. The City Clerk shall certify to the
acceptance of interest in said real property.
SECTION 5. The City Clerk shall certify to the adoption
of this resolution and shall cause a certified resolution to
be filed in the book of original resolutions.
PASSED AND ADOPTED this 27th day of February, 2002.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Attachments: Exhibit "A"
Exhibit "B"
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Resolution No. 2002 -
Page 3
Exhibit "A"
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Resolution No. 2002 -
Page 4
Exhibit "B"
Legal Description
The land referred to herein is situated in the County of
Ventura, State of California, and is described as follows:
Lot 277 of Tract 2726 -3, in the City of Moorpark, County of
Ventura, State of California, as per map recorded in Book 80
Pages 84 to 87 inclusive of Maps, in the Office of the County
Recorder of said County.
Except all the coal, lignite, coal oil, petroleum, naphtha,
asphalt, naltha, brea, natural gas, all kindred or similar
minerals or mineral substances, water and other rights
reserved by Simi Land and Water Company in deed recorded
November 16, 1989 in Book 29, page 314 of Deeds, and granted
to Union Oil Company of California, in the instrument recorded
November 26, 1965 in Book 2902, Page 450, Official Records,
without, however, the right to enter upon and use said land
above a depth of 500 feet.
00159