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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" �v�i�157 Z 0 e D)3 Resolution No. 2002 - Page 3 Exhibit "A" Map Lvi cov grrtA t4 ND9�812 w = COMMON AREA 092 0 O 0 a Ne9O13e`YI" 30Y' ,1, M ^� AREA b 266 265 N O o LOT 292 COMMON 0 LOT OL N i N 281 m 2 D , COMM. -E� AREA D 4 244 O 51 52 53 54 264 263 262 261 260 259 258 257 256 �5R D A 260 279 3: 19 20 Z X °LOT 291 n•eYe �_ LOS 50 215 2 1 56 207 206 �! 96LOT 51 214 209 57 59 44 286 COMMON 0 N d Alf, cn 05 COMMON LOT 283 � AREA 267 O254 48 243 250 251 O 0268 m 47 242 245 69 246 68 247 67 248 66 249 64 63 253 61 n 0269 o 241 COMMON LOT 295 252 62 O270 3 3 AREA i 09 271 i 2 VARSITY COMMON LOT 282 (PRIVATE) AREA 10 272 22 240 LOT 294AREA COMM. 4f 233 3 7 74 193 o LOT 290 23 239 42 236 235 39 232 O 73 194 II 273 24 23B 237 234 231 35 72 195 12 274 rniuiunru � .,r ��. � AREA PROF RTY 230 O 7I 196 SUBJECT b. r3 275 D m 'a' D 222 cc� Z6 o «v 27 0 «� 28 0 226 30 0 227 3! 0 228 32 0 '° 197 0 D 14 276 D n 25 ZT MON L COMMON IS 277 W 093 213 198 16 278 -1 z m COMMON AREA 0 21 7 212 54 o - L@ �19 LOT 287 m 1 LOT 293 --Ei- \.: 49 216 211 55 AREA D A 260 279 3: 19 20 Z X °LOT 291 n•eYe �_ LOS 50 215 2 1 56 207 206 �! 96LOT 51 214 209 57 59 44 286 COMMON 0 N d Alf, cn 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