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Home My WebLink AboutAGENDA REPORT 2015 1104 CCSA REG ITEM 10F ITEM 10.F. CITY OF MOORPARK,CALIFORNIA City Council Meeting of_ fi— 0 ,5 10/ ACTION: 49940-0.44T", J"" MOORPARK CITY COUNCI Ir nts"'4" "r' ,w, AGENDA REPORT BY: '� ciu . 0/0/5 - -- TO: Honorable City Council FROM: Jessica Sandifer, Senior Management Analy DATE: October 28, 2015 (CC Meeting of 11/04/2015) SUBJECT: Consider Purchase of First Time Home Buyer Unit at 6774 Bountiful Lane and Resolution Amending Fiscal Year 2015/16 Budget to Fund Transaction BACKGROUND & DISCUSSION The City's First Time Home Buyer program provides attached and detached residential units to very-low and low-income home buyers who meet the requirements of the City's program. The Units are sold at an affordable housing cost as defined in California Health and Safety Code Section 50052.5 et seq. As a part of this program, the eligible buyers enter intos a Resale Refinance Restriction and Option to Purchase Agreement ("Resale Restriction Agreement") Under the Resale Restriction Agreement, there is a clause that states the City can elect to purchase the unit from the current owner upon resale. The City might elect to do this if there is difficulty experienced with finding an eligible First Time Home Buyer to purchase the unit. Staff has held two workshops to identify eligible First Time Home Buyers and has been unsuccessful in providing a buyer for the unit at 6774 Bountiful Lane. This has mostly been due to the identified buyers being ineligible to obtain a mortgage loan to purchase the property. The current owner has purchased a new home and has been paying for two mortgages for several months. Staff is recommending purchasing the property for re-sale to an eligible First Time Home Buyer as soon as one can be identified. Staff recently held workshops at the end of September and more are scheduled for the beginning of November. Staff is confident that an eligible buyer can be identified within one of these workshop rounds. FISCAL IMPACT The City will purchase the unit for the affordable sales price of $217,500, plus estimated closing costs of $2,500 for an estimated total of $220,000. The City will than recover the purchase price of the unit when it is resold to an eligible buyer. Based on the affordable sales price for the subsequent buyer, the city may not recover all of the closing costs for the resale transaction. Sufficient funds were not included in the FY 2015/16 budget for 257 Honorable City Council November 4, 2015 Page 2 this purchase. Staff is requesting a budget amendment from the City Affordable Housing Fund (2201) for $220,000 to fund the purchase of the unit. STAFF RECOMMENDATION (ROLL CALL VOTE) 1. Authorize purchase of property at 6774 Bountiful Lane and authorize the City Manager to sign all documents relevant to the transaction; and 2. Authorize City Clerk to accept Grant Deed for the property; and 3. Adopt Resolution No. 2015- , amending the Fiscal Year 2015-16 budget to purchase the property. Attachment 1. Resolution No. 2015- 258 ATTACHMENT 1 RESOLUTION NO. 2015- A RESOLUTION OF CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2015/2016 BUDGET BY APPROPRIATING $220,000.00 FROM THE CITY AFFORDABLE HOUSING FUND (2201) FOR PURCHASE OF FIRST TIME HOME BUYER UNIT AT 6774 BOUNTIFUL LANE WHEREAS, on June 17, 2015, the City of Moorpark adopted the Operating and Capital Improvement Projects budget for Fiscal Year (FY) 2015/16; and WHEREAS, a staff report has been presented to the City Council recommending approval of purchase of First Time Home Buyer unit located at 6774 Bountiful Lane, Moorpark, California 93021; and WHEREAS, an aggregate budget amendment of $220,000.00 is requested to fund the purchase of the unit from the City Affordable Housing Fund (2201); and WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount $220,000 from the City Affordable Housing Fund, as more particularly described in Exhibit "A", attached hereto, is hereby approved. SECTION 2. 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 4th day of November, 2015. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Exhibit A — Budget Amendment 259 EXHIBIT A BUDGET AMENDMENT FOR City Affordable Housing Fund for purchase of 6774 Bountiful Lane 2015116 FUND ALLOCATION FROM: Fund Account Number Amount City Affordable Housing Fund 2201-5500 $ 220,000.00 $ Total $ 220,000.00 DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS: Account Number Current Budget Revision Amended Budget 2201.2430.5025.9610 $ - $ 220,000.00 $ 220,000.00 $ - $ - $ $ - $ - $ - $ - $ - $ $ Total $ - $ 220,000.00 $ 220,000.00 Approved as to Form: to-2F'•7.olj 260