Title
Staff Report for a City of San Leandro City Council Resolution Authorizing the City Manager to Appropriate up to $415,000 from the City Affordable Housing Assets Fund Balance to Purchase a Below Market Rate Housing Unit at 713 Bloom Street for Resale to an Income Eligible Homebuyer and to Execute a Purchase and Sale Agreement with an Income Eligible First Time Homebuyer, which would be subject to an updated Property Value Restrictions, Resale Agreement, and Option to Purchase
Staffreport
SUMMARY AND RECOMMENDATIONS
The City's Housing Services Division investigated and determined in recent years that the owner of a Below Market Rate (BMR) townhome at 713 Bloom Street, Stephanie Ransom Clark[WL1], was not using it as her primary residence as required under the City's Inclusionary Housing Program. The owner also violated the Property Value Restrictions, Resale Agreement, and Option to Purchase Agreement (Agreement) with the City by over-financing the property beyond the BMR home value. Staff communicated with the owner for many months to re-establish compliance with City affordability requirements, but the owner's, and the loan originator's, OCMBC dba LoanStream, responses were inadequate. The City recently filed legal actions against both the owner and LoanStream to specifically enforce the Agreement.
Staff recommends that the City Council authorize the City Manager to appropriate up to $415,000 from the City Affordable Housing Assets Fund Balance to purchase a BMR unit at 713 Bloom Street for Resale to an Income Eligible Homebuyer and to Execute a Purchase and Sale Agreement with an Income Eligible First Time Homebuyer, which would be subject to an updated Agreement.
BACKGROUND
In the early 2000s, the Cherrywood subdivision was constructed and included over 300 owner-occupied detached single family and attached townhome units. Over 30 units were required by the City to be sold at below market rate prices to eligible low and moderate income homebu...
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