Title
RESOLUTION of the City of San Leandro City Council to Authorize the City Manager to Appropriate up to $415,000 from the City Affordable Housing Asset 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
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WHEREAS, Ms. Stephanie Ransom-Clark purchased 713 Bloom Street, San Leandro, California in 2003 with the help of the San Leandro Redevelopment Agency, which provided a loan to finance her down payment as part of the Agency's program to facilitate home ownership for low and moderate income persons; and
WHEREAS, as part of the down payment assistance, the Agency and Ms. Clark entered into a Property Value Restrictions, Resale Agreement, and Option to Purchase (the "Agreement"), effective April 24, 2003; and
WHEREAS, the Agreement gives the Agency the right of first refusal for any proposed sale, and prohibits Ms. Clark from any sale unless the Agency gives consent. The Agreement further provides that any sale price must be based on the original $247,000 purchase price, adjusted for the Consumer Price Index (CPI.) Finally, the Agreement prohibits the owner from refinancing the property to exceed 100% of its purchase price; and
WHEREAS, pursuant to State law that eliminated Redevelopment Agencies, the City assumed and was assigned to enforce the Agreement; and
WHEREAS, in December 2017 Ms. Clark refinanced the property for $408,000 and did not seek the City's consent. This refinancing breached the Agreement because the refinancing exceeded 100% of the purchase price. In May 2018, Ms. Clark refinanced the property again for $432,000 and did not seek the City's consent. In December 2018 Ms. Clark refinanced the property again for $510,...
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