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HomeMy WebLinkAbout2013/07/16 Item 09CHULA V I S T A HOUSING AUTHORITY AGENDA STATEMENT NLY 16, 2013, Item G] ITEM TITLE: SUBMITTED BY: REVIEWED BY: PUBLIC HEARING: TO CONSIDER THE SALE OF SPACE 37 AT ORANGE TREE MOBILEHOME PARK RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA APPROVING THE "REAL ESTATE PURCHASE CONTRACT" AND AUTHORIZING THE ASSISTANT DIRECTOR OF DEVELOPMENT SERVICES TO EXECUTE SAID CONTRACT AND RELATED DOCUMENTS FOR SPACE 37 AT ORANGE TREE MOBILEHOME PARK DIRECTOR OF DEVE OPMENT SERVICES CITY MANAG 4/STHS VOTE SUMMARY ~ ~°~ ~ YES ~ NO ^X This item considers an offer to purchase a lot from the new mobilehome owner of space 37 at 521 Orange Avenue, located within the Orange Tree Mobilehome Park, for the amount of $58,000. ENVIRONMENTAL REVIEW The Envirorunental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have significant effect on the environment therefore, pursuant to Section 15061 (b)(3) of the State CEQA Guidelines the activity is not subjected to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Conduct the public heazing and adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 9-1 JULY 16, 2013, Item ~{ Page 2 of 3 DISCUSSION In November 1987, Orange Tree Mobilehome Pazk converted to resident ownership. The Agency assisted residents in purchasing their pazk with a $600,000 acquisition loan, which was converted to loans for lower income residents to help them purchase spaces they had been renting. At that time, 29 residents either did not wish to purchase their mobilehome spaces or could not afford to at the time. The Redevelopment Agency ageed to purchase the remaining spaces after the newly-formed homeowner's association was unable to secure the financing to purchase them. The Redevelopment Low and Moderate Income Housing Set-aside Fund was used to purchase the remaining spaces. Residents who did not purchase their space remained as renters in the Park. It was the Agency's intent to sell these remaining spaces as new mobilehome buyers moved into the pazk, or to sell the spaces to the current residents when they were in the position to buy. Over the last 26 yeazs, 25 spaces have been sold, leaving four remaining lots. Proceeds from the sales were previously deposited in the Redevelopment Low and Moderate Income Housing Set-aside Fund. With the dissolution of Redevelopment in the State of California, some of the assets of the City of Chula Vista Redevelopment Agency were placed on a Housing Asset Transfer List to be moved to ownership by the Housing Authority of the City. While title was not yet transferred, the City has confirmed with the Department of Finance that the lots at Orangetree Mobilehome Pazk are considered as assets of the Housing Authority and the Housing Authority has the sole discretion to sell such assets and retain proceeds within the Housing Authority fund. On June 5, 2013, the new residents of space 37 (see Attachment 1 -Location Map), Leonazd & Victoria Maffei, submitted an offer to the Housing Division to purchase the lot in Orange Tree Mobilehome Park at 521 Orange Avenue for $58,000. The land value of the property has been appraised at $60,000. Staff recommends that the Authority accept the offer of $58,000, because of the Authority's desire to sell the space. Approval of the sale will authorize the Assistant Director of Development Services to execute a contract (see Attachment 2 -Real Estate Purchase Contract) and related documents as approved by the City Attorney's office for the sale of Space 37 at Orange Tree Mobilehome Park. California Health and Safety Code, Article 11, Section 33431 requires a public heazing to consider a sale of agency-owned property without public bids. Staff believes that the proposed sale is appropriate because the sales price is consistent with the fair market value of the property. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the Housing Authority and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, nor has staff been informed by any 9-2 5 ~1 NLY 16, 2013, Item Page 3 of 3 Housing Authority member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT Proceeds of the sale, less the estimated closing costs of approximately $800, will be deposited into the Housing Authority Fund for further use in providing affordable housing opportunities within the City. ONGOING FISCAL IMPACT None. ATTACHMENTS 1. Location Map 2. Real Estate Purchase Contract Prepared by: Stacey Kurz, Senior Project Coordinator, Development Services Department, Housing Division 9-3 ATTACHMENT 1 LOCATOR MAP c" l Yy ORA,U~~~ ~' m ~ ~. ~ ~ ~ j 1 ~' ®' W m ~ 4' ~.i au ~~._~t~ ~~~ }A'~ `~S .iii N ~ ~ A° N ~~ >~ u~ r ~ J ~ ~ 5 ~ ~ ~ N ~ (p(ww n ~ ~ N W ~ s _ _ g S ~ °` ~ a :~ z m m O m r m .~ rn. -- 23yZZ1} ~' S V ff11 N N i.t ~ © N ~ G V ~a S .mss fl o N ~ pq o RY - ANITA 57 ~06m y ~. J A ~ 9 c~~~ ~s M g A 9-4 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Glen R. Googins City Attorney Dated: ~ REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AND LEONARD MAFFEI & VERONICA MAFFEI FOR SPACE 37 AT ORANGE TREE MOBILEHOME PARK 9-5 ~«r~ an of CHULA VISTA REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT This is more than a receipt for money. It is a legally binding contract. Read it carefully. HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ***Standard Form*** Chula Vista, California 2013 Leonazd Maffei & Victoria Maffei, ("Buyer"), desires to purchase Space 37 at Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista. The Housing Authority of Chula Vista ("Authority") has received from Buyer, the sum of four hundred dollazs ($400.00) evidenced by: [mark oneJ [ ] Cash [ ] Cashier's Check [ X ] Personal Check [ ] Other payable to the Housing Authority of the City of Chula Vista as anon-refundable deposit on account of purchase of property. Upon acceptance of this offer, Leonazd Maffei & Victoria Maffei will deposit into escrow the remaining balance of $57,600 of the purchase price of $58,000, for the purchase of property situated in Chula Vista, County of San Diego, California, described as follows: SEE ATTACHED LEGAL DESCR]PTION (More commonly known as Space 37 at Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista) (the "Property") 1. Buyer will deposit in escrow with Heritage Escrow the balance of $57.600 towards the purchase price of $58.000. 2. Agency will credit the $400 received as anon-refundable deposit towazds the purchase price of $58,000. 3. Buyer intends to occupy the Property as buyers residence. 4. Buyer and Agency (collectively, the "Parties"), shall deliver signed instructions to the escrow holder within seven (7) days from Agency acceptance, which shall provide for closing within 30 days from Agency's acceptance. Escrow and other fees to be paid as follows: By Authority: (a) Owner's Title Insurance Policy (b) One-half of Escrow Fee (c) Document Transfer Tax (d) Document Prepazation Fee (e) IRS Tax Report (f) One-half of Transfer Fee of Homeowners Association (g) Proration of Property Taxes and Homeowners Association Fee By Buyer: (a) One-half of Escrow and Homeowners Association Fee. (b) If the sale is not completed due to fault of the Buyer, Buyer shall be responsible for any escrow and related fees. Rea] Estate Purchase Contract Page 1 of 3 9-6 5. Approval of this sale shall be contingent upon final approval of the Housing Authority of the City of Chula Vista. 6. Buyer acknowledges having received copy of the Declazations, Covenants, Conditions and Restrictions and all amendments hereto, if any, governing the described property, together with a copy of the By- laws of the Orange Tree Homeowners Association. 7. Buyer and Agency each acknowledge receipt of a copy of this "Real Estate Purchase Contract And Receipt For Deposit" (the "Agreement") ,which is comprised of three pages. 8. This Agreement constitutes the entire Agreement between the Parties. Any amendments to this Agreement shall be in writing and shall be signed by both Parties. 9. If a lawsuit is filed by one or both Parties, in connection with the obligations of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and court costs from the non- prevailing party. 10. Buyer agrees and acknowledges that he may have made an independent investigation to the extent Buyer deems appropriate, concerning the physical condition (including the existence of hazazdous materials), value, development, use, marketability, feasibility and suitability of the subject Property, including, but not limited to, land use, zoning and other governmental restrictions and requirements. Buyer is acquiring the subject Property "as is", in its present state and condition solely in reliance upon Buyer's own investigation, and no representations or warranties of any kind, express or implied, have been made by the Agency or its representatives, except as expressly set forth in this Agreement. Buyer unconditionally releases Agency from and against any and all liability, both known and unknown, present and future, for any and all damages, losses, claims and costs (including without limitation, the existence of hazardous materials), or the subject Property's non-suitability for intended use. With respect to this Section, Buyer waives the provisions of California Civil Code Section 1542 which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 11. Buyer will accept the subject Property, and the matters relating to the subject property listed below, in the present "as is" condition. The matters are: a. Soils. Top~ranhv, Etc. Soils and geological condition; topography, area and configuration; archeological, prehistoric and historic artifacts, remains and relics; endangered species. b. Utilities, Schools, Etc. Availability of utilities, schools, public access, and fire and police protection. c. Assessment Districts. The status and assessments of any and all assessment districts. d. Planhin2 and Zonin¢. Applicable planning, zoning, and subdivision statutes, ordinances, and regulations. e. Easements and Encroachments. Any easement, license, or encroachment which is not a matter of public record, whether or not visible upon inspection of the subject property; Agency warrants to Buyer that Agency knows of no such easement license or encroachment. f. Other Matters. Any other matter relating to the subject property or to the development of the subject property, including, but not limited tp, value, feasibility, Real Estate Purchase Contract Page 2 of 3 9-7 cost, governmental permissions, mazketing and investment return, except as otherwise expressly provided in this Agreement 12. Real Estate Commissions. Each party warrants to the other that no brokers or finders have been employed or aze entitled to a commission or compensation in connection with this transaction. Each parry agrees to indemnify, protect, hold harmless and defend the other parry from and against any obligation or liability to pay any such commission or compensation arising from the act or agreement of the indemnifying party. 13. No Discrimination. Buyer covenants by and for himself, his heirs, executors, administrators, and assigns, and all persons claiming under or through him, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall Buyer or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the ,election, location, number, use or occupancy of tenants; lessees; subteaa~s, sublessees;-or-vendees-in-the ---- - Property. The foregoing covenants shall run with the land. Dated: Dated: BUYER(S): Leonazd Maffei G ~ ictoria Maff~ HOUSING AUTHORTTY OF THE CITY OF CHULA VISTA: Eric Crockett Assistant Director of Development Services Real Estate Purchase Contract Page 3 of 3 9-8 HA RESOLUTION NO. 2013- RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA APPROVING THE "REAL ESTATE PURCHASE CONTRACT" AND AUTHORIZING THE ASSISTANT DIRECTOR OF DEVELOPMENT SERVICES TO EXECUTE SAID CONTRACT AND RELATED DOCUMENTS FOR SPACE 37 AT ORANGE TREE MOBILEHOME PARK WHEREAS, the Redevelopment Agency owned mobilehome spaces at Orange Tree Mobilehome Park located at 521 Orange Avenue, Chula Vista; and WHEREAS, with the dissolution of the Agency by the State of California the ownership of lots at Orangetree Mobilehome Park was transferred to the Housing Authority; and WHEREAS, an offer to purchase space 37 at Orange Tree Mobilehome Park has been received by the Housing Division for $58,000; and WHEREAS, the land value has been appraised at $60,000; and WHEREAS, this sale will meet the Authority's goals of selling lots within the park to existing or new residents; and WHEREAS, Health and Safety Code section 33431 requires a public hearing be held for any sale or lease of Agency-owned property without public bids; and WHEREAS, said public hearing has been conducted pursuant to Health and Safety Code section 33431 for the sale of space 37 at Orange Tree Mobilehome Park; and . WHEREAS, the Housing Authority has found and determined that the sale of space 37 at Orange Tree Mobilehome Park to the buyer, on the terms proposed is for fair value under the circumstances, is in the best interest of the Housing Authority, and is consistent with its housing goals and the goals of the former Redevelopment Agency, in particular that the sale provides additional funds to carry out said goals; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Action (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environmental; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. J:\Attorney\FINAL RESOS AND ORDINANCES\2013\07 16 13\RESO-HA-Orange Tree MHP Reso SS 7-9-13.doc 7/10/2013 9:03 AM 9-9 HA Resolution No. 2013- Page 2 NOW, THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Chula Vista as follows: 1. That based on the facts and findings set forth above, the Housing Authority of the City of Chula Vista does hereby approve the sale of space 37 at Orange Tree Mobilehome Park to Leonard and Victoria Maffei for the purchase price of $58,000; and 2. That the Housing Authority of the City of Chula Vista does hereby authorize the Development Services Director to execute a purchase contract on the terms presented, in substantially the same form on file in the City Clerk's office, and escrow instructions, each in a final form approved by the Authority Attorney, and with such additional provisions as may be deemed necessary or appropriate thereby; and 3. That the Housing Authority of the City of Chula Vista does hereby authorize the Assistant Director of Development Services to take such other action as deemed necessary to consummate said sale of space 37 at Orange Tree Mobilehome Park. Presented by Approved as to form by Gary Halbert, AICP, PE Assistant City Manager/Director of Development Services Glen R. Googins City Attorney J:\Attomey\FINAL RESOS AND ORDINANCES\2013\07 16 13\RESO-HA-Orange Tree MHP Reso SS 7-9-13.doc 7/10/2013 9:03 AM 9-~~