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City of San Leandro <br />Meeting Date: October 7, 2019 <br />Resolution - Council <br />Agenda Section:File Number:19-480 CONSENT CALENDAR <br />Agenda Number: <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Tom Liao <br />Community Development Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:RESOLUTION of the City of San Leandro City Council to Authorize the City <br />Manager to Appropriate up to $415,000 from the City Affordable Housing Asset <br />Fund Balance to Purchase a Below Market Rate Housing Unit at 713 Bloom <br />Street for Resale to an Income Eligible Homebuyer and to Execute a Purchase <br />and Sale Agreement with an Income Eligible First Time Homebuyer, which would <br />be subject to an updated Property Value Restrictions, Resale Agreement, and <br />Option to Purchase <br />WHEREAS, Ms. Stephanie Ransom-Clark purchased 713 Bloom Street, San Leandro, <br />California in 2003 with the help of the San Leandro Redevelopment Agency, which provided a <br />loan to finance her down payment as part of the Agency’s program to facilitate home ownership <br />for low and moderate income persons; and <br />WHEREAS, as part of the down payment assistance, the Agency and Ms. Clark entered <br />into a Property Value Restrictions, Resale Agreement, and Option to Purchase (the <br />“Agreement”), effective April 24, 2003; and <br /> <br />WHEREAS, the Agreement gives the Agency the right of first refusal for any proposed <br />sale, and prohibits Ms. Clark from any sale unless the Agency gives consent. The Agreement <br />further provides that any sale price must be based on the original $247,000 purchase price, <br />adjusted for the Consumer Price Index (CPI.) Finally, the Agreement prohibits the owner from <br />refinancing the property to exceed 100% of its purchase price; and <br />WHEREAS, pursuant to State law that eliminated Redevelopment Agencies, the City <br />assumed and was assigned to enforce the Agreement; and <br />WHEREAS, in December 2017 Ms. Clark refinanced the property for $408,000 and did <br />not seek the City’s consent. This refinancing breached the Agreement because the refinancing <br />exceeded 100% of the purchase price. In May 2018, Ms. Clark refinanced the property again for <br />Page 1 City of San Leandro Printed on 10/2/2019 <br />29