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File Number: 19-480 <br />$432,000 and did not seek the City’s consent. In December 2018 Ms. Clark refinanced the <br />property again for $510,000 without the City’s consent. When the City became aware of these <br />breaches, the City contacted Ms. Clark to attempt to bring her back into compliance, but she <br />refused. In addition, the City received notice that Ms. Clark was in default on the loans, and had <br />also violated the Agreement by not using it as her primary residence, and engaging in non-hosted <br />short term rental of the property; and <br />WHEREAS, OCMBC dba LoanStream, the company that executed the refinancings with <br />Ms. Clark, informed the City of its intent to sell its existing loan to an investor in exchange for Ms. <br />Clark granting the investor a deed in lieu of foreclosure. The investor would no longer be bound <br />by the affordability restrictions in the Agreement and the subject property would no longer be <br />available for low income housing. This was unacceptable to the City, which caused the City to file <br />suit against Ms. Clark and LoanStream; and <br />WHEREAS, upon filing suit, the City recorded a lis pendens on the property, which clouds <br />the title for any sale of the property. The lis pendens was recorded on August 5, 2019; and <br />WHEREAS, LoanStream has an agreement in principle with the City to sell the property <br />directly to the City at the CPI adjusted price as set forth in the Resale Agreement. <br />NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as <br />follows: <br />1. That the agreement in principle to purchase 713 Bloom Street from LoanStream at the <br />CPI adjusted price, as set forth in the Resale Agreement, is approved; and <br />2. Up to $415,000 in City Affordable Housing Asset Fund Balance shall be appropriated <br />from the fund and used towards the purchase, and a purchase and sale agreement to <br />be executed with an income eligible first time homebuyer is hereby approved and <br />execution by the City Manager is hereby authorized, subject to approval as to form by <br />the City Attorney; and <br />3. That the City Attorney is directed to recover all costs and fees, including attorneys’ fees <br />and costs, related to the purchase and resale of 713 Bloom Street from the <br />defendants, Ms. Clark, and LoanStream. <br />Page 2 City of San Leandro Printed on 10/2/2019 <br />30