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City of San Leandro <br />Meeting Date: October 7, 2019 <br />Staff Report <br />Agenda Section:File Number:19-479 CONSENT CALENDAR <br />Agenda Number:8.C. <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:Staff Report for a City of San Leandro City Council Resolution Authorizing the <br />City Manager to Appropriate up to $415,000 from the City Affordable Housing <br />Assets Fund Balance to Purchase a Below Market Rate Housing Unit at 713 <br />Bloom Street for Resale to an Income Eligible Homebuyer and to Execute a <br />Purchase and Sale Agreement with an Income Eligible First Time Homebuyer, <br />which would be subject to an updated Property Value Restrictions, Resale <br />Agreement, and Option to Purchase <br />SUMMARY AND RECOMMENDATIONS <br />The City’s Housing Services Division investigated and determined in recent years that the owner <br />of a Below Market Rate (BMR) townhome at 713 Bloom Street, Stephanie Ransom Clark, was <br />not using it as her primary residence as required under the City’s Inclusionary Housing Program. <br />The owner also violated the Property Value Restrictions, Resale Agreement, and Option to <br />Purchase Agreement (Agreement) with the City by over-financing the property beyond the BMR <br />home value. Staff communicated with the owner for many months to re-establish compliance with <br />City affordability requirements, but the owner’s, and the loan originator’s, OCMBC dba <br />LoanStream, responses were inadequate. The City recently filed legal actions against both the <br />owner and LoanStream to specifically enforce the Agreement. <br />Staff recommends that the City Council authorize the City Manager to appropriate up to $415,000 <br />from the City Affordable Housing Assets Fund Balance to purchase a BMR unit at 713 Bloom <br />Street for Resale to an Income Eligible Homebuyer and to Execute a Purchase and Sale <br />Agreement with an Income Eligible First Time Homebuyer, which would be subject to an updated <br />Agreement. <br />BACKGROUND <br />In the early 2000s, the Cherrywood subdivision was constructed and included over 300 <br />owner-occupied detached single family and attached townhome units. Over 30 units were <br />Page 1 City of San Leandro Printed on 10/2/2019 <br />26