HomeMy WebLinkAbout0004_1_SA Staff Report - Sale of Properties to Housing Fund 062816REPORT TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE
To:Honorable Chairman and the Successor Agency
From:Grant Yates, Executive Director
Prepared By: Barbara Leibold, Successor Agency Counsel
Date:June 28, 2016
Subject:Approval of Sale of Property to the City of Lake Elsinore, in its Capacity
as the Successor to the Housing Assets and Functions of the Former
Redevelopment Agency of the City of Lake Elsinore, for Affordable
Housing Purposes in accordance with Health & Safety Code Section
34176.1(a)(3)(A)
Recommendation
Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE APPROVING A PURCHASE AND SALE
AGREEMENT FOR THE SALE OF REAL PROPERTY TO THE CITY OF LAKE ELSINORE,
IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS
OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
UNDER HEALTH & SAFETY CODE SECTION 34176(a)(1), FOR AFFORDABLE HOUSING
PURPOSES IN ACCORDANCE WITH HEALTH &SAFETY CODE SECTION
34176.1(a)(3)(A)
Background
As part of the dissolution of the former Redevelopment Agency, Health & Safety Code
Section 34177(e) requires the Oversight Board to direct the Successor Agency to dispose of
the real property held by the Successor Agency. The Successor Agency has identified the
properties listed in Attachment No. 1 to Exhibit A to Resolution SA 2016-0 attached hereto
(collectively, the “Properties”) as properties to be sold to the City of Lake Elsinore for
affordable housing purposes. The Successor Agency and Oversight Board have previously
approved a Long Range Property Management Plan (LRPMP) which identified the same
properties as properties to be transferred to the City for future development. Excerpts from
the previously approved LRPMP describing the Properties are attached to this Report. The
Properties proposed to be transferred are identified as Parcels 18-21 and 25-36 on the
attached data sheets and maps from the LRPMP.
Transfer of Properties for Affordable Housing Purposes
June 28, 2016
Page 2 of 3
Discussion
The Successor Agency must dispose of real property in accordance with Health & Safety
Code Sections 34177(e) and 34181(a). The data sheets from the LRPMP for each of the
properties previously approved to be transferred to the City for future development are
attached. All of the properties were previously approved by the Oversight Board as
properties to be transferred to the City for future development.
Since the date of the LRPMP, the City, in its capacity as the Successor to the Housing
Assets and Functions of the Former Redevelopment Agency of the City of Lake Elsinore
under Health & Safety Code Section 34176(A)(1), has determined that the Properties are
appropriate for the development of affordable housing. Accordingly, the City proposes to
purchase the Properties for fair market value with monies from the Low and Moderate
Income Housing Asset Fund created in accordance with Health & Safety Code Section
34176 (d). The Properties shall be utilized by the City in accordance with the Community
Redevelopment Law (Part 1(commencing with Section 33000)), as amended by Health &
Safety Code Section 34176.1, and, in particular, for the development of affordable housing in
accordance with Health & Safety Code Section 34176.1(a)(3)(A).
In accordance with California Health & Safety Code Sections 34177(e) and 34181(a), the net
proceeds of the purchase price, after reduction for the costs of sale of the Properties such as
appraisal, title and escrow fees, shall be used by the Successor Agency to pay enforceable
obligations on an approved Recognized Obligation Payment Schedule. Any excess shall be
transferred to the Riverside County Auditor-Controller for distribution as property tax
proceeds.
A proposed form of Purchase and Sale Agreement implementing the foregoing is attached to
Resolution SA 2016-0 . The Purchase and Sale Agreement requires the purchase and sale
of the Properties at a total purchase price of $720,000 which is equal to fair market value, as
determined by a third party, licensed appraiser. Based upon such appraisals, Parcels 18-21
appraised at $370,000 and Parcels 25-36 appraised at $350,000.
Property Transfer
In addition to approving the form of Purchase and Sale Agreement for the sale of the
Properties, the attached resolution authorizes the Executive Director to convey the
Properties to the City by grant deed and to take any action and execute any documents as
may be necessary to implement the conveyance of the Properties to the City.
Once approved by the Successor Agency, the sale of the properties must be approved by
the Oversight Board. The Oversight Board’s Resolution approving the Purchase and Sale
Agreement must be transmitted to DOF. DOF has five (5) days after submittal to request a
review and forty-five (45) days to review the Oversight Board Resolution if it decides to do
so.
Detailed information from the LRPMP regarding the Properties is attached for informational
purposes only. Please note that the property ID #s in these detailed sheets correspond to
the LRPMP and are not indicated in Attachment No. 1 to Exhibit A to Resolution SA 2016-
0 .
Transfer of Properties for Affordable Housing Purposes
June 28, 2016
Page 3 of 3
Attachments:
Properties held for Future Development Maps and Data Sheets
SA Resolution No. SA-2016-0
Exhibit A –Purchase and Sale Agreement