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HomeMy WebLinkAbout09.A- Economic Development DOC ID: 1938 B O CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Conveyance of Property From: Teri Baker M/CC Meeting Date: 07/16/2012 Prepared by: Lorraine Wyche, (909) 663- 1044 Dept: Economic Development Agency Ward(s): 5 Subject: Reconveyance of Expired Affordability Covenant Financial Impact: None. Motion: Approve and authorize the Housing Director to execute the termination and full reconveyance of the affordable housing regulatory agreement and covenants for 1470 Creekside Drive, San Bernardino. Synopsis of Previous Council Action: On June 25, 2012,the Oversight Board Members Morris, Jenkins, Longville, O'Toole and Hill, in a vote of 5-0 (Board Member Macias-Harrison abstained),voted to recommend that the Mayor and Common Council of the City of San Bernardino serving as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino consider this action for approval. Background: On October 17, 1994, the Community Development Commission of the City of San Bernardino ("Commission") approved the Mortgage Assistance Program ("MAP"), subsequently renamed Homeowners Assistance Program ("HAP") which made available a limited number of deferred payment (principal and interest) second mortgages, not-to-exceed ten percent (10%) of the purchase price of the home. This Program was designed to provide income qualified families with down payment/closing cost monies necessary to secure financing towards the purchase of single-family detached homes in the City and provided an additional avenue for the former redevelopment agency to insure affordable housing was available to income qualified home buyers. Pursuant to Resolution No. 2012-19,the City of San Bernardino confirmed itself as the Successor Housing Agency on January 23, 2012. In a similar action,the City previously confirmed that it is the Successor Agency and the Successor Entity to the former Redevelopment Agency in Resolution No. 2012-12 on January 9, 2012. The action presented in this report must be provided to the California Department of Finance, which has 3 days to indicate if it wishes to Updated: 7/12/2012 by Linda Sutherland B Packet Pg. 1001 1938 examine the transaction. If it does not do so,the transaction becomes final and the recording of the reconveyance can proceed. CURRENT ISSUE: In the case of 1470 Creekside Drive, San Bernardino, the homeowner, Annette Sandoval purchased the property in September of 2000. The homeowner obtained a first mortgage from a private lender and down payment assistance through the City of San Bernardino Homebuyer Assistance Program in the amount of$11,137. Terms of the agreement required that after ten years the loan be forgiven and the affordability covenants removed. That 10-year period has passed. What remains for an additional 20 years are maintenance conditions: if the home is sold, the new buyer must observe and adhere to the remaining maintenance condition and covenants associated with the original buyer's down payment assistance loan for the remainder of that term. In the past, this has been achieved by using a partial reconveyance of the affordability portion of the covenant while the maintenance covenant remained. This was evidenced by signing a partial satisfaction of the home program affordable housing regulatory agreement and covenants. Presently, an escrow is pending to sell the home to a private party, James Vassilakos. Rather than accept a partial reconveyance, the buyer's lender, through the title company associated with this transaction, is requesting a full reconveyance because of ABxl 26, the legislation that effectively terminated redevelopment. It has been confirmed with the title company that the buyer's lender will not accept a partial reconveyance. Because this matter has been delayed, it is recommended that the Successor Agency approve the termination of the covenants and full reconveyance in this case. ENVIRONMENTAL IMPACT: This item does not meet the definition of a "project" under Section 15378 of the California Environmental Quality Act ("CEQA"), which states that a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. FISCAL IMPACT: Updated: 7/12/2012 by Linda Sutherland B 1938 The issue before the Successor Housing Agency of the Redevelopment Agency of the City of San Bernardino ("Successor Agency") concerns the approval of the termination and full reconveyance of an expired affordable housing regulatory agreement and covenants for the property located at 1470 Creekside Drive, San Bernardino, CA. RECOMMENDATION: That the Mayor and Common Council serving as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino approve and authorize the Housing Director to execute the termination and full reconveyance of the affordable housing regulatory agreement and covenants for 1470 Creekside Drive, San Bernardino. Suanortina Documents: 07-16-12 Reconveyance of Restrictive Covenants (1470 Creekside) (DOCX) Updated:7/12/2012 by Linda Sutherland B Packet Pg. 1003 ( RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: L City of San Bernardino as the Successor Housing Agency to a the Redevelopment Agency of the City of San Bernardino v 201 North"E" Street, Suite 301 San Bernardino, California 92401 w w 0 Space Above For Recorder's Use Only u G Recording Fee Exempt Pursuant to m Government Code Section 6103 > C O TERMINATION OF HOME PROGRAM AFFORDABLE HOUSING REGULATORY AGREEMENT AND COVENANTS (ANNETTE SANDOVAL) This TERMINATION OF HOME PROGRAM AFFORDABLE HOUSING REGULATORY AGREEMENT AND COVENANTS (ANNETTE SANDOVAL) is made pursuant to the terms of that certain HOME PROGRAM AFFORDABLE HOUSING o REGULATORY AGREEMENT AND COVENANTS (ANNETTE SANDOVAL) (the "Covenant") executed by Annette Sandoval (the "Qualified Homebuyer") and the IX Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), dated as of August 14, 2000, and recorded on September 25, 2000, as Instrument N Number 20000346932 in the Official Records of the County of San Bernardino. All rights and d obligations of the Agency have since been transferred to the City of San Bernardino as the successor to the former Agency (the "City as Successor Housing Agency") pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, 2012. N The Covenant affects the real property (the "Property") located at 1470 Creekside Drive, San Bernardino, California, and the Property is more particularly described in the legal description attached hereto as Exhibit"A". o U v The City as Successor Housing Agency hereby certifies that the Covenant has been satisfied and terminated, and the Covenant is no longer in force and effect. y d THE CITY OF SAN BERNARDINO `o a public body, corporate and politic as the U SUCCESSOR HOUSING AGENCY M T N C O U d N Dated: By: Carey K. Jenkins Housing&Community Development Director C d (Notary Acknowledgment Attached) 1 a PacketPg. 1004 9.1A © EXHIBIT "A" w 2r m LEGAL DESCRIPTION ° `o Q v LOT 2 OF TRACT 10304,IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN 2 CL BERNARDINO, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 148, w PAGE(S)38 TO 40 INCLUSIVE, OF MAPS,IN THE OFFICE OF THE COUNTY c RECORDER OF SAID COUNTY. u c m a d c 0 APN 0266-331-23-000 d co M O r C O N d d N Y d U 0 n v N C O C d O U d U V Vi N w O d V C R T m C O O d N r O n O w C © m L O aO.s 2 a c:Wo ntsa smingsl nc�sa\Wu] mingskt mp mmerreq�s emard it ca@s nben rdmocky .igm2.com\wo&Wu.clw s\3318.docx Packet Pg. 1005