HomeMy WebLinkAbout07.B- Economic Development Agency DOC ID: 1938 C
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Conveyance of Property
From: Teri Baker M/CC Meeting Date: 08/06/2012
Prepared by: Lorraine Wyche, (909) 663-
1044
Dept: Economic Development Agency Ward(s): 5
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Serving in Its
Capacity as the Housing Successor Agency to the Redevelopment Agency of the City of San
Bernardino Pursuant to a Request to Terminate and Fully Reconvey a Restrictive Covenant. (At
Meeting of July 16, 2012, Item Continued to August 6,2012.)
Financial impact:
None.
Motion: Approve of this action and adopt the attached resolution authorizing the City's
Housing Director to execute and record the Termination of HOME Program
Affordable Housing Regulatory Agreement and Covenants.
�... BACKGROUND:
On October 17, 1994, the Community Development Commission of the City of San Bernardino
("Commission") approved the Mortgage Assistance Program ("MAP"), subsequently renamed
Homebuyer's 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
maximum purchase price of$250,000. 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 the availability of affordable housing to income
qualified home buyers.
Pursuant to Resolution No. 2012-19, the City of San Bernardino confirmed itself as the Housing
Successor Agency on January 23, 2012. The City previously confirmed that it is the successor
agency to the Redevelopment Agency, Resolution No. 2012-12 on January 9, 2012. The
proposed action was provided to the California Department of Finance, County Auditor-
Controller, and the.Office of the County Executive Officer, which have 5 days to indicate their
wish to examine the transaction. Submission of such notice to these entities occurred on July 24,
2012. Thus far, Staff has not received a request to examine this action. This item was heard and
approved at the August 6, 2012, Special Meeting of the Oversight Board. Once the Council,
Updated: 7/30/2012 by Linda Sutherland C Packet Pg. 975
1938
acting as Housing Successor Agency, confirms the action a final notification will be submitted to
the three entities identified above stating the item was approved by the housing successor agency
at which time the transaction becomes final and the recording of the reconveyance can proceed.
CURRENT ISSUE:
In the case of 1470 Creekside, 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 HAP in the amount of$11,137. Terms of the agreement required
that after 10 years the loan be forgiven and the affordability covenants removed. That 10-year
period has passed. What remains for an additional twenty years are maintenance conditions: 1)
if the home is sold, the new buyer must observe and adhere to the remaining maintenance
condition and; 2) 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 evidenced by signing a PARTIAL SATISFACTION OF HOME PROGRAM
AFFORDABLE HOUSING REGULATORY AGREEMENT AND COVENANTS.
Presently, an escrow is pending to sell the home to a private party (Jim Vassilakos). Rather than
accept a partial reconveyance, the buyer's lender, citing Federal loan regulations, will not fund
the buyer's loan unless the agreement is fully released. We have confirmed that the title
company will not accept a partial reconveyance. It is further understood that the title company
needs a resolution action in which the Oversight Board confirms that the Covenant is a housing
asset and/or housing function, and desires to authorize Successor Agency staff to transfer all
rights and interests in the Covenant to the City in its capacity as the Housing Successor Agency.
Such a resolution was adopted by the Oversight Board (SBOB/2012-_) at a special meeting
held on August 6, 2012. Because this matter has been delayed, we recommend that the Council
approve the action and authorize the appropriate staff to execute and record the full
reconveyance in this case. Future such reconveyances should and will be taken on a case-by-
case basis.
Attachments:
- Resolution of the Mayor and Common Council of the City of San Bernardino serving in
its capacity as The Housing Successor Agency to the Redevelopment Agency of the City
of San Bernardino pursuant to a request to terminate and fully reconvey a Restrictive
Covenant
Updated: 7/30/2012 by Linda Sutherland C
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1938
�-- Termination of Home Program Affordable Housing Regulatory Agreement and Covenant
RECOMMENDATIONS:
That the Council approve of this action and adopt the attached resolution authorizing the City's
Housing Director to execute and record the Termination of HOME Program Affordable Housing
Regulatory Agreement and Covenants.
Supwrtine Documents:
08-06-12 Reconveyance of Restrictive Covenants MCC Reso (1470 Creekside) (DOC)
08-06-12 Reconveyance of Restrictive Covenants (1470 Creekside) Exhibit A (DOCX)
Updated: 7/30/2012 by Linda Sutherland C
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O 1 RESOLUTION NO. --
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY ">
3 OF SAN BERNARDINO SERVING IN ITS CAPACITY AS THE HOUSING
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE >
4 CITY OF SAN BERNARDINO PURSUANT TO A REQUEST TO
TERMINATE AND FULLY RECONVEY A RESTRICTIVE COVENANT
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6 WHEREAS, the Mayor and Common Council of the City of San Bernardino ("Council") 0
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7 adopted Resolution No. 2012-12 confirming that the City of San Bernardino would be the a
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8 Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino
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9 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment
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10 Agency Dissolution Act); and
11 WHEREAS, on January 23, 2012, the Council adopted Resolution No. 2012-19 providing
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12 for the City to become the Housing Successor and to perform housing functions previously
rmed by the Agency; and
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14 WHEREAS,pursuant to Health& Safety Code Section 34181(c) of AB1X 26 the Oversight o
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15 Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, Er
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16 obligations and assets, to the Housing Successor; and
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17 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the
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18 restrictions on the use of real property such as affordability covenants entered into by the Agency o
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are considered a housing asset; d m
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20 WHEREAS, a covenant affecting real property exists dated as of August 14, 2000, and w
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21 recorded on September 25, 2000, as Instrument Number 20000346932 in the Official Records of c
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22 the County of San Bernardino ("Covenant") wherein the affordability restrictions on said covenant
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23 are no longer in effect; and 'c
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24 WHEREAS, the Covenant which is entitled, "The Community Redevelopment Housing
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25 Affordability Covenants and Restrictions for the Agency Mortgage Assistance Program," states the o
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26 Qualified Homebuyer covenants and agrees that during the term of the Qualified Residence Period
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O27 the home shall be used and occupied by the Qualified Homebuyer as its principal residence, and E
28 that the home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or 2
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1 another Low-Moderate Income Household as a Successor-In-Interest at an affordable housing cost;
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2 and
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3 WHEREAS, the Qualified Residency Period is defined in the Covenant as the period of U
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4 time beginning on the date of delivery of title and possession of the home to the Qualified
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5 Homebuyer at the close of the New Home Escrow which would have been September 25, 2000 and
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6 running through September 25, 2010; and
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7 WHEREAS, an escrow has been opened on the real property located at 1470 Creekside
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8 Drive, San Bernardino, California (the "Property") affected by the Covenant in which escrow 0)
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9 cannot close and a clear chain of title cannot be provided to the buyer of the Property and his lender
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10 without the termination and full reconveyance of the Covenant; and
11 WHEREAS, the Oversight Board adopted a resolution (Resolution SBOB/2012---) where
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12 it confirmed that the Covenant is a housing asset and/or housing function, and authorized Successor d
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13 Agency staff to transfer all rights and interests in the Covenant to the City in its capacity as the °
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14 Housing Successor Agency; and N
15 WHEREAS, the State of California Department of Finance, the County Auditor-Controller
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16 of the County of San Bernardino and the Office of the Chief Executive Officer of the County of
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17 San Bernardino have been properly notified prior to the adoption of the Oversight Board c
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18 Resolution SBOB/2012-_ 0
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19 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
20 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
21 FOLLOWS:
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22 Section 1. Pursuant to Health & Safety Code Section 34176, the Oversight Board for the
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23 City of San Bernardino as Successor Agency to the Redevelopment Agency of the City of San o
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24 Bernardino found and determined the Covenant to be a housing asset and has directed Successor It
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25 Agency staff to transfer the Covenant to the City in its capacity as the Housing Successor Agency, o
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26 in order to allow the City to act on the request to terminate and fully reconvey the Covenant as
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O 27 described as Instrument Number 20000346932 in the Official Records of the County of San E
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28 Bernardino.
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O 1 Section 2. Upon approval by the City Council acting in its capacity as Housing Successor
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2 Agency, the City may authorize Carey Jenkins, Director of Housing, to effectuate the execution of
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3 such termination of the Covenant and cause it to be recorded in the Official Records of the County
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4 of San Bernardino. 2
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5 Section 3. This Resolution shall take effect from and after its date of adoption by the City
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6 Council and the expiration of five business days from its transmittal to the Department of Finance.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO SERVING IN ITS CAPACITY AS THE
2 HOUSING SUCCESSOR AGENCY TO THE REDEVELOPMENT
3 AGENCY OF THE CITY OF SAN BERNARDINO PURSUANT TO A
REQUEST TO TERMINATE AND FULLY RECONVEY A RESTRICTIVE
4 COVENANT
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5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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6 Common Council of the City of San Bernardino at a meeting thereof,
7 held on the day of 2012,by the following vote,to wit: >
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8 Council Members: Ayes Nays Abstain Absent m
9 MARQUEZ
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10 JENKINS —
11 VALDIVIA v
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12 SHORETT
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13 KELLEY
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14 JOHNSON o
15 MC CAMMACK W
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17 Georgeann Hanna, City Clerk
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19 The foregoing Resolution is hereby approved this day of 12012. '-
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21 Patrick J. Morris, Mayor v
22 City of San Bernardino
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23 Approved as to Form: o
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By:
25 James F. Penman, City Attorney °
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
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City of San Bernardino as the Successor Housing Agency to
the Redevelopment Agency of the City of San Bernardino ">
201 North"E" Street, Suite 301
San Bernardino, California 92401
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Space Above For Recorder's Use Only
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Recording Fee Exempt Pursuant to
Government Code Section 6103 >`
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TERMINATION OF HOME PROGRAM AFFORDABLE HOUSING REGULATORY
AGREEMENT AND COVENANTS (ANNETTE SANDOVAL)
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This TERMINATION OF HOME PROGRAM AFFORDABLE HOUSING Cn
REGULATORY AGREEMENT AND COVENANTS (ANNETTE SANDOVAL) is made a
pursuant to the terms of that certain HOME PROGRAM AFFORDABLE HOUSING
REGULATORY AGREEMENT AND COVENANTS (ANNETTE SANDOVAL) (the x
"Covenant") executed by Annette Sandoval (the "Qualified Homebuyer") and the w
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 Y
Number 20000346932 in the Official Records of the County of San Bernardino. All rights and v
obligations of the Agency have since been transferred to the City of San Bernardino as the
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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.
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The Covenant affects the real property (the "Property") located at 1470 Creekside, San d
Bernardino, California, and the Property is more particularly described in the legal description o
attached hereto as Exhibit"A".
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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 and the Oversight v
Board of the Redevelopment Agency of the City of San Bernardino has consented to such
termination effective August 6, 2012. ,°
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THE CITY OF SAN BERNARDINO T
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a public body, corporate and politic as the r
SUCCESSOR HOUSING AGENCY
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Dated: By: o
Carey K. Jenkins o
Housing Director c
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(Notary Acknowledgment Attached)
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EXHIBIT "A" c
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LEGAL DESCRIPTION o
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LOT 2 OF TRACT 10304,IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 148,
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PAGE(S)38 TO 40 INCLUSIVE,OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
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