Title
Report regarding a resolution approving Budget Amendment Number 26.019 and authorizing the City's acquisition of a Below Market Rate (BMR) unit at 2230 Gellert Boulevard, Unit 3303 (APN 104-540-230). (Elia Moreno, Management Analyst I)
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RECOMMENDATION
Recommendation
Staff recommends City Council approve Budget Amendment Number 26.019 and authorize the City's acquisition of a Below Market Rate (BMR) housing unit located at 2230 Gellert Boulevard, Unit 3303 (APN 104-540-230), utilizing the City's Commercial Linkage Fee Fund (Fund 823).
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BACKGROUND
The City's Inclusionary Housing Ordinance (Municipal Code Chapter 20.380) establishes Below Market Rate (BMR) housing units within both ownership and rental developments. This ordinance serves to increase the amount of housing affordable to low and moderate-income households in South San Francisco.
BMR ownership units are subject to a Resale Restriction Agreement, which is executed by the buyer at the time of purchase and is recorded against the property title. This agreement limits the resale price of the unit to ensure ongoing affordability, restricts the household income of future buyers, and grants the City the right of first refusal of the option to purchase the property in the event of default, foreclosure, or sale.
DISCUSSION
On August 8, 2025, the City received a Notice of Default and Election to Sell Under Property Association Lien for the BMR unit located at 2230 Gellert Boulevard, Unit 3303, in South San Francisco. The property owner and the City entered into a Resale Restriction and Right of First Refusal Agreement at the time of the initial sale of the unit in 2007. This is not the first time this owner has been in default for this property.
The property owner has received multiple notices of default due to delinquent loan payments or homeowner association (HOA) dues. In August 2014, the City received a Notice of Default informing staff of the owner's default on loan payments and HO...
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