Title
Report regarding a resolution approving the sale of a City-owned Below Market Rate (BMR) housing unit at 2230 Gellert Boulevard, Unit 3209 (APN 104540190) and authorizing the City Manager to execute related sale documents. (Elia Moreno, Management Analyst I)
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RECOMMENDATION
Recommendation
Staff recommends City Council adopt a resolution approving the sale of a City-owned Below Market Rate (BMR) housing unit at 2230 Gellert Boulevard, Unit 3209 (APN 104540190) to a qualified buyer earning up to 100% of the area median income in accordance with the City's BMR restrictions, priced at the time marketing begins, and authorizing the City Manager to execute a Grant Deed, Affordable Housing Resale Restriction Agreement, and any other documents necessary to effectuate the sale of the BMR unit.
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BACKGROUND
Following the unsuccessful marketing and sale of the BMR unit located at 2230 Gellert Boulevard,
Unit 3209 (the "Property"), as detailed extensively in the October 23, 2024, City Council staff report included as Attachment 1, City Council authorized the purchase of the unit to ensure it would not be sold at market rate. The City took title to the 2-bedroom, 2-bathroom unit on November 15, 2024, for a purchase price of $676,781 - the resale price as determined by the resale restriction agreement executed between the City and the BMR owner. The City is now in the position of being able to re-evaluate the income eligibility of the unit and the appropriate sales price given today's interest rates and the community's housing needs.
DISCUSSION
The City acquired the Property using Commercial Linkage Fees, Fund 823, which requires investment in housing for households making 120% or less of the Area Median Income (AMI). The unit was previously sold to an 80% AMI household, so the unit was restricted to being resold to a new household at that income level by its resale restriction agreement. (See Attachment 2 for a table of incomes by household size at all ...
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