Title
Resolution approving and authorizing 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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WHEREAS, following the unsuccessful marketing and sale of the BMR Unit located at 2230 Gellert Boulevard, Unit 3209, ("Unit") City Council authorized on October 23, 2024, and the City purchased the Unit on November 15, 2024, to ensure it would not be sold at market rate; and
WHEREAS, 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; and
WHEREAS, the City acquired the Unit using Commercial Linkage Fees (Fund 823) governed by Municipal Code Chapter 8.69.090, the purpose of which is to increase and improve the supply of housing affordable to moderate, low, very low, and extremely low-income households; and
WHEREAS, City staff recommends, and the City Council now desires to authorize the sale of the Unit to median income households (100% AMI) and authorize staff to set the final sale price immediately prior to marketing the Unit; and
WHEREAS, the final sale price will be set on a calculation of monthly and annual cost estimates including property tax, insurance, utilities, HOA fees, mortgage loan interest rate, and a five percent down payment; the sale price is currently estimated at approximately $507,490; and
WHEREAS, the mortgage loan interest rate utilized will be, as published by the California Housing Finance Authority, utilizing either a rolling six-month average or current moment-in-time interest rate, selected based on what pr...
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