HomeMy Public PortalAbout2009.139 (07-21-09)RESOLUTION NO. 2009.139
A RESOLUTION OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER
TO NEGOTIATE AND EXECUTE AN AMENDED AGREEMENT WITH HABITAT FOR
HUMANITY OF GREATER LOS ANGELES IN A FORM SUBJECT TO THE CITY
ATTORNEY'S APPROVAL TO REDUCE THE PURCHASE PRICE OF 7HE HOMES
LOCATED AT 3076 REDWOOD AND 5525 CLARK; REDUCE THE SILENT
SECOND; AND CREATE A PROFIT PARTICIPATION IN THE EQUITY IN THE CASE
OF DEFAULT
WHEREAS, Habitat for Humanity of Greater Los Angeles ("Habitat") is a non-
profit organization that has conducted extensive work in the City of Lynwood and
around the world creating ownership housing opportunities; and
WHEREAS, In an effort to eliminate the blight created by empty, bank owned
properties the City selected Habitat to find, purchase, market, rehabilitate and re-sell two
bank owned homes in the City of Lynwood; and
WHEREAS, On May 6, 2008, the City entered into an agreement with Habitat to
utilize Community Housing Development Organization funds and Redevelopment funds to
purchase, rehabilitate, deed restrict and resell 5525 Clark and 3076 Redwood to a
qualified low income household; and
WHEREAS, Habitat completed the rehabilitation of the homes and implemented an
extensive marketing effort in the Lynwood area through electronic mailings, direct mailers,
flyers and advertisement on the Wave radio station and acquired several qualified
Lynwood buyers willing to make°offers and purchase the home for an affordable housing
cost; and - `~,
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WHEREAS, Despite best efforts, due to the extremely restrictive lending
environment and radical tightening of credit, the proposed homeowners are unable to
purchase the homes as originally contemplated without some adjustments to the
Affordable Housing Agreement and deed of trust; and
WHEREAS, The proposed Affordable Housing Agreement still. provides for the
repayment of the City's loan by the low income household by receiving a,share of the
equity (if any) if the Homeowner breaches the Agreement and sells- to anon-qualified
purchaser; and
WHEREAS, The proposed Affordable Housing Agreement will reduce the
purchase price from $160,000 to $140,000 and utilize the buyer's tax credit as part of
the down payment; and
WHEREAS, The proposed Affordable Housing Agreement still has all other
terms remaining in effect, including the restriction to sell the home to low income
households; and
NOW, THEREFORE, THE CITY OF LYNWOOD DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. That the Lynwood City Council authorizes the City Manager of the
City of Lynwood to negotiate and execute an Amended Affordable Housing Agreement
and the necessary accompanying documents in a form subject to the approval of City
Attorney with Habitat. The Amended Affordable Agreement would allow Habitat to
reduce the purchase price to $140,000, reduce the silent second, and provide for an
equity share of the proceeds if the purchaser defaulted on the deed restriction requiring
the sale to a low income household.
Section 2. This Resolution shall go into effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED this 21st day of July, 2009.
Maria T. Santillan
Mayor
ATTEST:
.(~
Maria Quinonez Roger aley
City Clerk City Manager
APPRO ED AS TO FORM:
Fred Galante
City Attorney
APPROVED AS TO CONTENT:
Hempe
ant City Manager
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 21St day of July, 2009.
AYES: COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ, CASTRO,
AND SANTILLAN
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
~~
Maria Quinonez, Ci y Clerk
~~GL~~~
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No. 2009.139 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 21St day of July, 2009.
Maria Quinonez, City Clerk