HomeMy Public PortalAbout2009.039 - LRA (07-21-09)RESOLUTION NO. 2009.039
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING
THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AMENDED
AGREEMENT WITH HABITAT FOR HUMANITY OF GREATER'LOS ANGELES IN A
FORM SUBJECT TO THE AGENCY COUNSEL'S APPROVAL TO REDUCE THE
PURCHASE PRICE OF THE 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-
i 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 a_n affordable housing
cost; and ti ~
_ .,
i 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 LYNWOOD REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. That the Lynwood Redevelopment Agency authorizes the
Executive Director of the Lynwood Redevelopment Agency to negotiate .and execute an
Amended Affordable Housing Agreement and the necessary accompanying documents
in a form subject to the approval of Agency Counsel 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
Chair
ATTEST:
Maria Quinonez
Secretary
Roger L. H y
Executive Director
APPROVED AS TO FORM:
f
Fred Galante
Agency Counsel
AS TO CONTENT:
Hempe
ant City Manager
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby
certify that the foregoing Resolution was passed and adopted by the Agency at its
regular meeting held on the 2151 day of July, 2009.
AYES: MEMBER FLORES, MORTON, RODRIGUEZ, CASTRO AND
SANTILLAN
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
~ _
Maria Quinonez, Secretary
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby
certify that the above foregoing is a full, true and correct copy of Resolution No.
2009.039 on file in my office and that said Resolution was adopted on the date and by
the vote therein stated. Dated this 215~day of July, 2009.
Maria Quinonez, Secretary