HomeMy WebLinkAboutAcquire Affordable Housing Unit - 18862 Breezy Lane - Cape A CITY OF HUNTINGTON BEACH
Interoffice Communicatioh
" Economic Development Departml[BAR -5 Ph 2 22
n`y Dr"
HUIN i INIGTG114 BEACH
TO: Honorable Chairman and Redevelopment Agency Members
VIA: Penelope Culbreth Graft, DPA, Executive Director
FROM: Steve Holtz, Real Estate and Housing Manager
DATE: March 5, 2007 v
SUBJECT: Late Communication — E7 (Notice of Trustee Sale)
Amended Recommended Action:
Staff recommends authorizing up to an additional $6,525 in order to pay accrued
interest and fees, bringing the total amount requested to an amount not to
exceed $420,000.
Analysis:
The City's outside legal representative, Richard Egger of Best Best Krieger, has
been in ongoing discussions with the Trustee Sale agent and the mortgage
holder, Countrywide Mortgage, and has been advising staff as to how best
protect the City's interests in the subject foreclosure.
Staff would like to ensure that the Agency authorizes sufficient funds to cover not
only the first mortgage payoff, but also any associated fees and interest that may
have accrued. As of this date, the mortgage holder has been uncooperative in
providing a payoff amount of the loan in foreclosure, so the total payoff amount is
not currently known. This may be greater than the $413,475 requested in the
Agency's Recommended Action.
Staff recommends authorizing an additional $6,525 to pay accrued interest and
fees in the event this is necessary.
l 0
v
Council/Agency Meeting Held:
Deferred/Continued to:
Appr ve ❑ Conditionally Approved ❑ Denied City Clerk's Signatur
Council Meeting Date: 3/5/2007 Department ID Number: ED 07-07
CITY OF HUNTINGTON BEACH
Cj*" REQ ST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: Honorable Chairman and RedeveloDMent Agency Members
SUBMITTED BY: Penelope Cu eth Gra�, Executive Director
i
PREPARED BY: Stanley Smalewitz, Deputy Executive Direct
Jennifer McGrath, Redevelopment Agency
SUBJECT: Authorize Acquisition of Inclusionary Housi nit - Cape Ann
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: On February 20, 2007, Economic Development Housing staff received
a Notice of Trustee Sale (Attachment 1) for a unit located at 18862 Breezy Lane, within the
Cape Ann Inclusionary Housing Program. The Trustee Sale is scheduled for March 8, 2007,
at 2:00 PM at the County Courthouse located at 700 Civic Center Drive West, Santa Ana.
Council consideration is requested to reinstate the loan or to acquire the property to maintain
it within the City's Inclusionary moderate-income housing inventory.
Funding Source: Housing Set Aside Fund 30680301.81100
Recommended Action: Motion to:
1. Authorize the Executive Director, or her designee, to expend up to $413,475 in order to
preserve and maintain 18862 Breezy Lane, within the community's supply of low- and
moderate-income housing, pursuant to Section 33334.2 of the Redevelopment Agency
Resolution No. 174 (Attachment 2). Such expenditure may be made in order to buy
the unit at the foreclosure sale in an amount in excess of the mortgage lender's credit
bid, negotiating with the mortgage lender to take over the first trust deed, or reinstate
the loan and then agree to a work-out with the homeowner.
Alternative Action(s):
1. Do not authorize the acquisition of the affordable unit and advise the Trustee of said
action.
Analysis: 18862 Breezy Lane is located within Cape Ann, a moderate-income
affordable project established pursuant to the Holly Seacliff Specific Plan. All units
in Cape Ann are subject to a set of CC & Rs ensuring that the units will be sold at
restricted prices to ensure that they are affordable to moderate income
households.
The mortgage lender of 18862 Breezy Lane gave notice to the Agency on
February 20, 2007, of a Notice of Trustee Sale for March 8, 2007. Although the
City will contend that the unit will remain subject to the CC & Rs even after a
foreclosure sale, the mortgage lender likely will contend that the City will lose the
ability to continue to enforce the CC & Rs following foreclosure.
The City's Housing staff is working in conjunction with the City Attorney's office to
determine the best means to resolve this matter to preserve the unit. The options
include buying the unit at the foreclosure sale in an amount in excess of the
mortgage lender's credit bid, negotiating with the mortgage lender to take over the
first trust deed, and reinstating the loan and then agreeing to a work-out with the
homeowner.
The original note was for $382,500, which would approximately be the amount of
the mortgage lender's credit bid. The reinstatement amount is $13,313. As of this
date, the maximum sales price for this home is calculated at $413,475
(Attachment 3).
Environmental Status: Not applicable.
Attachment(s):
City Clerk's
. - NumberDescription1. Notice of Trustee Sale
2. Resolution No. 174
3. Maximum Sales Price Calculation
ATTACHMENT # 1
4 '
7187 7930 3131 0955 3178 FEB 2 0 2007
Eco DEPARTMENs DEVELOPMENT
E E p MET
TS NO:06-25047
REDEVELOPMENT AGNY OF THE CITY OF HUNTINGTON BEACH
2000 MAIN STREET
HUNTINGTON BEACH,CA 92648
Form insert(03101)
RECORDING REQUESTED BY:
RECONTRUST COMPANY,N.A.
1757 TAPO CANYON ROAD,SVW-88
SIMI VALLEY, CA 93063
WHEN RECORDED MAIL TO:
1757 TAPO CANYON ROAD,SVW-88
SIMI VALLEY, CA 93063
Attn:
TS No. 06-25047
Doc ID#000483080102005N
Title Order No. 06-8-215434
Investor/Insurer No. 048308010
APN No.:93387477
NOTICE OF TRUSTEE'S SALE
YOU ARE IN DEFAULT UNDER A DEED OF TRUST, DATED 01/15/2004.
UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE
SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE
NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A
LAWYER.
Notice is hereby given that RECONTRUST COMPANY,N.A.,as duly appointed trustee pursuant to the Deed of Trust
executed by ROBERT SCOTT,A MARRIED MAN AS HIS SOLE&SEPARATE PROPERTY,dated 01/15/2004 and
recorded 01/22/2004,as Instrument No.2004000048906,in Book ,Page ,),of Official Records in
the office of the County Recorder of ORANGE County,State of California,will sell on 03/08/2007 at 02:00 PM,AT THE
NORTH FRONT ENTRANCE TO THE COUNTY COURTHOUSE,700 CIVIC CENTER DRIVE WEST,SANTA ANA,
CA
at public auction,to the highest bidder for cash or check as described below,payable in full at time of sale,all right,title,and
interest conveyed to and now held by it under said Deed of Trust,in the property situated in said County and State and as
more fully described in the above referenced Deed of Trust. The street address and other common designation,if any,of the
real property described above is purported to be: 18862 BREEZY LANE,HUNTINGTON BEACH, CA 92648. The
undersigned Trustee disclaims any liability for any incorrectness of the street address and other common designation,if any,
shown herein.
The total amount of the unpaid balance with interest thereon of the obligation secured by the property to be sold plus
reasonable estimated costs,expenses and advances at the time of the initial publication of the Notice of Sale is$412,409.90.
It is possible that at the time of sale the opening bid may be less than the total indebtedness due.
In addition to cash,the Trustee will accept cashier's checks drawn on a state or national bank,a check drawn by a state or
federal credit union,or a check drawn by a state or federal savings and loan association,savings association,or savings bank
specified in Section 5102 of the Financial Code and authorized to do business in this state.
Said sale will be made,in an"AS IS"condition,but without covenant or warranty,express or implied,regarding title,
possession or encumbrances,to satisfy the indebtedness secured by said Deed of Trust,advances thereunder,with interest as
provided,and the unpaid principal of the Note secured by said Deed of Trust with interest thereon as provided in said Note,
plus fees,charges and expenses of the Trustee and of the trusts created by said Deed of Trust.
DATED: February 11,2007
RECONTRUST COMPANY,N.A.
1757 TAPO CANYON ROAD,SVW-88
SIMI VALLEY, CA 93063
Phone: (800)281-8219 , Sale Information(626)9274399
By:/S/Title Officer
RECONTRUST COMPANY,N.A.is a debt collector attempting to collect a debt. Any information obtained will be used for
that purpose.
Form mlgnos(07/01)
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO: THIS DOCUMENT IS BEING SENT TO YOU
RECONTRUST COMPANY,N.A. IN ACCORDANCE WITH CIVIL CODE
1757 TAPO CANYON ROAD,SVW-88 SECTION 2934.
SIMI VALLEY, CA 93063
Attn: Paresh Kavlekar
TS No. 06-25047
Title Order No. 06-8-215434
Investor/Insurer No. 048308010
SPACE ABOVE THIS LINE FOR RECORDER'S USE
AFFIDAVIT OF MAILING
FOR SUBSTITUTION OF TRUSTEE BY CODE
TS#: 06-25047
Trustor: ROBERT SCOTT, A MARRIED MAN AS HIS SOLE& SEPARATE PROPERTY
I, Paresh Kavlekar, TRUSTEE SALE OFFICER, declare: That I am an officer, agent or employee of
RECONTRUST COMPANY,N.A., whose business address is 1757 TAPO CANYON ROAD,
SVW-88, SIMI VALLEY, CA 93063.
I am over the age of eighteen years; On 02/15/2007,by Certified and First Class mail, enclosed in a
sealed envelope with postage fully prepaid, I deposited in the United States Mail, a copy of the attached
Substitution of Trustee to the trustee of record under the Deed of Trust described in said Substitution,
and;
A copy of the attached Substitution has been mailed prior to the recording thereof, in the manner
provided in Section 2924(b) of the Civil Code of the State of California to all persons to whom a copy
of the Notice of Default would be required to be mailed by the provisions of said section.
I certify(or declare)under penalty of perjury under the laws of the State of California that the foregoing
is true and correct.
Date:February 15, 2007
/S/Paresh Kavlekar
TRUSTEE SALE OFFICER
Form affdvtsub(04102)
RECORDING REQUESTED BY:
RECONTRUST COMPANY,N.A.
AND WHEN RECORDED MAIL DOCUMENT THIS DOCUMENT IS BEING SENT TO YOU IN
AND TAX STATEMENTS TO: ACCORDANCE WITH CIVIL CODE SECTION 2934. THE
ORIGINAL OF THIS DOCUMENT HAS CONCURRENTLY
RECONTRUST COMPANY,N.A. BEEN SENT FOR RECORDING WITH THE COUNTY
1757 TAPO CANYON ROAD,SVW-88 RECORDER
SIMI VALLEY, CA 93063
ATTN:
Doc ID#000483080102005N
TS No. 06-25047
INVESTOR/INSURER No. 048308010
TSG No. 06-8-215434
SPACE ABOVE THIS LINE FOR RECORDER'S USE
SUBSTITUTION OF TRUSTEE
WHEREAS, ROBERT SCOTT,A MARRIED MAN AS HIS SOLE& SEPARATE PROPERTY was the
original Trustor,CTC REAL ESTATE SERVICES was the original Trustee, and MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS,INC.was the original Beneficiary under that certain Deed of Trust dated
0l/15/2004 recorded on 01/22/2004 as Instrument No. 2004000048906 in Book Page
of Official Records of Orange County, California;
WHEREAS,the undersigned is the present Beneficiary under said Deed of Trust,and
WHEREAS,the undersigned desires to substitute a new Trustee under said Deed of Trust in place and instead
of said original Trustee,or Successor Trustee,thereunder, in the manner in said Deed of Trust provided,
NOW THEREFORE,the undersigned hereby substitutes RECONTRUST COMPANY,N.A.,WHOSE
ADDRESS IS: 1757 TAPO CANYON ROAD, SVW-88
SIMI VALLEY, CA 93063,as Trustee under said Deed of Trust.
Whenever the context hereof so requires,the masculine gender includes the feminine and/or neuter, and the
singular number includes the plural.
DATED: November 09, 2006 MORTGAGE ELECTRONIC REGISTRATION SYSTEMS,INC.
State of California )
BY: /S/Beneficiary or Investor
County of. )
On ,before me, ,notary public,personally appeared
personally known to me(or proved to me on the basis of
satisfactory evidence)to be the person(s)whose name(s)is/are subscribed to within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the
instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument.
Witness my hand and official seal.
Form mingsub(1"1)
ATTACHMENT #2
RESOLUTION NO. 1.74
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
FINDING AND DETERMINING THAT THE USE OF MONIES FROM
THE LOW AND MODERATE INCOME HOUSING FUND OUTSIDE
THE PROJECT AREAS WILL BENEFIT THE PROJECT AREAS, AND
AUTHORIZING THE EXPENDITURE OF SUCH FUNDS
WHEREAS, the Redevelopment Agency of the City of Huntington
Beach ("Agency") is a Community Redevelopment Agency organized and
existing under the Community Redevelopment Law, Health and Safety
Code §33000, et seq. , (the "Act") ; and
The Agency is authorized to implement the Redevelopment Plans
for each of the Huntington Beach Redevelopment Projects (the
"Plans") for each of the Project Areas (the "Project Areas") ,
including the Main-Pier Redevelopment Project Area, the Oakview
Redevelopment Project Area, the Huntington Center Redevelopment
Project Area, the Yorktown-Lake Redevelopment Project Area and the
Talbert-Beach Redevelopment Project Area; and
Section 33334 .2 of the Act requires that not less than twenty
percent (20%) of all taxes which are allocated to the Agency
pursuant to §33670 of the Act shall be used by the Agency for
purposes of increasing and improving the community' s supply of low
and moderate income housing ("Low and Moderate Income Housing
Fund") ; and
Pursuant to §33334 .2 of the Act the Legislature declares its
intent that the Low and Moderate Income Housing Fund shall be used
to improve and increase housing in the community; and
To carry out the purposes of increasing and improving the
community' s supply of low and moderate income housing §33334 .2 (e)
of the Act states the Agency may exercise. any or all of its powers,
-1- 174
i
including without limitation, acquiring land or building sites,
improving land or building sites with onsite or offsite
improvements, donating land to private or public persons or
entities, constructing buildings or structures, acquiring buildings
or structures, rehabilitating buildings or structures, providing
subsidies to, or for the benefit of, very low income households,
lower income households, or persons or families of low and moderate
income, or other powers to carry out the purposes of the Act; and
Subsection (g) of §33334 .2 of the Act authorizes the Agency
to use monies from the Low and Moderate Income Housing Fund inside
or outside the Project Area, but the Agency may only use- the funds
outside the Project Area upon resolutions of the Agency and the City
Council finding that such use will be of benefit to the Project
Area; and
Under said subsection (g) of §33334 .2 the Legislature
declares that the provision of replacement housing pursuant to
§33413 is always of benefit to a project area; and
The Agency desires by this Resolution to declare that the
expenditure of monies from the Low and Moderate Income Housing Fund
outside the Project Area for purposes authorized under the Act are
and will be of benefit to the Project Area;
NOW, THEREFORE, the. Redevelopment Agency of the City of
Huntington Beach finds, declares, and resolves as follows :
1. The Recitals above are fully incorporated into this
i
resolution and finding-.
I
2 . The expenditure of monies from the Low and Moderate
Income Housing Fund for purposes authorized under the Act outside I
the Project Areas in which such funds are generated are and will be
-2'_ 174
l
of benefit to the respective Project Areas.
3 . The Agency is authorized to expend monies from the Low
and Moderate Income Housing Fund for said authorized purposes.
PASSED AND ADOPTED at a regular meeting of the Redevelopment
Agency of the City of Huntington Beach on the ,?6th-y day
of �L.__--J 1 nJE< 1989 .
REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH
Chairman
ATTEST: APPROVED AS TO FORM:
Ir
Secretary of the Redevelopment 4ityAttqo.rn (
Agency -of the-City of Huntington
Beach .
REVIEWE AND APPROVED: I ITIATED AND APPROVED:
Executive Director ect of Economic Development
i
i
-3- 174
4
STATE OF CALIFORNIA )
r COUNTY OF ORANGE )SS
CITY OF HUNTINGTON BEACH )
I, Connie Brockway Secretary of the
Redevelopment Agency of the City of Huntington Beach hereby certify
that the above and foregoing Resolution No. _174 . was duly and
regularly passed and adopted by the said Agency at a publicly
noticed regular meeting thereof, held on the `_26th day
of , June 1989 .
4 4-4 4:
Secretary of the RedevOlopment
Agency of the City of Huntington
Beach
i
-4- 174
I
Res. No. 174
.STATE_.OF CALIFORNIA )
.. 000NTY OF ORANGE )
CITY OF HUNTINGTON BEACH)
I, CONNIE BROCKWAY, Clerk.of the Redevelopment,Agency of the
City of Huntington .Beach, California,. 00 HEREBY CERTIFY that the foregoing. ,
resolution was duly adopted by the. Redevelopment Agency of the City of
Huntington Beach at a meeting of said. Redevelopment Agency held on the
26th day of June jg .89, and that it:was so. .adopted
by the following .vote: '
AYES:' Members
MacAllister, Green, Winchell , .Banni.ster, Silva
NOES: Members:
None
ABSENT: Members:
Mays, Erskine out of room
Clerk of. the Redevelop ent' Agency of
the City;.of Huntington Beach, -Ca.
ATTACHMENT #3
MAXIMUM SALES PRICE CALCULATION
CAPE ANN
18862 Breezy
2006 MODERATE INCOME LIMITS ANNUAL HOUSING EXPENSES
FAMILY SIZE ANNUAL INCOME MONTH YEAR
1 65,800 161 1,932 HOMEOWNER'S ASSOCIATION DUES
2 75,200 55 660 UTILITIES
3 84,600 60 720 INSURANCE
4 94,000 50 600 MAINTENANCE
5 101,500 $413,475 372 4,466 PROPERTY TAX(1.08%)
698 $ 8,377.53 TOTAL EXPENSES
4 NUMBER OF BEDROOMS
101,500 HOUSEHOLD ANNUAL INCOME
35,525.00 INCOME AVAILABLE FOR HOUSING(35%OF GROSS INCOME)
27,147.47 INCOME LESS HOUSING EXPENSES
2,262.29 MAXIMUM MONTHLY MORTGAGE PAYMENT
6.13% CURRENT INTEREST RATE
$372,127 MAXIMUM MORTGAGE
$413,475 MAXIMUM SALES PRICE(ASSUMING 10%DOWN PAYMENT)
PREPARED:2/22/2007
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development Dept./City Attorney's Office
SUBJECT: Authorize the Acquisition of Affordable Housing Unit in
Cape Ann Inclusionary Housing Program
COUNCIL MEETING DATE: March 5, 2007
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Ap licable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Ap licable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Ap licable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached ❑
Not Ap licable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee,Report (if applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Deputy City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: Holtz/Suraci 5470
r CITY OF HUNTINGTON BEACH
Interoffice Communication
Economic Development Department
TO: Honorable Chairman and Redevelopment Agency MembWC=,
VIA: Penelope Culbreth Graft, DPA, Executive Director �=
FROM: Steve Holtz, Real Estate and Housing Manager ` '
DATE: March 5, 2007 y.
F
SUBJECT: Late Communication — E7 (Notice of Trustee Sale)
Amended Recommended Action:
Staff recommends authorizing up to an additional $6,525 in order to pay accrued
interest and fees, bringing the total amount requested to an amount not to
exceed $420,000.
Analysis:
The City's outside legal representative, Richard Egger of Best Best Krieger, has
been in ongoing discussions with the Trustee Sale agent and the mortgage
holder, Countrywide Mortgage, and has been advising staff as to how best
protect the City's interests in the subject foreclosure.
Staff would like to ensure that the Agency authorizes sufficient funds to cover not
only the first mortgage payoff, but also any associated fees and interest that may
have accrued. As of this date, the mortgage holder has been uncooperative in
providing a payoff amount of the loan in foreclosure, so the total payoff amount is
not currently known. This may be greater than the $413,475 requested in the
Agency's Recommended Action.
Staff recommends authorizing an additional $6,525 to pay accrued interest and
fees in the event this is necessary.
G�G