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HomeMy WebLinkAboutNotice of File Complaint - Defendants Joshua Hayes, KristenHAbi CITY OF HUNTINGTON BEACH Inter -Department Communication TO: HONORABLE MAYOR and CITY COUNCILMEMBERS FROM: JENNIFER MCGRATH, City Attorney DATE: June 11, 2008 SUBJECT: Notice of Filed Complaint C-ITEM for the June 16, 2008 CITY COUNCIL MEETING The following complaint was filed on June 5, 2008. Plaintiff: City of Huntington Beach and Redevelopment Agency of the City of Huntington Beach Defendants: Joshua Hayes, Kristen Kellams, Jason Roy, Jeffrey Woo, Marie Harrison, Michael S. Clark, Pat Pizzata, Thomas J. Denny, Richard D. Hedmand, and Beachside Realtors The Complaint was filed to enforce the affordability covenant at Units B-14, D-33 and D- 41 at Brisas del Mar, to recover actual damages for breach of covenant, and to recover punitive damages for fraud. Initial Complaint: City of Huntington Beach, et al. v. Joshua Hayes, et al. Orange County Superior Court Case No. 30-2008-00073768 Nature of Case: Brisas del Mar is an affordable housing project located at 409 E. Utica. Pursuant to an Affordable Housing Covenant recorded on the property, each unit is required to be sold at a City -calculated price determined to be affordable to low or moderate income buyers. Units B-14 and D-33 were sold in excess of the affordable price. Unit D-41 is being marketed in excess of the affordable price. The same realtors were involved in all three transactions. The City is now suing to enforce the Covenant; as to all three units. Approved: JENNIFER MCGRATH, ,-� City Attorney . Scott Field, Assistant City Attorney 23528