AgdaPkt 2010-11-08 - Laserfiche WebLink

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6.2A REPORT age To the Honorable Mayor and City Council From the City Manager November 8, 2010 I S U BJ ECT �I Purchase and Sale Agreement for 3272 Rolison Road RECOMMENDATION Approve, by Resolution, Purchase and Sale Agreement with San Mateo County Service League for the sale of 3272 Rolison Road, and authorize City Manager to execute documents relating thereto. BACKGROUND The subject property, located at 3272 Rolison Road (APN 055-031-240), is a seven-unit apartment building comprised of one and two bedroom apartments. (See Location Map in Attachment 2.) It has provided an affordable housing option to low income residents for the past 16 years. In April 2010, the City's Community Development Block Grant (CDBG) program was reviewed by U.S. Depa�tment of Housing and Urban Development (HUD) staff who determined that, because of the length of time the City has held the Property at 3272 Rolison Road (the "Property"), the original eligibility for "Operation of Repossessed Property" is no longer appropriate under CDBG regulations. The City was directed to dispose of the Property in order to avoid a requirement that it repay funds used for the Property's ongoing operation. While Section 3'/2 of the City Charter normally requires that a proposed sale of real property be advertised and sold to the highest responsible bidder, that provision does not apply if the City Council determines that the Property shall be used for housing for persons or househofds of low or moderate income. Government Code 37364 expressly provides that if the Council finds that the use of real property for such purposes is in the City's best interests, the City may dispose of that property for less than fair market value. The statute provides that the provision of affordable housing is a matter of statewide concern, and therefore, if the conditions of this section are satisfied, such a sale would supersede the provisions of the City Charter. On September 13, 2010, by Resalution No. 15051 the City Council approved the process for disposition and sale of the property at 3272 Rolison Road (Attachment 3). The City Council determined that it would be in the City's best interests to have the Property be used for housing that is affordable to persons and families of low or moderate income. As such, pursuant to Government Code section 37364, the provisions of City Charter Section 3'/z do not apply to the conditions of the sale of the Property. The San Mateo County Service League (Service League) expressed a desire to acquire the property and maintain it for affordable housing. The Service League is a non-profit organization providing transitional housing and supportive services to homeless individuals and plans to expand their capacity to own and manage permanent affordable housing units. 82483.00000\4749656.1