2007-04-17_Agenda - Laserfiche WebLink

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REQUEST FOR HRA ACTION Date: April 17, 2007 Item No: 8.a. Staff Approval: JS Agenda Section: Action Item Description: Right of First Re fusal at 1487 Applewood Court (HF0005) 1.0 Background 1.1 In January 25, 2005, the Roseville HRA entered into an agreement with Mr. Jesse M. Lowther that granted the right of first refusal to the HRA if and when Mr. Lowther decided to sell 1487 Applewood Court. 1.2 Mr. Lowther has decided to sell this property. On April 7, he submitted a letter stating that he would be selling the home and asking the HRA if it would like to purchase this property, pursuant to the agreement described above. 1.3 Mr. Lowther has had both an appraisal and market analysis study completed, which he has provided to staff, for the property to help him determine an asking price. Based on these documents, he would like to sell the property for $348,500. 2.0 Discussion 2.1 Currently, the HRA does not have funding set aside to act on the right of first refusal agreements put into place as part of the First-time Homebuyer’s Program at the Applewood Pointe development. 2.2 Upon the sale of 1487 Applewood, the HRA will receive $47,000 for repayment of the second mortgage on this property. 3.0 Staff Recommendations 3.1 As there is no identified source of HR A funding to purchase 1497 Applewood Court, staff recommends that the HRA decline the right of first refusal for this property. 3.2 When funds from the repayment of the second mortgage are received by the HRA, staff recommends that these funds be set aside and earmarked for future affordable housing opportunities. 4.0 Suggested HRA Action 4.1 By motion, decline making a purchase offer on 1487 Applewood Court and upon the repayment of the mortgage held by the HRA fo r this property, set aside these funds in a separate account to use to create new a ffordable housing opportunities within the 1487 Applewood Court_Right of First Refusal (04/17/2007) - Page 1 of 2