HomeMy WebLinkAbout2013-02-07 Correspondence_1512 Ash Street_Ward *CITY OF RftoYOGR;gNO CITY
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February 7, 2013
Daniel and Pamela Ward
1512 Ash Street
Arroyo Grande, CA 93420
RE: 1512 Ash Street, Arroyo Grande, CA - Second City Response Notice
Dear Mr. and Mrs. Ward:
I have been informed that you would like to try to sell your property located at 1512 Ash
Street, Arroyo Grande, California (the "Property") without its current affordable housing
deed restriction.
All of my comments, capitalized terms and references herein are based on the terms as
set forth in the Buyer's Occupancy and Resale Agreement with Option to Purchase
between you and the City of Arroyo Grande (the "City") dated June 1, 2005 which was
recorded in the San Luis Obispo County Recorder's Office on June 16, 2005 as
Document No. 2005048986 (the "Agreement") (copy attached). As an initial matter, we .
note that the City does not wish to exercise its option to purchase the Property pursuant
to Paragraph 12 of the Agreement.
I have also been informed that the estimated fair market value of the Property is
currently less than the Indexed Value and/or the Affordable Price of the Home.
Therefore, the City hereby waives the marketing Period as required in Section 11.A in
the Agreement. As such, this letter shall serve as the Second City Response Notice
required by Paragraph 11.E of the Agreement.
Permission is hereby granted by the City to transfer the Property to a Market Purchaser
at an Unrestricted Price in accordance with the terms of the Agreement. Paragraph
10.0 of the Agreement provides that prior to any such sale, it is necessary to determine
the Unrestricted Fair Market Value of the Property. In order to simplify the process, the
City is willing to accept an appraisal performed in connection with the sale. If the
purchaser obtains a commercial mortgage on the Property, he or she will have to obtain -
an appropriate appraisal. However, if the purchaser makes an all-cash payment or
obtains private financing, an appraisal is not automatically performed. To cover the all-
cash or private loan payment scenario, you will need to place a condition on the listing
requiring that any cash buyer or buyer obtaining private financing must obtain an MAI or
other City-approved appraisal. Upon receiving an offer, you will also need to furnish the
CITY MANAGER'S OFFICE• 300 East Branch Street • Arroyo Grande, California 93420
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City with the documents/information identified in Paragraph 13 of the Agreement which
includes execution of a certification in conformance with Paragraph 13 (3) prior to close
of escrow.
Lastly, we note that based on the terms of the Agreement, the Excess Sale Proceeds, if
any, must be paid to the City before we will be able to reconvey the Agreement and
corresponding Deed of Trust to you (this is the basis for the appraisal).
If you have any questions, please contact Kelly Heffernon at (805) 473-5425 and the
City will try to help you in any way that we can under the terms of the Agreement.
Sincerely,
do-
Steven
1-
Steven Adams, City Manager
cc: Tim Carmel, City Attorney
Kelly Heffernon, Associate Planner
Enclosure