TITLE
Recommendation to adopt resolution authorizing the acquisition of tax-defaulted property, Assessor Parcel No. 7208-014-010, in the City of Long Beach from the County of Los Angeles;
Authorize City Manager to execute a Chapter 8 Agreement and any and all documents necessary for the acquisition of the tax-defaulted property; and
Authorize City Manager to execute all necessary documents for the conveyance of Assessor Parcel No. 7208-014-010 to The Long Beach Housing Development Company. (District 6)
DISCUSSION
In November 2008, the Los Angeles County Treasurer and Tax Collector (County) released a list of properties to be included in the 2009A Public Tax Auction (Auction). These properties have been tax-defaulted for non-payment of property taxes and deemed Subject to Power to Sell by the County. Prior to conducting the Auction, the County grants local governmental agencies an opportunity to request acquisition of these properties, as allowed under the California Revenue and Taxation Code, Division 1, Part 6, Chapter 8, which outlines the provisions for the acquisition of properties by a public agency if a public need can be determined (Chapter 8 Agreement).
City of Long Beach (City) staff has reviewed and identified one vacant parcel for City acquisition, located at 2331 Locust Avenue, Assessor Parcel Number 7208-014-010. Please see the attached Site Map (Exhibit A). The Long Beach Housing Development Company (LBHDC) has requested this parcel in order to construct one single family home for re-sale to low/moderate income homebuyers. Upon acquisition by the City, this parcel will be conveyed to LBHDC with construction to proceed. The purchase price of the parcel from the County is approximately $20,517, which represents the amount of delinquent property taxes and penalties owed on the parcel. Additional fees of approximately 20 percent, or $4,103, will be charged for administrative and processing costs, for a total cost of $24,620.
On behalf of the City, the Department of Community Development submitted a written request to the County for a Chapter 8 Agreement to purchase the property. In order to proceed, the County requires the City Council to adopt a resolution authorizing the acquisition of tax-defaulted property and authorizing the City Manager to enter into an Agreement with the County (Exhibit B). Once the City's Agreement is approved by the Los Angeles County Board of Supervisors and the State of California Controller's Office, the County is required to notify the property owners of the pending effective date of the Agreement with the City. In the event the property owners pay the delinquent tax amount prior to the effective date of the Agreement, the owners will retain the property and the City will be unable to proceed with the purchase. However, should the property owners fail to pay the delinquent tax amount by the effective date of the Agreement, the City may proceed with the acquisition.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on April 14, 2009 and Budget and Performance Management Bureau Manager David Wodynski on April 15, 2009.
TIMING CONSIDERATIONS
City Council action is requested on May 5, 2009, in order to facilitate acquisition of the property.
FISCAL IMPACT
The estimated cost to acquire the parcel requested by LBHDC for rehabilitation and resell as affordable housing is $24,620. Sufficient funds are currently budgeted in the Housing Development Fund (SR 135) in the Department of Community Development (CD). The proposed acquisition will have no impact on the General Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH TO EXECUTE A CHAPTER 8 AGREEMENT WITH THE COUNTY OF LOS ANGELES TO ACQUIRE TAX-DEFAULTED PROPERTY (2331 LOCUST AVENUE)
Respectfully Submitted,
Dennis J. Thys
Director, Department of Community Development
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |