Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A Purchase And Sale Agreement, Warranty Deed And Required Closing Documents For An Eligible First Time Homebuyer For The Property Located At 2323 Cleveland Street.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In April of 2015, the City Commission approved the acquisition of a portfolio of properties from the COSAC Homeless Assistance Center, Inc. (“COSAC”), a nonprofit corporation that owned and operated a facility at 1203 N. Federal Highway in conjunction with Mr. Sean Cononie, a member of the Board of Directors for COSAC.
Property Address Owner Agreed Inspection
Purchase Date
Price
550 N. 66th Terrace COSAC $180,000 1/3/2015
2323 Cleveland Street COSAC $125,000 1/3/2015
901 NW 70th Terrace COSAC $146,000 1/3/2015
2131 Cleveland Street CONONIE $210,000 1/3/2015
2534 McKinley Street CONONIE $218,400 1/3/2015
7508 Grant Court CONONIE $266,400 1/3/2015
1936 Garfield Street CONONIE $156,000 1/3/2015
1203 N. Federal Highway COSAC $1,200,000 1/16/2015
301 Harrison St. #306 COSAC $5,000 1/17/2015
(Hollywood Beach Towers Timeshare)
2404 N. Surf Rd. #20 COSAC $15,000 1/17/2015
(Hollywood Sands Resort Time Share)
The total acquisition cost for the portfolio and post-closing covenants was $4,820,000.00.
The portfolio included a single-family residential property located at 2323 Cleveland St., which had been operated as a group home, but was deemed by the City to be appropriate to renovate and sell to an income qualified household to provide additional affordable housing in the City. The property required substantial renovation including new kitchen appliances, bathroom fixtures, and other interior and exterior repairs. This was accomplished using State Housing Initiatives Partnership (“SHIP”) funds in the amount of $ 108,413.00.
In April 2024, the City publicly promoted the availability of the property for purchase by income-eligible households, at 120% or below the Area Median Income (“AMI”), with priority given to Hollywood residents and households at or below 80% AMI as part of the Broward County Home Buyer Purchase Assistance Program.
An independent appraisal of the Property was conducted on February 27, 2024 by MAC Appraisal Services, Inc. valuing the Property at $350,000.00 and the second appraisal was conducted on March 7, 2024 by The Urban Group, Inc., and the appraised valued of the Property was determined to be $375,000.
The City is in receipt of qualified offers to purchase the property from twelve proposed first-time home buyers (“Proposed Buyer”) in the amount of $350,000.00.
The City will provide the buyer a mortgage of $120,000.00 in SHIP funds and up to $50,000.00 in ILA funds to assist in the purchase of the home.
The first mortgage lender must receive an executed purchase agreement to underwrite the loan necessary to facilitate the purchase of the property and it is possible that the first or subsequent priority buyer may be unable to secure a first mortgage to purchase the property.
The Resolution approves and authorizes the Mayor, City Manager, or appropriate City Officials to execute the Sale and Purchase Agreement, along with any necessary extensions, for an eligible First Time Home Buyer, which will allow for streamlined transition to a qualified proposed buyer to be determined.
To allow for an expeditious sale, the Resolution authorizes the Mayor, City Manager, or appropriate City Officials to execute the Warranty Deed and Required Closing Documents for an eligible First Time Home Buyer, to be determined, together with such non-material changes as may subsequently be agreed to by the City Manager and approved as to form by the City Attorney.
This resolution requires a 5/7 vote of the total City Commission to sell the property.
Fiscal Impact:
Approval of this Resolution will have a positive fiscal impact on the City. The sale will generate revenue, eliminate ongoing City maintenance of the property and produce ad valorem taxes.
Recommended for inclusion on the agenda by:
Ryon Coote, Community Development Manager
Raelin Storey, Assistant City Manager