777 SOUTH FIGUEROA STREET, SUITE 2555 LOS ANGELES, CALIFORNIA 90017 PHONE 213.622.8095 2211012.RB:KHH
WWW.KEYSERMARSTON.COM 18545.007.017
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
A. Jerry Keyser
Timothy C. Kelly
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
James A. Rabe
Gregory D. Soo-Hoo
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
SAN DIEGO
Paul C. Marra
Linnie A. Gavino
November 22, 2022
Kyong Morrison
2750 Artesia Boulevard #115
Redondo Beach, California 90278
Re: Maximum Sales Price Request
Dear Mrs. Morrison:
The City of Redondo Beach Housing Authority (Housing Authority) has engaged Keyser Marston Associates, Inc. (KMA) to provide consulting services related to the affordable housing units located in the Breakwater Village project. The following letter is a response to your request for an assessment of the maximum allowable sales price for the Low-Income unit you own at 2750 Artesia Boulevard Unit #115, Redondo Beach, California 90278.
The conditions imposed on the resale of the residence are presented in the following documents:
1. The Performance Deed of Trust (Option to Cure and Purchase Agreement), which is dated March 1, 2011 and was recorded on March 29, 2011 by the Los Angeles County Recorder as Instrument No. 20110464143; and
2. The Agreement Containing Covenants (Including Affordable Housing Restrictions), which is dated January 15, 2008, and was recorded on December 5, 2008 by the Los Angeles County Recorder as Instrument No. 20082149772.
Kyong Morrison November 22, 2022
2750 Artesia Boulevard, Unit 115 Page 2
2211012.RB:KHH
18545.007.017
Under the terms and conditions included in Section 6 of the Agreement Containing Covenants (Including Affordable Housing Restrictions), the maximum sales price that you may receive for any type of Transfer of your residence ("Resale Price") shall be the lesser of the following:
1. The Moderate Income Affordable Purchase Price at the time of Resale; or
2. The Increased Base Price plus the “Value of Capital Improvements” that have been approved by the City of Redondo Beach, if any.
The Unit Resale Determination Worksheet follows this letter. Based on the calculations included in the Worksheet, the Resale Price is based on the Increased Base Price. As of today’s date, the maximum Resale Price is $216,820.
The Resale Price provided to you will be valid for three months from the date of this letter. Should the Resale Price expire, a new Maximum Sales Price Request must be submitted. In that case a completed application (and fee payment, if applicable) should be submitted to the Housing Authority.
Sincerely,
Keyser Marston Associates, Inc.
Kathleen Head
Owner's Name Kyong Morrison
Development Breakwater Village
Unit Number 115
Assessor Parcel Number (APN) 4082012076
Income Level Moderate
Number of Bedrooms 1
The Maximum Resale Price is equal to the Lesser of:
1. The Increased Base Price, and the
2. The Moderate Income Affordable Purchase Price.
Current Owner's Purchase Price $149,900
Current Owner's Purchase Date (HCD Income 2010) 3/1/11
Area Median Income at Time of Owner's Purchase $50,400
Area Median Income at Calculation Date (HCD Income 2022) $72,900 Percentage Increase in Area Median Income 44.64%
Increased Base Value $216,820
Increase in Value Due to Capital Improvements $0
Increased Base Price $216,820
Moderate Income Affordable Purchase Price $267,100
Maximum Resale Price $216,820
Calculation is Valid Through: 2/20/23
Prepared by Keyser Marston Associates, Inc. Kathleen Head Date the Calculation is Completed 11/22/22
UNIT RESALE PRICE DETERMINATION WORKSHEET
Increased Base Price
After this date, if Owner has not entered into a purchase and sale agreement, the sales price will need to be recalculated to take into consideration any changes in the Area Median Income, HOA dues, etc. Please see below for additional information.
The Maximum Sales Price is based on the formula included in the Addendum to Grant Deed recorded on the property with the County of Los Angeles. The formula takes into consideration the Area Median Income as determined by the State of California and makes allowances for utilities, HOA dues, taxes, PMI, homeowners insurance, etc. Additionally, calculations are subject to change at any time due to changes in the abovementioned information. Please check with the Housing Authority prior to entering into a purchase and sale agreement.
Prepared by: Keyser Marston Associates, Inc.
File name: 11 22 22 ASP Calcs