City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01460 9/17/2024 Consent Item 2.
(Housing Authority) Authorization to Dispose of Remnant Parcels in the Del Paso Nuevo Development [Noticed on 09/04/2024]
File ID: 2024-01460
Location: 601 Fran Barker Avenue, 751 Fran Barker Avenue, 750 Fran Barker Avenue, 3401 Louise Williams, 605 Johnnie Morris Avenue, 3419 Alberghini Street, 701 Johnnie Morris Avenue, 735 Johnnie Morris Avenue, District 2, Represented by Councilmember Thao Recommendation: Hold a public hearing and upon completion, adopt a Housing Authority Resolution which: 1) authorizes the Executive Director, or her designee, to execute Purchase and Sale Agreements for the Housing Authority owned properties at 601 Fran Barker Avenue, 751 Fran Barker Avenue, 750 Fran Barker Avenue, 3401 Louise Williams, 605 Johnnie Morris Avenue, 3419 Alberghini Street, 701 Johnnie Morris Avenue, and 735 Johnnie Morris Avenue (Properties) and all other necessary documents, as approved as to form by Agency Counsel, and to take all other necessary actions to sell the Housing Authority owned properties to the adjacent property owners; 2) authorizes the sale of the Properties at current fair market value verified by an appraisal; 3) amends the Sacramento Housing and Redevelopment Agency (SHRA) budget to accept the proceeds from the sales; and 4) makes related environmental and other findings.
Contact: Christine Weichert, Director, (916) 440-1353, [email protected]; Sacramento Housing and Redevelopment Agency
Presenter: Christine Weichert, Director, (916) 440-1353, [email protected]; Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-Housing Authority Resolution
3-Map
Description/Analysis
Issue Detail: Del Paso Nuevo (DPN) is a 154-acre master planned community bounded by Norwood Avenue, South Avenue, Altos Avenue and Arcade Creek in the Del Paso Heights neighborhood. The master planned community was formed to provide a minimum of 300 new single-family homes to provide new construction/ownership opportunities for area residents. In 1997, the area received a
File ID: 2024-01460 9/17/2024 Consent Item 2.
Homeownership Zone Designation from the United States Department of Housing and Urban Development (HUD) and more than $10 million in federal loan guarantees and grants for the project.
In return, at least 51 percent of the new homes constructed in Del Paso Nuevo were required to be sold at affordable prices to families earning no more than 80 percent of the area median income (AMI).
Construction at DPN was divided into six phases, the last of which was completed in 2023. To date, construction has been completed on two community parks, all required infrastructure and street improvements, and 325 single-family homes, of which 51 percent sold as affordable homes to families earning no more than 80 percent of AMI.
Del Paso Nuevo Area Remainder Parcels
As part of Del Paso Nuevo Phase 6, a total of eight (8) small parcels of land remained after road construction was complete. As SHRA oversaw the planning and implementation of the street improvements, these parcels were initially owned by the Redevelopment Agency and were subsequently transferred to the Housing Authority in 2014. SHRA has maintained these parcels since that time. Information about the size and location of the parcels is below, and a map is included in Attachment 3.
Address Assessor’s
Parcel Number
Parcel Size Number of
Adjacent
Privately owned
parcels
601 Fran Barker Avenue 250 0150 117 5546 square feet
(.13 acres)
3 751 Fran Barker Avenue 250 0150 118 1419 square feet
(.03 acres)
1 750 Fran Barker Avenue 250 0150 119 1421 square feet
(.03 acres)
1 3401 Louise Williams 250 0210 117 1129 square feet
(.03 acres)
1 605 Johnnie Morris Ave 250 0210 118 1841 square feet
(.04 acres)
1 3419 Alberghini St 250 0210 119 6358 square feet
(.15 acres)
1 701 Johnnie Morris Ave 250 0210 120 1079 square feet
(.02 acres)
1 735 Johnnie Morris Ave 250 0210 121 7452 square feet
(.17 acres)
5
File ID: 2024-01460 9/17/2024 Consent Item 2.
As these parcels are not large enough for development, the Housing Authority is not the appropriate entity for long-term ownership. SHRA staff met with City of Sacramento representatives to determine if they were interested in assuming ownership, and they indicated that it was not feasible for them to do so.
Approximately $13,000 is allocated annually for maintenance of the parcels. As none of the parcels is large enough for development or has any foreseeable use by the Housing Authority, Staff is requesting approval to transfer ownership to the adjacent property owners. As some Housing Authority owned parcels are adjacent to multiple privately owned parcels, these will first be subdivided and then sold to the adjacent owner. The sale of each parcel will be at fair market value as established by a recent appraisal.
The appraisal indicates that the properties are valued between $500-$1500 each due to their small size and limited utility. Staff conducted preliminary outreach to owners in the area and have determined that the majority are interested in assuming permanent ownership of the properties. Upon approval by the Housing Authority, staff will subdivide the parcels as needed and then dispose of the properties to the adjacent owners that have expressed interest and continue until all properties have been transferred.
Policy Considerations: No new policies are recommended because of this action.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Project is exempt from environmental review under CEQA Guidelines Section 15312 & 15061(b)(3).
National Environmental Policy Act (NEPA): The Project is Categorically Excluded from environmental review under NEPA regulations at 24 CFR §58.35(a)(5) and converts to Exempt pursuant to 24 CFR §58.34 (a)(12).
Sustainability: Not applicable.
Commission Action: Sacramento Housing and Redevelopment Commission: At its September 4, 2024 meeting, the Sacramento Housing and Redevelopment Commission reviewed the staff recommendation for this item. The votes were as follows:
Ayes: Duncan, Amanfor, Nunley, Jefferson, Ramos, Ross, Starks, Woo Noes: None
Abstain: None
File ID: 2024-01460 9/17/2024 Consent Item 2.
Absent: Griffin
Rationale for Recommendation: Authorization to sell these properties will allow for the disposition of assets no longer needed and provide budget savings due to eliminating the requirement to maintain the parcels.
Financial Considerations: The value of the eight (8) Housing Authority owned properties once sold is approximately $6,000. Staff is requesting authorization to amend the SHRA budget in this amount once all properties have been sold.
LBE - M/WBE and Section 3 requirements: The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply.
RESOLUTION 2024-
Adopted by the Housing Authority of the City Sacramento
September 17, 2024
A Resolution of the Housing Authority Approving Purchase and Sale Agreements for the Sale of Eight Housing Authority Owned Properties at Fair Market Value Located at 601 Fran Barker Avenue, 751 Fran Barker Avenue, 750 Fran Barker Avenue, 3401 Louise Williams, 605 Johnnie Morris Avenue, 3419 Alberghini Street, 701 Johnnie Morris Avenue, and 735 Johnnie Morris Avenue, and Related Documents with the Adjacent Property Owners: Related Budget Amendment; Related Findings; and Environmental Findings
BACKGROUND
A. Del Paso Nuevo (DPN) is a 154 -acre master planned community bounded by Norwood Avenue, South Avenue, Altos Avenue and Arcade Creek in the Del Paso Heights neighborhood. The master planned community was formed to provide a minimum of 300 new single-family homes to provide new construction/ownership opportunities for area residents. At least 51 percent of the new homes constructed in Del Paso Nuevo were required to be sold at affordable prices to families earning no more than 80 percent of the area median income (AMI).
B. Construction at DPN was divided into six phases, the last of which was completed in 2023. To date, construction has been completed on two community parks, all required infrastructure and street improvements, and 325 single family homes with 51 percent sold as affordable homes to families earning no more than 80% of AMI.
C. As part of the final phase, a total of eight (8) small parcels of land remained after road construction was complete. These parcels were initially owned by the Redevelopment Agency and were subsequently transferred to the Housing Authority in 2014. SHRA has maintained these parcels since that time. A list of is below parcels is below.
Address Assessor’s Parcel Number
601 Fran Barker Avenue 250 0150 117
751 Fran Barker Avenue 250 0150 118
750 Fran Barker Avenue 250 0150 119
3401 Louise Williams 250 0210 117
605 Johnnie Morris Ave 250 0210 118
3419 Alberghini St 250 0210 119
701 Johnnie Morris Ave 250 0210 120
735 Johnnie Morris Ave 250 0210 121
D. As none of the parcels is large enough for development or have any foreseeable use by the Housing Authority, Staff is requesting appr oval to transfer ownership to the adjacent property owners The sale of each parcel will be at fair market value as established by a recent appraisal.
E. Per California Health and Safety Code §34315.7 real property owned by a Housing Authority (Authority) which the Authority determines is not required for its foreseeable needs and which is not transferred pursuant to Section §34315.5 can be disposed of. The Housing Authority hereby finds that the Property is no longer needed and desires to sell it for Fair Market Value.
F. The noticed public hearing required for the disposition of Housing Authority property under Health and Safety Code Section §34312.3(b) was held on September 17, 2024.
G. The Project is exempt from environmental review under the California Environmental Quality Act Guidelines Section 15312 & 15061(b)(3).
H. The Project is Categorically Excluded from environmental review under the National Environmental Policy Act regulations at 24 CFR §58.35(a)(5) and converts to Exempt per 24 CFR §58.34 (a)(12).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY RESOLVES AS FOLLOWS:
SECTION 1.
All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.
SECTION 2.
The Executive Director, or her des ignee, is authorized to negotiate, enter int o, execute and amended as needed Purchase and Sale Agreements for the eight (8) Housing Authority owned properties identified above , as well as subdivide parcels as needed, and execute other documents, as approved to form by its Office of the General Counsel, and perform other actions required to sell the properties to the adjacent property owners at Fair Market Value . The appraised Fair Market Value of the combined eight properties is $6000.
SECTION 3.
The Executive Director is authorized to amend the SHRA budget to accept approximately $6000 in proceeds once the properties are sold.
Attachment 3