That the La Habra Housing Authority:
A.  Approve an appropriation of $194,300 from the Low and Moderate-Income Housing Asset Fund to fund the purchase of the subject Mobile Home Unit and related escrow fees;

B.  Approve an appropriation of $11,700 from the Housing Authority Fund to reimburse two months' rent ($850 per month) collected for the months of March and April 2025, and to fund up to $10,000 in any other additional closing costs that may not be covered by the Low and Moderate Income Housing Asset Fund appropriation;

C.  Authorize the Executive Director to sign all related documents needed to execute the purchase; and,

D.  APPROVE AND ADOPT RESOLUTION NO. HA 2025-__ ENTITLED:  A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING THE PURCHASE OF A MOBILE HOME UNIT LOCATED AT 1750 WEST LAMBERT ROAD, SPACE 114 FROM LISA NUNNS.

The Housing Authority of the City of La Habra (Housing Authority) owns two mobile home parks located within the City of La Habra. View Park is located approximately 375 feet east of Beach Boulevard, on the south side of Lambert Road, at 1750 West Lambert Road, and Park La Habra is located north of View Park, on the north side of Lambert Road, at 1731 West Lambert Road. Although the Housing Authority owns both parks, neither the City nor the Housing Authority own the majority of the mobile home units located within the parks. To date, the Housing Authority has purchased three mobile home units within the parks for the purpose of expanding the City's affordable housing stock.

Staff was recently put in contact with Ms. Lisa Nunns (Seller), the owner of the subject Mobile Home Unit, located in Space 114 of View Park, by park management. Ms. Nunn had expressed interest in selling the Mobile Home Unit to the Housing Authority after her parents, the former owners of the unit, passed away. The subject Mobile Home Unit was built in 1990 and is 1,200 square feet and has three bedrooms and two bathrooms. Following her parents' passing, Ms. Nunns, transferred the subject Mobile Home Unit into her ownership and discovered that, due to probate law, she could not sell the Mobile Home for more than $184,000; and, therefore, she has proposed to sell the Mobile Home Unit to the Housing Authority for $184,000. In addition, she has requested a return of rent for the months of March and April in the amount of $1,700 ($850/month), since it will take at least two months for escrow to close due to the legal process necessary to get approvals from the Housing Authority, if this purchase is approved, prior to opening escrow. As part of staff's due diligence, staff requested an appraisal of the unit, which was completed on March 7, 2025, and valued the Mobile Home at $205,000 (see Attachment 2).   

Upon consultation with the City Attorney, staff determined that the purchase of a mobile home does not require a formal Purchase and Sales Agreement. The attached Resolution will be provided to escrow, should the Housing Authority approve this transaction, for the opening of escrow.  The escrow company, Prominent Escrow in Fullerton, California, will provide the buyer and seller with a contract and escrow instructions to sign that will meet the requirements necessary for the transfer of title of the Mobile Home Unit, by the State of California's Department of Housing and Community Development (HCD), which oversees mobile homes within the State of California. The Seller has agreed to pay the Seller's closing costs and the Housing Authority will pay the Housing Authority's closing costs. In addition, it is proposed that the Housing Authority reimburse rent paid during the months of March and April 2025, totaling $1,700. To initiate escrow, the Housing Authority will deposit $125,000 into an escrow account with Prominent Escrow Services, Inc, in Fullerton, California. Escrow is anticipated to close no later than April 28, 2025.

The acquisition of this Mobile Home unit will allow the Housing Authority to continue to expand its affordable housing stock by acquiring a unit that can be rented or purchased by a low-income household. If acquired by the Housing Authority, staff will work with the Residential Rehabilitation Specialist to update the unit with new flooring, kitchen and bathrooms prior to occupancy. The estimated cost for renovations is not anticipated to exceed $25,000 and staff will bring an item to the Housting Authority at a later date detailing what renovations would be necessary and at what cost. Per the City Attorney's office, this purchase does not require conformity to the General Plan because it is not a purchase of real property. However, the subject property is designated by the General Plan for Mobile Home Park land use; and, therefore, this purchase would be consistent with the General Plan.

The proposed purchase price is $184,000. Escrow and title fees are estimated between $10,000 and $20,000 (depending on the various requirements of taxes related to HCD guidelines). However, the final cost will not be known until after escrow is opened, subject to Housing Authority approval. Therefore, staff is requesting a total appropriation of $194,300 from Low and Moderate-Income Housing Asset Fund (LMIHAF) to ensure all escrow and closing costs are funded. In addition, staff is requesting an appropriation of $11,700 of Housing Authority funds to fund the reimbursement of rent to the Seller for the months of March and April 2025 and any additional closing costs that may not be funded by the proposed LMIHAF appropriation. There are sufficient LMIHAF and Housing Authority funds for both the acquisition of the unit, rent reimbursement and other closing costs.