Drafter
Clerk 03/17/2006
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AN ORDINANCE authorizing the county executive to execute a simultaneous closing for the purchase and sale of property known as 10440 18th Avenue South, Seattle, WA, located in Council District 8, by and between the United States Department of Housing and Urban Development, King County and Habitat For Humanity Seattle/King County, a Washington state nonprofit corporation.
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BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Findings:
A. The residence located at 10440 18th Avenue South, Seattle Washington ("the propertyltrch") was foreclosed upon by the Standard Trustee Service Company of Washington on August 1, 2003, to satisfy a deed of trust in default. This deed of trust secured a promissory note in the amount of $149,215.00.
B. A Trustees sale was held and the property sold to Wells Fargo Home Mortgage, Inc., for the sum of $162,352.45, which satisfied the obligation of the deed of trust and included all fees associated with the transaction.
C. The property was subsequently sold to the United States Department of Housing and Urban Development ("HUD") by Wells Fargo Home Mortgage, Inc, for $148,088.09 on March 23, 2003. HUD has been the legal owner of record since that date.
D. HUD has expressed a desire to sell the property to the Habitat For Humanity Seattle/King County ("Habitat") for $1.00.
E. HUD regulations under the Residential Property Disposition Reform Act do not allow HUD to negotiate a noncompetitive sale price on properties in foreclosure with nonprofit organizations, such as Habitat. The same regulations do allow HUD to negotiate a noncompetitive sale price on properties in foreclosure with local governments, such as King County.
F. HUD allows a local government to conduct a simultaneous closing, selling a property to a nonprofit organization on the same day that the property is purchased from HUD.
G. To provide for more affordable housing, in this region, King County desires to purchase the property through a negotiated sale with HUD, for $1.00, at the request of and for the sole purpose of transferring the property to Habitat, at no cost or liability to King County.
H. Habitat will rehabilitate the residence and subsequently sell the property (land only) to the Homestead Community Land Trust ("HCLT") to ensure the property remains affordable to households at or below eighty percent of annual median income.
I. Habitat will sell the improvement on the property to a family selected by Habitat, who will enter into a long-term lease for the underlying land with HCLT.
J. The facilities management division has determined that pursuant to K.C.C. 4.56.070 the property upon acquisition by the county from HUD shall be surplus to the county's needs and therefore may be immediately conveyed to Habitat.
K. Pursuant to K.C.C. 4.56.100, the county may negotiate the sale of real property when it has been determined that unique circumstances make a negotiated direct sale in the best interests of the public and may donate or negotiate the sale of real property to a bona fide nonprofit organization when the nonprofit organization provides services to the poor and infirm.
L. The findings in this section constitute unique circumstances, therefore, it is in the best interests of the public that King County facilitate a simultaneous purchase of the property from HUD for the sole purpose of immediate sale to Habitat, and this conveyance will allow Habitat to provide affordable housing.
SECTION 2. The King County council, having determined that the simultaneous conveyance of certain property rights from HUD to King County and from King County to Habitat is in the best interest of the public, does hereby authorize the King County facilities management division, department of executive services, to execute the
necessary documents to accept from HUD and convey the subject property rights to Habitat.
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