Staff Report. Resolution Approving the Purchase and Sale Agreement for 137 Bersano Lane (2)
PREPARED BY: Bridgette Falconio
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023 ITEM NO: 9
DATE: February 2, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Following Actions for the Property Location: 137 Bersano Lane.
APN 424-29-054. Property Owner: Lisa DeGeorge.
a. Adopt a Resolution Approving a Purchase and Sale Agreement for the Re-
Purchase of an Affordable Housing Unit Subject to an Existing Below
Market Price (BMP) First Right of Refusal Option; and
b. Authorize the Town Manager to Negotiate and Execute all Agreements
and Documents Necessary and Appropriate to Effectuate the Preservation
of the Affordable Housing Unit; and
c. Authorize Revenue and Expenditure Budget Adjustments in the Amount
of $436,276 from Available BMP Housing In-Lieu Fee Fund to Re-
Purchase, Repair, and Pay Past Due Fees and Taxes of the Property.
RECOMMENDATION:
Staff recommends that the Town Council authorize the following actions for the property
located at 137 Bersano Lane:
a. Adopt a Resolution (Attachment 1) approving a Purchase and Sale Agreement in
substantially the form presented for the re-purchase of an affordable housing unit subject
to an existing Below Market Price (BMP) First Right of Refusal Option for property located at
137 Bersano Lane (APN 424-29-054),
b. Authorize the Town Manager to negotiate and execute all agreements and documents
necessary to preserve of the affordable housing unit, and
c. Authorize revenue and expenditure budget adjustments in the amount of $436,276 from
available BMP Housing In-Lieu Fee Fund to re-purchase, repair, and pay past due fees and
taxes of the property.
PAGE 2 OF 3 SUBJECT: Adopt a Resolution Approving the Purchase and Sale Agreement for 137 Bersano Lane DATE: February 2, 2023
BACKGROUND:
The property, 137 Bersano Lane, is a 2-bedroom 1.5 bath townhome within the Town’s BMP
Housing Program inventory. The property is subject to an existing first right of refusal option in
a Deed Restriction recorded in March of 2014. The unit was purchased for $250,000.00.
The current owner, Lisa DeGeorge, has notified the Town that she wishes to sell this property
back to the Town.
The property has sustained substantial damage and needs to be repaired before reselling.
Repair expenses are estimated to be approximately $80,000. Additionally, there are
outstanding Homeowners Association dues (approximately $1,854) and property taxes
(approximately $10,000) that will be paid at closing. Pursuant to the proposed agreement, the
Town will have the repairs done and complete any outstanding payments. The Town will
deduct all expenses from the amount due the seller at closing.
The Town’s re-purchase price is dictated by the deed restriction. Pursuant to the terms of the
proposed purchase and sale agreement, the Town will expend approximately $344,421.75 from
the BMP Housing In-Lieu Fund to repurchase this unit.
After the Town has purchased the unit and made the repairs, the Town will sell the unit to a
new income-qualified buyer at the allowable purchase price, which is anticipated to be
approximately $344,421.75.
CONCLUSION AND RECOMMENDATION:
Authorizing the Town’s re-purchase of the unit will preserve the unit in the Town’s stock of
affordable housing. Staff recommends that the Town Council adopt the prepared resolution
(Attachment 1) and authorize the Town Manager to execute a real property purchase and sale
agreement in substantially the form attached (Attachment 2).
COORDINATION:
The Town Attorney’s Office, Community Development Department, and Town Manager’s Office
coordinated this report.
FISCAL IMPACT:
The cost for the Town to repurchase the unit is $344,422. An expenditure budget adjustment in
the amount of $436,276 will be needed from the available BMP Housing In-Lieu Fee Fund to re-
purchase the unit, pay for repairs, and pay past due fees and property taxes. The cost of the
repairs, pay past due fees and past due property taxes totaling approximately $90,854 will be
deducted from the proceeds due to the seller. This amount will be held in an escrow account
PAGE 3 OF 3 SUBJECT: Adopt a Resolution Approving the Purchase and Sale Agreement for 137 Bersano Lane DATE: February 2, 2023
FISCAL IMPACT (continued):
until the unit has been sold and then a revenue adjustment will be made to the BMP Housing
In-Lieu Fee Fund.
ENVIRONMENTAL ASSESSMENT:
The proposed real property purchase is not a project defined under CEQA, and no further
action is required.
Attachments:
1. Draft Resolution
2. Draft Purchase and Sale Agreement/Addendum