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Committee reviews disposition of five HUD-rehabbed properties, says buyers must meet 80% AMI requirement
Summary
Real Estate & Housing sought committee approval to dispose of five properties rehabilitated with HUD/CDBG funds; department noted HUD rules and city code require buyers at or below 80% AMI and City Council disposition approval under Section 2-625A before transfer.
Real Estate & Housing presented a resolution asking the committee to approve disposition of five properties rehabilitated with federal Community Development Block Grant (CDBG) funds: 527, 529 and 531 East 8th Street, 1007 North Pine Street, and 218 West 23rd Street. The department said these federal rehabilitation projects were approved in the FY2022 and FY2023 HUD annual action plans and must be sold to income-qualified buyers at or below 80% of area median income to comply with federal regulations.
"These are federal rehabilitation projects and the dispositions of these properties must be to individuals at or below 80% of the area median income in order to comply with the federal regulations," Real Estate & Housing staff stated. The presenter also cited City Code Section 2‑625A, which requires City Council approval to dispose of city inventory property.
Council members asked clarifying questions about why disposition approval was required and whether the sale process would preserve affordability. Staff said the properties are renovated and ready to list, that the department followed HUD processes, and that disposition approval releases the properties from city inventory so they can be transferred to income-qualified buyers.
No committee vote to approve disposition was recorded at the meeting; the resolution was presented and discussed, and Councilmember McCoy said she planned to review the resolution and consider co-sponsoring.
