DATE: September 11, 2018
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Auction of County Owned Surplus Property
RECOMMENDED ACTION(S):
TITLE
1. Acknowledge receipt, consider all sealed bids, and call for oral bids for the sale of the property located at 4585 E. Harvard Avenue, Fresno, CA 93703 (APN 447-12-407).
2. Adopt Resolution approving the sale of the County owned surplus property located at 4585 E. Harvard Avenue, Fresno, CA 93703 (APN 447-12-407) and authorize the Chairman to execute the grant deed and other related documents to the successful bidder, if any.
REPORT
Approval of the recommended actions will sell to the highest bidder, via public auction, the County owned surplus real property, see attached Location Map, and add the property to the tax rolls. The County foreclosed on the property through a Trustee sale on April 11, 2018. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board may choose not to adopt the recommended resolution approving the sale of the County owned surplus property, which will result in the County retaining ownership without resources to maintain the property.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The proceeds of the sale will be returned to the County’s Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs in accordance with Federal grant regulations. The funds will be deposited into the Department of Public Works and Planning - CDBG grant fund Org 7205 and HOME fund Org 1202, whereby the funds must be reused for ongoing eligible grant activities.
DISCUSSION:
On August 7, 2018, your Board approved Resolution No. 18-278 declaring the property surplus and authorizing the Clerk of the Board to publish a Notice of Intention to sell the property by public auction, September 11, 2018, at 9:00 a.m.
The residence is located at 4585 E. Harvard, Fresno, CA 93703 (APN 447-12-407), in the unincorporated area of the Mayfair District. The property is a 2-bedroom, 2-bath 1,121 square foot single-family residence, reconstructed in 2009. The County acquired the residence through foreclosure under the Housing Assistance Rehabilitation Program (HARP). The HARP program provides loans to income-qualifying households for moderate to substantial home reconstruction or rehabilitation projects. The subject property reverted to County ownership via a Trustee Sale on April 11, 2018. There were no bids to satisfy the outstanding HARP loan debt of $196,078.30. The County can now dispose of the property for as much as possible in lieu of the loan repayment.
In accordance with California Government Code, sections 25520 through 25539.10, the proposed procedures for the sale of the subject property are as follows:
1. The minimum bid for the property is $80,000.
2. All written bids shall be delivered to the Clerk of the Board of Supervisors by 9:00 a.m. the day of the auction, September 11, 2018, in a sealed envelope labeled "Bid for 4585 E. Harvard Avenue, Fresno" accompanied by a certified or cashier’s check in the sum of $8,000 payable to the County of Fresno.
3. Your Board, upon the opening of written bids, will ask for oral bids. All oral bidders who have not made a deposit must present a certified or cashier’s check in the sum of $8,000 payable to the County of Fresno upon making an oral bid. The starting oral bid must be at least 5% over the highest written bid accepted.
4. All unsuccessful bidders will have their certified or cashier’s checks returned to them upon completion of bidding. The $8,000 deposit by the successful bidder is non-refundable.
5. Your Board reserves the right to reject any and all bids if it deems it is in the best interest of the public.
6. The successful bidder shall pay to the County the entire remaining balance of the purchase amount within 15 days after acceptance of the highest bid. Upon receiving the full purchase amount, the County will deliver to the successful bidder/purchaser a Grant Deed free and clear of encumbrances, except as apparent or of record, in "as is" condition.
7. In the event the successful bidder cannot meet the requirements and deadlines of the sale, your Board may later award the bid to the runner-up bidder under the same terms as stated herein. Under such an event, the first bidder forfeits the $8,000 deposit.
If a successful bidder/purchaser is awarded, a final Grant Deed and Resolution will be prepared for appropriate signatures.
REFERENCE MATERIAL:
BAI #53, August 7, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
Location Map
On file with Clerk - Resolution
On file with Clerk - Draft Grant Deed
CAO ANALYST:
Sonia M. De La Rosa