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With the exception of those properties subject to Section 7.33.2, et seq. of this Code, the Los Angeles Housing Department is authorized to convey any interest owned or controlled by the City in any real property below its fair market value, subject to the Council making a finding that the conveyance at the price with the terms and conditions imposed thereon serves a public purpose. Such conveyance may be made by either sale or lease; however, the sale or lease shall be first approved by the City Council after public hearing and shall be subject to approval by the Mayor.
Any disposition of real property, whether by sale or lease, which is made at a price below fair market value shall be supported by findings and an appraisal setting forth the following:
(a) The estimated fair market value of the interest to be conveyed, determined at the highest and best use;
(b) The purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;
(c) The conditions and covenants imposed by the City for the conveyance (“City Conditions”) and an estimate of the increased development costs to be incurred by the developer of the real property as a result of compliance with the City Conditions;
(d) The estimated value of the interest to be conveyed determined at the use and with the City Conditions (“Fair Reuse Value”); and
(e) An explanation as to why the sale or lease of the real property will assist in the development of affordable housing in the City, with reference to all supporting facts and materials relied upon in making this explanation.
Nothing contained herein shall be interpreted to authorize the Department to mortgage any real property in contravention of Charter Section 104(a) or to acquire, whether by eminent domain or voluntary sale, or to dispose of any real property in a manner not otherwise authorized by law.
SECTION HISTORY
Added by Ord. No. 185,283, Eff. 1-15-18.
Amended by: Ord. No. 187,122, Eff. 8-8-21.
The deposits made by all unsuccessful bidders shall be returned to such bidder at the completion of the auction. The deposit made by the high bidder shall be retained by the City as a guarantee that the person making such high bid will complete the purchase, and, at the opening of escrow, it shall be utilized as a part of the purchase price.
Should the high bidder not complete the purchase, the deposit shall be retained by the City of Los Angeles as liquidated damages suffered by the City for the failure to complete said purchase. Provided, however, that the City Council by two-thirds vote of all its members and for good cause shown may order the refund of all or any portion of the deposit of a person failing to complete the purchase, but the General Manager of the Department of General Services, the Board or Commission of a department having control of its own funds must first approve such refund.
SECTION HISTORY
Based on Ord. No. 56,887
Amended by: Ord. No. 92,757; Ord. No. 142,590, Eff. 12-3-71; Ord. No. 150,946, Eff. 7-17-78; Second Unnumbered Para., Ord. No. 171,496, Eff. 3-7-97.
Readopted by Ord. No. 173,281, Eff. 6-26-00, Oper-7-1-00.
The Council may, in the ordinance ordering the sale of the real property, reserve to itself the power to confirm the sale, or, it may authorize the confirmation by the General Manager of the Department of General Services, a Board or Commission. In the event the Council reserves to itself the power to confirm the sale, such confirmation shall be by a majority vote of all of its members. Until the time the Council confirms the sale, the Council may reject all bids or may withdraw the real property from sale. In the event the Council authorizes the General Manager of the Department of General Services, a Board or Commission to confirm the sale, the Notice of Sale shall provide that said General Manager, Board or Commission may confirm the sale to the highest responsible bidder, or its successors or assigns, providing that no sale for less than the minimum price shall be confirmed; and further providing that said General Manager, Board or Commission may reject any and all bids and that either the Council or said General Manager, Board or Commission may withdraw any of the real property from sale until such time as the sale is confirmed.
SECTION HISTORY
Based on Ord. No. 56,887.
Amended by: Ord. No. 92,757; Ord. No. 150,946, Eff. 7-17-78; Ord. No. 171,496, Eff. 3-7-97.
Readopted by Ord. No. 173,281, Eff. 6-26-00, Oper-7-1-00.
The ordinance ordering the sale and the Notice of Sale shall provide that all of the real properties shall be sold excepting and reserving to the City of Los Angeles all oil, gas, water and mineral rights without, however, the right to surface for the extraction of said oil, gas, water or minerals. Said ordinance and notice shall further state that the sale is made subject to covenants, conditions, restrictions, easements, reservations, rights and rights-of-way of record, and subject to any rights-of-way which may be apparent if a visual inspection is made of said real property. The ordinance and notice may provide that particular covenants, conditions, restrictions, easements, reservations, rights and rights-of-way, which are owned by the City of Los Angeles, may be released and relinquished if it is found that they are no longer required for the use of the City. All escrow agreements and deeds shall also contain such exceptions, reservations, and conditions.
SECTION HISTORY
Based on Ord. No. 56,887.
Amended by: Ord. No. 92,757; Ord. No. 150,946, Eff. 1-17-78.
The Council may determine, in the ordinance ordering the sale, whether the sale shall be for cash or whether payments may be made in installments.
In the event the sale is to be for cash, the Notice of Sale shall provide, and the City shall require, that the full balance of the purchase price shall be paid to the City by the successful bidder on or before a date three months after that successful bidder has been notified by the Department of General Services that the sale has been confirmed. Provided, that if payment is deferred for more than two months after the notice confirming the sale, interest at one percent (1%) per month or fraction thereof shall be charged for each month or fraction thereof in excess of two months.
In the event the sale price is to be paid in installments, the Notice of Sale shall provide, and the City shall require, that payment in full shall be completed no later than five (5) years from the date of the note and the deed of trust which are required to be delivered to the Department of General Services. The Notice of Sale shall call for the successful bidder to, and that bidder shall, complete a down payment which includes the ten percent (10%) bid deposit, in a sum not less than one-third of the total successful bid purchase price. The Notice of Sale shall also establish when the down payment is to be completed and shall provide that the bidder will thereafter deliver to the Department of General Services, within thirty (30) days of notification by the Department of General Services that the sale has been confirmed, a note and deed of trust in a form acceptable to the General Manager of the Department of General Services to secure the payment of the balance of the purchase price and the successful bidder shall comply therewith. The note shall provide for interest at a rate specified in the ordinance and the Notice of Sale to be paid periodically and shall further provide that payment of the purchase price in full shall be made not more than five (5) years from the date of the note and deed of trust, which purchase price payment may be payable in installments or may be payable in a lump sum.
Payments may be made to the City or to an independent escrow, whichever the Notice of Sale shall designate, and in the manner provided in that Notice, the cash payment or down payment, whichever is applicable, shall be made prior to the delivery of the deed, or as a condition of the delivery of the deed, provided, however, that a bid deposit made to the City may be held by the City and need not be delivered to an escrow.
SECTION HISTORY
Based on Ord. No. 56,887.
Amended by: Ord. No. 91,648; Ord. No. 150,946, Eff. 7-17-78; Ord. No. 152,427, Eff. 6-29-79; Ord. No. 153,104, Eff. 12-9-79; Ord. No. 158,025, Eff. 8-14-83; Second and Third Unnumbered Paras., Ord. No. 171,496, Eff. 3-7-97.
Readopted by Ord. No. 173,281, Eff. 6-26-00, Oper-7-1-00.
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