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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.
Should no acceptable bid be received or should the bids be rejected or the property withdrawn from sale, the ordinance ordering the sale shall be deemed of no further force and effect unless the ordinance authorizes the General Manager of the Department of General Services, Board or Commission to cause another notice of sale to be published and a sale to be held, which authorization shall specify a date after which it shall no longer be valid.
SECTION HISTORY
Based on Ord No. 56,887.
Amended by: Subsec. (a), Ord. No. 86,653; 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 Council, by a two-thirds vote, may elect to employ and pay, on a commission or other basis, an agent or agents to render services in promoting, furthering or negotiating the sale of such property.
SECTION HISTORY
Based on Ord. No. 56,887.
Amended by: Ord. No. 150,946, Eff. 7-17-78.
(a) The net proceeds from the sale of the surplus real properties located in the Venice Area (as those terms are defined in Section 5.121 of this Code) of the City of Los Angeles shall be placed in the fund known as the Venice Surplus Real Property Fund established by Section 5.121 of the Los Angeles Administrative Code.
(b) Except for the net proceeds from the sale of surplus real properties specifically addressed by separate sections of this Code, including, but not limited to, Sections 5.121.1, 5.121.2 and 5.547 and properties located in the Venice Area of the City of Los Angeles, 50% of the net proceeds from the sales of surplus real properties, to the extent allowed by law, shall be placed in the Council District Real Property Trust Funds established by Section 5.500 of this Code, and 50% of the net proceeds of the sales shall be placed in the General Fund of the City of Los Angeles.
(c) Notwithstanding Subsections (a) and (b) above, unless otherwise prohibited by law, for all sales of surplus real properties subject to Subsections (a) or (b), and approved by City Council for use in support of the City’s “Using Public Land for Affordable and Homeless Housing” strategy, completed on or after July 1, 2016, and prior to July 1, 2017, 100% of the net proceeds from the sales shall be placed into the Affordable Housing Trust Fund of the City of Los Angeles (“Affordable Housing Trust Fund”), unless located within the Venice Area of the City of Los Angeles in which case, the net proceeds shall be placed into a sub-account within the Affordable Housing Trust Fund for use in the Venice Area of the City of Los Angeles only. This Subsection (c) shall only be in effect until July 1, 2017, upon which date it shall be deemed repealed and no longer in effect.
SECTION HISTORY
Added by Ord. No. 150,484, Eff. 2-17-78.
Amended by: Sec. Title, Last Sentence Added, Ord. No. 171,570, Eff. 5-31-97, Oper. 1-1-97; Ord. No. 180,206, Eff. 10-26-08; Subsec. (c), Ord. No. 180,764, Eff. 8-8-09; In Entirety, Ord. No. 184,511, Eff. 11-5-16.
Where the Los Angeles Housing Department (LAHD) (or any predecessor or successor City agency or department) has obtained title to real property as the result of foreclosure or otherwise, in which local, state or federal funds are invested and which are restricted in their use for low and moderate income housing (REO property), the LAHD General Manager or designee may make the determination that the REO property is to be sold and shall:
(a) Authorize and identify the competitive process set forth in Section 7.33.3 that will be used to solicit proposals from qualified buyers for the REO property offered for sale; and
(b) Direct that LAHD competitively seek proposals from potential buyers of REO property subject to the condition that such REO property will be the subject of a covenant or regulatory agreement restricting its use for housing for low or moderate income residents, as those respective terms are defined by the underlying source of funding LAHD has invested in the REO property.
Prior to exercising discretion to sell under this Section, the LAHD General Manager shall first notify the City Council office of the district in which the REO property proposed for sale is located, by submitting an advisory notice to the City Clerk. Upon the acknowledgement of receipt of the notice by the City Clerk, the LAHD General Manager may proceed with the sale of the REO property.
SECTION HISTORY
Added by Ord. No. 183,131, Eff. 8-10-14.
Amended by: Ord. No. 187,122, Eff. 8-8-21.
The REO property shall be marketed by LAHD in one of the two methods set forth herein.
(a) City Directed Marketing Method. LAHD shall comply, at a minimum, with the following requirements:
(1) LAHD shall direct that a Request for Proposal (RFP) or Notice of Funding Availability (NOFA) be issued that describes the REO property in a manner sufficient to inform a potential buyer of the REO property’s particular location, characteristics and use restrictions such that a potential buyer may make an informed decision and submit a competitive proposal. Prior to release, the RFP or NOFA shall be subject to the review and approval of the LAHD Assistant General Manager or designee; and
(2) The RFP or NOFA shall be advertised on the appropriate City website designed to reach qualified buyers.
(b) Commercial Marketing Method. LAHD shall comply, at a minimum, with the following requirements:
(1) LAHD shall engage the services of a commercial real estate broker who shall list the REO property including its location, characteristics and use restrictions on a commercially available real estate listing service commonly used in the sale and marketing of real estate properties in the Los Angeles area. Prior to publication, the listing shall be subject to the review and approval of the HCIDLA Assistant General Manager or designee; and
(2) The REO property shall be listed on the appropriate City website designed to reach qualified buyers.
SECTION HISTORY
Added by Ord. No. 183,131, Eff. 8-10-14.
Amended by: Ord. No. 187,122, Eff. 8-8-21.
Unless otherwise approved by the City Council, the minimum sales price of an REO property shall be the full appraised value or no less than the minimum percentage of value as determined by appraisal under the requirements of the local, state or federal funds invested in the REO property.
SECTION HISTORY
Added by Ord. No. 183,131, Eff. 8-10-14.
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