CARLSBAD — The City of Carlsbad will once again play the role of realtor for a condominium in Bressi Ranch, purchasing the home with the intent to resell it in an effort to maintain affordable housing.
The City Council unanimously approved the purchase of a condominium on Leighton Circle for up to $315,000 as part of the consent calendar.
The city intends to resell the home to an eligible lower-income buyer in accordance with the city’s Affordable Housing Resale Program Guidelines, according to city documents. Funds for the purchase will come from the Housing Trust Fund, with revenue generated from the sale deposited back into that fund.
The purchase “extends the length of the time the unit is restricted as affordable and enhances the existing affordable housing stock in Carlsbad,” according to a city report.
In 1993, the city adopted an inclusionary housing ordinance requiring residential developments with more than six units to designate 15% of units as affordable to low-income households, according to city documents.
As part of the ordinance, buyers of affordable units enter into an agreement with the city that requires them to notify the city when they intend to sell the property and gives the city the option to purchase it at restricted prices.
The condominium on Leighton Circle is one of 100 affordable units in the Mulberry project, which fulfilled the inclusionary housing obligation within the larger Bressi Ranch development.
Surrounding homes along nearby Dartington Way are valued between $1.5 million and $2 million, according to Zillow data. A block west along Gateway Road, home valuations exceed $3 million.
The restricted price for the condominium is $290,229, but city staff recommended appropriating up to $315,000 to cover refurbishment, escrow fees and other costs, according to city documents.
The city also receives a 6% transaction fee on the purchase to cover the cost of the real estate professional contracted to resell the affordable unit.
This will be the 30th unit purchased by the city through its Affordable Housing Resale Program. Of those, the city has closed escrow on the resale of 26 units to eligible lower-income households.
The condominium will also be the city’s 14th purchase from the Mulberry project in Bressi Ranch.
