ENCINITAS — A designated affordable home in Cardiff-by-the-Sea was sold to investors and entered third-party escrow two weeks before the developer was authorized to advertise the sale, public records show, casting doubt on whether the home was legally purchased under the terms of the affordable housing agreement. city.
After first notifying the city of his intention to sell the home via email on August 12, 2020, Kenneth Reed, mortgage originator at Finance of America Mortgage, accepted the seller’s counter offer from developer New Pointe Investment on September 30, 2020, to purchase the home at 1412 Mackinnon, according to financial records and emails obtained by The Coast News through a public records request.
Mackinnon’s affordable home is one of two properties at the center of a federal lawsuit alleging discriminatory and unlawful housing practices at Encinitas.
Under the city’s affordable housing agreement, New Pointe has about two weeks left of its mandatory 60-day waiting period before it is allowed to start advertising home sales, let alone lock in buyers.
“Owners must give City not less than 60 days’ notice prior to advertising the unit’s availability of their intention to rent or sell the unit,” the agreement states.
A “multiple counter seller bid” is a real estate tool that allows a seller to counter more than one bid to buy a property at a time. After the buyer signs and accepts the counter-proposal, an agreement must then be signed by the seller to bind the contract.
After Reed accepted the counteroffer, Scot Sandstrom, founder and president of New Pointe and former president of the San Diego branch of Building Industry of America, signed the paperwork on October 2, 2020, ratifying the cash deal and sending the property into escrow holding a seven-day account in the First American Title.
City of Encinitas subsequently approved the sale to Reed on October 15, 2020, per city records, the same day New Pointe sought approval.
James Crosby, Reed’s attorney, told The Coast News he has no comment on this story. The Coast News left a message for Timothy Hutton, New Pointe’s attorney, but did not receive a response before publication.
New Pointe also placed an ad for Mackinnon’s home in the San Diego Union-Tribune as early as September 13, 2020, just halfway through the mandatory two-month gap and in another apparent violation of regulatory guidelines.
“There is a 55-year deed limitation on the property and all buyers are encouraged to do their own due diligence and comply with the regulations and requirements of the Encinitas City Affordable Housing Programme,” the advert reads.
The purchase agreement also discloses the commission rate for the agent involved in the sale. Susana Marquez, Reed’s agent in sales, is also the wife and business partner of Mark Marquez, owner of Marcor Ventures and New Pointe’s listing agent for the property.
According to the counteroffer form, “the buyer will pay all recurring and non-recurring closing costs, including real estate commissions, fees, and taxes.” The total real estate commission is 3% for the listing agent (Mark Marquez) and 3% for the buyer’s agent (Susan Marquez).
By selling to Reed, Marquez’s agency, under parent brokerage firm Pacific Sotheby’s International, earns a double commission on the sale instead of just 3% if New Pointe accepts an offer from an unknown low-income applicant.
Jane Rheinheimer, legal counsel for Marquez, Marcor Ventures and Pacific Sotheby’s did not wish to comment on this story.
Already sold?
Contents
After signing an affordable housing regulatory agreement with City of Encinitas in 2017, New Pointe hired real estate broker Mark Marquez to market and sell the affordable home at 1412 Mackinnon on his behalf as part of a proprietary housing development.
According to public records obtained by The Coast News, Marquez’s team sent an email to the city on August 12, 2020, with a list of questions, asking if they could “sell to households that do not qualify for cash as an investment opportunity. ”
Cindy Schubert, assistant city development program, confirmed New Pointe could sell to unqualified buyers.
A few hours later at 3:24 p.m. On August 12, 2020, Schubert wrote an email to inform Mark Marquez that the city had not received mandatory 60-day notice of intent to sell Mackinnon’s home, even though the property was temporarily listed the day before for $20,000 below the agreed sale price, according to court files.
“Just to clarify, City has never received any notification of intent to sell this property and has not agreed on a sale price,” Schubert wrote in an email obtained via a public records request.
Mark Marquez replied four minutes later, asking, “Is there a reason for 60 days or can it be sooner after the city approves?” The Coast News could not find the city’s answer to this question in the notes provided.
If Mark Marquez gives notice of intent to sell the house as early as 12 August 2020, but sells the house to Reed in a written contract on 2 October 2020, New Pointe fails to provide the required 60 days notice. violate the regulatory agreement guidelines.
Following email correspondence between City and Marquez, Mackinnon’s roster was pulled from MLS and reposted for $137,993 on September 15, 2020, according to a listing exhibit in court documents. The house was then listed as “under contract” at 12:50 p.m. on September 26, 2020, approximately four hours before the official application window closes at 5pm.
Based on the listing date and time, the affordable home was already under a sales contract with Reed hours before the application period for potential buyers closed.
The Coast News seeks comment from Encinitas City on this matter and will update the story with any comments provided.
Relationships
Victor Spayde, Reed’s associate at Finance of America’s San Diego office, was hired by New Pointe as the lender of choice for the Mackinnon property. Spayde is responsible for eligible candidates to purchase properties.
According to the complaint, Spayde allegedly discriminated against a very low-income single mother, Leah Sorenson, who is also a plaintiff in the lawsuit, during the qualification process by ignoring her request to qualify for a sale, allowing “her co-worker Kenneth Reed, a male investor to purchase a designated affordable home.” .”
While the nature of Reed and Spayde’s alleged “pre-existing relationship” as co-workers at Finance of America has yet to be determined, Finance of America has posted at least one photo depicting Reed and Spayde standing together and smiling into the camera.
In the lawsuit, Reed’s employer, Finance of America, argued that it was not responsible for the alleged unlawful actions of its employees because Reed did not finance the purchase of Mackinnon’s home through the Texas-based lending company.
And indeed, city records show Reed paid cash for the Mackinnon house.
However, according to San Diego County Appraisal Office records, approximately five months later on March 15, 2021, Reed refinanced the home with his employer, Finance of America.
Lawyers for Marquez, Marcor Ventures and Pacific Sotheby’s have filed a motion stating that under the “Developer Alternative Compliance Options” in the Encinitas City Code, “affordable housing requirements can be met by providing 15% of housing units in a housing development at affordable rental rates for low income households” or 10% for very low income households.
But the plaintiffs pointed out that “once a developer chooses to sell a home, it has to be to very low-income households. The passage cited by Defendants did not allow the seller to sell to investors as they now argue. This actually weakens their argument altogether.”
The Coast News attempted to contact plaintiff Anna Hysell’s counsel regarding this story.
“This is very interesting, but we have no comment at this time,” Hysell said.
Lease or shield?
In a recent motion to dismiss, New Pointe claims it cannot discriminate against low-income housing applicants because “they have a legitimate business interest in selling (the Mackinnon house) to investors because the tenant was living in the home at the time. from sales.”
New Pointe states that as of the registration date September 15, 2020, the tenant is living in the home until August 31, 2021. To honor the residents’ year-long lease agreement, New Pointe claims that they cannot sell the home to “non-investors” who intend to live in the home. .
The city’s affordable housing agreement requires New Pointe to “provide the city with no less than 60 days’ notice before advertising the availability” of the home, which includes a list of properties for sale.
According to court exhibits, there was an earlier listing for the $119,000 MacKinnon home on August 11, 2020, more than four weeks before the official listing date in mid-September.
If it followed these 60-day requirements, New Pointe should have first decided to sell the home in June 2020 — with no tenant or lease agreement preventing the company from selling the home to low-income “non-investor” buyers.
In addition, the Encinitas Municipal Code requires that “every lease arrangement agreement must include provisions to allow sale of affordable units and relocation benefits to tenants of affordable units if the owner of the ownership housing development subsequently decides to offer affordable units in the housing development for sale.”
Under these terms, New Pointe is required to relocate tenants before selling the home. Instead, according to the listing, the company negotiated a new lease with tenants in August 2020, just days before the home was listed for sale.
The current tenants of the Mackinnon house, a very low-income family who signed a lease agreement with New Pointe days before it was sold to Reed, told The Coast News they were never offered the opportunity from New Pointe or Marquez to buy the house. House.
This raises the question why would New Pointe sign a new lease with the same tenant if it should have moved them before selling the house? The complaint alleges New Pointe used the lease renewal as a “shield” to defend its decision to sell to investors a qualified very low-income applicant.
Rent or own?
Several defendants, including the City of Encinitas, argued in recent court filings that state and local laws allow developers (e.g. New Pointe) to sell affordable homes to unqualified investors, as long as the buyer rents out the units to low-income tenants. low eligible for 55 years.
In a recent filing on behalf of Encinitas City, attorney Krista MacNevin Jee, of Jones Mayer (the same private law firm as Tarquin Preziosi, the new city attorney for Encinitas), argues that the city has no legal obligation under the California Density Bonus Act. to ensure that potential low-income buyers have access to affordable home ownership, provided affordable rental units are available.
The city also maintains that all decisions on renting or selling affordable units belong to the developer, not the city, despite what the plaintiffs have indicated in the municipal code of the city itself.
“Plaintiffs appear to claim that the sole, or most important purpose, of affordable housing, either under State statutes or the City City Code, is for home ownership, but this is not true,” the city argued. “The fact that all low-income individuals may, in some cases, have rental housing available to them instead of unit sales is not a City decision, nor is it discriminatory.
Implicit in the Plaintiff’s claim is the unsupported notion that affirmative provision of affordable housing is somehow discriminatory simply because it does not provide for sale affordable housing. Their claim assumes, without any factual or legal basis, that home ownership is somehow always superior to rent.”
The city’s argument mirrors a statement by Roy Sapa’u, director of city development services, in a September 2021 interview with The Coast News, explaining that the city’s affordable housing agreement was drafted based on city attorneys’ “interpretations” of the applicable housing law.
“Based on the city attorney’s interpretation of the law, as long as an individual, investor or non-profit group is committed to renting out units to low-income households, then it fulfills the intent of the law,” Sapa’u said.
But even if the city’s interpretation of the law permits the rental and sale of affordable units, the number of low-income buyers who manage to buy affordable homes in Encinitas is very low.
According to public records included in the complaint, the city reported that 22 affordable single-family homes were sold under the overcrowding bonus law in Encinitas between 1995 and 2017. Of those homes, only six (27%) were sold to the public. low-income or very low-income households, while the remaining 73% are sold to investor buyers.
In a court filing, the city defended this distinction, stating there was no discriminatory action because all affordable homes owned by investors were then rented out to low-income residents.
However, both properties in Portola and Mackinnon are registered as proprietary residential developments, which according to city law requires at least 15% of homes to be sold, not rented out, to low-income buyers, or at least 10% to be sold to very low-income buyers. income buyers.
Woodbridge Pacific Group, a low-income property developer on Portola Road as part of the Loden development in Olivenhain, ran a city-approved ad in the print edition of The Coast News on March 5 and 12, listing the home as an opportunity for “affordable home ownership.”
“Tucked away in a private dead end in the scenic area of Loden Olivenhain, Woodbridge Pacific Group is offering through its Affordable Home Ownership Program a new one-story home,” the advert reads. “This beautiful three bedroom, two bathroom, two car garage home is reserved for affordable home ownership.”
The advert for the Mackinnon property in the San Diego Union-Tribune was also listed as “home for sale at affordable prices.”
Indeed, the plaintiffs, who are all very low-income individuals, including an Asian-American woman and her Hispanic husband, who live with their children, have publicly stated that they sought to purchase, not rent, these homes in under affordable urban housing. program.
According to the complaint, the city’s affordable housing agreement that gives developers the option to sell to unqualified investors violates its own regulations.
In a recent filing, the plaintiffs further denounced the city’s suggestion that only providing rental units to low-income residents fulfills its obligations for further affordable housing under the law.
“The idea that City defends the discriminatory sale of affordable homes with, ‘Yes, but we rent to minorities’ is worrying and proves discriminatory behavior,” the filing reads. “Are City suggesting rent should be sufficient for minorities? This reasoning explicitly demonstrates discrimination by the City and its developers against protected classes that should effectively only be directed to hire.”
The Fair Housing Act prohibits discriminatory behavior, also known as “directing”, such as “refusing to rent or sell, negotiate, or make housing unavailable” to individuals based on race, color, religion, gender identity, and family status (e.g. children). , single mother).
Additionally, the California Supreme Court has held that under the state’s Unruh Civil Rights Act, traditional protections are not necessarily limited to the characteristics noted above. The law “is intended to cover all arbitrary and willful discrimination by companies, including in housing and loan transactions, based on personal characteristics,” according to the California Department of Real Estate.
Lawyers for New Pointe argue that very low-income buyers are unlikely to seek to purchase a home as a rental investment.
“Plaintiff asks the Court to suspend the grounds and simultaneously draw an alternative conclusion that, on the one hand, (plaintiff) is a very low income person who needs affordable housing for himself and his children, but he can also purchase 1412 Mackinnon as an investment property with tenants. very low incomes and all the responsibilities that come with house keeping as a landlord.”
But in a motion to strike, the plaintiffs issued a scathing response, tarnishing the investment firm’s alleged and “discriminatory” statements.
“The fact that (New Pointe) questions how a single mother can find a way to buy an affordable home and manage it as a lease is disturbing, and discriminatory on the face of it,” the plaintiffs responded. “Encinitas residents who earn very low incomes are not necessarily destitute and incompetent.
“…Why couldn’t (New Pointe) remotely think that Sorenson, a single mother, couldn’t own a home and collect those rent checks, but Reed, a married man, could? The answer is simple – discriminatory bias.”
What is the median income in San Diego 2021?
Households in San Diego, CA have a median annual income of $85,507, which is more than the median annual income of $65,712 across the United States.
What is the median income in California 2021? California has the sixth-highest median household income in the US at $80,440. California has one of the highest costs of living in the nation.
What is considered middle class income in San Diego?
| Y-o-Y Perubahan Change | ||
|---|---|---|
| Average Household Income | $113,681 | 4.4% |
| Median Household Income | $83,454 | 4.8% |
| People below the Poverty Level | 161.436 | -7.5% |
| People above the Poverty Level | 1,203,547 | 1.5% |
What is a good salary in San Diego?
Good salaries in San Diego, CA over $52,000. That’s because the median income in San Diego is $52,000, which means if you earn more than that, you make more than 50% of people living in San Diego. The median salary in San Diego is $61,517. A good hourly wage in San Diego is $25.0 per hour.
What salary do you need to live in San Diego 2020?
You must not spend more than 25 percent of your gross monthly salary on rent. So, if your income is $4,000 per month ($48K/year), your monthly rent should not exceed $1,000. But in San Diego, the median rent is $1852 per month, and that’s for a one-bedroom, a 2.7 percent increase from the previous year.
What is considered upper class in San Diego?
In San Diego, you have to earn $157,252 or more to be considered the ‘rich’ person in the top 20% of the city’s 1.4 million residents.
What is the average income in San Diego 2021?
The median household income in San Diego is $108,864 with a poverty rate of 12.84%.
How much does the average person make in San Diego?
What is the Average Earning in San Diego, California? As of May 1, 2022, the median annual salary for the Average job category in San Diego is $68,565 per year. Just in case you need a simple salary calculator, it’s roughly $32.96 per hour. This equates to $1,319/week or $5,714/month.
What is a good salary in San Diego 2021?
As you can see from the breakdown of San Diego’s cost of living, a salary of $100,000 should be enough to live comfortably in San Diego, provided you don’t spend excessive amounts of money on travel, gambling, or luxury goods.
What is considered a good salary in San Diego?
Good salaries in San Diego, CA over $52,000. That’s because the median income in San Diego is $52,000, which means if you earn more than that, you make more than 50% of people living in San Diego. The median salary in San Diego is $61,517. A good hourly wage in San Diego is $25.0 per hour.
Is a suite the same as a unit?
As a noun the difference between suite and unit is that the suite is the attendant or company of the maid, as an honorable character; as, the ambassadorial suite while the unit (science) measures standard quantity.
Does suite mean unit? “Apt” means apartment (number). “Suite” means suite (number). This helps determine the location within a particular building. They are usually used when more than one person is sharing an address.
Is suite the same as apartment?
A suite tends to have two rooms, a bedroom and, to put it better, a lounge. An apartment tends to have more rooms, say two bedrooms, a lounge and a kitchen. A suite is usually serviced daily; an apartment can be serviced, say twice a week.
Is suite and unit the same?
Unit is a measure of housing equivalent to the residence of a household. It refers to a house that is part of a residential group. Units are self-contained suites of rooms that can be attached to or separated from several other living quarters.
Is House a suite?
It means “apartment” or “flat”. It doesn’t say anything more than that. And I’ve seen landlords use suites to refer to rooms in a house, apartment, different level of the house. The main and lower floors are often referred to as suites but I wouldn’t call them apartments.
Is unit same as apartment?
An ‘apartment’ and a ‘unit’ often refer to the same thing (multi-family residence rental), although ‘unit’ can also refer to the rental or purchase of a condominium. An example that follows is “Bob buys [or rents] a unit at Condominium Complex Wakefield”.
Is apt number the same as unit number?
Although the terms are often used interchangeably, there may be some important differences, depending on the context. An ‘apartment’ and a ‘unit’ often refer to the same thing (multi-family residence rental), although ‘unit’ can also refer to the rental or purchase of a condominium.
What does unit number mean?
In mathematics, the word unit can be defined as the rightmost position in a number or a person’s place. Here, 3 is the unit number in the number 6713. Unit can also mean the standard unit used for measurement.
What is apt unit number?
Answer: A: “Apt” means apartment (number). “Suite” means suite (number). This helps determine the location within a particular building.
Can you say unit instead of apartment?
Suites – STE. Room – RM. Department – DEPT. Units (without abbreviations)
What does unit mean on address?
| APARTMENT | APPROPRIATE |
|---|---|
| SUITE | STE |
| UNIT | UNIT |
| ROOM | RM |
| DEPARTMENT | DEPT |
What does Unit Type mean address?
Unit Type means a simple description implying the use, general size and general appearance of a building or structure, including but not limited to townhomes, single family residences and apartments.
Does unit mean floor or apartment?
1. Unit is the size of a house which is equivalent to the residence of a household, while flat is an apartment located in a building.
What does unit mean in a house?
A residential unit is a unit within a larger structure, such as a house, apartment, mobile home, or group of rooms, where a person or family eats, lives, and sleeps. A residential unit is a separate dwelling in which the occupants live separately from the other occupants of the structure.
What is a unit number address?
Use your unit number–this is the most unique number for your room. For example, if you live at 1200 Willow Court, Apt. 33, just add up the unit numbers (“33,†which means “6†). If you have a letter in your address or unit number…
How do I get emergency housing assistance?
Contact organizations in your local community that can help. Local agencies provide a variety of services, including food, housing, health, and security. Call a national hotline or find an organization near you. If you experience a life-threatening emergency, call 911.
Who is eligible to raft in Massachusetts? Who is eligible for RAFT? To qualify for RAFT: A family must be homeless or be at risk of becoming homeless. income at or below 30% of Area Media Income (AMI), and a maximum of 50 percent for families between 30-50% AMI.
How do I get housing assistance in Chicago?
To apply in person or receive application assistance, call or visit the City of Chicago Community Service Center. The program is currently closed. Apply for the Illinois Rental Assistance Program by contacting the IDHS Service Provider or contact Cook County Housing & Debt Legal Aid at (855) 956-5763.
How long does it take to get approved for Illinois rental assistance?
When will I know if my application has been approved? has been approved for the grant and your landlord will receive the funds as soon as 10 working days after approval.
How do you qualify for affordable housing in Chicago?
Affordable for households earning up to 60% of Median Area Income (AMI), or $43,440 for families of four. The rental unit must remain affordable for a period of 30 years. Units For Sale: Affordable for households earning up to 100% of AMI, or $72,400 for a family of four.
How do I qualify for low income housing in Illinois?
How Do You Become Eligible And What Is The Application Process?
- *You must meet the income limit set by HUD.
- *Must be a US citizen or an eligible immigrant.
- *Meets HUD’s definition of family.
- *Pass general screening to advance to final underwriting approval.
- * Fill out and complete a written application.
Is there any Section 8 waiting list open in Georgia?
As of May 9, 2022, there are no open, immediate, or always open waiting lists in Georgia. Read more about Affordable Housing In Georgia or check out our national Open Section 8 Waiting List. There are 188 housing authorities in Georgia that offer the Part 8 Housing Choice Voucher Program.
How can I get Section 8 immediately in Georgia?
The applicant’s family must meet the following requirements:
- Meets HUD’s definition of family.
- Meets the income limit set by HUD.
- Eligible by citizenship or eligible immigrant status.
- Provide social security number information.
- Sign the required consent form.
- Pass the screening process.
Is DeKalb Section 8 waiting list open?
The DeKalb County Housing Authority (HADC) will open our Project-Based Voucher Wait List (PBV) for new applicants on Monday, November 22, 2021, and will remain open until further notice.
How long is the waiting list for public housing in Georgia?
Generally, it takes an average of between 6 months and five years before an applicant’s name reaches the top of the waiting list and housing assistance is received. Check the Frequently Asked Questions page for other things that can cause delays or denial of assistance.
How do I apply for emergency Section 8?
To apply for an emergency section 8 voucher, and to try to get past the waiting list, immediately contact the local public housing authority in your city or county near you. Please select a state below to find a housing authority in your area for priority review.
Do Georgia have emergency housing?
Basic Information The Emergency Housing Voucher (EHV) program is available through the American Rescue Plan Act (ARPA). Through EHV, HUD awarded the Georgia Department of Public Affairs a total of 798 vouchers.
Is there housing assistance in Georgia?
The Housing Choice Voucher Program (HCV), formerly known as Section 8, is a tenant-based rental assistance program that helps low-income individuals and families rent safe, viable, and affordable housing units in the private rental market.
What is the Georgia Housing Voucher Program?
The Georgia Housing Voucher Program (GHVP) is a state-funded permanent support housing program that helps eligible individuals obtain safe and affordable housing and supports the stability and integration of their housing into society to promote long-term recovery and self-reliance.
How can I get Section 8 immediately in Georgia?
The applicant’s family must meet the following requirements:
- Meets HUD’s definition of family.
- Meets the income limit set by HUD.
- Eligible by citizenship or eligible immigrant status.
- Provide social security number information.
- Sign the required consent form.
- Pass the screening process.
How do I apply for emergency Section 8?
To apply for an emergency section 8 voucher, and to try to get past the waiting list, immediately contact the local public housing authority in your city or county near you. Please select a state below to find a housing authority in your area for priority review.
How can I get Section 8 fast in California?
To apply for an emergency section 8 voucher, and to try to get past the waiting list, immediately contact the local public housing authority in your city or county near you. Please select a state below to find a housing authority in your area for priority review.
