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Audit shows possible fraud
By Jana Seshadri
The Below Market Rate Purchase Program has provided affordable housing for Sunnyvale residents since its inception in 1980, but a recently completed audit of the program has revealed questionable practices by several owners, according to city staff.
According to Annabel Yurutucu, housing supervisor for Sunnyvale, there are currently 181 housing units that have been sold to qualifying households through the program. Last year the department received information from community residents that two homeowners who had bought their homes through the program were renting out their homes to other families and living elsewhere. Further investigation revealed that the homeowners were indeed taking advantage of the program.
Yurutucu said the resolution of the two cases included the forced sale of each unit and payment of penalties to the city for all the rent received by the owner. The city received $34,750 in fines and was able to help out two households on the program waiting list by selling each of the properties to them, she said. The incident prompted the department to launch a full-scale audit of all the owners and properties in the program, she said.
According to Yurutucu's report to th council, 133 owners out of the 181 have been certified thus far. Forced sales are in process in six properties; nine owners have been requested to provide additional supportive documentation; and 16 owners will require additional investigation. One property has been sold and $4,000 has been collected in fines from the proceeds of the sale.
Council members Pat Vorreiter and Jack Walker lauded Yurutucu and her staff for keeping track of those who were trying to take advantage of the city.
"We should track these people down and nail them," Walker said.
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Sunnyvale, California Since 1994
