The Sunnyvale Sun

News

City buys back BMR condo after owners violate rules

By Cody Kraatz

The city of Sunnyvale is buying back a below-market-rate condominium from the current owners, who violated city rules by moving to Southern California in November 2003 and allowing their adult son to live there.

"They cannot simply give it or sell it to whomever they want. There are restrictions involved," said John Pilger, Sunnyvale spokesman.

However, the city has not indicated that it plans to take any punitive legal action against the owner.

Instead, the Sunnyvale City Council decided to buy back the condominium for what it was worth when the owners violated their contract with the city.

The Sunnyvale City Council allocated $200,000, including $128,200 to buy the property and $67,900 for rehabilitation and resale fees. The owners bought it for $88,400 in 1995.

The city's municipal code requires that BMR homeowners certify annually that the home is their primary residence. The city discovered during an annual audit of the BMR program that the owners had not claimed property tax exemptions, and thus did not live there.