Resale Procedures and Frequently Asked Questions

Yes. There are currently three existing for-sale senior housing communities in Cerritos (Emerald Villas, Pioneer Villas, and Fountain Walk) and one for-rent assisted living community (Ivy Park at Cerritos). At each of the for-sale senior housing communities, there are affordable units and market rate units. At this time, all units have been sold.

An affordable unit is an income restricted unit designated for persons with either very low-, low-, or moderate household income levels. The maximum household income applicable to each income level is periodically determined by the State of California. Below is a table of the 2024 State Income Limits for Los Angeles County for households containing 1, 2, or 3 persons, as applicable. In order to be eligible based on income, the total annual household income cannot exceed the following state income limits:

*The figures in the table above are based on the 2024 State Income Limits for Los Angeles County.

In order to be eligible to purchase a unit at any of the City’s senior affordable housing communities, a potential buyer must be at least age 62 years or older and meet income restrictions applicable to the respective unit.

No, City of Cerritos residency is not required.

No, the City of Cerritos does not maintain a waiting list or an eligibility list to purchase an affordable senior housing unit. 

No. The City of Cerritos does not maintain a list of units for sale or potential units to be sold.

No. All housing units must be owner-occupied and renting out of a unit is prohibited.

There is no general right to transfer an affordable unit to one’s children or other family members. A current owner may transfer ownership of his/her unit to a child or family member only if the new owner meets the age and income requirements necessary to be eligible. A transfer of ownership must always be approved by the City prior to any transfer.

If a current homeowner passes away and does not have a legal spouse residing in the unit, the unit will be subject to the following conditions: (i) the personal representative or trustee, as identified on the homeowner’s trust instrument or personal will, will be responsible for the re-selling of the unit, or (ii) if no one has been designated as the personal representative, the homeowner’s unit may go through probate court. The probate court will appoint a personal representative to administer the unit and coordinate its resale. Any such unit must be resold to a qualifying senior household and may not be occupied by individuals who do not meet the required qualifications.

No. Anyone wishing to purchase an affordable senior housing unit may not own any additional residential real property at the time of purchase. If a potential buyer owns an existing residence, he/she will be required to sell the current residence prior to the purchase of an affordable senior housing unit.

Yes. Each unit’s maximum resale price is determined according to State law and the covenants and restrictions recorded against the unit. The maximum resale price is provided to a seller by the City upon notification of the intent to sell his/her affordable unit.

A maximum sales price is the maximum amount that may be charged by a seller, directly or indirectly, for the sale of a unit. A seller may not add any additional fees, charges, commissions or other consideration to be received by a seller, directly or indirectly, in exchange for transfer of a residential unit. Any such fees, charges, commissions or other consideration will be added to the amount of the gross sales price being paid by the buyer and the gross sales price may not, directly or indirectly, exceed the maximum sales price.

For example, a unit with a maximum sales price of $105,387 (see sample for Very Low Income unit) does not include closing costs, commission and any other real estate transactional related fees. The City will review the purchase contract between a buyer and seller to determine that a unit is sold at the maximum sales price.  In addition, a buyer may not pay for a seller’s closing costs and a buyer may not pay for a seller’s portion of any commissions.

You may only refinance with prior City approval. When refinancing, your new loan may not exceed the outstanding principal balance of the loan being refinanced, except in very limited circumstances.

Yes, homeowners may place their unit in a family trust upon receipt of prior City approval. All family trusts must be reviewed and approved by the City Attorney and homeowners are required to submit a copy of the draft trust to the City. Any changes to a family trust must be approved by the City Attorney.

The City recommends sample language to ensure that the units are sold from an approved senior to another qualified senior. Additionally, the City does not want these affordable units to have a recorded trust that requests a unit to be sold or gifted to children, grandchildren, family members, or other persons who are not qualified based on age and income requirements.

A family trust may have the following language and shall be submitted to the City of Cerritos for approval prior to any transfer or change in property title.

"Notwithstanding anything herein to the contrary, the trust estate property consisting of (address of affordable unit) shall be sold upon the death of Settlor to a qualifying purchaser approved by the City of Cerritos in accordance with the City restrictions recorded against the property (Covenants, Conditions and Restrictions and Right of First Refusal), and the net proceeds of such sale distributed to (name of beneficiaries) in equal shares, per capita."

This sample language will ensure that the family trust is in compliance with the City’s affordable housing program requirements. If a family trust was completed without prior City approval, the trust should be amended with similar language and submitted to the City to ensure that the trust is in compliance with City requirements. Please contact the City for additional questions regarding the creation of a family trust or existing family trust.