Somebody bought a home there last month at a foreclosure auction for $810,000, and apparently didn’t know that the city of Encinitas has not granted the property a certificate of occupancy, meaning no one can live there. Homes sold at trustee’s sale — usually auctioned off on the courthouse steps — are sold as-is without any of the disclosures you would get if you went to buy a house from a normal seller.
When Barratt submitted plans to build the luxury development, the company signed an agreement with the city of Encinitas to build two price-restricted affordable homes, for sale or rent to a household earning 50 percent or less of the area median income. For a family of five, that’s $44,600.
To make sure they followed through on that deal, the city withheld one certificate of occupancy from the development, meaning Barratt couldn’t sell that one house until it built the affordable unit.
The lot where the affordable units were to be built is owned outright by Barratt, and thus not included in Bank of America’s foreclosure of the remaining lots. Instead, it’s tied up in bankruptcy court.