BURLINGAME — Shortly after a Newlands Avenue home sale unraveled over questions surrounding its historical significance, a nearby property owner has been forced to fund a $3,000 report for the same reason.

The owners of the home at 309 Occidental Ave. — about two blocks from Newlands Avenue — have funded the historic resources report, but it is not yet complete, said Community Development Director Bill Meeker.

The city, citing state environmental law, required the owner of the property, Craig Suhl, to hire an independent firm to determine whether his home has any historical significance before the Planning Commission hears his redevelopment proposal. The review was triggered because the home is at least 50 years old and based on historical research from 2004 on the southwestern portion of Burlingame that Vice Mayor Cathy Baylock recently submitted to the city before the Newlands Avenue sale.

Another property owner on nearby Costa Rica Avenue, whose building is also more than 50 years old, may have to fund a similar review for the same reasons, Meeker said.

Realtors and residents of the 400-property neighborhood, called Burlingame Park, have feared that a precedent had been set after the Newlands Avenue sale fell through because of the 2004 research on the area. It now seems clear that, because of the 2004 research, owners of any home in the area at least 50 years old will be forced to fund a report on their property

That could change, however, if the City Council at a coming meeting votes to fund a widespread historic resources report for Burlingame Park, which abuts downtown and the San Mateo border. The report would clear up which properties have historical value and ideally prevent individual homeowners from having to fund their own reports, which typically take a few months and thousands of dollars to complete.

Meeker said early estimates indicate the report would cost $50,000 or more, and the council would need to pull the money from the city's general budget. Officials this year have frozen virtually all new spending and cut services in response to a $4 million deficit.

At a meeting Monday, the Planning Commission recommended funding the report. Officials could also conduct a citywide historical survey to cover all properties, although it would cost considerably more and the Burlingame Park neighborhood has been the center of the scrutiny.

"I think we owe a real fast solution to our residents," said Planning Commissioner Tim Auran.

City Council members were all present at Monday's hearing but said afterward they needed more details on the survey before deciding whether to endorse it.

Officials called the hearings after the case of 1540 Newlands Ave. homeowners Rawson and Sarah Groves Hobart produced a public outcry.

The couple had lined up the home sale in late September before Baylock, a neighbor, submitted the 2004 historical information to the city based on what she called a legal requirement. The information, combined with the fact that the house was at least 50 years old, was enough for city planners under state law to require a historical report before the Planning Commission could approve any project on the home.

The prospective buyers learned they would have to fund the historical report before redeveloping the property, and they backed out of the sale.

The Groves Hobarts then funded an independent historical report, which concluded earlier this month that the home has no historical significance, but the couple has been unable to contact their previous buyer. They estimate the entire process, including the $3,000 report and restaging the house, has cost them $7,500.