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HomeMy WebLinkAbout7/21/1999 - STAFF REPORTS (3) DATE: JULY 7, 1999 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: ECONOMIC PROGRAMS MANAGER VIA ASST.CITY MANAGER,ADMINISTRATION COTTONWOOD/CHUCKWALLA SINGLE FAMILY RESIDENTIAL PROJECT/PA#9B RECOMMENDATION: It is recommended that the Redevelopment Agency approve an Owner Participation and Loan Agreement with the Coachella Valley Housing Coalition for the development of an affordable family housing project in Project Area#9B,specifically within the Cottonwood/Chuckwalla neighborhood BACKGROUND: As a part of the City's Recapture Our Neighborhoods program,staff has worked with the Coachella Valley Housing Coalition on the revitalization of the Cottonwood/Chuckwalla neighborhood. Using Community Development Block Grant funds,CVHC conducted a neighborhood study and determined that developing a single-family residential project would be a positive first step in rejuvenating the area. In 1998,CVHC proposed to build seven homes on three vacant lots located at the corner of Avenida Caballeros and Cottonwood and Chuckwalla. Notwithstanding some design concerns, initial discussions with the Planting Commission and the Redevelopment Agency were positive. CVHC then entered into escrow on the three lots and began the process of applying to the State for federal HOME funds in the fall of 1998. It was anticipated that project funding would be provided by HOME funds,as well as other competitive grants awarded by the State and/or federal government. The Palm Springs Community Redevelopment Agency indicated that it would consider providing Housing Set Aside Funds to go towards permanent financing costa for the new low-income homeowners,as well as reimburse CVHC the land acquisition costs for the three lots. The HOME application was submitted in November, 1998,but unfortunately,was not successful. Meanwhile,CVHC completed the purchase of the three lots,and began negotiations to acquire an adjacent fourth lot. CVHC is still very much dedicated to this project,and intends to apply once again for HOME funds this fall,as well as apply to the Federal Home Loan Bank of San Francisco,Affordable Housing Program(AHP)for a low-interest loan. Other potential funding sources for low interest loans for this project may include the Rural Community Assistance Corp.(RCAC)and local financial institutions. Total development costs are projected at approximately$795,000. CVHC is attempting to secure financing from the following sources: RCAC,$420,000;HOME Funds and/or AHP$140,000;the Community Redevelopment Agency,$200,000;and the balance from local sources. Specific details on the terms of these funds will be negotiated as part of a Development Agreement once terms of the Owner Participation Agreement are met. The attached OPA sets forth items of commitment from both the Coachella Valley Housing Coalition and the Redevelopment Agency in regard to the development of this project: • The Agency will reimburse CVHC$86,454 for acquisition costs associated with the three aforementioned lots,and up to$30,200 for the costs associated with the acquisition of the fourth lot. Property will be transferred to the Agency in the event CVHC is unable to secure all necessary project financing by May 31,2000. • Up to$25,000 will be paid to CVHC on a reimbursement basis in order for them to begin the tract map process on the respective lots. CVHC will repay the Agency should CVHC be unable to secure all necessary financing by May 31,2000. ra as Cr • In addition to the abovementioned items,the Agency agrees to provide up to$200,000 in Housing Set Aside funds to assist with the project financing. Details to be negotiated through a Development Agreement. Staff also requests that the Agency approve a resolution amending the 1999-00 Community Redevelopment Agency budget to allow a transfer of $342,000 from the Agency's Housing Fund balance to a line-item allocation for this project. l6Ztc�dCa., JO MOND FRANCESCA T SCANO MERRITI omi Programs CDBG(Housing Coordinator DAL AS FLI Asst.City M ger/Administratio 4.7 Cl DECLLNED APPROVED: Ex five Director (OAC „,o.,- 11 I �� ;�Sowx,,—;�. c.V lic_ • RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN OWNER PARTICIPATION AND LOAN AGREEMENT WITH THE COACHELLA VALLEY HOUSING COALITION FOR THE DEVELOPMENT OF SEVEN SINGLE-FAMILY HOMES IN REDEVELOPMENT PROJECT AREA#9B. WHEREAS,the Community Redevelopment Agency of the City of Palm Springs(the"Agency")has established an affordable housing setaside fund in accordance with Section 33000 et.seq. of the California Health and Safety Code;and WHEREAS,the funds are earmarked for the acquisition,construction,rehabilitation of affordable housing to benefit the community;and WHEREAS,the Coachella Valley Housing Coalition("CVHC')desires to participate with the Agency in its affordable housing program by constructing seven single-family homes for low income families in the Cottonwood/Chuckwalla neighborhood which is within Redevelopment Project Area#9B;and WHEREAS,CVHC has studied the neighborhood and has determined that the Project Area would benefit from the new residential construction and new family homeownership;and WHEREAS,CVHC has acquired three lots in the Project Area,specifically APN's 507-042-011,507-042- 022,and 507-042-010,for the development of this project,and are negotiating on a fourth lot;and WHEREAS,CVHC will submit an application for federal HOME funds to the State of California in the fall of 1999 to assist with development costs of the project;funding will also be sought from the Federal Home Loan Bank of San Francisco Affordable Housing Program,the Rural Community Assistance Corp.,local financing institutions,and the Palm Springs Community Redevelopment Agency;and WHEREAS,subdivision of the respective lots needs to occur for the development of the project and commencement of that process will provide positive credits to CVHC's HOME application;and WHEREAS,once the appropriate development fiords have been secured,the Agency and CVHC will negotiate a Development Agreement for the specific project development points. NOW,THEREFORE,BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: SECTION 1. An Owner Participation Agreement with CVHC for the development of 7 affordable single-family homes in the Cottonwood/Chuckwalla neighborhood,which is within Redevelopment Project Area#9B,is approved. SECTION 2. CVHC and the Agency agree to enter into negotiations of a Development Agreement on the project development and financing upon CVHC's acquiring the appropriate funding sources for the project or prior to May 31,2000. SECTION 3. The Executive Director,or his designee,is hereby authorized to execute on behalf of the Agency the Owner Participation Agreement and all other documents necessary to effectuate the Agreement,and make minor changes as may be deemed necessary in a form approved by the Agency's legal counsel. ADOPTED this day of 1999. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,CALIFORNIA By: Assistant Secretary Chairman Reviewed and Approved: � • RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 1999_00 FISCAL YEAR. doAft��� WHEREAS Resolution 1066 approving the budget for the fiscal year 1999-00 was adopted on June 9, 1999; and WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 1066, adopting the budget for the 1999-00 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS FUND Activity Account Amount No. 882 8382 new $342,000.00 (to be assigned) Title: Low & Moderate Tahquitz Andreas Income Housing et al Purpose: To provide funds for Cottonwood/Chuckwal,la Single Family residential housing construction project. SECTION 2. SOURCE The remaining cash balace in the Housing Fund exceeds $2 million. FUND Activity Account Amount No. 882 301 $342,000.00 Title: Low 8 Moderate Fund Balance Income Housing Adopted this day of 1999. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By Assistant Secretary chairman REVIEWED AND APPROVED AS TO FORM A • JUL-14-99 WED 9035 0. V. NOUSIM OMLITiOW FAX NO. 7603426466 P. 01 FAx TRANsmisSION COACRPLLA VALLEY HOUSMG COALITION 4a-701 MOMW19 Stlt.. Sure 6, (NOIO. CA C2201 (7601 347-3 1 4 7 FCC C700 342.0466 To: Fran Toscano Merritt Date: July 13, 19" CDBG/Housing Coordinator, City of Palm Springs Fax M 3224325 Pages: 1, including this cover sheet. From: R4beca Dennis S F Housing r,CVHC Subject: Chuekwalk Si amity Project COMhMTS: Following are some notes relevant to the cost associated with the consbuction of CVHC's proposed 7 homes in Chuckwaila. Plow take then in consideration whon analyzing the total project and its per unit cost. * Comparable homes we selling for Sl 10,MO-120,000 • The HARD COST(construction cost only)for this project is about$45 per square foot, which is very reasonable cost for a modest house * Governments]fees are: Sewer and water connection $4,150 Water Waiter 1,850 Building Permit 3,300 School taus 2,800 Planning and engineering tees 4,300 Total governmental fare $16,400 * Permanent fencing.Block waft 3,800 • Closing costs Z300 * The total project oost is based on estimates.Bids will be requaeted from contractors after the construction plans are completed.Mbmated cost is based on eimilar homes. Call me if you have any questions or need more information on our project. 'Thank you for your support. C