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HomeMy WebLinkAbout7/21/1999 - STAFF REPORTS (20) DATE: IDLY 21, 1999 TO: CITY COUNCIL. FROM: MANAGER OF ECONOMIC PROGRAMS GUIDELINES FOR PARTICIPATION IN THE PACIFIC HOUSING & FINANCE AGENCY FOR THE MARKETING AND PARTICIPATION IN THE"LEASE TO OWN" PROGRAM IN PALM SPRINGS FOR RESIDENTIAL HOME PURCHASES RECONDENDATION: It is recommended that the Council adopt the proposed guidelines for marketing and participation in the Pacific Housing&Finance Agency,of which the City is a member BACKGROUND: On December 2, ,the City of Palm Springs approved a JPA agreement allowing it to participate in a statewide residential"lease-to-own"program, financed through tax-exempt bond issues and private long-term mortgage financing. The authority, the Pacific Housing&Finance Agency,was in the formation stage and had not yet issued bonds. The Federal Home Loan Mortgage Corporation("Freddie Mac')has now formally approved the PACFA for$70 million. In order to have the Lease-Purchase Home Ownership program implemented in Palm Springs the Council needsto adopt a set of broad guidelines for participation. The City's criteria will serve as the basis for the lender demand estimates and the administration of the program. These guidelines, at this time, do not create any financial demands on the City or the Community Redevelopment Agency,but represent a broad policy document about which type of home purchase the City wishes to assist. L JOHN S. �0 Manager i8 APPROVED ❑ DECLINED APPROVED City er Attachment: 1. Resolution 180 RESOLUTION NO. 19619 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS APPROVING GUIDELINES FOR MARKETING AND PARTICIPATION IN THE PACIFIC HOUSING&FINANCE AGENCY, AN EXERCISE OF JOINT POWERS AGENCY WHEREAS,the City of Palm Springs seeks to promote home ownership to improve the condition of the City's housing stock and to further economic development for the welfare of its residents; and WHEREAS,the City of Palm Springs has adopted the promotion of home ownership as one of its priority goals in both the Housing Element of the General Plan and the Consolidated Plan;and WHEREAS, there is growing need for the cities to find new and cooperative ways to develop programs that will increase home ownership levels and improve community life, and WHEREAS, the Pacific Housing&Finance Agency(PACFA)is a cooperative approach between cities that will increase home ownership and thereby improve the quality of community life for those cities participating in the Agency;and WHEREAS, the City of Palm Springs will further its adopted goal of promoting home ownership within the community through membership in the Pacific Housing&Finance Agency and the development of a`9ease to own"program for residential purchases; and WHEREAS,the Pacific Housing&Finance Agency provides for home ownership programs individually tailored for each member city; WHEREAS, City Council Resolution 19418 adopting the Joint Powers Agreement instructed City staff to develop guidelines for participation in the program for approval by Council; NOW THEREFORE,the City Council ofthe City ofPalm Springs,California,does hereby resolve as follows: SECTION 1. Intended Uses of the Lease-Purchase Pro fora . The PACFA Lease- Purchase Program may be used in the City of Palm Springs for: A The purchase of a new house in the City. B. The purchase of an existing house in the City. C. The purchase of a house from a landlord in the City. D. The purchase and rehabilitation of an existing house in the City. E. The purchase of any single-family house owned by the City of Palm Springs, the Palm Springs Community Redevelopment Agency, or any other legal entity of the City. F. Lease-Purchaser's income may be up to 140%of the median income for Palm Springs, except for purchases of City-or Agency- owned property,which is limited to purchasers below 120%of the median income for Palm Springs. Igb Res. No. 19619 , Page 2 tj S� SECTION 2. Marketing of the Program. The PACFA Lease-Purchase Program may be marketed in the City of Palm Springs to: A Industry and private sector employers in the City for their employees. B. City employees, except the City Council&City Manager. C. Employees of the Palm Springs Unified School District,the Desert Water Agency,the County of Riverside, or the State of California D. The General Public. SECTION 3. Use with Other Progr�gm . The PACFA Lease-Purchase Program may be used with any of the following programs in the City of Palm Springs: A Any City-,Community Development Block Grant,or Community Redevelopment Agency-sponsored rehabilitation program B. City-or Agency-sponsored"silent second"loans. C. Any program of the Community Redevelopment Agency using some portion of the Agency's 20%setaside funds(pursuant to Cali&nnia Health&Safety Code Section 33334.2)to construct or rehabilitate single-family homes. D. Any program developed using HOME funds to construct or rehabilitate single-family homes. SECTION 4. Restrictions of the Program. A. No more than 25%of the homes in a new-home subdivision may be eligible for participation in the PACFA Lease-Purchase Program. B. Any use of the PACFALease-Purchase Program with City-or Agency-Sponsored programs will be subject to the stricter income guideline of no more than 1201/16 ofthe median income for the Palm Springs area. C. All homes purchased in Palm Springs with the PACFA Lease-Purchase Home Ownership Program shall be single-family,detached houses. ADOPTED this 21st day of Jul v , 1999. AYES: Members Barnes, Hodges, 0den, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA, By: City Clerk City Manager REVIEWED&APPROVED AS TO FORM