The URL can be used to link to this page

Home My WebLink About9/15/1999 - STAFF REPORTS (2) DATE: SEPTEMBER 15, 1999 TO: COMMUNITY REDEVELOPMENT AGENCY FROM CDBG/HOUSING COORDINATOR VIA DIRECTOR OF ECONOMIC DEVELOPMENT SUBMITTAL OF AN APPLICATION TO THE STATES MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM TO SECURE A COM 11MENT OF FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE EL DORADO MOBILEHON E PARK RECOMMENDATION: It is recommended that the Agency approve the submittal,with the El Dorado Mobile Homeowners Corporation,of an application to the California Department of Housing and Community Development for a loan through the Department's Mobilehome Park Resident Ownership Program. BACKGROUND: The csnrent owners of the El Dorado Mobilehome Park have proposed to subdivide the park and sell the lots to the residents of the park. Their subdivision map application is substantially complete mid they have received the support ofatheBoard ofDirectors ofthe Homeowners Corporation;there is also substantial support among the residents for this MPROP application There was a long history of litigation between the Homeowners Corporation and the owner,much of which the City of Pslm Springs was party to,related to rent control and other issues. That litigation hasbeen settled and the subdivision/sale to residents is a strategy that appears to have the support of both sides. Two-thirds of the homeowners have signed Certifications of Resident Support for Park Conversion A major concern in any mobilehome park subdivision is the ability oflow-income residents to be able to purchase their lots: if they cannot afford to purchase the lot, they could potentially be displaced by a new owner who buys the lot and increases the rent to where it is unaffordable. It is because of that concern that the State of California created the Mobilehome Park Resident Ownership Program('WROP'). MPROP assistance is in the form of "silent" 30-year loans to the homeowners, at 3% interest. This is an application by the Agency and the Homeowners Corporation at the EI Dorado Mobilehome Park for$1 million in state funds to assist the park's low income homeowners in the conversion to condominium-type ownership of their spaces. The park owner estimates that there are perhaps saty xx(66)low income homeowners in the park who could qualify for the program. There are 377 total spaces in the Park. Assistance is made on a sliding scale based on income;however,the MPROP program will only pay the appraised value of the spaces. The program funds 100%ofthe purchase price,as weft as closing costs,if there is at least 5%equity in the combined home and lot. The program requires 51/6 equity, though in the vast majority of asses there is no cash contribution required on the part of the buyer during the sale. The Agency may wish to consider a program that provides the 5019 down-payment assistance to these buyers, if necessary,m return for an affordability covenant on the property. c ra -b Cra .. b- � MPROP will fund its loans directly through escrow, no money will pass through the Agency. The requirement for dosing escrow on theWMOP loans is that 67%ofthe units (including the WROP applicants)in the park need to have opened escrow(about 245 units). Once that number is reached the MPROP program will directly fund the loans through the escrow company. Agency staffis not required to do the underwriting of the loans. /y1 FRANCESC OSCANO- i G MfYATTARb. CD Coordinator Director of Eoor o 'c Development APPROVED: Director ATTACHMENTS: 1. Resolution 2. Exhibit"G"to MPROP Application: Certification and Commitment of Responsibility CERTIFICATION AND COMMrrMENT OF RESPONSIBIIITY COMMUNrrY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS Project Name: El Dorado Mobilehome Park Location: 6000 East Palm Canyon Drive I,Rob W.Parkins,Executive Director, the official designated by the governing body for the Community Redevelopment Agency of the City of Palm Springs, hereby certify that if approved by the State Department of Housing and Community Development for an MPROP loan commitment,the Community Redevelopment Agency of the City of Palm Springs assumes the responsibilities specified in Section 8018(c)of the Mobilehome Park Resident Ownership Program regulations and certifies to the following: 1. the project proposed in this application was reviewed and was determined to be, or will be upon completion, consistent with local zoning and land use policies if approved by the local legislative body; 2. the project proposed in this application complements the local housing programs to preserve and increase the supply of low-and moderate-income housing and the statements in Attachment 18 are accurate, 3. a survey as provided in Attachment 19 of the households residing in the mobilehome park has been conducted and no less than two-thirds of all residents support the project as proposed in this application; 4. the statements concerning the potential displacement of residents as stated in Attachment 25 of this application and of housing costs in comparable housing in the market as stated in Attachment 26 of this application are accurate and feasible and have been approved or will be approved by the Agency; 5. the Agency has committed to provide the financial or other assistance specified in this application; 6. I have reviewed the information in this application and certify that it is correct to the best of my knowledge and belief. Signature Title (Type name) Date bra - bow RESOLUTIONNO. 1080 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,AUTHORIZING THE SUBMITTAL OF ALOAN APPLICATION, THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATEIN THEMOBILEHOMEPARK RESIDENT OWNERSHIP PROGRAM TO SECURE A COMM[TMENT OF FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT WHEREAS,the owners of the El Dorado Mobilehome Park have proposed to subdivide the park and sell the lots to the residents of the park;and WHEREAS, at least two-thirds of the park's residents have officially expressed their support for the subdivision and sale of the park;and WHEREAS,the Community Redevelopment Agency of the City of Palm Springs, organized and operated under the Constitution and the laws of the State of California, is eligible to receive a commitment of funds and participate in the Mobilehome Park Resident Ownership Program(hereinafter referred to as"MPROP");and WHEREAS,the California Department of Housing and Community Development (hereinafter referred to as the"Department")is authorized to make loans for the purpose of financing mobilehome park conversion costs and to reduce the monthly housing costs for low-income residents to an affordable level;and WHEREAS,the Agency wishes to obtain from the Department a commitment of funds for the purpose of financing the monthly housing costs for low-income residents to an affordable level. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs as follows: SECTION 1. The Agency as a co-applicant with the El Dorado Mobilehome Park Homeowner's Association shall submit to the Department an application for participation in MPROP and request a commitment of funds for a mobilehome park conversion project located at 600D East Palm Canyon Drive, Palm Springs. SECTION 2. If the application is approved, the Agency is hereby authorized to enter into a standard agreement with the Department for the purposes set forth in the loan application and approved by the Department. It may also execute other instruments necessary or required by the Department for participation in MPROP. SECTION 3. The Agency is further authorized to request amendments, including increases in fund commitments up to amounts approved by the Department to evidence and secure these amendments. Crawwb =wy + R1080 Cjo�rA by ;L Page 2 SECTION A. The Executive Director of the Agency is hereby authorized to execute the loan application, the standard agreement, and other documents necessary or required by the Department for participation in MPROP, and any amendments thereto. ADOPTED this 15thday of September , 1999. AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Chairman Kleindienst NOES: None ABSENT: None ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED ✓AND APPROVED: DEC-