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HomeMy WebLinkAbout9/1/1999 - STAFF REPORTS (2) DATE: SEPTFMBER 1, 1999 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: CDBG/HOUSING COORDINATOR 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 single family housing project in Project Area 49B,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. With the assistance of an allocation of Community Development Block Grant funds in 1995,CVHC has studied and researched the Cottonwood/Chuckwalla neighborhood. In 1997,after seeking Agency direction on various development possibilities,it was determined that a single-family residential project would be a positive first step in rejuvenating the area. Subsequent to receiving Agency direction,CVHC submitted a formal proposal to build seven homes on three vacant lots located at the corner of Avenida Caballeros and Cottonwood and Chuckwalla. The homes would be available to low-income,first-time home buyer households. Notwithstanding some design concerns, initial discussions with the Planning 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 1997. 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 the development of the project. The HOME application was submitted in November, 1997, but unfortunately, was not successful. Meanwhile,CVHC completed the purchase of the three lots,and began negotiations to acquire an adjacent fourth lot. The Agency again revisited this development proposal in the fall of 1998,and based on its consensus to move forward,CVHC applied once again to the State in November, 1998,and was notified in June, 1999 of the award of$154,000 in HOME funds. In addition to Pahn Springs Housing Set Aside funds,other potential funding sources considered for this project include the Rural Community Assistance Corp.(RCAC),Local Initiative Support Corporation(LISC),and Bank of America. Total development costs for the seven homes on the three lots are projected at approximately$791,000. Should CVHC be successful in acquiring the fourth lot,development costs will total approximately$Imillion. In addition to setting forth terms of development,the attached OPA provides up to$303,000 in Housing Set Aside funds to CVHC towards the development of nine homes on four lots. If CVHC is unable to acquire the fourth lot,the amount of Agency funds will not exceed$217,000 (seven homes on three lots). G � •b C,ra-,6-J�. Staff also requests that the Agency approve a resolution amending the 1999-00 Community Redevelopment Agency budget to allow a transfer of $303,000 from the Agency's Housing Fund balance to a line-item allocation for this project. INCESCA TO CANO MBRRITT O � YMOND CDBG/Housing Coordinator o is Pro Manager zal�— — DAL AS FLICEK Asst.City Manager/Administration APPROV /Executive Director tiO �'y DOC " 1000-607700 G1 11/17/1p999 Go:o00A6Fee:NC UMC27M rA REC WED Recorded Ineofficial Records �RMO. County of Riverside Assessor, Coun 1009A0. ty Clerk d Recorder IIIIIII Il�lllllllllllllllllllllllllllllllllllllulllll ��EC�BA010Apm�nAlm 11�1 ed:emla mmtra t1961ta�b AMN0fNlegglApggNDle CI41 M�iiglrgf,Egf01919 iiMETtlglCrps9Wdg s4 s u Pm WE OR POW NowR as sac. lal.a9la l 5 t Ala BuedMNl9eYf _ A R L 00" use RanrO Npq lNIIN EIKEY9l1D5IBE 619 EIMM M DEED OF TRUST (SHORT FORM) This DEED OF TRUST, ma"'� i 1999, between COACHELLA VALLEY HOUSING COALITION, a Callforais nonprofit public benefit rporation, herein called TRUSTOR, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,CALIFORNIA,a public body,corporate and politic,herein called BENEFICIARY, WITNESSETH:That Trostor grants to Trustee in trust,with power of sale,that property in the City of Palm Springs,County of Riverside,State of California,described as: Lot 11 is Block B of Bel Deskrto Tract as shows by map on file in Book 20,Page 43 of Maps,Records of Riverside County,California;Lot 12 in Block B of Bel Desiarto, in the City of Palm Springs,in shows by map on fik Is Book 20, Page 43 of Maps, Records of Riverside County, California;and Lot 13 in Block B of Bel Deslerto,In the City of Palm Springs,as shown by reap on file in Book 20,Page 43 of Maps.Records of Riverside County,California. together with the rents, issues and profts thereof, subject, however, to the right power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such reins,issues and profits for the prrnpose of securing 1fj payment of the sum of $114,500.00, with Interest thereon, according to the temps of a Promissory Note of even date herewith by Truster to order of Beneficiary, and extensions or renewals thereof,• (2) the performance of each agreement of Trustor incorporated by reference or contained herein, and 13l payment of additional sumps and Interest thereon which may hereafter be loaned to Trostor, or fps successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security,of this Deed of Trust, and whh all o/the respect to the property above descdbed, Trusror expross/y makes each and agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and ft is muwegy agreed that each and all of the temps and proV61ons set forth/n subdivision B of the fictitious deed of trust recorded/n Orange County August 17, 1964, and in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property/s located, noted below opposite the name of such county,namely: 627/01e084-0012/3176258.6 A09/02/99 CVHC Affordable Housing OPA&Loan Agreement AGREEMENT#394C R1078,9-1-99 Related OWNER PARTICIPATION AND LOAN AGREEMEN r------• - -- -THIS OWNER PARTICIPATION AND LOAN AGREEMENT ("Agreement") is entered into this 4' day of September, 1999 ("Effective Date"), by and between the COMMUNITY R EVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic ("Agency"), and COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation("Participant"). RECITALS: A. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California(Health and Safety Code Sections 33000, et seq.). B. Participant has acquired three (3) parcels ("Acquired Parcels") and intends to acquire an additional parcel ("Fourth Parcel") of real property located on Avenida Caballeros and Cottonwood, commonly known as the Couonwood/Chuckwalla area in the City of Pahn Springs, State of California, and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference (collectively, the "Property") pursuant to those certain Purchase Agreements, by and between Participant and Antone and Rhonda West, as trustees for the West Family Trust as to Lots 12 and 13 of the Property, and Fook Kheong Chan and Terry Kwanyu Chan, as trustees for the Chan Family Trust as to Lot 11 of the Property (collectively "Purchase Agreements"). C. The Property is located within the Palm Springs Project Area 9B ("Redevelopment Area") which was adopted by City Council Ordinance Number 1321 on January 28, 1989, as amended from time to time. D. Agency desires to meet its affordable housing goals pursuant to the California Community Redevelopment Law by Ioaning Participant funds to assist in the acquisition of the Property in order to potentially facilitate Participant's development of an affordable family housing project ("Project"). Participant shall execute loan documents in favor of the Agency to evidence and secure such loan. The Agency has determined that loaning monies to Participant for the acquisition of the Project is in the best interests of the City and the welfare of its citizens. E. Participant has seared additional funding of$154,000 for the Project from the State of California Department of Housing and Community Development under the HOME Program("HOME") and shall apply for additional loans of$540,000 from the Rural Community Assistance Corporation ("RCAC"), and shall seek funding from other sources should such applications prove unsuccessful. F. Agency and Participant have not agreed on the specific terms and conditions for development and operation of the Project and, therefore, have agreed, for the period set forth herein, to negotiate in good faith to attempt to reach an agreement regarding the terms for the development and operation of the Project by an amended Owner Participation Agreement 627/014084-0012/3176258.6 609/02/99 -1- RESOLUTION NO. 1078 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,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,the Coachella Valley Housing Coalition C CVHC")desires to participate with the Agency in its affordable housing program by constructing up to nine single-family homes for low income families in the Cottonwood/Chuckwalla neighborhood which is within Redevelopment Project Area#913; 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 submitted an application to the State of California for Federal HOME funds for this project and was awarded$154,000; WHEREAS,CVHC will be applying for additional funding through the Rural Community Assistance Corp.,the Local Initiative Support Corporation,and/or Bank of America. NOW,THEREFORE,BE IT RESOLVED by the Community Redevelopment Agency of the City of Pahn Springs,as follows: SECTION I. An Owner Participation Agreement with CVHC for the development of up to nine affordable single-family homes in the Cottonwood/Chuckwalla neighborhood,which is within Redevelopment Project Area#9B, is approved. SECTION 2. The Agency authorizes an allocation of Housing Set Aside Funds up to$303,000 towards the development of this project. SECTION 2. 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 1st day of September 1999. AYES: Members Barnes, Hodges, Oden NOES: Member Reller-Spurgin and Chair Kleindienst ABSENT: None ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,CALIFORNIA By: Assistant Secretary Chairman Reviewed and Approved: � rotmv RESOLUTION NO. 1079 Gr&w" OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 1999-00 FISCAL YEAR. 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 $303,000.00 (to be assigned) Title: Low & Moderate Tahquitz Andreas Income Housing et al Purpose: To provide funds for Cottonwood/Chuckwalla Single Family residential hjousing construction project. SECTION 2. SOURCE The remaining cash balance in the Housing Fund exceeds $2 million. FUND Activity Account Amount No. 882 2930 $303,000.00 Title: Low & Moderate Fund Balance Income Housing Adopted this . 1st day of September 1999. AYES: Members Barnes, Hodges, Oden NOES: Member -Reller-Spurgin and Chair Kleindienst ABSENT: None ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By . Assistant Secretary chairman REVIEWED AND APPROVED AS TO FORM