The URL can be used to link to this page

Home My WebLink About4/30/2008 - STAFF REPORTS - RA.2. t?ALM gAQ u c "40 C'ffL1F0 RNP Community Redevelopment Agency Staff Re ort DATE: April 30, 2008 CONSENT CALENDAR SUBJECT: APPROVING THE SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE RESIDENTIAL DEVELOPMENT LOAN PROGRAM (RDLP) TO THE CALIFORNIA HOUSING FINANCE AGENCY (CaIHFA); AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING; AND, APPROVING ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE RDLP PROGRAM, FOR A PROPERTY LOCATED AT 3131 NORTH INDIAN CANYON DRIVE, ADJACENT TO MERGED AREA#1 (FORMERLY PROJECT AREA 7) FROM: David H. Ready, Executive Director BY: Department of Community & Economic Development SUMMARY Staff is requesting that the Community Redevelopment Agency approve authorizing the submission to the California Housing Finance Agency (CalHFA) for the Residential Development Loan Program (RDLP) in the May 2, 2008 application round. RECOMMENDATION: Adopt Resolution No. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA HOUSING FINANCE AGENCY FOR FUNDING UNDER THE RESIDENTIAL DEVELOPMENT LOAN PROGRAM (RDLP); AUTHORIZING EXECUTION OF A STANDARD AGREEMENT IF SELECTED TO FACILITATE THE PROPOSED DEVELOPMENT AT INDIAN CANYON DRIVE AND SAN RAFAEL ROAD. STAFF ANALYSIS: Based on direction from the Agency in 2006, Community Redevelopment Agency staff issued a "Request for Qualifications and Concept Proposals for For-Sale Multi-Family Housing for Moderate Income Families Using Green Building Technologies" (RFQ) on March 6, 2007. The RFQ process was exhaustive, with several addenda issued based on questions from prospective developers. Six firms submitted a response to the Agency's RFQ by the September 14, 2007 deadline and, following review of all proposals received and interviews with short-listed developers, staff selected Community Dynamics as the successful proposer. Staff intends to present an Exclusivle�iat Agemnt,(ENA) between Community Dynamics and the Community Redevelopment Agency to the Agency Board at its May 7, 2008 meeting. In the meantime, in March 2008 the California Housing Finance Agency issued a Request for Proposals for the Residential Development Loan Program (RDLP). The RDLP provides 3% simple interest rate deferred payment loans to local government agencies for project-specific costs attributable to affordable owner-occupied housing developments. To eligible for the RDLP, proposed developments must create new housing stock and the affordable for-sale housing units must meet CaIHFA's homebuyer income and sales price eligibility requirements. The Community Redevelopment Agency's application to the RDLP program will be for a loan not to exceed $530,655 for project-specific predevelopment costs. This is an attractive program for communities interested in building workforce housing, Proposals for the Residential Development Loan Program (RDLP) must be received by CaIHFA by May 2, 2008. Complete applications must include a resolution from the Agency Board; therefore, in order to make timely application for this program the Agency must approve a Resolution authorizing the submittal of the application for the RDLP prior to approving the ENA with the Developer for the specific project. If the Agency, for whatever reason, does not enter the ENA with the Developer the RDLP application would be withdrawn. RDLP proposals are due to CaIHFA on May 2, 2008 and announcements are anticipated by July 11, 2008. Community Dynamics has proposed to develop and build a new residential community on the Agency-owned 3.63-acre parcel at the southeast corner of Indian Canyon Drive and San Rafael Road. The new community will include 52 townhomes which will be sold to families that comprise the foundation of the City's workforce. The proposed community responds to the existing neighborhood's architectural context and incorporates an aggressive green building program which addresses the Agency's desired energy savings, water conservation, indoor air quality and recycling objectives. More detail on the proposed project, as well as the RFQ process, will be provided with the ENA. RDLP proposals will be competitively evaluated and ranked. If the Agency's application is successful, the RDLP funds will be made available to the Agency in the form of an unsecured loan from CaIHFA at 3% simple interest per year. Repayment will be backed by the Agency's general obligation and is due, in full, no later than five years from the date a loan agreement is executed. The RDLP loan and interest will be repaid from the proceeds of home sales at the new community. A recorded regulatory agreement and periodic project reports will be required to assure affordability as agreed. Staff recommends that the Community Redevelopment Agency execute a resolution which grants the Executive Director the authority to make application on behalf of the Community Redevelopment Agency to the California Housing Finance Agency (CaIHFA) for the 2 000002 Residential Development Loan Program, to incur an indebtedness not to exceed $530,555 and execute associated loan agreements, and to take other actions necessary to facilitate the proposed development of a 52-unit residential community on the Agency's 3.63-acre parcel at the intersection of Indian Canyon Drive and San Rafael Road. FISCAL IMPACT: There is no direct fiscal impact to the General Fund. The loan would require a pledge of the Agency's Low-Mod Housing Funds, and would require a 3% interest payment each year during the five year term (approximately $16,000 per year). The principal of the loan would be repaid from the sale of the units. JOHN . R MOND DALE E. C O JR. Dire or of munity & Economic Development Community Development Administrator e THOMAS J. WI ,SON DAVID H. READY Assistant City Manager— Development Services Executive Director DaleC\HousinglcRA StaffReporC_N_Indian@SanRafaeIRDLP.AprO8 3 000gfo RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA HOUSING FINANCE AGENCY FOR FUNDING UNDER THE RESIDENTIAL DEVELOPMENT LOAN PROGRAM (RDLP); AUTHORIZING EXECUTION OF A STANDARD AGREEMENT IF SELECTED TO FACILITATE THE PROPOSED DEVELOPMENT AT INDIAN CANYON DRIVE AND SAN RAFAEL ROAD. WHEREAS, the 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 §§ 33000, et seq.); and WHEREAS, the Agency wishes to apply for and receive an allocation of funds through the Residential Development Loan Program (hereinafter referred to as RDLP); and WHEREAS, the California Housing Finance Agency (hereinafter referred to as "CaIHFA") has commenced an application round for the RDLP program and is authorized to approve loan applications made to it to be used for the purposes of directly producing affordable housing units; and WHEREAS, the Agency wishes to submit an application to obtain from the CaIHFA an allocation of RDLP funds; WHEREAS, the Agency acknowledges that the RDLP program is a loan made to the public agency to be repaid from either project revenue or from general low-mod housing setaside funds that accrue to the Agency. NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, California, that: SECTION 1. The Agency shall submit to the California Housing Finance Agency an application to participate in the RDLP program in response to the notice issued on March 14, 2008, which will request a funding allocation to incur indebtedness not to exceed $530,555 to facilitate the development of a 52-unit For-Sale Residential Project located on APN 501-0310028 in Palm Springs, California_ SECTION 2. If the application for funding is approved, the Agency hereby agrees to use RDLP funds for eligible activities in the manner presented in the application as approved by CaIHFA in accordance with its regulations. ��0 4 SECTION 3. The Agency authorizes the Executive Director or his designee to execute in the name of the Community Redevelopment Agency of the City of Palm Springs the application, the Standard Agreement and all other documents required by CaIHFA for participation in the RDLP program, including: drawdown requests, quarterly performance reports, annual performance reports and environmental certifications as the Certifying Officer, and amendments thereto. PASSED, APPROVED, AND ADOPTED THIS DAY OF APRIL, 2008. DAVID H. READY, EXECUTIVE DIRECTOR ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, do hereby certify that Resolution No. is a full, true and correct copy, and was adapted at a regular meeting of the Palm Springs City Council on the day of 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California 000OOJ