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Home My WebLink About0241C - GO BUILDERS Palm Springs - DESERT HIGHLAND PA7 GO Builders Palm Springs Des Highland Tract - PA7 41 COMMUNITY REDEVELOPMENT AGENCO AGREEMENT #241 R700, 6/20/90 CITY OF PALM SPRINGS This agreement, made and entered into this ,:��"�day of 1990, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE U51 OPRINGS, CALIFORNIA (hereinafter referred to as the "Agency") and GO BUILDERS - PALM SPRINGS (hereinafter referred to as the "Participant") . This agreement is entered into with reference to the following facts: A. The Community Redevelopment Agency of the City of Palm Springs has established an Affordable Housing Setaside Fund, in accordance with Section 33000 et seq. of the California Health and Safety Code. B. The Participant has acquired the properties known as Assessor' s Parcel Numbers 669-413-028; 669-412-005; 669-386-001; 669-383-005; and 669-381-002. C. Successful development of the property into the proposed affordable single family homes would meet an existing housing need in the City of Palm Springs. NOW THEREFORE, the Agency and the Participant (for the consideration and under the conditions herein set forth) for the benefit of themselves, do understand and agree for themselves and their assigns, successors, and future owners of said real property as follows: I. PARTIES TO THE AGREEMENT A. The Agency - 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. The office of the Agency is located as part of the City of Palm Springs, at Palm Springs City Hall , 3200 E. Tahquitz McCallum Way, Palm Springs, California, 92262. B. The Participant - Go Builders - Palm Springs is a General Partnership under the laws of the State of California, consisting of Charles W. Peters; General Partner and Gerald Okonowsky, General Partner, with offices at 500 South Farrell Drive, Palm Springs, California, 92262. II. PROPERTY DESCRIPTION Assessor's Parcel Numbers 669-413-028; 669-412-005; 669-386-001; 669-383-005; and 669-381-002, also known as Lot numbers 059; 103; 114; 167; 259 of Desert Highland Estates Tract, City of Palm Springs. III. USE OF PROPERTY: COVENANTS AND RESTRICTIONS Participant covenants and agrees for itself, its successors, its assigns and every successor in interest to the property and any part thereof, that: A. Participant, such successors and assigns, shall devote the property to uses herein, or as hereafter amended consistent with the provision of this agreement. B. There shall t no discrimination against or segregation of any person, or group of persons, on account of race, sex, color, religion, handicap, national origin or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property, nor shall the Participant itself nor any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, numbers, use or occupancy of tenants, purchasers, lessees, subtenants, sublessees or vendees of the property. C. The provisions of this agreement do not limit the right of obligees of Participant to foreclose or otherwise enforce any mortgage, deed of trust or other encumbrance upon the property, or the right of obligees to pursue any remedies for the enforcement of any pledge or lien upon the property; provided, that in the event of a foreclosure sale under any such mortgage, deed of trust, or other lien or encumbrance, or sale pursuant to any power of sale contained in any such mortgage or deed of trust, the purchaser or purchasers and their successors and assigns, and such property, shall be and shall continue to be subject to all the conditions, restrictions and convenants herein provided for. D. The homes developed under this agreement shall be sold to buyers with gross household incomes that do not exceed 100% of the Riverside-San Bernardino Median Income, adjusted for family size. Total purchase price shall not exceed $75,000 per home. The Participant shall maintain records on sales price and buyers' income; and those records on sales price and buyers' income; and these records shall be submitted to the Agency, prior to the close of each escrow on the sale of each individual home developed under this agreement. E. The homes developed under this agreement shall be subject to resale controls for a period of not less than 20 years to ensure ongoing affordability. Resale controls shall be recorded with the deed on each property and shall be based on the following formula: Maximum Allowable Sales Price. An owner may not sell , assign or otherwise transfer the title to the owner's lot for a price higher than the Maximum Allowable Sales Price, exclusive of selling costs, which is defined as the total of the following: (1) The original purchase price of the lot, including all closing costs; (2) The cost of any capital improvements installed by owner pursuant to a building permit required by ordinance and issued by the City, or such other improvements which would qualify as capital improvments as distinguished from maintenance items under the Internal Revenue Code and Regulations; (3) An additional amount computed reflecting any cost of living increase. This additional amount is to be calculated by reference to the Consumer Price Index for Urban Wage and Clerical Workers (base year 1967=100) for the Los Angeles-Long Beach-Anaheim, California, Metropolitan Area published by the United States Department of Labor, Bureau of Labor Statistics ("Index"). M( h F. Plans shall be reviewed and approved by the Agency prior to commencement of construction. G. Agency advances on this project shall be secured by a note against each lot and extinguished concurrent with the close of escrow to qualified buyers. IV. TERMS AND CONDITIONS OF THIS AGREEMENT A. Assignment and Sale - The Participant may transfer or sell the property consistant with City ordinances, but may not assign this Agreement to a third party without the approval of the Agency, and provided that such purchaser shall be bound in writing by all of the terms and conditions of this Agreement, and upon such transfer Participant shall be relieved of any further responsibility under this Agreement with respect to such transfered property. Participant shall promptly notify the Agency of any proposed transfer or sale of the property and shall advise any prospective purchaser or transferee of the terms of this Agreement. B. Description of Development - Single family homes of 1701 square feet each, including garage, to be sold to qualified moderate income buyers at a price not to exceed $75,000 per home, to be located on five in-fill sites in the Desert Highland Neighborhood. C. Fundinq of Development - In recognition of the costs of building affordable housing, the Agency agrees to subsidize the construction of each home developed under this agreement in an amount of not to exceed $10,000, for a total project subsidy not to exceed $50,000. The funds may be directly paid from the Agency to cover the costs of required City and School District permits and fees, or may be reimbursed to the Participant by the Agency for eligible construction expenses. The Participant shall maintain, and submit to the Agency upon request, records of construction, design, land acquisition expenditures. The Agency shall fund this project through its Low and Moderate Income Housing Setaside Funds. D. Termination by Agency - The Agency reserves the right to terminate this Agreement if Participant fails to begin construction on the five homes by August 1, 1990, or fails to complete the terms of this Agreement by July 31, 1991, or fails to perform any other obligation under this Agreement. V. GENERAL PROVISIONS A. Agency Employees, Members - No member, official , or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official , or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official , or employee of the Agency shall be personally liable to Participant or any successor in interest in the event of any default or breach by the Agency or for any amount which may become due to Participant or successor or any obligation under the terms of this Agreement. 0 0 B. Right to Enter - The employees and agents of the Agency shall , at all reasonable times, have access to the property for the purposes of making such inspections, surveys and examination of the same as may be reasonable and necessary in the performance of its obligations to carry out the development. C. Acquisition by Other Public Agency - Upon the acquisition of the property by any other governmental entity, the Agency may, in its sole discretion, terminate this Agareement and all obligations and duties of the parties hereunder. D. Time is of the Essence - Time is of the essence hereof; provided, however, that any time limitation set forth herein may be extended by the Agency, in its sole discretion, upon the receipt of a written request therefore by Participant. E. Binding Effect of Agreement - This Agreement shall be binding upon and shall inure to the benefits of the parties hereto, their legal representatives, successors, and assigns. This Agreement shall likewise be binding upon and obligate the property and the successors in interest, owner or owners thereof, and all of the tenants, lessees, sublessees, and occupants of such property. This Agency and the Participant have executed this Agreement on the date first above written. GO BU E ALLMM SPP GSA BY � < �/ ii COMMUNITY REDEVELOPMENT AGENCY, CITY OF PALM SPRINGS, CALIFORNIA ATTEST: C, ' J BY 77 As8%4staht Secretary 6 Chairman t REVEIWED AND APPROVED: k6tzsFNCY BY RES. NO. 7L?� (n —10