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HomeMy WebLinkAbout9/18/2002 - STAFF REPORTS (7) DATE: SEPTEMBER 18, 2002 TO: CITY COUNCIL FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT EXTENSION OF RETENTION PERIOD FOR PROPERTIES ACQUIRED BY COMMUNITY REDEVELOPMENT AGENCY USING MONIES FROM LOW AND MODERATE INCOME HOUSING FUND RECOMMENDATION: It is recommended that the City Council extend for an additional five years the period that the Community Redevelopment Agency of the City of Palm Springs may retain three properties (APNs 669-396-005, 669-394-004 and 669-394-005) previously acquired using monies from the Low and Moderate Income Housing Fund for the development of housing affordable to persons and families of low and moderate income. SUMMARY: This resolution extends for an additional five years the period that the Community Redevelopment Agency of the City of Palm Springs ("Agency") may retain three properties (APNs 669-396-005, 669-394-004 and 669-394-005) previously acquired using monies from the Low and Moderate Income Housing Fund for the development of housing affordable to persons and families of low and moderate income. The purpose of the extension is to enable the Agency to comply with California Redevelopment Law Section 33334.16 which, barring an extension from the City Council as the legislative body, prohibits redevelopment agencies from retaining such properties longer than five years without initiating specific development activities. BACKGROUND: The Agency received three (3) properties by Grant Deed dated March 25, 1997 from the Coachella Valley Housing Coalition (CVHC) per Agency Resolution No. 1015 adopted on March 19, 1997. Transfer of title was recorded on August 19, 1997. The three vacant lots (Lots 65, 94 and 95 of Desert Highland Estates; APNs 669-396-005, 669-394-004 and 669-394-005) are located as shown in Exhibit A amidst a largely single-family neighborhood in the Agency's original Highland- Gateway Redevelopment Project area which is now included in Merged Project Area No. 1. These three (3) parcels were part of twenty (20) residential lots acquired by CVHC in anticipation of their being sold to very low income households for the construction of a single family residence on each lot using self- help labor. The self-help program was the subject of an Owner Participation Agreement dated April 5, 1995 (°OPA") between the Agency and CVHC. As part of the OPA, the three lots were acquired by CVHC with Agency funds for Phase II of the self-help program. Due to the withdrawal of funds for the program by the California Department of Housing and Community Development, construction on nine (9) of the lots did not occur. Included as part of these nine (9) lots, were the three (3) parcels which reverted to the Redevelopment Agency per the terms of the First Amendment to the Original Agreement dated March 19, 1997. The acquisition cost of the three parcels per the First Amendment was $168,000 and the title change was recorded August 19, 1997. Lot 65 located at 393 W. Avenida Cerca is currently in the process of being sold to the adjacent property owner for the construction of a new single family home per Agency Resolution No. 1105 adopted by the Agency on August 2, 2000. Should this sale not be consummated, it is anticipated that this parcel will be included with the other two parcels as part of a future Request for Proposals being drafted for a single family infill housing program in the neighborhood. This infill program would address the following Objectives of the Agency's current Five-Year Implementation Plan: 1) elimination of physical, social, and environmental deficiencies; and 2) increase, improve and preserve the community's supply of affordable housing. For properties such as these, acquired using monies from the Low and Moderate Income Housing Fund, California Redevelopment Law Section 33334.16 requires the Agency within five years from the date it first acquires the property to initiate activities consistent with the development of the property for housing affordable to persons and families of low and moderate income. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the City Council as the legislative body may, by resolution, extend the period during which the Agency may retain the property for one additional period not to exceed five years. The resolution of extension must affirm the intention of the legislative body that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, the property shall be sold and the proceeds deposited in the Agency's Low and Moderate Income Housing Fund. By separate action of the Agency, the Deed of Trust securing the original Regulatory Agreement that was part of the DDA shall be reconveyed eliminating the lien of $250,000 recorded against each of the properties. A new Regulatory Agreement shall be recorded against each of the properties used in the future for affordable housing.. J HN . RAYM D D ect of Community and Economic Deyeil=ment A PRO D � City Manager ATTACHMENTS: 1. Resolution 2. Exhibit A to Resolution 7no%%% RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, EXTENDING THE PERIOD FOR RETAINING PROPERTIES ACQUIRED BY COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS USING MONIES FROM LOW AND MODERATE INCOME HOUSING FUND WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, California ("Agency") is constituted under the Community Redevelopment Law (California Health and Safety Code Section 33000 et. seq.) to carry out the purpose of redevelopment in the City of Palm Springs, California ("the City"); and WHEREAS, the Agency owns three properties described as Lots 65, 94 and 95 of Desert Highland Estates (APNs 669-396-005, 669-394-004 and 669-394-005) located in Merged Project Area No. 1, said parcels having been received by Grant Deed dated March 25, 1997 from the Coachella Valley Housing Coalition per Agency Resolution No. 1015 adopted on March 19, 1997 with transfer of title recorded on August 19, 1997, shown in Exhibit A; and WHEREAS, barring an extension from the City Council, California Redevelopment Law (CRL), Health and Safety Code Section 33334.16 prohibits the Agency from retaining such properties longer than five years without initiating specific activities for the development of the properties for housing affordable to persons and families of low and moderate income; and WHEREAS, CRL Health and Safety Code Section 33334.16 allows that the City Council as the legislative body may"by resolution, extend the period during which the Agency may retain the propert(ies) for one additional period not to exceed five years". NOW, THEREFORE, BE IT RESOLVED by the City Council as follows: SECTION 1. The above recitals are true and correct and incorporated herein. SECTION 2. The intention of the City Council is hereby affirmed that these properties be used for the development of housing affordable to persons and families of low and moderate income. SECTION 3. The period during which the Agency may retain these properties for the above-stated purposes is extended five years until August 19, 2007. ADOPTED this day of 2002. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager - -- REVIEWED &APPROVED �� 669-39 rcA.oil-044 Pot. S2 NW4 SE4 SEC.34 T.3S. R.4E. I ! W—COROIAY—AVE iI I /DS n4 /^n ns /» /» /9t a3 uz I. �- BON—_—AIR ."••,�w^u r,.�• --•F— OR 21 zw OF '9 070707 ^ � ^ � a ^ CS)�;•/ "J ? 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