HomeMy WebLinkAbout9/18/2002 - STAFF REPORTS (2) DATE: SEPTEMBER 18, 2002
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT
FULL RECONVEYANCEOFAN AGENCY DEED OF TRUST ON PARCELS 669-396-005,
669-394-004, AND 669-394-005 RELATED TO THE ACQUISITION OF 3 PARCELS
FROM COACHELLA VALLEY HOUSING COALITION,AND TERMINATION OF CERTAIN
RELATED AGREEMENTS
RECOMMENDATION:
It is recommended that the Agency approve the Full Reconveyance of an Agency Deed
of Trust and termination of a Regulatory Agreement and Declaration of Covenants and
Restrictions on three parcels now owned by the Agency, acquired in 1997 as part of the
last Self-Help Housing Program in the Desert Highland neighborhood, from Coachella
Valley Housing Coalition.
SUMMARY:
In 1995, the Agency entered an agreement with the Coachella Valley Housing Coalition
to build twenty self-help homes in the Desert Highland neighborhood. The program
struggled and only eleven (11) homes were built, after the remaining funding was
withdrawn by the California Department of Housing and Community Development. The
Agency received title to a number of the undeveloped properties that it acquired for the
program, in 1997, as part of the first Amendment to the Disposition and Development
Agreement.
State Redevelopment Law limits the Agency's ability to hold land acquired for low-income
housing to five years. If the Agency desires to keep the land for a longer period, it needs
to gain the approval from the local legislative body (City Council) for up to another five
years. That action is on the City Council's agenda. Staff is recommending removing an
Agency Deed of Trust and Regulatory Agreement from the three remaining, undeveloped
properties which it owns, in order to prepare them for inclusion in a Desert Highland
Gateway Infill Housing Program.
BACKGROUND:
As part of the Owner Participation Agreement with CVHC, a deed of trust to secure the
indebtedness in the original amount of$250,000 was set forth in a Regulatory Agreement
and Declaration of Covenants, Codes and Restrictions (first recorded on May 16, 1995 as
Instrument No. 158078 of Official Records), as follows:
Amount: $250,000
Dated: May 4, 1995
Trustor: Coachella Valley Housing Coalition, a California Non-Profit
Public Corporation
Trustee: First American Title Insurance Company, a California
corporation
Beneficiary: The Community Redevelopment Agency of the City of Palm
Springs, California, a public body, corporate and politic
Recorded: May 16, 1995 as Instrument No. 158079, Official Records
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The Agency desires that the lien and the regulatory agreement to remain in force on the
developed parcels, but would like to remove the lien on the undeveloped parcels. Staff
is currently developing a Desert Highland infill housing program designed to incentivize
new private construction in the neighborhood; should the properties develop as affordable
housing,new restrictions would be imposed on these parcels thatwould conform to current
state law regarding housing affordability covenants.
In addition to the Deed of Trust, a Regulatory Agreement and Declaration of Covenants
and Restrictions was recorded against the properties. These agreements set forth the
provisions of the deal between CVHC and the Agency and would have ensured the
continued affordability of the homes.
This action reconveys the Deed of Trust, clearing it from the title, and terminates the
Regulatory Agreement and Subordination provisions recorded against the three lots.
JOHN . RAYM N
ire r of Comm ity and Economic Development
APPROVED: ��f
Executive Directo
ATTACHMENTS:
1. Resolution
2. Reconveyance
REVIEWED BY DEPT.OF FINANCE:
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FULL RECONVEYANCE
,as duly appointed Trustee under Deed of Trust
hereinafter referred to, having recetved from holder of the obligations thereunder a written request to recomrey, reciting
that all sums secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or rota seared
thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY,without warranty, to the
person or persons legally entitled thereto, the estate now held by it hereunder. Said Deed of Trust was executed by
as original Trustor,
and recorded on , in Book/Reel ,at Page/Image
Series Number of Official Records of County,California.
• Dated
TRUSTEE
STATE OF CALIFORNIA
COUNTY OF
On before me,the undersigned,
a Notary Public in and for said State, personally appeared
personally known to me or proved to me on the basis of
satisfactory evidence) to be the persan(s) whose name(s)
is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed One same in his/ler/their
authorized capacity(ies),and that by his/herhheir signature(s)
on the instrument the person(s),or the endly upon behalf of
which the persons)t acted,executed the instrument.
WITNESS my hand and official seal.
Signature
Name
(hyped or printed) (This area for official murial seal)
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RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS APPROVING FULL
RECONVEYANCE OF A DEED OF TRUST IN THE
ORIGINAL AMOUNT OF $250,000 AND TERMINATION
OF A REGULATORY AGREEMENT AND DECLARATION
OF COVENANTS AND RESTRICTIONS FOR PARCEL669-
396-005, OWNED BY THE COMMUNITY
REDEVELOPMENT AGENCY
WHEREAS the Community Redevelopment Agency of the City of Palm Springs did approve an Owner
Participation Agreement with Coachella Valley Housing Coalition, a California Non-Profit Public
Corporation (CVHC), on May4, 1995,forthe purpose of developing twenty(20)self-help homes in the
Desert Highland neighborhood; and
WHEREAS the Agency and CVHC amended the OPA in March, 1997, and subsequently the Agency
received three lots that it had acquired for the project back from CVHC; and
WHEREAS the entire original amount of Agency financial assistance to the project, $250,000, was
recorded in a deed of trust against each of the properties; and
WHEREAS, a Regulatory Agreement and Declaration of Covenants,Codes and Restrictions was also
recorded against each of the properties; and
WHEREAS, the Agency desires to clear the title on each of the parcels.
NOW,THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the
City of Palm Springs, as follows:
Section 1. That the Full Reconveyance of the Deed of Trust with respect to parcels 669-396-005,
669-394-004 and 669-394-005, recorded by the Community Redevelopment Agency
of the City of Palm Springs in the original amount of$250,000, recorded on May 16,
1995 as Instrument No. 158079 of Official Records, is hereby approved; and
Section 2. That a Regulatory Agreement and Declaration of Covenants and Restrictions recorded
May 16, 1995 as instrument No. 158078 of Official Records, and amended by a
modification recorded August 19, 1997 as Instrument No. 298917 by and between the
Community Redevelopment Agency of the City of Palm Springs, a public body,
corporate and politic, and the Coachella Valley Housing Coalition, with respect to
parcels 669-396-005, 669-394-004 and 669-394-005 is hereby terminated; and
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Section 3. That the Executive Director is hereby authorized to execute all documents necessary
to effectuate the purpose of this resolution, in a form acceptable to Agency Counsel.
ADOPTED this day of , 2002.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS,
CALIFORNIA
By:
Assistant Secretary Chairman
REVIEWED AND APPROVED AS TO FORM: