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HomeMy WebLinkAboutPALMA VILLAGE SPECIFIC PLAN C/Z 85-7 1985 PRECISE PLAN TENTATIVE TRACT ZONE CHANGE 9 5- �7 PARCEL MAP VARIANCE U.U.P. --- REFER TO: - APPLICANT: LOCATION : _y�gD W4(,tuuf-,/' REQUEST :._ ' EXISTING ZONE:— PREPARATION PROGRESS DATE BY COMMENTS APPLICATION RECEIVED For LEGAL PUBLICATION SENT ina NOTICES SENT FIELD INVESTIGATION DEPTS. NOTIFIED BUILDING t= lC_T - 1 ENGINEERING FIRE _ `J : POLICE RECREATION & PARKS SCHOOL DISTRICT DIVISION OF HIGHWAYS FLOOD CONTROL PRELIMINARY MEETING STAFF REPORT FINAL PLAN APPROVAL PRECISE PLAN (6) LANDSCAPING PLAN (5) PLAN. DIRECTOR MOD. (6) HEARINGS & ACTIONS _ DATE ACTION VOTE REVIEW BOARD HEARING P.C. HEARING PUBLISHED P.C. PUBLIC HEARING APPLICANT NOTIFIED C.C. PUBLIC HEARING ORDINANCE NO. RESOLUTION NO. EFFECTIVE DATE RECORDED FOR DATA- BANK ZONING MAP CORRECTED } j t t � I � I i' i CITY OF PALM DESERT TRANSMITTAL LETTER 1. TO: Honorable Mayor and City Council II. REQUEST: Change of zone implementing Palma Village Specific Plan for the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. II1 . APPLICANT: CITY OF PALM DESERT IV. CASE NO: C/Z 85-7 V. DATE: September 26, 1985 VI . . CONTENTS: A. Staff Recommendation B. Discussion C. Draft Resolution/Ordinance No. D. Planning Commission Minutes involving Case No. C/Z 85-7 E. Planning Commission Resolution No. 1079 F. Planning Commission Staff Report dated September 3, 1985 G. Related maps and/or exhibits ------------------------------------------------------------------------------ A. STAFF RECOMMENDATION: Amend planning commission recommendation by adding S.P. overlay to 5 lots on East side of San Rafael which back on to R-1 lots, waive further reading and pass to second reading. B. DISCUSSION: As part of the goal to stimulate new private investment and encourage senior housing in the vicinity of the senior center, the Palma Village Specific Plan recommended that high density multi-family projects be encouraged along the high traffic and visibility Fred Waring and San Pablo corridors with a medium density transition area adjacent to the single family zone to the south. The senior housing overlay would be applied to the entire area. Specifically, the blocks fronting on Fred Waring Drive and San Pablo Avenue would be rezoned from the existing R-1 10,000 and R-2 S.P. to R-3 S.O. The remaining R-1 zone on the north side of Catalina Way west of San Pascual would be rezoned R-2 5.0. The existing R-2 area surrounding the senior center would only receive the senior housing overlay. The 3 acre parcel directly east of the senior center will be rezoned from R-1 10,000 to R-2 Senior Housing and Scenic Preservation Overlay. The scenic preservation overlay restricting building to one story, has been applied to this area since it is across the street from an R-1 zone. The proposed zone change is designed to accomplish three goals of the Palma Village Specific Plan: 1 . Promote high quality multi-family development along Fred Waring and San Pablo. 2. Encourage senior housing adjacent to the senior center 3. Generally upgrade the entire area through new private residential investment. A significant change is the removal of the scenic preservation overlay from Fred Waring Drive allowing two story construction. Without the ability to design a project with some two story elements, the proposed R-3 density cannot be achieved within an acceptable site plan which meets our other zoning standards. The specific plan committee was convinced that a one story restriction would negate the desired effect of the change to R-3. Also the zoning ordinance amendment lowering R-2 and R-3 height maximums will mitigate any negative impacts of the two story buildings. The goal of creating a Fred Waring scenic corridor will be better served by the encouragement of high quality development then the perpetuation of the existing conditions. New projects will still be subject to the same design scrutiny by the planning and architectural commissions insuring design quality and compatibility. The planning commission unanimously recommended approval of the change of zone. There was no public testimony or correspondence in opposition. At the September 12, city council hearing on the senior overlay and the San Rafael zone change, Councilman Wilson raised some questions regarding the precedence of the senior overlay two story setback requirement adjacent to R-I lots. This ambiguity could be clarified in this proposed zone change by designating lots which back onto R-1 with the S.P. overlay thus reinforcing a one story limitation. This situation applies to only 5 lots of the proposal which are on the east side of San Raphael and back onto R-I lots on San Carlos. Prepared by "�T Reviewed and Approved by /dig 2 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA APPROVING A CHANGE OF ZONE IMPLEMENTING THE PALMA VILLAGE SPECIFIC PLAN IN THE AREA GENERALLY BOUNDED BY FRED WARING DRIVE, CATALINA WAY, SAN PABLO AVENUE AND PORTOLA AVENUE. CASE NO: C/Z 85-7 WHEREAS, the City Council the City of Palm Desert, California, did on the 26th day of September, 1985, hold a duly noticed public hearing to consider a change of zone from R-2 S.P. to R-3 S.O. , R-1 10,000 to R-3 S.O. , R-2 to R-3 S.O. , R-2 to R-2 S.O. and R-I 10,000 to R-2 S.O. S.P. in the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedures of Implementation of the California Environmental Quality Act, Resolution No. 80-89", in that the director of environmental services has determined that the proposed change of zone has been previously assessed in connection with the Palma Village Specific Plan for which a negative declaration of environmental impact was approved. WHEREAS, at said public hearing, upon hearing and considering ail testimony and arguments, if any, of all interested persons desiring to be heard, said city council did find the following facts to justify their actions, as described below: I . The land use resulting from the change of zone will be compatible with adjacent proposed land uses. 2. The density resulting from the change of zone will be compatible with densities permitted in the adjacent areas. 3. The change of zone implements recommendation of the Palma Village Specific Plan. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, as follows: 1. That the above recitations are true and correct and constitute the findings of the council in these cases; 2. That C/Z 85-7 Exhibit "A" is approved. 3. The City Clerk of the City of Palm Desert, California is hereby directed to publish this ordinance in the Palm Desert Post, a newspaper of general circulation, published and circulated in the city of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. ORDINANCE NO. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council , held on this day of 1985 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: NYDER Ma WALTER S or y ATTEST: SHEILA R. GILLIGAN, City Clerk City of Palm Desert, California /dig G fGr SHADED AREAS '�- cac � <•.. .n av P ARE NOT PART OF THIS CHANGE o OF ZONE R o F�ow�ct► ED wc DR- FR 2 S.P.t R-3 S 1 t 0;. q S 2 to R-3 SO a J i w WAY SANTA OSA z a �I W o � 8' 2 - Rt2 S R 2 Ko�R 2 SO s i I o -1 1 0110 8 - to R-2 .SQ. 0• -2SP. S Bt:ATALINA • Y mh R 2 to 2 8 < 0 � s W 46411* W ado 1 T CITY OF PALM DESERT CITY COUNCIL 0CHANGE OF ZONE 85-7 ORDINANCE NO. A DATE MINUTES PALM DESERT PLANNING COMMISSION SEPTEMBER 3, 1985 f available prior to October 1 . He felt a specific study of that site should pertain to the use that it is now currently designated. Mr. Criste indicated that the report need not be in the context of the entire city's open space. Commissioner Richards concurred. Commissioner Wood requested that the report on the background on the property also be provided. Mr. Diaz indicated that the report from the open space committee and a report on the background of the property would be provided. Action: Moved by Commissioner Richards, seconded by Commissioner Wood, continuing GPA 85-5 and C/Z 85-5 to October 1 , 1985. If further time is needed to complete the required reports, applicant shall be granted a further continuance. Carried 5-0. A FIVE MINUTE RECESS WAS CALLED AT THIS POINT. E. Case N\C/Z 85- - CITY OF PALM DESERT, Applicant Request for approval of a change of zone implementing the Palma Village Specific Plan recommendations for the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. Mr. Drell outlined the request and showed the area with the use of the video monitor and recommended approval . Commissioner Richards commented that this amendment was a result of an extensive study from committees and citizens and that the commission would not be voting hastily. Chairman Crites opened the public testimony and asked if anyone wished to speak in FAVOR or OPPOSITION to the zone change. BILL WHITING, Fred Waring property owner, indicated that he has tried to come up with a plan for development of his property .that would be acceptable to the city for developing multi-family units. He felt the zoning has been restrictive in the past and requested the city's intent for the south side of Fred Waring. Commissioner Wood asked Mr. Whiting if it was economically feasible to build a single family unit or one story apartments. Mr. Whiting replied that with property values rising it would be very 10 + — MINUTES PALM DESERT PLANNING COMMISSION SEPTEMBER 3, 1985 f restrictive to allow only single family units or single story apartments. Chairman Crites closed the public testimony. Commissioner Richards commended •staff and the committees that worked on this study and moved for approval . Commissioner Wood spoke to the motion, emphasizing that his own view point was that on Fred Waring's south side, if commission could not zone R-3 two story units, it would remain unimproved, unattractive vacant lots. Chairman Crites requested Commissioner Richard's comments thanking staff for time and excellent work on this project be noted for the record and that a letter be sent to each committee member in thanks. Action: Moved by Commissioner Richards, seconded by Commissioner Downs, approving the findings as presented by staff. Carried 5-0. Moved by Commissioner Richards, seconded by Commissioner Downs, adopting Planning Commission Resolution No. 1079, recommending to city council approval of C/Z 85-7 Exhibit "A." Carried 5-0. Chairman Crites recommended that the agenda be suspended to consider Item #G. Moved by Commissioner Richards, seconded by Commissioner Erwood, suspending the agenda. Carried 5-0. G. Case No. PP 85-22 - HOVLEY GROUP, Applicant Request for approval of two buildings totaling 27,000 square foot Including a 3,000 square foot restaurant (with the remainder office and warehouse space) located in a service industrial zone at the northwest corner of Eclectic and Lennon place. Mr. Joy outlined the staff report and recommended approval subject to the addition of a condition requiring the applicant to provide sidewalks upon further city council direction. 11 r PLANNING COMMISSION RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA RECOMMENDING TO THE CITY COUNCIL APPROVAL OF CHANGE OF ZONES IMPLEMENTING THE PALMA VILLAGE SPECIFIC PLAN IN THE AREA GENERALLY BOUNDED BY FRED WARING DRIVE, CATALINA WAY, SAN PABLO AVENUE AND PORTOLA AVENUE. CASE NO: C/Z 85-7 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 3rd day of September, 1985, hold a duly noticed public hearing to consider a change of zone from R-2 S.P. to R-3 S.O. , R-I 10,000 to R-3 S.O. , R-2 to R-3 S.O. , R-2 to R-2 S.O. and R-1 10,000 to R-2 S.O. S.P. in the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. WHEREAS, said application has compiled with the requirements of the "City of Palm Desert Procedures of Implementation of the California Environmental Quality Act, Resolution No. 80-89", in that the director of environmental services has determined that the proposed change of zone has been previously assessed in connection with the Palma Village Specific Plan for which a negative declaration of environmental impact was approved. WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said planning commission did find the following facts to justify their actions, as described below: 1 . The land use resulting from the change of zone will be compatible with adjacent proposed land uses. 2. The density resulting from the change of zone will be compatible with densities permitted in the adjacent areas. 3. The change of zone implements recommendation of the Palma Village Specific Plan. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, as follows: 1. That the above recitations are true and correct and constitute the findings of the commission in these cases; 2. That the planning commission does hereby recommend to the city council approval of C/Z 85-7 Exhibit "A". PLANNING COMMISSION RESOLUTION NO. 1066 PASSED. APPROVED and ADOPTED at a regular meeting of the Palm Desert Planning Commission, held on this 3rd day of September. 1985 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: BUFORD A. CRITES, Chairman ATTEST: RAMON A. DIAZ. Secretary /dig G t!Gr SHADED AREAS P ARE NOT PART R t R f OF THIS CHANGE Sc OF ZONE - - - - - - Ono .. - o w*n tMc ort. —FRED 2 S.P.t R-3 3 t 1 1000Q S P t -3 0 8 2 to R-31 SO a � a SANTA . OSA i N WAY 8 2 F JFRY2 S R 2 -to'R 2 SO g = I o -1 100 0 to R-2 _St} 0 0. -28P. S CA TALINA m R 2 toR 2 SO CL L , CITY OF PALM DESERT PLANNING COMMISSION (VMA° SK' Q�M OOOP M0Z�UM RESOLUTION NO. �c:zv 2 o �� A C/Z 85 =7 DATE 73.510 FRED WARING DRIVE,PALM DESERT,CALIFORNIA 92260 TELEPHONE(619) 346-0611 CITY OF PALM DESERT LEGAL NOTICE CASE NO. C/Z 85-7 NOTICE 15 HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a change of zone implementing Palma Village Specific Plan designating blocks on Fred Waring Drive and San Pablo Avenue R-3 SO (multi-family, senior housing) changing a portion of the north side of Catalina Wav from R-1 10.000 to R-2 SO SP. and applying the Senior Housing Overlay to balance of chance of zone area. Since this is a complex change of zone please contact Department of Community Development/Planning if you have any questions. �i(fGr SHADED AREAS Qz I RANCHO AD II RANCHO ROAD o P ARE NCrT PART J R R 1 OF THIS CHANGE o -- OF ZONE o3eaeo ee MAN I- o+ es s + =ueo wMilwc vYt. F R tu 'M =R---V3 2 S. i 1 t000O S P. t O 8 6 R 2 to R-31 SO LY6YWWI W W A Y to SANTA 2 0 - Rf2 R 2 'to IR 2 SO z `< o s se o a-1 10000 B - to R-2 .SQ. to O. -2 S P. S CA IA LI NA +e+9++9+0++e+++ A � J m R 2 taH 2 SO' > Q ` R I_ — , Sip 1©,000t� 14�00 v� ? ac a r L , R 2 1 , Q SAID public hearing will be held on September 3. 1985 at 7:00 p.m. in the Council Chamber in the Palm Desert City Hall. 73-510 Fred Waring Drive. Palm Desert. California. at which time and Place all interested persons are Invited to attend and be heard. If you challenge the proposed actions In court, you may be limited to,raising only those issues you or someone else raised at the public hearing described in this notice. or In written correspondence delivered to the city council (or planning commission) at, or prior to, the public hearing. PUBLISH: Desert Post Ramon A. Diaz, Secretary August 22. 1965 Palm Desert Planni ng Commi ss ion r City of Palm Desert Department of Community Development/Planning Staff Report TO: Planning Commission DATE: September 3. 1985 CASE NO: C/Z 85-7 REOUEST: Change of zone implementing the Palma Village Specific Plan recommendations for the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. APPLICANT: CITY OF PALM DESERT 1. BACKGROUND: As part of the goal to stimulate new private investment and encourage senior housing in the vicinity of the senior center, the Palma Village Specific Plan recommended that high density multi-family projects be encouraged along the high traffic and visibility Fred Waring and San Pablo corridors with a medium density transition area adjacent to the single family zone to the south. The senior housing overlay would be applied to the entire area. Specifically, the blocks fronting on Fred Waring Drive and San Pablo Avenue would be rezoned from the existing R-1 10,000 and R-2 S.P. to R-3 S.O. The remaining R-1 zone on the north side of Catalina Way west of San Pascual would be rezoned R-2 5.0. The existing R-2 area surrounding the senior center would only receive the senior housing overlay. The 3 acre parcel directly east of the senior center will be rezoned from R-1 10,000 to R-2 Senior Housing and Scenic Preservation Overlay. The scenic preservation overlay restricting building to one story, has been applied to this area since it is across the street from an R-I zone. 11. ANALYSIS: The proposed zone change is designed to accomplish three goals of the Palma Village Specific Plan: 1 . Promote high quality multi-family development along Fred Waring and San Pablo. 2. Encourage senior housing adjacent to the senior center 3. Generally upgrade the entire area through new private residential Investment. A significant change is the removal of the scenic preservation overlay from Fred Waring Drive allowing two story construction. Without the ability to design a project with some two story elements, the proposed R-3 density cannot be achieved within an acceptable site plan which meets STAFF REPORT C/Z 85-7 our other zoning standards. The specific plan committee was convinced that a one story restriction would negate the desired effect of the change to R-3. Also the zoning ordinance amendment lowering R-2 and R-3 height maximums will mitigate any negative impacts of the two story buildings. The goal of creating a Fred Waring scenic corridor will be better served by the encouragement of high quality development then the perpetuation of the existing conditions. New projects will still be subject to the same design scrutiny by the planning and architectural commissions insuring design quality and compatibility. Ill. RECOMMENDATION: Approve findings and adopt Resolution No. recommending to the city council approval of C/Z 85-7 Exhibit "A". IV. ATTACHMENTS: 1 . Draft Resolution 2. Legal Notice Prepared b���^�[ �"� Reviewed and Approved by /dig 2 73-510 FRED WARING DRIVE,PALM DESERT,CALIFORNIA 92260 TELEPHONE (619) 346-0611 CITY OF PALM DESERT LEGAL NOTICE CASE NO. C/Z 85-7 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert City Council to consider a change of zone Implementing Palma Village Specific Plan designating blocks on Fred Waring Drive and San Pablo Avenue R-3 SO (multi-family, senior housing) changing a portion of the north side of Catalina Nay from R-I 10,000 to R-2 SO SP and applying the Senior Housing Overlay to balance of change of zone area. Since this is a complex Change of zone please contact Department of Community Oevelopment/Planning if you have any questions. SHADED AREAS PI o ARE NOT PART OF THIS CHANGE o OF ZONE - R► o, 2 S.P.1 R-9 8 t t I P I Q00 S P t -3 O 2 to R-3,80 i ANTAR OSA N WAY 8 - R12 8 p 2 Ro�R 2 80 y 661 o -1 700 0 tq R-2.8a } b B. O. ATALINA onYWINE ' r R 2 toR 2 80 q � i fi ya J SAID public hearing will be held on September 26, 1985 at 7:00 p.m. in the ;„ Council Chamber In the Palm Desert City Hall, 73-510 Fred Waring Drive, Palm ""' Desert. California, at which time and place all Interested persons are Invited to attend and be heard. If you Challenge the proposed actions in court, you may be limited to raising only those Issues you or someone else raised at the public hearing described In this notice. or in written correspondence delivered to the city council (or planning commission) at, or prior to, the public hearing. PUBLISH: Desert Post Shelia R. Gilligan, City Clerk September 13, 1985 Palm Desert City Council ORDINANCE NO. 437 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT. CALIFORNIA APPROVING A CHANGE OF ZONE IMPLEMENTING THE PALMA VILLAGE SPECIFIC PLAN IN THE AREA GENERALLY BOUNDED BY FRED WARING DRIVE. CATALINA WAY, SAN PABLO AVENUE AND PORTOLA AVENUE. - CASE NO: C/Z 85-7 WHEREAS, the City Council the City of Palm Desert. California, did on the 10th day of October, 1985, hold a duly noticed public hearing to consider a change of zone from R-2 S.P. to R-3 S.O. , R-I 10,000 to R-3 S.O. , R-2 to R-3 S.O. . R-2 to R-2 S.O. and R-I 10,000 to R-2 5.0. S.P. in the area generally bounded by Fred Waring Drive, Catalina Way, San Pablo Avenue and Portola Avenue. WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedures of Implementation of the California Environmental Quality Act, Resolution No. 80-89", in that the director of environmental services has determined that the proposed change of zone has been previously assessed in connection with the Palma Village Specific Plan for which a negative declaration of environmental impact was approved. WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said city council did find the following facts to ,justify their actions, as described below: 1 . The land use resulting from the .change of zone wi 1 1 be compat i b I e with adjacent proposed land uses. 2. The density resulting from the change of zone will be compatible with densities permitted in the adjacent areas. 3. The change of zone implements recommendation of the Palma Village Specific Plan. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert. as follows: 1 . That the above recitations are true and correct and constitute the findings of the council in these cases; 2. That C/Z 85-7 Exhibit "A" is approved. 3. The City Clerk of the City of Palm Desert. California is hereby directed to publish this ordinance in the Palm Desert Post, a newspaper of general circulation, published and circulated in the city of Palm Desert. California, and shall be in full force and effect thirty (30) days after its adoption. PASSED. APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council , held on this 10th day of October, 1985 by the following vote, to wit: AYES: BENSON. KELLY. WILSON 8 SNYDER NOES: NONE ABSENT: JACKSON ABSTAIN: NONE WALTER H. SNYDER, M or ATTEST: SHEILA R. GIL GAN. City rk City of Palm Desert. Cali rnia /dla G {dr SHADED AREAS 110 ' P ARE NOT PART R t- t R OF THIS CHANGE . _ -- OF ZONE .� • F9FowMt►Mc tR. FRED 2 S.P.t R-3 3 ! 1 t0ooq S P. t - O �i 2 to R-3, SO Y J R SANTA OSA = w WAY 8 2 - R12 S R 2 to�R 2 SO i = I o A-1 100 0 to R-2 _SQ. O. —23P. S CATALINA m w C= R 2 toR 2 SOIlls Q � .. R?- I S 181,00 w [4,�Q • o �. CITY OF PALM DESERT CITY COUNCIL CHANGE OF ZONE 85-7 ORDINANCE NO. 411 _[EKMO p QT A DATE 10/10/85 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 TELEPHONE (619) 346-0611 CITY OF PALM DESERT LEGAL NOTICE CASE NO. C/Z 85-7 NOTICE I5 HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a change of zone implementing Palma Village Specific Plan designating blocks on Fred Waring Drive and San Pablo Avenue R-3 SO (multi-family, senior housing) changing a portion of the north side of Catalina Way from R-1 10,000 to R-2 SO SP. and applying the Senior Housing Overlay to balance of change of zone area. Since this is a complex change of zone please contact Department of Community Development/Planning if you have any questions'. P�.��v' SHADED AREAS Q�—�--�3RAl-ANCH -J" Rol.-A'10 L- 1-� -ARE NOT PART R I a OF -THIS CHANGE R ; _ o -- OF ZONE t= awINc U2. FHED 2 S.PA R-3 S I R-1 100;09 S P. t - O C 2 to R1-3i SO ' Y R �1 SANTA 0 5 A f N WAY 2 0 - o • Rrt2 S R 2 to R 2 SO � Z o a-1 1 0 0. to: 9-2 _SQ. t O'.. -2 S P. S C A T A L I N A f ••A•••••iii•. a. 4 d) i R 2 toR 2 SO tL �4 2 18,f300� 14. 0 z v l= q u ua � �� R" . . - . rr SAID public hearing will be held on September 3, 19B5 at 7:00 p.m. in the Council Chamber in the Palm Desert City Hall , 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice. or in written correspondence delivered to the city council (or planning commission) at, or prior to, the public hearing. PUBLISH: Desert Post Ramon A. Diaz, Secretary August 22, 1985 Palm Desert PlanningCommission PALMA VILLAGE SPECIFIC PLAN IMPLEP:ENTATION PROPOSAL CONTENTS PAGE I Introduction Palma Village Specific Plan APPENDIX A Palma Village Specific Plan Adopted June 13 , 1985 APPENDIX 8 Palma Village Specific Plan Implementa- tion Scope APPENDIX C Palma Village Implementation Plan Proposal APPENDIX D Palma Village Housing Rehabilitation Project ATTACHMENT D- 1 Proposed Rent Stabilization Agreement REFERENCE A Proposal for Services from Kicak and Associates REFERENCE 8 Agreement for Rehabilitation Management Services between City of. Riverside and Riverside County Housing Authority REFERENCE C Map of Palma Village Specific Plan Area REFERENCE D Chapter 8 Redevelopment Law - Redevelop- ment Construction Loans REFERENCE E Section 8 Existing Housing Quality Standards INTRODUCTION PALMA VILLAGE SPECIFIC PLAN Recommendations expressed by the Palma Village Specific Plan were developed in an effort to revitalize the Palma Village Area . The Palma Village Area was the first major residential subdivision in the Palm Desert area , consequently causing it to lack various services and requiring repairs in certain areas . The Palma Village Area Committee also considered the area' s compatibility with the development that had surrounded it . The Committee found it to be inconsistent with such developments and expressed specific recommendations to alleviate the problem. The purpose of this report is to outline those recommenda- tions and to express our proposal for implementation of the Palma Village Specific Plan . The recommendations are discussed in great detail in the Palma Village Specific Plan, adopted June 13 , 1985 , and are outlined in the Palma Village Specific Plan Implementation Scope, both documents are included in this report as Appendices A and B . Those recommendations , which have been or are being imple- mented , include the development of the Senior housing overlay, the change of zone to compatible uses , and the first curb and gutter installation through an assessment district . Of those remaining recommendations , we propose a priority system for an orderly implementation process . That priority system is outlined in the Palma Village Implementation Plan Proposal Appendix C . The Palm Desert Redevelopment Agency proposes to utilize Its twenty percent ( 20%) housing set-aside allocation to fund a major portion of the proposed projects . Utilizing the Redevelopment Agency' s housing set-aside is consistent with the initial Palma Village Plan and the State requirements for the allocation . It is our belief that the Implementation Plan is thorough and the implementation recommendations , specific . Although a feasibility study is requested in certain recommendations , such a study is necessary as an aspect of the implementation plan and is directed to develop specific criteria necessary for actual implementation. Our recommendation for implementation of the Palma Village Specific Plan is outlined in Appendix C , page 6 of the Palma Village Plan Implementation Proposal . INTRODUCTION PALMA VILLAGE SPECIFIC PLAN Staff recommends that such a proposal be approved as the Planned implementation Method for the Palma Village Specific Plan . 2 i APPENDIX A PALMA VILLAGE SPECIFIC PLAN Adopted June 13, 1995 Prepared by: Department of Environmental Services Ramon A. Diaz Philip Drell Tonya Monroe Palma Village Specific Plan Advisory Committee City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 LAND USE ELEMENT INTRODUCTION The area defined by the La Palma Village Specific Plan was the first major residential subdivision in the Palm Desert area. When the tract was laid out in 1935 it was designed as a small, low density single family residential village surrounded by desert and date palms. Over the past 50 years the desert and date palms have given way to the College of the Desert, the Palm Desert Town Center, the Civic Center, and the Cultural Center. Monterey Avenue and Fred Waring Drive (formerly Greenleaf Road) have grown from quiet county roads to major regional arterials. While the overall growth and development of Palm Desert has significantly impacted La Palma Village, existing land use patterns and policies have remained essentially unchanged. The task of the Citizen Advisory Committee was to reexamine these existing land use patterns and policies identifying areas where present policies have succeeded in desirable development, areas where minor adjustments or incentives are promoting , P g P required, and areas where external impacts require significant policy revisions. Prior to formulating their recommendations, the committee set up generalized policy criteria for evaluating the appropriatness of existing and proposed land uses in the La Palma Village area. POLICY CRITERIA Land use regulations shall encourage developments which: I. Are compatible with existing and future adjacent uses. II. Address the needs of the Palm Desert community. III. Are economically feasible in the foreseeable future. LAND USE ELEMENT I. COMPATIBILITY The most critical area of land use policy involves the boundaries between potentially conflicting uses. Some uses are inherently incompatible and therefore can never coexist, while others can be made compatible by design regulations. It is important that any resolution to land use conflicts account for the basic requirements of both uses so that both sides of the use boundary can develop satisfactorily. If the solution favors one use to the detriment of another, the results are often vacant abandoned properties. II. NEEDS Land use policies should not only control use conflicts, but should also encourage specific, desired uses. Senior housing, affordable housing, creation of attractive streetscapes, are examples of specific positive development features which should be encouraged through land use controls. III. ECONOMIC FEASIBILITY Regardless of how compatible or desirable a use may be it will never be built if it does not generate a profit. Existing uses which are unprofitable will not be maintained properly. When land use controls attempt to maintain unrealistic uses; vacant, deteriorated, and abandoned properties result which will lower overall neighborhood quality. GENERAL POLICY I CITY'S ROLE The city shall take a proactive role in promoting compatible high quality infill private development and-public works consistent with the area policy criteria. -2- LAND USE ELEMENT In examining La Palma Village, the committee paid special attention to areas with a high percentage of vacant or deteriorated properties. While vacant land is expected in a new subdivision, it is often symtomatic of a land use problem in a 50 year old subdivision. This is especially true when properties remain vacant while surrounding areas experience tremendous growth and economic development. The predominance of vacant lots and. poorly maintained properties discourage new investment, rehabilitation, and new construction which leads to further decline. Wherever possible, the adjustment of land use controls and other incentives should be utilized to break this cycle. GENERAL POLICY H COMMERCIAL ZONE DEPTH Multifamily and Commercial zones should be of sufficient depth to allow efficient site planning and the creation of adequate buffer areas adjacent to single family zones. DISCUSSION Narrow strips of commercial and multifamily zones adjacent to single family zones are poorly suited for quality development and negatively impact adjacent properties. It is important to designate zones which are appropriate to the scale and quality of development we wish to promote. GENERAL POLICY III TRAFFIC Whenever possible, general through traffic should be directed away from local residential streets. -3- LAND USE ELEMENT DISCUSSION Often the inadvertent result of traffic and road improvements is the encouragement of non-local traffic through residential areas. Where this has occurred, circulation redesign should attempt to discourage this non-local traffic. i GENERAL POLICY IV ARCHITECTURAL STANDARDS For new development to effectively serve as a stimulus for overall neighborhood improvement, it must be of sufficient high quality to change both neighborhood and city wide attitudes about the area's future. New projects must therefore meet the same high architectural and site planning standards being applied to new projects elsewhere in the city. GENERAL POLICY V LEGAL NON-CONFORMING USES To prevent legal non-conforming residential properties from becoming blighted, a process shall be created to allow presently non-conforming residential properties to obtain conforming status through architectural and site rehabilitation. DISCUSSION The adoption of the city's zoning map of 1975 resulted in extensive down zoning of multi- family property developed under the county. This change created a number of legal non- conforming duplexes and apartments. Under the city's non-conforming ordinance, these units may remain as they presently exist, but they cannot be replaced if they are destroyed or substantially damaged. This non-replacement feature discourages lenders from financing the sale or rehabilitation of these units. This often results in low levels of building maintenance leading to generalized deterioration. -4- LAND USE ELEMENT GENERAL POLICY VI BUILDING HEIGHT Building heights shall be regulated to preserve the area's overall low profile character. iatel sited limited height two story development shall be permitted within the R- Appropr y g 2 and R-3 zones to maximize open space, off street parking, and site planning efficiency. Two story development standards shall be reduced from the present 30 foot limit to 22 feet for flat roofed buildings, 24 feet for pitched roofs, and 25 feet for office professional buildings. Height shall be measured from finished grade. DISCUSSION The plan area presently contains R-2 and R-3 zones which allow two story structures to a maximum height of 30 feet. While two story developments contribute to both the livability and economic feasibility of multi-family projects, improperly sited two story buildings can block views and destroy privacy of adjacent properties. The existing 30 foot allowable height far exceeds that which is necessary for good architecture. Height regulations should be designed to protect views and privacy while allowing the planning flexibility afforded by two story construction. GENERAL POLICY VII SURPLUS CITY LAND The city shall either landscape, suitably develop, or sell vacant surplus city land within the Palma Village area. DISCUSSION The city presently owns vacant residential lots and portions of lots originally acquired for road widening. These areas are often used for illegal dumping and generally detract from -5- LAND USE ELEMENT the value of adjacent properties. Wherever residential properties back onto arterial streets or major thoroughfares, the city shall initiate a parkway landscaping perimeter decorative wall program. This is especially necessary on the south side of Fred Waring west of Monterey Avenue and East of Portola Drive. SPECIFIC AREA ISSUES, POLICIES, AND IMPLEMENTABLE PROGRAMS / AREA 1 Fred Waring Drive and Monterey Avenue. ISSUES With the development of the civic center, cultural center, town center, and street improvements and extension to Interstate 10, Fred Waring Drive and Monterey Avenue are - becoming major regional arterials. The existing pattern of low and medium density single family development is incompatible with the projected traffic volumes and emerging character of these important streets. POLICIES 1. New Development on Fred Waring Drive and Monterey Avenue should reflect as to scale and overall quality the public improvements represented by the civic center, college, and cultural center and should be compatible both with the high traffic volume arterial highway and the adjacent residential land uses. 2. Use zones fronting on these streets shall have sufficient depth to allow substantial projects while creating a landscaped buffer for adjacent single family uses. 3.r ,,-'Incentives shall be provided for lot consolidation to facilitate larger projects and minimize access points to Fred Waring Drive and Monterey Avenue. Whenever feasible the redevelopment agency shall assist in this effort. -6- LAND USE ELEMENT IMPLEMENTATION 1. Where subdivision patterns permit, a special zone, minimum 200 feet in depth, would be created allowing either Office Professional or High Density zoning depending upon compatibility. The Office Professional designation would be applied to the south side of Fred Waring Drive between Monterey Avenue and San Pablo and along the east side of Monterey Avenue between Fred Waring and Catalina, R-3 2,500 would be applied on the south side of Fred Waring Drive between San Pablo Avenue and Portola Avenue and on the west side of Monterey north of Fred Waring Drive. The Scenic Preservation Overlay will be removed allowing two story construction adjacent to Fred Waring with a 24 foot height limit. The zones will require a minimum 20,000 square foot area and will require a 20 foot - landscaped project setback adjacent to any single family residential district. This requirement will create a 20'-32' wide landscaped green belt adjacent to residential uses. There will be no access allowed from these projects to local streets. 2. Where subdivision pattern precludes attainment of the 200 foot lot depth, the existing Office Professional zoning will apply. This area would include the west side of Monterey Avenue between the Town Center and Fred Waring Drive and the north side of Fred Waring between Monterey Avenue and Fairhaven. 3. On the north side of Fred Waring between Portola Avenue and San Pascual Drive, a modified multi-family zone overlay would be created which would allow High Density Residential use with a 22 foot height maximum and 30 foot rear building setback to compensate for the lack of green belt buffer. 4. Whenever feasible projects shall be required to execute mutual access agreements creating shared parking and rear circulation, minimizing the need for multiple curb cuts on Fred Waring Drive and Monterey Avenue. 5. Surplus city land remaining after road widening of Monterey Avenue and Fred Waring Drive shall be landscaped by the city. Additional landscaping shall be required wherever Office Professional use abut these areas. -7- LAND USE ELEMENT AREA 2 Monterey Avenue, south from the McAllister property to Highway I I I east to Las Palmas Avenue. ISSUES The Monterey/Highway III intersection has become the primary commercial focus of the city. High quality commercial development has occurred along each leg except this northeast block. A major effort should be made to encourage development in this area comparable in quality to Palm to Pines and the Town Center. The interior residential area, if adequately buffered from the commercial activity, can continue to offer a safe and very convenient residential environment. Presently the signal at San Gorgonio Way and Monterey Avenue has encouraged through traffic on San Gorgonio threatening the areas residential character. POLICIES 1. Commercial zoning in this area shall be expanded to allow for substantial commercial projects with adequate off-street parking. 2. The interior residential area shall be preserved and protected from the adverse impacts from commercial development by the creation of green belts and traffic circulation improvements discouraging non-resident through traffic. IMPLEMENTATION �i 1., Expand C-1 zoning to a depth of two lots with assistance from the Redewetoprnent Agency.- 2. Convert the second row of lots to a common use (President's Plaza type), parking area which will be separated from the residential area by a wall and 30 foot wide landscaped green belt. -8- LAND USE ELEMENT 3. Create a parking improvement assessment district which will finance acquisition construction and maintenance of the parking lot. 4. Study methods to slow traffic and reduce volumes on San Gorgonio Way. 5. With the exception of the lots involved in the commercial expansion green belt project, zoning shall remain consistent with existing land uses. The three circles shall remain R-1; Royal Palms R-2 (5); Las Palmas and Las Flores, R-3. AREA 3 Santa Rosa Way to Guadalupe Avenue between Monterey Avenue and San Pablo Avenue. ISSUES This area contains a mixture of single family homes, duplexes, and small apartments. All the multifamily units were built prior to incorporation. The existing R-2 (7) zone allows only one unit per 7,000 square foot lot. Since few lots exceed 7,200 square feet, the area has developed as a single family neighborhood since 1973. With the creation of a substantial Santa Rosa green belt (see Area 1 policies) this area will be protected from the high intensity uses to the north and should continue to provide a safe, moderate income housing. POLICIES This area should be encouraged to continue developing as a moderate priced single family neighborhood. IMPLEMENTATION The R-2 (7) zone shall remain. -9- LAND USE ELEMENT AREA 4 Monterey Avenue west to Fairhaven Drive. ISSUES If adequately buffered from traffic impacts, this area can continue to provide safe moderately priced single family housing. POLICY Preserve and enhance the areas single family character. IMPLEMENTATION None required. AREA 5 Alessandro Drive. ISSUES Alessandro Drive marks the transition between Highway III commercial and adjacent residential uses. The street is presently dominated by vacant lots on the north and commercial rear yards on the south. The north side is zoned R-3 (4) to a depth of 80 feet to 140 feet and is limited to one story due to the adjacent R-1. The generally unattractive streetscape created by the commercial rear yards and the height restriction has discouraged multifamily development in the R-3 (4). POLICIES 1. Land use controls and incentives shall be used to encourage high quality office professional and multi-family residential development on the north side of Alessandro. -10- LAND USE ELEMENT 2. Frontage Road Commercial uses should be encouraged to remodel their rear yards creating a more attractive streetscape. IMPLEMENTATION 1. The north side shall be rezoned to R-3 2,500 to an average depth of 200 feet depending upon subdivision patterns. Two story construction shall be excluded within 100 feet of the R-1 zone. 2. In conjunction with the formation of a parking assessment district, Highway III owners would be encouraged to remodel their rear elevations. Expansion into rear yards would be permitted as part of an in-lieu fee program financing the purchase and construction of parking lots on the north side of Alessandro. AREA 6 San Pascual and Catalina. ISSUES This area contains a diverse mix of residential types ranging from half acre lots to IS per acre apartments. The city has constructed a senior center on 1.65 acres at the northwest corner of San Pascual and Catalina. The area east of San Pascual is substantially developed. The western area is 50 percent vacant. Overall quality of maintenance is inconsistent throughout. POLICIES 1. Preserve the single family zone east of San Pascual. 2. Encourage construction of senior housing surrounding the senior center. 3. West of San Pascual, make zoning consistent with the multi-family character of existing development. -11- LAND USE ELEMENT IMPLEMENTATION 1. Rezone blocks fronting on San Pablo to north to Fred Waring Drive and east to San Raphael R-3. Rezone block north of Catalina east of San Raphael R-2. 2. Create a Senior Housing Overlay allowing higher density, reduced dwelling sizes and parking requirements for senior housing projects. The overlay shall be applied within walking distance of the senior center. Northeast corner of Catalina Way and San Pascual Avenue shall be restricted to one story by the Scenic Preservation Overlay. AREA 7 Portola Avenue to Deep Canyon Road. This area contains a broad range of housing types and quality from the up scale Portola del Sol to some severely deteriorated single family units. There are no inherent land use conflicts which prevent the development and enhancement of this area as a quality affordable single family neighborhood. POLICY Encourage the preservation and rehabilitation of this area as a moderate priced single family neighborhood. IMPLEMENTATION Maintain present R-1 status. AREAS 8 and 9 McAllister and Jeffrey Properties. ISSUES These two parcels represent the last large pieces of unsubdivided acreage in the study area. Due to the convenient close-in location of the sites both property owners are -12- LAND USE ELEMENT interested in the development of senior housing. Since senior housing represents a lower intensity of development in terms of household size, noise and traffic impacts higher densities might be accommodated on these large sites if properly designed. POLICY Allow submission of proposals for compatible planned senior housing on these parcels. IMPLEMENTATION Apply senior housing overlay to the existing R-1 and PR-5 zoning for these parcels. -13- LAND USE ELEMENT -14- CIRCULATION ELEMENT The plan area is adequately served by public roads. The principal circulation issue has been the intrusion of non-local traffic through residential neighborhoods. As more high intensity development occurs in the surrounding area the impact of non-local traffic will increase. Discussions have centered around the possible closure of two streets: San Gorgonio Way at Monterey Avenue and Fairhaven Drive at Parkview Avenue. San Gorgonio receives a great deal of non-local through traffic associated with the Town Center and from the neighborhoods to the north. At this time San Gorgonio residents are strongly divided as to whether the elimination of through traffic is worth the resulting inconvenience. Fairhaven Drive, presently linking Park View Drive and Fred Waring Drive could become a short cut to the Town Center for residents of One Quail Place and proposed developments in Rancho Mirage. In this case, the neighborhood seems fairly unanimous in its desire to see Fairhaven Drive closed at Park View Drive. It is also inportant that when closures occur, adequate right-of-way is acquired to construct complete cul-de-sac improvements. Where this has not been done, dead end lot property owners end up with their driveway being used as public turnarounds. POLICY: 1. Whenever it is consistent with public safety, sound circulation planning and the wishes of the effected neighborhood; local residential streets should be closed or otherwise modified to discourage non-local through traffic. IMPLEMENTATION: 1. Fairhaven Drive will be cul-de-saced before Parkview Drive. San Gorgonio shall stay open pending a study to determine neighborhood preferences and alternatives to reduce traffic speeds and volumes. -15- CIRCULATION ELEMENT 2. All dead end streets in the study area shall be adequately signed and the cul-de- saced with full improvements. -16- PUBLIC FACILITIES The quality and variety of a neighborhood's public facilities can have a significant impact on the safety, convenience and quality of life of its habitants. The public facilities to be discussed in this element include roads, street lights and sewers. I. ROAD ISSUES: The dominating public facility within the study area is the road system. With a few exceptions, it is without curb or gutters and is six to eight feet narrower than ultimate design width. Isolated areas suffer flood damage during summer thunderstorms due to improper street drainage. These storms also cause damage to the pavement edges. In addition to creating a more attractive streetscape, a well designed curb and gutter system will significantly reduce drainage problems and solve the problems of crumbling asphalt edges. The area is also without street lights. POLICY: 1. The city shall actively encourage and facilitate the creation of curb and gutter districts. 2. Safety low intensity street lighting shall be provided at intersections of collector streets, major thoroughfares and arterials. IMPLEMENTATION: 1. The city shall circulate assessment district petitions to all property owners and will assist interested residents in the collection of required signatures. 2. perry owners whose household income falls below the HUD "lower" 80% of median level may elect to defer their curb and gutter assessments until sale of their property. t �1 V ,x PUBLIC FACILITIES 3. Lighting and landscaping district shall be formed to finance the construction and maintenance of intersection street lighting in the study area. II. SEWER ISSUES: With a few exceptions, the plan area is without sewers. As the individual systems age and increased development occurs, maintenance may become a problem in some areas. POLICY: A long range goal shall be the.extension of sewer lines throughout the study area. IMPLEMENTATION: Conduct a feasibility study to determine the costs and timing of an area wide sewer project. -18- PARKS AND OPEN SPACES PARK ISSUES: In the Recreation Element of the Palm Desert General Plan, neighborhood parks are to be provided with service areas of between % and Amile. The plan area presently Y does not contain any neighborhood parks. Most of the plan area is beyond the desired A mile radius of the Community Park and the planned San Pablo Park. In addition, access to these parks may involve the crossing of two four lane highways. Small neighborhood parks can provide a wide range of recreational experiences for all ages and serve as a meeting place and focus for neighborhood identity. POLICY: Provide each of the three major blocks in the plan area with a small neighborhood park which shall include a tot lot, basketball or volleyball court, and general landscaped area. IMPLEMENTATION: Potential sites shall be studied for possible acquisition. An advisory committee shall be formed in each block to work with the Parks and Recreation Commission to determine park design. OPEN SPACE ISSUES: The city presently owns potential lots fronting on Fred Waring Drive west of Monterey and the east side on Monterey Avenue south of Fred Waring. If properly landscaped, these areas can provide a visual buffer for the adjacent residential areas. In addition, the Land Use Element proposes creation of green belts on the north side of Santa Rosa Way and north of the Highway III commercial area between Monterey and Las Palmas. -19- PARKS AND OPEN SPACES POLICY: Whenever adjacent property owners cannot be induced to maintain and landscape these parkway areas, the city shall provide landscaping. IMPLEMENTATION: Plans shall be prepared and monies budgeted for the installation of landscaping in these areas. -20- r ECONOMIC AND HOUSING ELEMENTS The plan area comprises the city's largest stock of lower and moderate priced ownership housing. Median ownership costs were 25% lower in the 1980 census than in the city as a whole. Rental costs are only slightly lower than the city median. Of the areas approximately 1,500 dwelling units, 388 (25%) are actual multi-family apartments with the balance being single family homes. Fifty percent (50%) of the total dwelling units are renter occupied indicating a large percentage of single family detached rentals. In 1980, the area median income was $17,015 compared to $19,647 for the whole city and $22,100 for the San Bernardino/Riverside County area. This places over one half of the plan area households below the HUD lower income threshold and 70% below the moderate level. Being the oldest subdivision in Palm Desert, the area contains the oldest public infrastructure and private housing stock. In a recent survey conducted by the city's code enforcement division, the area's overall condition and level of maintenance was significantly below the city-wide average. The specific plan land use element discusses proposed land use changes providing for multi-family development on Fred Waring Drive, San Pablo Avenue, and Alessandro Drive. 'n will be encouraged in the vicinity of the senior center at Catalina Way and Senior housing g San Pascual Avenue and on two large sites off of Monterey Avenue and Deep Canyon Road. Developments in these areas will be required to address lower and moderate income housing needs. It.is hoped that these land use changes will stimulate high quality new construction which will in turn encourage increased investments and maintenance of existing housing. To augment this effort, the General Plan Housing Element has proposed the use of Redevelopment Agency housing funds in this area to provide below market rate financing for rehabilitation and purchase of housing by lower and moderate income households. -21_ ECONOMIC AND HOUSING ELEMENTS POLICY: 1. The city shall encourage new infill multi-family and senior housing in appropriate areas through use of the Affordable High Density and Senior Housing Overlays. 2. Existing single family and multi-family neighborhoods shall be enhanced by use of Redevelopment Agency housing funds to encourage rehabilitation and owner residency, increasing housing quality and opportunities for lower and moderate income households. IMPLEMENTATION: 1. Apply R-3 2,500 and Senior Housing Overlays to areas indicated in the Palm Village Land Use Element. 2. Solicitate from financial institutions proposals for the operation of a compensating balance low interest loan program to aide in the rehabilitation and purchase of housing in the plan area by lower and moderate income households. -22- ECONOMIC AND HOUSING ELEMENTS POLICY: 1. The city shall encourage new infill multi-family and senior housing in appropriate areas through use of the Affordable High Density and Senior Housing Overlays. 2. Existing single family and multi-family neighborhoods shall be enhanced by use of Redevelopment Agency housing funds to encourage rehabilitation.and owner residency, increasing housing quality and opportunities for lower and moderate income households. IMPLEMENTATION: 1. Apply R-3 2,500 and Senior Housing Overlays to areas indicated in the Palm Village Land Use Element. 2. Solicitate from financial institutions proposals for the operation of a compensating balance low interest loan program to aide in the rehabilitation and purchase of housing in the plan area by lower and moderate income households. -22- e y.T*' r _ y a a APPENDIX B n PALMA VILLAGE SPECIFIC PLAN IMPLEMENTATION PROJECT DIRECTOR - CARLOS L . ORTEGA PROJECT MANAGER - PHIL DRELL TECHNICAL ADVISOR - DAVID YRIGOYEN QUALITY CONTROL - RAY DIAZ GOAL: The implementation of the recommendations of the Palma Village Specific Plan. PROPOSED PROJECTS: 1 . Curb and Gutter Project : To construct curbs and gutters in areas where none exist . a. Issues to consider: ( 1 ) Property owners' desires to support plan and to what extent; (2 ) Identification of curb and gutter needs; (3 ) Present street size: the Possibility of the need to widen streets ; (4) Additional street requirements : (5) Construction priorities; (6) Construction design: ( 7) CVWD : sewer facilities prior to curb and gutters . b. Tasks : ( 1 ) Review Palma Village Specific Plan; (2) , City/Agency . Planning Commission adopt priorities to be implemented; (3 ) Develop citizen participation Process ; (4 ) Identify staff team for implementation: (5) Develop implementation programs ; (6) Identify cost of plan implementation; (7) Identify financial resources ; (8) Engineering consultant for specific costs and design; (9) Plan approved by Council /Agency, Commission ; ( 10) Implementation. 2 . Sewer System Cost Engineering Feasibility Study : Study of sewer facilities needs in project area. a. Issues to consider : ( 1 ) Coachella Valley Water District involvement : (2) Property owners' desires to support plan and to what extent ; (3) Overall project cost ; ( 4), Paim Desert Water Services District involvement ; (5) Connection fees : (6) Street Improvement programs : which project should be considered first; ( 7) Funding for project. b. Tasks : ( 1 ) Review Palma Village Specific Plan; (2) City /Agency , Planning Commission adopt priorities to be implemented; (3 ) Develop citizen participation process ; (4) Contact CVWD for participation commitment; (5) Identify staff team for implementation; (6) Develop implementation programs; ( 7) Identify cost of plan implementation; (8) Identify financial resources; (9) Retain consultant for Engineering Cost Feasibility Study; ( 10) Study reviewed and approved by CVWD: ( I1 ) Study reviewed and approved by Council /Agency. Commission; ( 12) Implementation. 3 . Street Lighting Project : To construct street lights at specific sites in Palma Village Area. a. Issues to consider : ( 1 ) Property owners' desires to support the Plan and to what extent; (2) Identification of street lighting needs ; (3) Participation of Southern California Edison; (4) Location of street lights; (5) Construction priorities and design; b. Tasks : ( 1 ) Review of Palma Village Specific Plan; (2) City/Agency , Planning Commission adopt priorities to be implemented; (3) Identify staff team for implementation (4) Contact Southern California Edison for participation; (5) Develop implementation programs ; (6) Identify cost of plan implementation; (7) Develop citizen participation; (8) Identify financial resources ; (9) Retain consultant for specific design and cost; ( 10) Plan approved by Council /Agency, Commission; ( 11 ) Implementation. 4 . Park Facilities Project : The development of neighborhood parks in the Palma Village Area. a. Issues to consider: ( 1 ) Property owners' desires to support plan and to what extent ; (2) Identification of park facilities needs ; (3) Size and location; (4) Possible relocation ; (5) Use of City-owned lots; (6) Funding for project. b. Tasks : ( 1 ) Review of Palma Village Specific Plan; (2) City/Agency . Planning Commission adopt priorities to be implemented; (3) Identify staff team for implementation; (4) Develop citizen participation program; (5) Develop implementation programs; (6) Identify potential sites and type of facilities ; ( 7) Develop relocation plan if necessary; (8) Identify financial resources; (9) Retain consultant for specific design and cost; ( 10) Plan approved by Council /Agency. Commission; ( 11 ) Implementation. 5. Housing Rehabilitation Project : The rehabilitation of low to moderate income households in the Palma Village Area. a. Issues to consider: ( 1 ) Property owners' desires to support plan and to what extent; (2) Identification of RDA housing allocation and uses ; ( 3 ) Identification of low and moderate income population in area; (4) Criteria for housing rehabilitation program; ( 5) Type of housing rehabilitation program most beneficial and cost effective; (6) Number of homes that require rehabilitation; (7) CC & R ' s for funding of rehabilitation loans; (8) Amount of funding to provide to housing program; (9) Conforming to RDA low and moderate income housing allocation guidelines; b. Tasks: ( 1 ) Review of Palma Village Specific Plan; (2) City/Agency . Piannin9 Commission adopt priorities to be implemented; (3) Develop citizen participation process; (4) Identify staff team for implementation; (5) Develop Implementation program; (6) Identify cost of plan and implementation; (7) Identify specific rehabilitation and alternatives : (8) Review program management/ implementation proposals ; (9) Plan approved by Council /Agency. Commission; ( 10) Implementation . 6. Mortgage Assistance Project : To assist present tenant of nonowner occupied homes in the purchase of the homes which they occupy. a. Issues to consider : ( 1 ) Property owners ' and tenants ' desires to support plan and to what extent; ( 2) Identification of mortgage assistance needs; (3) Number of tenants that request mortgage assistance: (4) Type of proposed mortgage program most beneficial and cost effective; ( 5) Type and amount of funding to be provided to housing program; (6) Conforming to RDA low and moderate income housing allocation guidelines ; ( 7) CC S R' s for funding of mortgage assistance. b. Tasks : ( 1 ) Review of Palma Village Specific Plan; (2) City/Agency . Planning Commission adopt priority projects to be implemented; (3 ) Develop citizen participation process; (4) Identify staff team for implementation; (5) Develop implementation program; (6) Identify cost of plan and implementation; (7) Identify specific criteria for program; (8) Review of proposals for management and implementation; (9) Plan approved by Council /Agency, Commission; ( 10) Implementation. 7 . Senior Housing Project : The development of senior housing programs in the Palma Village Area. a. Issues to consider: ( 1 ) Community's desire to support Plan; (2) Identify senior housing needs ; (3 ) Type of senior housing project most beneficial and cost effective to City; (4) Amount and type of funding to be provided to Project : (5) The possible integration of a senior program with the housing rehabilitation or mortgage assistance project: (6) The identification of low and moderate income services in project area: ( 7) Conforming to RDA low and moderate income housing allocation guidelines . b. Tasks: ( 1 ) Review of Palma Village Plan; .(2) City/ Agencv , Planning Commission adopt priorities to be implemented: (3 ) Develop citizen participation process ; (4) Identify staff team for implementation; (5) Develop alternative housing programs ; (6) Develop implementation program; ( 7) Identify cost of plan and implementation; (8) Define specific programs to pursue; (9) Review program management/development proposals; ( 10) Plan approved by Council /Agency. Commission; ( 11 ) Implementation. 8. Fred Waring-Monterey-Highway III Land Use Conversion: To provide for compatible land uses of the plan. a. Issues to consider: ( 1 ) Property owners ' desires to support the clan; ( 2) Compatible uses of land: ( 3 ) Relocation plan ; (4) Number of homes and/or businesses to be affected; ( 5) Underutilization of developed land: (6) CC & R's for developmental assistance; (7) Public/private property maintenance; (8) Amount of and type of funding utilized for project; (9) Priorities for implementation. b. Tasks : ( 1 ) Review Palma Village Plan; (2 ) City/Agency. Commission adopt priorities ; (3) Identify staff team for implementation: (4) Develop citizen participation process ; (5) Define type and amount of funding to be utilized: (6) Develop relocation assistance program; ( 7) Review redevelopment relocation program; (8) Identify objectives of plan and benefits to be accomplished; ( 9) Survey area to be affected to provide feedback for plan of action ; ( 10) Develop implementation program; ( 11 ) Plan approved by Council /Agency. Commission; ( 12) Implementation. 9. San Gorgonio Way Circulation Study : To provide for the mitigation of traffic congestion along San Gorgonio Way. a. Issues to consider: ( 1 ) Property owners ' desires to support the plan; (2) Identification of traffic circulation needs; ( 3) Requirements of the Riverside County Fire Department; (4) Requirements of the Riverside County Sheriff' s Department ; ( 5) Effects of the Palm Desert mall on traffic circulation in area; (6) Number of homes. and/or businesses affected; (7) Underutilization of developed land; (8) Possible closure of area. b. Tasks : ( 1 ) Review Palma Village Plan; (2) City/Agency, Commission adopt priorities ; (3) Identify staff team for implementation; (4) Develop citizen participation process; (S) Define type and amount of funding to be utilized; (6) Identify objectives of plan and benefits ; ( 7) Identify needed technical expertise; (8) Develop implementation program; (9) Plan approved by Council /Agency. Commission; ( 10) Implementation. WILLIAMS-KUEBELBECK REPORT: 1 . Report addresses various concerns of the Palma Village Plan. a. Concerns regarding compatibility of land uses ; b. The development of the northern business strip of Highway 111 . 2 . For consistency and continuity , the Williams- Kuebelbeck Report should be addressed in the process of the Palma Village Plan Implementation. ,.3 O O O O� . C a o a?I F F I V] H O h N O N N N 00 mi co n to O O O O O ccN to N o 0 00oao C Z N M N O � Lo O , O O O O 00 ON M cn dt N ri N to N C c.t ry N P-6 to n to O o 0 0 o ao o N I to d N O N to N N ri r i er (l to O O O O O c C Lo Q Na N io N N ri rl N M L� to O O O O O O o Lo er N O N O N C r-1 e-1 N N t- to O OLICDq Oao O 0 to N N rl t-1 l` N O N to N coO to � d Q y L O PL to L•] U tr ++ 0 14 O C C C C 3 G Lt. 0 cn C b F ;i o m n o e^� Aj.,. Jam• 9 c�'.. -'� K ,K.-. 1•-b�:a .. � v..4 [ l W] APPnTDrX C PALMA VILLAGE PLAN IMPLEMENTATION PROPOSAL [ . INTRODUCTION The Palma Village Specific Plan was adopted on June 13 , 1985 by the Palm Desert City Council . Resolution No. 85-49 approved GPA 85- 2 Palma Village Specific Plan and directed staff to begin implementation of plan recommendations . As a process of the direction , a project scope for the Specific Plan implementation was developed and submitted to Council for review. The following is a proposal for the actual implementation measures of the major projects in the Specific Plan . The consideration of major projects Includes the Housing Rehabilitation and Mortgage Program , curb and gutter program , sewer program , and surplus land and parkway improvement program. These programs require more direct City and Redevelopment Agency financial participation . The efforts here are to establish clear guidelines . and justification for their implementation . A . Housing Rehabilitation Program Introduction The 1980 census indicates that over one half of the plan area households are below the HUD lower income threshold and 70% below the moderate income levels . The purpose of the proposed program would be to provide ( low interest? ) loans for the rehabilitation of single and multi -family low and moderate income homes . The program would be provided to owner occupants or owners of rental property willing to participate in a low and moderate rental program. I . feasibility Study -Needs Of a preliminary concern is the number of units In the area that would benefit from a housing rehabilitation program . Encompassed in this concern is the amount of funds each unit would require to bring the unit up to standard, both legally ( to code ) and aesthetically . Without such numbers , the amount required to the program in general and each unit in particular cannot be determined. A feasibility survey of the program would accomplish the above and more . As a survey is accomplished in the area , the concerns of the I residents regarding their particular rehabilita- tion needs can be assessed and formed into the program . Guidelines in terms of what the resident can afford and to what extent partici - pate in the program can be determined. Similar assessments can be determined for owners of rental property and their willingness to participate in low and moderate income housing . Such programs are prone to apathy and the unwillingness of residents to obtain loans for rehabilitation . Through a feasibility study , preliminary marketing of the program can be accomplished to assure its success . a . Program Criteria and Guidelines In the process of a feasibility survey, criteria and guidelines can be refined , however , every program must begin with a foundation ( See Palma Village Housing Rehabilitation Project ) . AppeudlA D The program has the ability to be struc- tured in an extremely versatile manner , within the proposed funding criteria . An example : A determination must be made whether the program will offer low interest loans , no interest loans , etc . Such a structure can be determined on a sliding scale from low interest to no Interest based on Income . If desired , grant considerations can be made . b. Redevelopment Guidelines_ Chapter 8 , Article I , Subsection 33751 . 5 of the California Health and Safety Code declares that the . . . rehabilitation of residences intended for occupancy by persons and families of low or moderate income , as defined in Section 50093 , is properly Included within redevelopment plans . . . . , since redevelopment agencies have specific obII gat Ions for development of housing. . . In essence , the proposal to provide housing rehabilitation services for the Palma Village Area can be consid- ered proper under the Redevelopment Plan . Specific criteria may be required 2 for rehabilitation services provided to commercial complexes which may be accounted for during the feasibility survey , if desired . C . General Guidelines The development of a guideline basis is essential to the beginning development of a program. There are various programs to draw from such as the Section 312 Rehabilitation Loan Program established by HUD , the Home Improvement Program administered by the Riverside County Housing Authority and the Community Revitalization Program implemented by various cities . The basic guidelines for the Pal-ma Village Housing Rehabilitation Project , submitted with this package for your review, draws from the above programs . The establishment of firm , yet workable guidelines is essential as the administra- tion and marketing of the project will rely heavily on them. d. Administration Administration of the program can be accomplished in a variety of ways . The City can opt to administer the program itself through a Housing Rehabllitation Specialist . This method is generally not considered desirable doe to the tremendous workload generated by such a program. Space demands and input of time from various departments within the City is generally extreme . The City could contract with banks to administer the program, however , work write - ups and home inspections would continue to be the responsibility of the City. The bank would simply administer the loan and process the documents . The Riverside County Housing Authority currently administers the Home Improvement Program ( HIP) . The HIP is a countywide Housing Rehabilitation Program, which provides low interest loans for repairs . As experienced administrators of rehabili - tation programs , there is a possibility 3 that the City could contract with the Agency to administer such a project in our area . sae Ral,n.e— B e. Vacant Lots There are currently 12 vacant lots in the Palma Village Area that belong to the City. Such lots would be useful in the event relocation programs were necessary to accomplish other projects on the north side of Highway 111 . The Redevelopment Agency would purchase those lots from the City to accomplish those goals . The linear lots on San Pablo and Monterey would be landscaped to provide greenbelts and enhance the aesthetic value of the area . f. Summary/Recommendations The Palma Village Housing Rehabilitation Project is essential to the development of that area, however , care must be taken that such a project is implemented properly. For implementation purposes , a feasibility survey is necessary to determine the specifics of the project , i . e . , number of units requiring the process , number of people eligible , amount of interest residents are willing and/or able to pay , if any, etc . A guideline format has been established in order to determine the program as viable and to have a basis from which to begin . B. Curb 8 Gutter Construction The lack of curb and gutter has caused many problems In the Palma Village Area . Isolated areas have suffered flood damage during summer thunderstorms due to improper street drainage. These storms have also caused damage to the pavement edges . Aesthetics in the area have suffered due to a lack of curb and gutter . 1 . Present Assessment District The City has been successful in implementing the first assessment district for the Palma Village Area . Under Assessment District 83- 1 , the City is currently installing 31395 linear feet of curb and gutter . 4 2 . Final Assessment District It ' s estimated that an assessment district similar to District 83- 1 would be successful in providing curb and gutter to the entire Palma Village Area . 3 . Assessment District Study Feasibility study for the final assessment would need to be accomplished. Such a study would include survey of parcels and breakdown of cost for each parcel . sea R4cxwcm A 4. Funding Alternatives Alternatives to assessment district funding would include funding from the Redevelopment Agency Housing Set- Aside Program . Such a program is targeted for funding of projects to assist in the upgrading of low and moderate income housing . 5 . Summary/Recommendations Since the establishment of Assessment District 83- 1 has been successful in developing curb and gutter in the Palma Village Area . It would be feasible to pursue a second assessment district to provide curb and gutter for the final phase of the area . C . Sewer Program The Palma Village Area is , for all practical pur- poses , without sewer facilities . The lack of sewer facilities is causing a problem in that septic tanks used are constantly clogging up. Such problems can cause septic tanks to become cess pools , inoperable and consequently health hazardous . 1 . Feasibility Due to the complexity of this project , it is recommended that the sewer program should be analyzed on its own rather than in conjunction with the curb and gutter program. A feasibility study is considered necessary in order to determine a variety of issues . Such issues , as cost to the property owner , the need for an assessment district , overall cost of the project 5 need to be resolved. a. Avenues for financing, a criteria to be determined through the use of the feasi - bility study , may take various forms . Funding from the Redevelopment Agency .Housing Set-Aside Program may be able to compliment assessment district funds , or provide a substantial amount of the funds for the project may require a prioriti - zation . b. C . V. W . D . Participation Following a feasibility study of the problem criteria such as cost , necessity, and support for the project are determined , hard facts can be reached , and a proposal can be made to the Coachella Valley Water District for its participation in the project . C . Total cost to residents will be determined by their willingness to participate ;- as determined by their needs for the system. , Our information is that there have been many problems with the facilities in the area , thus need is important . d . Summary/Recommendation Sewer facilities area basic public necessity . It is evident that such Facilities are needed in the Palma Village Area . A basic concern is who will pay for the project . The property owners ? The City? The Water District? It is our contention that it can be a combination thereof. Following a feasibility survey with the hard facts a proposal can be developed to present to the citizens and the Water District in efforts to reach an agreement regarding those costs . The attached reference A outlines the services to be performed in the feasibility survey by Kicak and Associates . If . RECOMMENDATION In light of what has been discussed above , we would like to make the following recommendation regarding the Palma 6 i Village Specific Plan , for approval by Council . A . That Council authorize staff to pursue a feasibility study for the development of a sewer facilities project , as outlined by Reference A attached, in the Palma Village area . That following such a feasi - bility study, staff will present a funding proposal to the Council for approval utilizing C . V . W . D . participation , property owner participation , and City/Redevelopment participation , in conjunction with Redevelopment Housing allocation funds and/or assessment district initiation . Furthermore , that Council recognize the sewer facility project as a priority for Redevelopment Housing allocation fund, and that those funds remaining to be utilized as outlined in section C of this recommendation . . B. That Council authorize a feasibility study to pursue a second assessment district for the construction of curb and gutters in the Palma Village Area . C. That Council authorize staff to pursue a feasibil ) ty survey as outlined In the Housing Rehabilitation - Program above, indicating the specific of a project and utilizing the basic guideline format as proposed and attached . That such guidelines are approved as a basic format , flexible, adding to and changeable by the recommendations of the feasibility survey. That funding for the actual rehabilitation work be utilized from funds, following the implementation of priority A , above . D . That Council authorize staff to pursue the sale of the vacant lots in the Palma Village area to the Redevelopment Agency for use in future relocation projects . E . That Council authorize staff to pursue the feasi - bility of a linear greenbelt program for the linear lots on San Pablo and Monterey . 7 x � e �w APPENDIX D PALMA VILLAGE HOUSING REHABILITATION PROJECT (P.V.H.R.P. ) 1 . DEFINITION AND PURPOSE This part of the plan is designed to cover the general administrative aspects of the P . V . H . R . P , for financing and granting loans for housing rehabilitation . The purpose of the loan is to pay the cost of essential housing rehabilitation work , not exceeding $ 10 , 000 per dwelling unit , without substantially increasing the home- owner' s current monthly expenses . The program is designed to facilitate rehabilitation of substandard housing owned by "moderate " ( 120 % to 80% of the median income ) and " low" ( 80% to 50% of the median income ) income resident homeowners , especially those with a very low fixed income , who would experience serious budgetary problems if they were to assume a loan on which they would have to make monthly payments . Definite terms of the loan would be determined following the , feasibility survey , however , it is envisioned that such terms would be set on a sliding scale with more attractive terms as income is reduced . The loans are secured by a note and deed of trust to the Palm Desert Redevelopment Agency through the Agency' s Secretary. The entire amount of the loan becomes immediate- ly due and payable on the loth anniversary of the note , upon execution of a " land deed" , transfer of title , or when the homeowner vacates the premises . Recaptured funds will be used for administering additional loans within the City or if the program no longer exists , the said funds will be reverted to the Palm Desert Redevelopment Agency for use in redevelopment projects . ' The P. V . H . R. P . can be administered in various ways , either by the City through a rehabilitation specialist , by the Housing Authority through a contract , a bank , or a combination . The program administrator and/or contracting agency will maintain a close liaison with other city officials to insure proper direction of the project decisions . In addition , cooperation will be maintained with the administrators of housing programs sponsored by other agencies , including the Riverside County Community Action Agency, Housing Authority , Office on Aging , and Public Utilities Companies to assure that homeowners are afforded adequate opportunities to enroll in 1 one or more programs as determined by their specific needs and eligibility; and expand the number of alternatives available to homeowners for solving their individual problems ; and to effect a concerted effort in improving the condition of existing housing stock within the Palma Village Specific Plan Area . II . EQUAL OPPORTUNITY Participants in the P . V . H . R . P . will comply with Title VI of the Civil Rights Act of 1964 ; Title VIII of the Civil Rights Act of 1968 ; Executive Order 11063 ; and all rules , regulations , and requirements pursuant thereto. No person shall be refused to participate or denied benefits of the program because of race , sex , national origin , color , religion , marital status , handicap (provided the. applicant possesses the capacity to enter into a legally binding contract ) , receipt of income from public assistance , or because an applicant has , in good faith , exercised any right under the Consumer Credit Protection Act . 111 . ELIGIBILITY General features . Eligibility is to be considered in three elements ; Property Eligibility.; Applicant Eligibility; and Owner Eligibility by Income . A . Property Eligibility 1 . Must be an owner-occupied residential property in need of rehabilitation , physically and financially feasible of rehabilitation to Section 8 Housing Assistance Program ( HAP ) housing standards ( see Reference E ) and/or Uniform Building and Housing Codes as adopted and amended by the City of Palm Desert . Although it is desirable , there 1s no requirement to correct all of the existing hazards provided the dwelling does not continue to have major health and safety hazards after the planned repairs are made . 2 . Single family and multiple residential rental structures are eligible , if they meet all standards for P . V . H . R . P . Five ( 5) additional factors to be considered are zoning , local economic development plans , flood plain requirements , seismic and noise hazards . In addition , a rent stabilization agree- ment ( Appendix D- I ) and a commitment to low and moderate income housing would be required . All criteria applying to the P . V . H . R . P . would also apply to this category. 2 3 . The property must be located within the City of Palm Desert Palma Village Specific Plan Area . The area would be located within the boundaries of Highway III to the south , Fred Waring Drive to the north , Monterey Avenue to the west, and Deep Canyon Drive to the east , more specifically des- cribed in the attached map . 4 . Homeowners eligible for other housing rehabilitation programs will be encouraged to participate in the appropriate program . B . Conflict of Interest No member of the governing body of the City of Palm Desert , other official , employee , or agent of the City or County government who exercise policy, decision-making functions or responsibility in connection with the planning and implementation of the P . V . H . R . P . shall directly or indirectly be eligible for this program. This restriction shall continue for a period of one year after an individual ' s relationship with the City and/or County government ( s ) ends . C . Owner Eligibility by Gross Income Income limits for the Palma Village Housing Rehabilita- tion loans are the same as those income limits esta- blished by the U . S . Department of Housing and Urban Development ( HUD ) for the Section 8 Housing Assistance Payments (HAP) program. The median incomes in Riverside County are the basis from which these limits are established . I . Homeowners qualifying under the income guidelines of the Health and Safety Code for moderate Income levels are eligible for a Palma Village Housing rehabilitation loan . The income limits for different size households are shown below in Table I . These limits will be updated within 30 days of U. S . Census or HUD notification of a revised County median income level . TABLE I MODERATE INCOME GUIDELINES Family of : 1 96% of median $25 . 728 2 104% of median 27 ,872 3 3 112% of median 30 , 016 4 120% of median 32 , 160 5 1251. of median 33 , 500 6 130% of median 34 , 840 7 135% of median 36 , 180 8+ 140% of median 37 , 520 ( Reference Health and Safety Code) 2 . Definition of Income a . Spouse ' s earnings , and earnings of all other members of the family who share the household , if the employment of the spouse or other family member is a definite characteristic of family life . Excluded is the income of an adult family member who does not have an ownership interest in the property , but included are any funds contributed or paid to the family member who does not have an ownership interest in the property , but included are any funds contributed or paid to the family on a - regular basis by any adult family member . b . For purposes of establishing the amount of the homeowner ' s income that is relevant to the income limits , there shall be excluded from the homeowner ' s income , the income of a dependent child or children , as defined by the United States Internal Revenue Service. C . Other income regularly received by the home- owner or his/her family from any source . IV. PROJECT GOAL_ A . This program is designed to provide low income resident homeowners timely funding to make essential property repairs . The program administrator will maintain a close liaison with other city officials to assure proper direction of the project and homogeneous decisions . In addition , cooperation will be maintained with the administrators of housing programs sponsored by other agencies , including the Riverside County Community Action Agency , Housing Authority, Office on Aging, and Public Utilities Companies to assure that homeowners are afforded adequate opportunities to enrol ) in one or more programs as determined by their specific needs and eligibility ; and expand the number of alternatives available to homeowners for solving their individual . 4 problems ; and to effect , a concerted effort in improving the condition of existing housing stock within the City of Palm Desert . V . TERMS AND CONDITIONS OF THE LOANS A . The loans are " Interest Bearing" loans secured by a Note and Deed of Trust , by the City of Palm Desert Redevelop- ment Agency through the Agency Secretary. B . The entire amount of the loan will be secured by a Note and Deed of Trust on the property to be rehabilitated . C . The homeowner must have sufficient equity value in the property to insure payoff of the loan . D . The Note shall become immediately due and payable on the loth anniversary of the Note , upon execution of a "Land Deed " transfer of Title , or when the homeowner vacates the premises . E . The Agency' s Secretary is responsible for monitoring any actions or proceedings purporting to affect the security of Notes and Deeds of Trust held by the Agency under this program. This is accomplished by an annual review, during the month of April , of records in the Property and Mortgages Department of the Riverside County Recorder ' s Office concerning real property used to secure loans under this program . Discovery of any actions or proceeding purporting to affect the security of Notes and Deeds of Trust held by the Agency will be investigated to insure proper disposition . As a last resort , the Agency will refer the matter to the Trustee for review and appropriate action . F . At the time the deferred payment loan is repaid, it will be paid to the City of Palm Desert Redevelopment Agency through the Office of the Agency ' s Secretary. These recaptured funds will be used for administering additional loans within the city, or if the program no longer exists , the said funds will be reverted to the City Redevelopment Agency fund for use in other redevelopment projects . VI . TYPES OF HOME IMPROVEMENTS ELIGIBLE/ INELIGIBLE A . Eligible 1 . Any improvement required to bring the unit up to Section 8 Existing Housing Quality Standards and/or locally adopted housing codes . This includes removal of hazardous conditions and correction 5 of incipient violations . 2 . Any improvements resulting in weatherization and energy conservation . 3 . Exterior painting and stucco . 4 . Repair or replacement of heating or cooling units . 5 . Improvements to facilitate living conditions for handicapped persons . 6. Payment of reasonable connection fees for utilities ( i . e . , water , sewer , electric or gas ) which are required to be paid by the homeowner and which cannot be paid from other funds . 7 . Additions to a dwelling only when it is clearly necessary to remove health hazards to the occupants . B . Except for special requirements ( e . g . , ramps and railings for the handicapped ) , only improvements that are physically attached to the property and permanent in nature . 9. Payment of incidental expenses such as fees for building permits , Plan Check , architectural or other technical services . B . Ineligible 1 . Assistance in the construction of a new dwelling . 2 . Changes to the dwelling for cosmetic or convenience purposes , unless the work is directly related to improvements listed in paragraphs VI . A . I through 9 above . 3 . Repairs to a dwelling of such poor condition that when the repairs are completed, the dwelling will continue to be a major hazard to the safety and health of the occupants . 4 . Financing any of the following items : Barbecue pits Bathhouses Burglar alarms Burglar protection bars Fire extinguishers Flower boxes Greenhouses 6 Kennels Outdoor fireplaces or hearths Penthouses Photo murals Radiator covers or enclosures Stands Steam cleaning of exterior surfaces Swimming pools Television antennas Tennis courts Tree surgery Valance or cornice boards Kitchen appliances which are designed and manu- factured to be freestanding and are not built In and permanently affixed as an integral part of the kitchen in a residential structure . VII . INITIAL APPLICATION Applications will be prepared by the homeowner and submitted to the Agency or authorized processing agency. Every applica- tion and related documents will be assigned a control number for administrative purposes . Initial applications will be processed on a first come , first served basis . A waiting list of applicants , if necessary , will be managed on the basis of priority given to date of application . Extreme emergencies will be attended to immediately. Vill . PREPARATION AND SELECTION OF LOAN PACKAGES A . Loan Packages . A loan package consists of two ( 2 ) parts : 1 . Family survey and findings of homeowner' s eligi - bility. 2 . Preliminary work write-up and cost estimate . B . Loan Package Processing 1 . As required by the authorized processing agency. C . Selection Rating Guidelines . Points are awarded cumula- tively ( e . g . , a total of 35 points may be earned under " Income Characteristics" if the family has an income less than 30 percent of the median) . _ 7 1 . Income Characteristics Points Available a . 80% of median income or less 5 b. 70% of median income or less 5 C . 60% of median income or less 5 d . 50% of median income or less 5 e. 40% of median income or less 5 f . 30% of median income or less 10 Points Available 35 2 . Household Characteristics a . Handicapped/Disabled Homeowner 5 b. Senior Citizen (62 and over) 5 C . Single Head of Household with dependent children 10 Points Available 20 3 . Loan Impact a . Upgrade home to Section 8 Existing Housing Quality Standards 5 b. Eliminate Building Code Violations 5 C . Weatherization and Energy Conservation Improvements 5 d . Eliminate Major Hazardous Condition ( s ) 10 e. Requirement for Immediate Emergency Repairs 10 Points Available 35 8 4 . Other Factors a. Evidence of Previous Demonstrated Efforts Toward Maintenance and Rehabilita- tion 5 b. Previous Loan Application Disapproved by Commercial Lending Firm due to Low Income 5 Points Available 10 TOTAL POINTS AVAILABLE 100 9 ATTACHMENT 0- 1 RENT STABILIZATION AGREEMENT This Rent Stabilization Agreement is executed and entered into this day of , 19_, by and between the Palm Desert Redevelopment Agency , hereinafter referred to as Agency and hereinafter collectively referred to as Owner . The parties to this Rent Stabilization Agreement do hereby agree as follows : 1 . PARTIES TO AGREEMENT . The parties to this Agreement are as follows : A . THE AGENCY . The Agency is a public body, corporate and politic , exercising governmental functions and powers , and organized and existing under Chapter 2 of the Community Redevelopment I_ aw of the State of California . The principal office of the Agency is located at 73 - 510 Fred Waring Drive , Palm Desert , California 92260 . "Agency" as used in this Agreement includes the Palm Desert Redevelopment Agency and any assignee of, or successor to its rights , powers and responsibilities .. B . OWNER . The owner (s ) of the property subject to this Agreement is/are and holds the property known as 2 . CAPACITY OF PARTIES . The Palm Desert Redevelopment Agency warrants and represents that it is authorized to enter into this Agreement . Owner hereby represents that he/she is capable and has the authority and legal right to enter into this Agreement and that there are no persons who have any recorded or unrecorded ownership interest in the property who are not parties to this Agreement . 3 . PURPOSE OF AGREEMENT. The Palm Desert Redevelopment Agency wishes to provide for low and moderate income housing as provided for under Section 33334 . 2 of the California Health and Safety Code , allocating 20% of tax increment revenues to be used to provide affordable housing for persons of low and moderate income levels as defined . The Multi -family Complex Rehabili - tation Program hereinafter referred to as the program provides for such affordable housing . Through the Program an owner of property within a project area may receive financial assistance for the cost of eligible improvements made to the property . The . Owner in this Agreement has submitted , or caused the submission of, an application to the Agency for participation. in this Program . The Agency believes the Owner is eligible under this Program and desires to grant said application, but only on condition that the property benefited will be used for a reasonable length of time to provide low and moderate income housing, that is , housing to a family whose income does not exceed one hundred twenty percent ( 1201. ) of the median income for the area as determined by the Health and Safety Code Section 50093 . 4 . TERM . This Agreement shall be for a term of fifteen ( 15 ) years , commencing on 5 . TERMINATION . A . Owner may not terminate this Agreement except upon written consent of the Agency. B . Agency may terminate this Agreement forthwith : ( 1 ) In the event there is a conflict with any federal , State or local law, ordinance, regulation or rule rendering any of the provisions of this Agreement invalid or untenable; or ( 2 ) In the event the funding through the Agency is terminated or otherwise becomes unavailable for this project ; or ( 3 ) in the event the Agency determines for any reason that the Agreement should no longer remain in effect . C . Notwithstanding any provision in this Agreement to the contrary , in no event wi 11 the ful 1 repayment of the funds by the Owner under this program, but itself , be sufficient to terminate this Agreement prior to the end of the fifteen ( 15 ) years period . 6. PROPERTY AND PREMISES . The real property and premises which is subject to this Agreement is legally described as and consists of the following buildings and structures 7 . RENTS. The rents for the subject premises shall be set by Owner at the following levels : UNIT RENT PER MONTH PERCENT BELOW FAIR MARKET RENT The amount designated as rent per month includes the fo 1 ) owing charges : 8 . FAIR MARKET RENTS . The term Fair Market Rents shall mean the Fa i r Market Rents as pub i shed i n the Federal Reg ster and determined by the United States Department of Housing and Urban Development for this area and for the appropriate size unit under the Section 8 Existing Housing Assistance Payments Program for the term of this Agreement . In the event that Section 8 or comparable maximum rent levels are no longer published by the Federal , State or local government agencies , maximum rental levels shall be determined on the basis of the Consumer Price Index ( Los Angeles-Anaheim , All Urban Consumers , All Items , published monthly by the United States Department of Labor ) by adjusting annually on the anniversary of the commencement of the term of this Agreement as provided in paragraph 4 , by an amount equal to the percentage differential between the then current Consumer Price Index and such Consumer Price Index for the month In which the last maximum rent adjustment figure was calculated . 9. RENT CHANGES . There will be no rent increases or decreases for any contract units subject to this Agreement during the term of the Agreement except as provided for herein . Owner may , on written notice to the Agency , request a change in the rent amount for a contract unit . Said request is to be based on the latest Fair Market Rents , but the request may not be for an amount which exceeds the percentage below fair market rent as prescribed for that unit in paragraph 8 of this Agreement . For example , if the Fair Market Rents for a contract unit is $ 100 . 00 and the percentage below fair market rent is 20% , the rent for the unit is $80 . 00. If the Fair Market Rents increase to $ 140 . 00 , a request could not ask for an amount which exceeds $ 112 . 00 , that is , 20% below the new Fair Market Rents . No request may be made within one ( 1 ) year of the commencement of this Agreement or within one ( 1 ) year of the commencement of this Agreement or within one ( 1 ) year of a previous request which was approved, except in cases of special hardship. The Agency will have thirty ( 30 ) days from date of receipt within which to approve or disapprove the request . If the City does not disapprove the request within this period , the request will be deemed to have been approved . 10 . EXISTING TENANTS . Initial occupancy shall be offered to existing tenants or tenants temporarily displaced by Owner ' s i i participation in this Program , subject to any contractual relations between Owner and tenants . Low- income persons and families shall receive preference for tenancy in all other cases . 11 . INTENT OF AGENCY . It is the intent of the Agency that this Agreement shall be binding upon the legal representatives , successors , heirs and assigns of all parties to this Agreement and that this Agreement constitutes a covenant running with the land . 12 . INTENT OF OWNER . It 1s the intent of Owner that this Agreement shall be binding upon the legal representatives , successors , heirs and assignees of all parties to this Agreement and that this Agreement constitutes a covenant running with the land . 13 . CHANGE OF OWNERSHIP . The Owner , or his legal representa- tives , successors , heirs or assigns , shall require on all legal documents of transfer of interest a statement that the property is burdened by a recorded Rent Stabilization AGreement , and shall notify the Agency within thirty ( 30 ) days of transfer that a transfer has occurred . 14 . NO GUARANTEE . Notwithstanding any provision in this Agreement to the contrary, the execution of this Agreement by the Agency in no way constitutes a warranty , guarantee or promise of any sort , and in particular , to pay, subsidize , or assume any liability for the rent of the premises , whether the premises are rented or not ; nor does this Agreement constitute a warranty, guarantee or promise that the Owner will have tenants or that the Agency will in any way provide tenants or prospective tenants or assist in the search for tenants . 15 . NOTICE OF EXISTENCE OF AGREEMENT. Owner shall provide , at his/her own expense, a copy of this Rent Stabilization Agreement to the tenant in the manner provided for under California Code of Civil Procedure Section 1162 . 16 . WHO MAY ENFORCE AGREEMENT . The Agency or the tenant shall have the right to enforce this Agreement by any appropriate legal or equitable remedy or action . 17 . NON-DISCRIMINATION . Owner will not discriminate against any individual of any rights or adversely affect such person because of race , sex , national origin , color , religion , marital status , handicap, receipt of income from public assistance , or because a tenant has , in good faith , exercised any right under the Tenant-Landlord law. 18 . RECORDS . Owner shall maintain at all times during the term of this Agreement appropriate records , data and documentation of its activities pursuant to this Agreement in such a manner that they are clearly identifiable and readily accessible . All such records and data shall be maintained and kept available by Owner for the term of this Agreement ; provided, however , that if any action or lawsuit is pending, said records , data and documen- tation shall be maintained and kept available until the lawsuit is no longer pending . Said records , data , documentation shall be open to inspection by the Agency or any duly authorized agent thereof at any time during normal hours . 19. CONFLICT OF INTEREST . No member , officer or employee of the Agency or its designees or agents or any members of the governing body of the Agency, or any other public official of the Agency who exercise any function or responsibilities with respect to this Program during his tenure or for one year thereafter, shall have any interest , direct or indirect , in any contract or subcontract , or the proceeds thereof, in connection with the Agency and this real property . 20 . DEFAULT. A default shall have occurred 1f Owner or any of the Owner ' s representatives , successors , heirs or assigns charges rent in an amount in excess of the amount agreed upon pursuant to this Agreement or in any other way violates any provision of this Agreement . 21 . REMEDIES ON DEFAULT . Upon default by the Owner , the Agency may, without limitation as to any other remedy or right accruing to itself or to any other person , declare due and owing the full amount of the loan or the financial assistance provided under this Program , obtain an injunction , or the appointment of a receiver . 22 . BINDING ON SUCCESSORS . The terms and conditions herein contained shall apply to and blind the heirs , successors in interest , executors , administrator , representatives and assigns of all the parties hereto . 23 . ENTIRE AGREEMENT . This Rent Stabilization Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous agreements and understandings , oral or written, in connection therewith . This Agreement may be changed or modified only upon written consent of the parties hereto. 24 . RECORDATION. This Agreement will be recorded by the Agency in the County Recorder ' s Office for the County of Riverside , but the failure to record this Agreement will not affect the validity of this Agreement or any of the terms and conditions herein . 25 . INDEMNITY . Owner shall indemnify and hold the Agency, its officers , agents and employees free and harmless from any liability whatsoever relating to or in any way connected with or arising from this Agreement and Owner shall defend at his expense , including attorney fees , the Agency , Its officers , agents and employees in any legal action based upon this Agree- ment for any act or omission by the Agency, its officers , agents and employees . 26 . ATTORNEY FEES . Should any legal action be brought by the Agency in order to enforce any provision of this instrument , the Agency shall be entitled to recover in connection with any such suit reasonable attorney fees . 27 . GENDER AND NUMBER . The use of the masculine gender in this Agreement includes the feminine, and the singular includes the plural . 28 . NOTICE . Any notices required or desired to be served by either party upon the other shall be addressed to the respective parties as set forth below: Executive Director Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert , CA 92201 OWNER Name : Address : City: or to such other addresses as from time to time shall be desig- nated , in writing, by the respective parties . 28 . CONFLICT WITH LEASE . Nothing in this Agreement shall affect terms or conditions of any lease now in effect between the Owner and tenant of the contract unit . No provision in any agreement between the Owner and tenant subsequent to this agreement shall be valid or binding on any party if it attempts to modify, change , repeal or alter in any way any provision of this agreement . Signature of Owner Date Signature of Owner Date Palm Desert Redevelopment Agency Date 10 s t a.. '�'• s7. .l ry� 'R - ,r "�ny � ~ q '^.'�{.sd 'e Y �t +.ail.•# r f � i ..fit ..� •j..� e. ., REFERENCE A KICAX AND ASSOCIATES CIVIL ENGINEERS & PLANNERS May 14, 1986 5234 Mr. Richard Folkers Director of Public Works and City Engineer P.O. Box 1977 Palm Desert, CA 92261 Dear Mr. Folkers: Pursuant to our discussion on May 9, 1986, regarding the proposed Assessment District for Street Improvements, as well as Sanitary Sewer Installation, following is our proposal: Boundaries: The area being considered for the improvements is bounded: On the south — Alessandro and/or Highway 111 where those improvements do not exist northerly of Highway 111. On the east — Deep Canyon Road On the north — Magnesia Falls Drive On the west — Monterey Avenue Also, included would be an area west of Monterey Avenue, northerly of the existing Mall. That area is bounded by: Rancho Grande on the south. Fairhaven Drive on the west. Monterey Avenue on the east. Fleetwood Drive on the north. The area occupied by the College of the Desert should be reviewed as to the need for including it within the boundaries. It would be our proposal to provide you with a preliminary study of this area. The study would include the following: A. Street Improvements 1. Show location of all the existing curb and gutter and identify the areas, which do not have curb and gutter. 2. Investigate the feasibility of installing sidewalks within the boundaries of the district, where the side— walks do not exist, 22365 BARTON ROAD 9 SUITE 110 • GRAND TERRACE,CALIFORNIA 92324 • (714)825-3825 or 825-7503 3. Visual inspection of the roadway section. Recommendation would be made which street should be totally reconstructed. With respect to the street improvements, a preliminary cost estimate for the total project area would be prepared itemizing the various costs. In conjunction with City Staff, a determination would be made, which costs would be borne by: 1. Redevelopment Agency (If any). 2. City. 3. Individual property owners through the Assessment District proceedings. B. Sanitary Sewer Improvements: 1. Identify the location of existing mains. 2. Identify the parcels which are not served by the sanitary sewer at this time. 3. Provide preliminary design of the system to serve all of the parcels within the district not served. 4. Provide cost estimate for the project, which would include the following: a) Cost of mains and manholes. b) Cost of laterals to individual properties from the main to property line. c) Cost of laterals from property line to house connection and the abandoning of the existing individual disposal systems as per requirements. d) Any costs payable to C.V.W.D. as connection charges and/or treatment plant capacity costs. 5. Determine the potential sources and availability of funding such as: (a) Redevelopment Agency. (b) C.V.W.D. (c) Assessment District Proceedings. 6. Based on the above, estimate the costs to the property owner that would be paid through: (a) Assessments. (b) Cash at the time of connection. Included in the study would be a schedule for the various phases of the work including engineering and review process, public hearings, and construction. If this proposal is acceptable with respect to the scope of work, and accepted by you, we could begin the work within 10 days of acceptance of this proposal, and complete the same within 45 to 60 days. Any maps that are required for the report and available at the City or the C.V.W.D. , would be furnished to us at no cost. The cost to the City to complete all of the above would be at hourly rate schedule, with an amount not to exceed $15,000.00. Your consideration of this proposal would be sincerely appreciated. V y truiy yours, JO EPH KICAK r�s I4r-y raR4- +' ., :.> Ss .3 5-� [ i �,�ak. • L �f.�. REFERENCE B APPROVAL OF AGREEMENT BETWEEN THE CITY OF RIVERSIDE AND THE HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE FOR TECHNICAL ASSISTANCE TO THE EASTSIDE HOME IMPROVEMENT PROGRAM RECOMMENDED MOTION: That the Advisory Commission authorize the Chairperson to sign the agreement between the Housing Authority and the City of Riverside for technical assistance to the City of Riverside in the administration of its Eastside Home Improvement Program. JUSTIFICATION: The Housing Authority currently operates a Home Improvement Program within the unincorporated areas of the County of Riverside and is willing to expand its operation to include the provision of like services within the City of Riverside. The City of Riverside shall pay to the Authority on a reimbursable basis for its technical assistance a sum not to exceed twenty-three thousand five hundred fifty dollars ($23,550). This agreement has been reviewed by County Counsel. r_ f 7. dl ` 4 f 1 (Eastside Home Improvement Program) THIS AGREEMENT is made and entered into this day of , , by and between the CITY OF RIVERSIDE, hereinafter referred to as 'City' , and the HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE, hereinafter referred to as 'Authority'. WITNESSETH: WHEREAS the City has funds available in its Community Block Grant Program as awarded under the United States Housing and Community Development Act of 1974, as amended, for purposes of conducting repair services on owner-occupied homes of low and moderate income homeowners and desires to contract with a local governmental entity for the I erformance of such services; and WHEREAS the Authority through its Home Improvement Program operates a Home Improvement Program within the unincorporated areas of the County of Riverside and is willing to provide similar services within the corporate limits of .the City of Riverside; and WHEREAS following a public hearing, the City Council of the City approved the allocation of $176, 840 from its 1986-1987 Community Development Block Grant Program for the Eastside Home Improvement Program; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. The Authority shall provide technical assistance to the City in the administration of its Eastside Home Improvement Program as outlined in the Scope of Service attached hereto as Exhibit A and incorporated herein by this reference. 2. The City shall pay to the Authority on a reimbursable basis for its technical assistance on the Eastside Home Improvement Program within the City of Riverside, a sum not to exceed twenty-three thousand five hundred fifty dollars ($23, 550) in accordance with the Budget attached hereto as Exhibit B and incorporated herein by this reference; and as herein provided. The budget cost categories set out in Exhibit B are general guidelines and if mutually agreed by both parties, may be amended administratively by no more than 10% of each category without the requirement of a foreman amendment to this agreement. The Authority shall submit to the City monthly statements on reimbursable. expenditures pursuant to the attached Budget along with pertinent supporting documentation. The City shall promptly review the monthly expenditure statements and, upon approval, reimburse the Authority its authorized operating costs. 3. The Authority shall maintain records of its operations and financial activities in accordance with the requirements of the Housing and Community Development Act and the regulations promulgated thereunder, which records shall be open to inspection and audit by the authorized representatives of the City, the Department of Housing and Urban Development and the Comptroller General during regular working hours. Said records shall be maintained for such time as may be required by the regulations of the Housing and Community Development Act, but in no case for less than three years after the close of this program. 4. The Authority shall : (a) Submit to City through its Development Coordinator monthly reports on program status. (b) Comply with all applicable local and federal laws, ordinances and codes. 5. By executing this agreement, the Authority hereby certifies that it will adhere to and comply with the following as they may be applicable to the Eastside Home Improvement Program: (a) Section 109 of the Housing and Community Development Act of 1974, as amended, and the regulations issued pursuant thereto; (b) Section 3 of the Housing and Urban ➢evelopment Act of 1968, as amended; (c) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations at 41 CFR Chapter 60; (d) Executive Order 11063, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; (e) Section 504 of the Rehabilitation Act of 1973 (P.L. 93-112) , as amended, and implementing regulations; (f) The Age Discrimination Act of 1975 (P.L. 94-135) , as amended, and implementing regulations; (g) The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42; (h) The labor standard requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issued to implement such requirements; ( i) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control and abatement of water pollution; ( j) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) ; ( k) The regulationse, policies, guidelines and requirements of OMB Circular Nos. A-102, Revised, A-87, A-110 and A-122 as they relate to the acceptance and use of federal funds under the federally-assisted program; ( 1) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and implementing regulations issued at 24 CFR Part 1; (m) Title VIII of the Civil Rights Act of 1968 (P.L. 90-284) as amended; and (n) The lead-based paint requirements of 24 CFR Part 35 issued pursuant to the Lead-Based Paint Poisoning Prevention Act ( 42 USC 4801 et seg. ) . 6. The City shall have the rights to periodically monitor the program operations of County under this agreement, including the inspection of work sites. 7. Each party hereunder shall defend, indemnify and hold harmless the other party, its officers and employees, on any claim of liability arising out of any act or omission by said party as regards any work to be performed by, or authority delegated to, such party. 8. This agreement may be amended by mutual written concurrence of both parties. 9. This agreement shall commence effective as of July 1, 1986 and terminate on June 30, 1987. In the event the funds allocated hereunder are not fully expended by such date, this agreement shall automatically be extended for an additional period of one year. Notwithstanding anything to the contrary herein, either party may, by giving fifteen ( 15) days' written notice to the other, terminate this agreement for reasonable cause which shall include: (a) The withdrawl or withholding of funding materially affecting the party's ability to finance or operate effectively; and (b) Ineffective or improper use of funds provided hereunder. IN WITNESS WHEREOF the parties hereto have caused this agreement to be duly executed on the day and year first written above. CITY OF RIVERSIDE a municipal corporation APPROVED AS TO FORM: By Senior Deputy City Attorney Mayor Attest City Clerk HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE By Attest FORM APPROVED COUNTY COUNSEL By Attest: GERALD A. MALONEY, Clerk By Deputy a - ti REFERENCE C i I ;ti oti � ,_a2�Fl w a a ^ M• Ulf Ell oCIE CL in 6'rF%1° a d o P 1 M .0 71 T m m 0 it b a a ' Lk0- 0 El E U LL 4 tt r a i a - U N� i O NN 2 I q •s _ ? s M2 - :O •4 O m — u M d w ui 4j 10 i I 00 bo . LD ME a LLJ a Ll - •JI iti _ i - M; .Q a: A of REFERENCE D j i CHAPTER 8. REDEVELOPMENT CONSTRUCTION LOANS Article 1. General Provisions and Definitions 33750. The Legislature finds and declares that it is necessary and essential that redevelopment agencies be authorized to make long-term, low-interest loans through qualified mortgage lenders to finance residential construction in order to encourage investment and upgrade redevelopment project areas and increase the supply of housing. Unless redevelopment agencies intervene to generate mortgage funds and to provide some form of assistance to finance residential constuction, man`. redevelopment areas .will stagnate and deteriorate because owners and investors are not able to obtain loans from private sources. The Legislature further finds and declares that financing of rehabilitation, as provided in this chapter, serves an essential public purpose for the economic renewal of our cities. 33"51. The Legislature further finds and determines that a program to provide residential construction financing would accomplish the following: (a) Facilitate increasing the supply of urban housing and ease the housing shortage that exists in many parts of the state. (b) Encourage Californians of all social and economic positions to reinhabit urban areas, thereby rendering these areas more socially balanced and economically self-sufficient. (c) Reduce pressures for suburbanization and thereby mitigate many of the problems caused by urban migration, including inefficient use of scarce energy resources and urban sprawl. (d) Stimulate urban building and construction activity and therebv increase urban employment and improve the urban tax base. 33"51.5. The Legislature further finds and declares that the construction and rehabilitation of residences intended for occupancv by persons and families of log+ or moderate income, as defined in Section 50093,` is properly included within redevelopment plans whether or not such construction or rehabilitation is to occur within a redevelopment area, since redevelopment agencies have specific obligations for development of housing whether or not such development is feasible within specific redevelopment project areas. 33752. It is the intent of the Legislature, in enacting this chapter, to strengthen the vitality and promote the completion of urban rede oelop low- for the egeneral er linco is benefit. The construction of federally assisted housin, households is not a .primary purpose of this chapter. i3oswever. notan hing in this chapter shall be deemed to prohibit financing of federally assisted housing for lo't,- and moderate-income households when such housing is consistent with the redevelopment plan and the loan is directly or indirectly insured. 33"53. The definitions set forth in Article 1 (commencing, with Section 33000) of Chapter 1 of this part shall govern the construction of this chapter. :additionally, as used in this chapter: -99- (a) n struct on loan" loan a insured or uninsured finance residential construction under this chapter, (b) "Financing" means the lending of moneys or any other thing of value for the purpose of facilitating construction Pursuant to this residential con cha pier, uding mortgage loans to p of clue Iv the making of construction loans and constructed and newly rehabilitated residences and the making of urcoans to qualified newly mortgage lenders, and the making of mortgage loans to p constructed or existing residences located in targeted areas as provided in Section 33760. (c) "Local codes" means applicable local, state and federal standards for residential construction or rehabilitation, including any other standards adopted by the agency for a redevelopment project area or as part of its redevelopment program. Iong.-term loan which is and is(m) "Mtgage loan"ade foorrperrmanent financing s a of residences, pursuant to this uchapt mortgage er. (e) "Participating party" means any person, corporation, partnership, firm, or other entity or group of entities requiring financing for residential construction pursuant to the provisions of this chapter. No elective officer of the state other than officers provided for by Article VI of the California Constitution, and is pacingemplo party member of the redevelopment agency, shall be eligible to be a participating p under the provisions of this chapter. if any elected officer of any political subdivision of the state participates in deliberations or votes on a financing plan, redevelopment plan, or bond issue, that person shall not be eligible to be a participating party for bonds issued pursuant to those plans or issues. (f) "Qualified mortgage lender' means a mortgage lender authorized by a redevelopment agency to do business with the agency and to aid in financing pursuant to this cheoter on behalf of the agency, for which service the qualified mortgage lender will be reasonably compensated. Such a mortgage lender shall be a state or national bank, federal or state-chartered savings and loan association, or trust comoanv or mortgage banker which is capable of providing service or otherwise aiding in the financing of mortgages on residential construction within the jurisdiction of the agency. Nothing in any other provision of state law shall prevent such a lender from serving as a qualified mortgage lender pursuant to this chapter. (g) "Redevelopment project area" means a project area, as defined in Section 33320.1, for which a final redevelopment plan has been adopted pursuant to Section 33365. (h) "Rehabilitation" means repairs and improvements to a substandard residence necessary to make it meet local codes: and also means the acquisition of substandard residences for purposes of repairs and improvements ofwhere the the ost of cost tof such repairs and improvements equals or exceeds p acquisition. As used in this section, "substandard residence" has the same meaning as the term "substandard building," as defined in Section 17920.3,* except that "substandard residence" shall include all property improved with any structure defined in subdivision (j) of this section as a "residence," with respect to which any of the conditions listed in Section 17920.3 exist. (i) "Residential construction" means the construction of new residences or the rehabilitation and improvement of substandard residences to meet requirements of -100- local codes and the redevelopment plan. "Residential construction" also means the improvement of residences as provided in subdivision fh). (j) (1) "Residence" means real property improved with a residential structure and within a redevelopment project area real property improved with a commercial structure (or structures) or a mixed residential and commercial st, ucture. which the redevelopment agency determines to be an integral part of a residential neighborhood. For purposes of determining the integrality of new construction for such purpose, a proposed commercial or mixed residential and commercial structure shall be located within or immediately adjacent to a neighborhood primarily residential in character. (2) "Residence" also means residential hotels in which not less than one- half of the occupied dwelling units are occupied on a nontransient basis. a dwelling unit shall be deemed to be used on a nontransient basis if the term of the tenancy is one month or loneer or if the tenant has resided in the unit for more than 30 ays. In a residential hotel, individual dwelling units shall lack either cooking facilities or individual sanitary facilities, or both. However, for purposes of this paragraph, a residential hotel does not include dormitories, fraternity and sorority houses, sanitariums, rest homes, or trailer parks and courts. New construction of any commercial structure, or of the commercial portion of any mixed residential and commercial structure, financed under tilis chapter shall not exceed 80,000 square feet of ;Toss building area per development. any suit challenging such finding shall be filed within 60 days, or the findin;s of the agency shall Se conclusive. An agency may not provide long-term financing pursuant to this chapter for ne•:r construction of a commercial structure or the commercial portion of a mixed commercialresidential and onal ancing in an amount sufficient to c mplete the construction thas t f beenobta obtained then construction of such structure or portion thereof. Prior to the financing of any commercial structure within a redevelopment project area, the agency shall adopt a financing plan by resolution, which may include commercial and residential structures. The square footage of the commercial structures shall not exceed 30 percent of the ag.e,ate square footage o: all the commercial and residential structures within the project area and financed pursuant to the financing plan. The financing plan for the commercial and residential structures shall include structures that have been, or are being, financed pursuant to this chapter or under federal or state financial assistance programs or local assistance programs of any kind whatsoever. However, such a financing plan shall not be required for an agency that has financed residential structures with the proceeds of bonds issued prior to September 30, 1980, nor shall such amendments affect the validity of the tax- exempt status of bonds issued pursuant to this chapter prior to such date. Additionally, any financing for a commercial structure or a .mixed residential and commercial structure authorized or preliminarily approved by resolution adopted by a redevelopment agency or community development commission established pursuant to Section 33201 either (1) on or before June 3, 1980, in furtherance of which the agency or any person or entity has expended substantial funds or committed to reimburse another person or entity which has expended substantial funds; provided that if the long-term permanent financing is in excess of five million dollars ($5,000,000) on any one project from all financing sources, including convent;onal and tax-exempt -101- financing, a redevelopment agency or community development commission shall not provide such long-term permanent financing unless such agency and authorizing commission sal adopted a resolution before January 1, 1;81, of icially permanent financing, and the bonds were sold revenue bonds to provide such longof term and delivered before )larch 1, 1981; or (2) before October 31, 1980, in furtherance of which the agency has expended funds in connection with such financing or plans relating to such financing if the structure to be financed is located within a city designated pursuant to Section 119 of federal Public Law 95-128, as amended, or within a city designated as of September 30, 1980, under Title IR of federal public Law 89-136, as amended, as a long-term economic deterioration area, or financing for a commercial structure or mixed residential and commercial structure as to which bonds have been delivered on or before July 31, 1980 (without regard to the date the bonds were authorized or received preliminary approval), shall not be subject to new requirements or conditions of this subdivision enacted by Chapter 1331 of the Statutes of 1980. "Residence" includes condominium and cooperative dwelling units, and includes gle-family residential structures and real property both real property improved with sin improved with multiple-family residential structures. (k) "Revenue bonds" means any bonds, notes, interim certificates, debentures, or other obligations issued by an agency pursuant to this chapter and which are payable exclusively from revenues and from any other funds specified in this chapter upon which the revenue bonds may be made a charge and from which they are payable. (1) "Revenues means all amounts received as repayment of principal, interest, and all other charges received for, and all other income and receipts derived by, the redevelopment agency from the financing of residential construction, including moneys deposited in a sinking, redemption, or reserve fund or other fund to secure the revenue bonds or to provide for the payment of the principal of, or interest on, the revenue bonds. (m) "Target areas" has the same meaning as in Section 1.03A* of the Federal Internal Revenue Code of 1954, as amended. Article 2. Powers and Procedures 33760. Within its territorial jurisdiction, an agency may determine the location and character of any residential construction to be financed under the provisions of this chapter and may make mortgage or construction loans to participating parties through qualified mortgage lenders, or purchase mortgage or construction loans without premium made by qualified mortgage lenders to participating parties, or make loans to qualified mortgage lenders, for financing (1) residential construction within a redevelopment project area. (2) residential construction of residences in which the dwelling units are committed, for the period during which the loan is outstanding, for occupancy by persons or families who are eligible for financial assistance specificaLv provided by a governmental agency for the benefit of occupants of the residence, or (3) to the extent required by Section 103A* of the federal Internal Revenue Code of 1954, as amended, to maintain the exemption from federal income taxes of interest on bonds or notes issued by the agency under the provisions of this chapter, of residences located within targeted areas. Any loans to qualified mortgage lenders shall be made under terms an d conditions which, in addition to other provisions as determined by the agency, shall r=euire the qualified mortgage lender to use all of the net proceeds thereof, directly or indirectly, for the making of mortgage loans or construction loans -102- in an appropriate principal amount equal to the amount of such net proceeds; such mortgage loans may, but need not, be insured. 33760.5. (a) notwithstanding therequirements which fSection 337 is in 0, agencies which operate !vithin a jurisdiction, the population 00 persons, as determined by the Department of Finance, may additionally provide financing for residential construction of multifamily rental units outside of a redevelopment project area as set forth in and subject to the limitations of this section. (b) Within its territorial jurisdiction, an agency may determine the location and character of any residential construction to be financed under the provisions of this chapter and may make mortgage or construction loans to participating parties through qualified mortgage lenders, or purchase mortgage or construction loans without premium made by qualified mortgage lenders to participating parties for financing residential construction of multifamily rental units. (c) Not less than 20 percent (15 percent in target areas) of the units in each project financed pursuant to this section shall be occupied by, or made available to, inividulsInternalaRevoenue Code of 1954t for f low and moerae nthe period required by Secome, as efined in ction on 0103()b)(4)(A)• of the Internal Revenue Code of 1954. (d) not less than one-half of the low and moderate income units shall be occupied by, or made available to, very low-income households, as defined in Section - 50105. (e) The provisions of subdivision (d) shall apply for the period the provisions of subdivision (c) apply to a project financed pursuant to this section. However, in the event an agency finds and determines that federal rent subsidies are unavailable to a project financed pursuant to this section, as of the date revenue bonds are authorized ut on�edd he pursuant to Section 33776, or on anv subsequent date, requirements of this subdivision and subdivision (d) shall not apply. (f) This section shall remain in effect only until January 1, 1986. and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 1986, deletes or extends that date. 33761. An agency may issue revenue bonds for the purpose of financing residential construction authorized by this chapter and for the purpose of funding or refunding previously issued revenue bonds. 33762. An agency may establish limitations respecting fees, charges, and interest rates to be used by qualified mortgage lenders for financing residential construction pursuant to this chapter and may from time to time revise such fees, charges, and interest rates to reflect chances in interest rates on the agency's revenue nses bonds, losses due to defaults, changes in loan-servicing char;es, or oto e amCpe Any related to administration of the residential construction financing p" change in interest rate shall conform to the provisions of Section 1916.5• of the Civil Code, except that paragraph (3) of subdivision (a) of Section 1916.5 shall not apply and that the "prescribed standard" specified in Section 1916.5 shall be periodically determined by the redevelopment agency after hearing preceded by public notice to affected parties, and shall reflect chances in interest rates on the agency's bonds, and bona fide changes in loan servicing charges related to the administration of a program -103- under the provisions of this chapter. An agency may purchase mortgage or construction loans made by a qualified mortgage lender without premium or may itself pay such fees and charges incurred in lending money for the purpose of residential construction and may collect and disburse, or may contract to p person, partnership, association, corporation, or public agency for, collection and disbursal of payments of principal, interest, taxes, insurance, and mortgage insurance. An agency nsured under Title II of the may hold deeds of trust or mortgages, including mortgages i National Housing Act, as security for financing residential construction and may pledge or assign the same as security for repayment of revenue bonds. Such deeds of trust or mortgages may be assigned to, and held on behalf of the agencv by, any bank or trust company appointed to act as trustee or fiscal agent by the agency in any indenture or resolution providing for issuance of bonds pursuant to this chapter. An agency may establish the terms and conditions of financing, which shall be consistent with the provisions of any applicable federal or state law under which the financing is to be insured. 33763. (a) No loan shall be made for financing except through a qualified mortgage lender. (b) All mortgage loans made for financing pursuant to this chapter shall be ited States, insured or guaranteed, in whole or in Person licensed to insuret, by any ins rumelm. gages inity of the thisstate. or the State of California, or by any p 33764. An agency may employ engineering, architectural, accounting, collection, or other services, including services in connection with the servicing of loans made to participating parties, as may be necessary in the judgment of the agency for the successful financing of residential construction pursuant to this chapter. An agency may pay the reasonable costs of consulting engineers, architects, accountants, and other experts, if, in the judgment of the agency, such services are necessary to the successful financing of any residential construction and if the agency is not able to provide such services. An agency may employ and fix the comaensation of d financing tlto her avisers provideafor the issuance and sale consultnts. bod counsel, and tof any revenue sb n� of may h necessary in its u the agencv. 33765. In addition to all other powers specificaLy granted by this chaoter, an or convenient to carry out the purposes of this agency may do all things necessary chapter. 33766. Revenues and the proceeds of mortgage insurance or guarantee claims shall be the sole source of funds pledged by an agency for repayment of its revenue bonds. Revenue bonds issued under the provisions of this chapter shall not be deemed to constitute a debt or liability of the agency or the state for which is pledged the state but shall be payable solely from revenues faith and credit of the agency or the and the proceeds of mortgage insurance or guarantee claims. 33767. All residential construction shall be undertaken or completed subiect to the rules and regulations of the agency. An agency may acquire by deed, purchase, lease, contract, gift, devise, or otherwise anv real or personal property, structures, rights, rights-of-way, franchises, easements, and other interests elands necessary and convenient for the financing of residential construction, conditions as it deems advisable, and may lease, sell, or dispose of the same in such manner as may be necessary or desirable to carry out the objectives and purposes of this chapter. -104- en cinT with section 33768. The provisions Chapte t apply to ow nerd or tenants of Division 7 of Title I of the Govee rnment ode shall no or any property acquired by foreclosure, trust deed, sale other proceeding resulting from default on a loan made by the agency. 33769. An agency shall require that any residence which is constructed with financing obtained under this chapter shall be open, upon sale or rental of anv portion thereof, to all regardless of race, color, religion, national origin, or ancestry. The agency shall also require that contractors and subcontractors e 'ed portuniin aentfor construction financed under this chapter shall provide equal to employment, without discrimination as cout race, racts sand ms bco neon sta racts to, for color o reresidentialo:°ai n. national origin, or ancestry. All construction financed under this chapter shall be let without discrimination as to race, sex, marital status, color, religion, national origin, or ancestry. It shall be the policy of an agency financing residential construction under this cha?ter to encourage participation by minority contractors, and the agency shall adopt rules and regulations to implement the provisions of this section. Article 3. Bonds and votes 33775. (a) An agency may, from time to time, issue its negotiable revenue bonds for the purpose of making or purchasing mortgage'finance residential residential construction cloans, r makinbg loans to qualified mortgage lenders, o anticis may be pation of the sale of bonds, the agency may issue negotiable bond ant:cioatfon anticiDation paid from he proceeds tof sale of the bonds of the agenhe notes from time to time. cy in anticipation of which they were issued. Bond anticipation notes and agreements relating thereto and the resolution or resolutions authorizing the notes and agreements contain any may provisions, conditions, or limitations which a bond, agreement relating thereto, or bond resolution of the agency may contain except that any such note or renewal thereof shall mature at a time not later than five years from the date of the issuance of the original note. (b) Every issue of its revenue bonds shall be a special obligation of the or c atter. The revenue bonds agency lshall Deom enegotable instrumny Dart of entsevenues for a1 ?urposes� subjec in t only to the provisions of the bonds for registration. 33775.5. In determining the amount of bonds to be issued. the agency mev include all costs of the issuance of such revenue bonds, b lndrn eserventsfro nd , any b of interest estimated to accrue for a period not exceeding issuance of the bonds. 33776. The revenue bonds may be issued as serial bonds or as tern bonds, or the redevelopment ag sh ency, in its discretion, may issue revenue bonds both types. The revenue bonds shall be authorized by resolution of the agency and shall Sear such Bete or dates, mature at such time or times, not exceeding 50 years from their respective dates of issuance, bear interest at such fixed or variable rate or rates,m be pay couable or at such time or times, be in such denominations, be in such for registered, carry such registration privileges. be executed in such manner, be payable in lawful money of the united States of America at such place or places, and be subject to such terms of . redemption as the resolution or resolutions of the 'de The bonds nay be sold at redevelopment aency may provi private sale and for such plic Or rices as he agency s all determine. Pendingepreparabtion of -105- the definitive bonds, the agency may issue interim receipts, certificates, or temporary bonds, which shall be exchanged for such definitive bonds. 33777. Anv resolution or resolutions authorizing amy revenue bonds or any issue isions of revenue bonds which shall be atain partprovof the ontractewith thevholders of eof her following bond terms s conditions, P (a) The pledge of all or any part of the revenues, subject to such agreements with bondholders as may then exist. (b) The interest and principal to be received and other charges to be charged and the amounts to be raised each year thereby, and the use and disposition of the revenues. (c) The setting aside of reserves or sinking funds and the regulation and disposition thereof. (d) Limitations on the purposes to which the proceeds of a sale of any issue of revenue bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the revenue bonds or any issue of revenue bonds. (e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds. (f) The procedure, if any, by which the terms of any contract with bondholder may be amended or abrogated, the amount of revenue bonds the holders of which must consent thereto, and the manner in which such consent may be given. (g) Limitation on expenditures for operating, administration, or other expenses of the agency. (h) Specification of the acts or omissions to act which shall constitute a default in the duties of the redevelopment agency to holders of its revenue bondsr and providing the rights and remedies of such holders in the event of default. (i) The mortgaging of any residence and the site thereof for the purpose of securing the bondholder. (j) The mortgaging of land, improvements, or other assets owned by a participating party for the purpose of securing the bondholders. 33777,.5. when not immediately required to provide financing under this chapter, revenues and the proceeds of revenue bonds may be invested in any securities or obligations authorized by the resolution providing for issuance of the bonds or authorized by its trust indenture. Such investments may include mortgage obligations on single-family dwellings purchased from a state or federallv chartered bank or savings and loan association pursuant to a repurchase agreement under which the bank or savings and loan association will repurchase the mortgage obligation on or before a specified date and for a specified amount, provided that the mortgage or the repurchase agreement shall be insured by a mortgage insurance company licensed to insure mortgages in the State of California and qualified to provide insurance on mortgages purchased by the Federal Home Loan Mortgage Corporation or the Federal ;stational Mortgage Association. -106- The authority provided in this section is additional and alternative to any other authorization for investments contained in this part, including Section 33792, or in other provisions of law. 33778. Neither the members of the agency nor any person executing the revenue bonds shall be liable personally on the revenue bonds or be subject to any personal liability or accountability by reason of the issuance thereof. 33779. The agency shall have the power out of any funds available therefor to purchase its revenue bonds. The agency may hold, pledge, cancel, or resell such revenue bonds, subject to and in accordance with agreements with the bondholders. 33780. In the discretion of the agency, any revenue bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the agency and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without this state. Such a trust agreement or the resolution providing for the issuance of revenues bonds may pledge or assign the revenues to be received or proceeds of any contract or contracts pledged, and may convey or mortgage any residence the construction of which is to be financed out of the proceeds of such revenue bonds. Such trust agreement or the resolution providing for the issuance of bonds may provide for the assignment to such corporate trustee or trustees of mortgage or construction loans or loans to qualified mortgage lenders, to be held by such trustee or trustees on behalf of the agency for the benefit of the bondholders. Such trust agreement or resolution providing for the issuance of revenue bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including such provisions as may be included in any resolution or resolutions of the agency authorizing the issuance of the revenue bonds. Any bank or trust company doing business under the laws of this state which may act as deoositary of the proceeds of revenue bonds or of revenues or other moneys may furnish such indemnity bonds or pledge such securities as may be required by the agency. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee Or trustees, and may restrict the individual right of action by bor.dhoiders. i� addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the agency may deem reasonable and proper for the security Of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resoiution may be treated as a part of the cost of residential construction. 33781. Any holder of revenue bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee or trustees appointed pursuant to any resolution authorizing the issuance of such revenue bonds, except to the extent the rights thereof may be restricted by the resolution authorizing the issuance of the revenue bonds, may, either at law or in equity, by suit. action, mandamus, or other proceedings, protect or enforce any and all rights specified in the laws of this state or in such resolution, and may enforce and compel the performance of all duties required by this chapter or by such resolution to be performed by the agency or by any officer, employee, or agent thereof, including the fixing, charging, and collecting of rates, fees, interest, and char?es authorized and required by the provisions of such resolution to be fixed, established, and collected. 33782. Any agency may provide for the issuance of the revenue bonds of the agency for the purpose of refunding any revenue bonds of the agency then outstanding, including the payment of any redemption premiums thereof and any interest accrued -107- or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such bonds, and, if deemed advisable by the agency, for the additional purpose of paving all or any part of the cost of additional residential construction. The proceeds of revenue bonds issued pursuant to this section may, in the discretion of the agency, be applied to the purchase or retirement at maturity or redemption of outstanding revenue bonds, either at their earliest or any subsequent redemption date or upon the purchase or retirement at the maturity thereof and, pending such application, that portion of the proceeds allocated for such purpose may be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date, as may be determined by the agency. Pending use for purchase, retirement at maturity, or redemption of outstanding revenue bonds, any proceeds held in such an escrow may be invested and reinvested as provided in the resolution authorizing the issuance of the refunding bonds. Any interest or other increment earned or realized on any such investment may also be applied to the payment of the outstanding revenue bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the agency to be used by it for any lawful purpose under this chapter. That portion of the proceeds of any revenue bonds issued pursuant to this section which is designated for the purpose of paving all or any part of the cost of additional residential construction may be invested and reinvested in obligations of, or guaranteed by, the United States of America or in certificates of deposit or time deposits secured by obligation of, or guaranteed by, the United States of America, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or anv part of such cost. All revenue bonds issued pursuant to this section shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter. 33783. Notwithstanding any other provision of law," revenue bonds issued pursuant to this chapter shall be legal investments for all trust funds, insurance companies, savings and loan associations, investment companies and banks, both savings and commercial, and shall be legal investments for executors, administrators, guardians, conservators, trustees, and all other fiduciaries. Such bonds shall 'Je legal investments for state school funds and for anv funds which may be invested in county, municipal, or school district bonds, and such bonds shall be deemed to be securities which may properly and legally be deposited with, and received by, any state or municipal officer or by any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now, or may hereafter be authorized by law, including deposits to secure public funds. 33784. The exercise of the powers eranted by this chanter shall be in all respects for the benefit of the people of this state and for their health and welfare. Any revenue bonds issued under the provisions of this chapter, their transfer and the income therefrom, shall at all times be free from taxation of every kind by the state and by the municipalities and other political subdivisions of the state, except inheritance and gift taxes. Article 4. Residential Construction 33790. An agency may not finance mortgage or construction loans which have not been authorized by prior written agreement between the agency and the -108- participating party. All agreements for such loans shall provide that the architectural and engineering design of the residential construction shall be subject to such standards as may be established by the agency and that the work of such residential construction shall be subject to such supervision as the agency deems necessary. 33"91. An agency may enter into loan agreements with any participating party relating to residential construction of any kind or character. The terms anal conditions of such loan agreements may be as mutually agreed upon, but such terms and conditions shall not be inconsistent with the provisions of this chapter or regulations adopted pursuant thereto. Any such loan agreement may provide the means or methods by which any mortgage taken by the agency shall be discharged. and it shall contain such other terms and conditions as the agenev may require. An agency may fix, revise, charge and collect interest and principal and all other rates, fees, and charges with respect to financing of residential construction. Such rates, fees, charges and interest shall be fixed and adjusted so that the aggregate of such rates, fees, charges, and interest will provide funds sufficient with other revenues and monevs which it is anticipated will be available therefor, if any, to all. of the following: (a) Pay the principal of, and interest on, outstanding revenue bonds of the agency issued to finance such residential construction as the same shall become due and payable. (b) Create and maintain reserves required or provided for in any resolution authorizing such revenue bonds. A sufficient amount of the revenues derived from residential construction may be set aside at such regular intervals as may be provided by the resolution in a sinking or other similar fund, which is hereby pledged to, and charged with, the payment of the principal of and interest on such revenue bonds as the same shall become due, and the redemption price or the purchase price of revenue_ bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time the pledge is made. The rates, fees, interest, and other charges, revenues, or moneys so pledged and thereafter received by the agency shall immediately be subject to the lien of such pledge without anv physical delivery thereoi or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the agency, irrespective of whether such parties have notice thereof. Neither the resolution nor any loan agreement by which a pledge is created need be filed or recorded except in the records of the agency. The use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such revenue bonds. Except as may otherwise be provided in the resolution, such sinking or other similar fund may be a fund for all revenue bonds of the agency issued to finance the construction of the residence of a particular participating party without distinction or priority. The agency, ho,.,,ever, in any such resolution may provide that such sinking or other similar fund shall be the fund for particular project or projects of residential construction and for the bonds issued to finance such project or projects and may, additionally, authorize and provide for the issuance of revenue bonds having a lien with respect to the security authorized by this section which is subordinate to the lien of other revenue bonds of the agency, and in such case, the agency may create separate sinking or other similar funds securing the revenue bonds having the subordinate lien. (c) Pay operating, and administrative costs of the agenev incurred in the administration of the program authorized by this chapter. -109- 1 33792. All moneys received pursuant to the provisions of this chapter, whether revenues or proceeds from the sale of revenue bonds or proceeds of mortgage insurance or guarantee claims, shall be deemed to be trust funds to be held and applied solely for the purposes of this chapter. Any bank or trust company in which such monevs are deposited shall act as trustee of such moneys and shall hold and aoply the same for the purposes specified in this chapter, subject to the terms of the resolution authorizing the revenue bonds. 33795. This chapter being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect its purposes. 33796. If the jurisdiction of the agency to order a proposed act is not affected, an omission of any officer or the agency in proceedings under this chapter or any other defect in the proceedings shall not invalidate the prcceedings or revenue bonds issued pursuant to this chapter. 33797. This chapter is full authority for the issuance of bonds by an agency for the purpose of financing residential construction. 33798. This chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of revenue bonds and refunding revenue bonds under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds. 33799. An action may be brought pursuant to Chapter 9 (commencing with Section 860)• of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of any issuance or proposed issuance of revenue bonds under this chapter and the legality and validity of all proceedings previously taken or proposed in a resolution of an agencv to be taken for the authorization, issuance, sale, and delivery of the revenue bonds and for the payment of the principal thereof and interest thereon. t• R L1 • may, . . 1 REFERENCE E � 4 yy Q — . 'o x E c i - E m `o ° u i t _c o O n u E u n W r wn 01, 0 : n $ m= g m m n 9 d O C E W 'J m O O�T Y � T °9 d r' � Z p C Y J O y O_ `p '`A• Si E ?L j Q. c d d �� s i2.s a � Coo QgQ Ez =f' qi of $� GG > O O C A E _C ~ _Y L V t E $„Q NY_O T L- ° -A D 6 6 A Ed-Y L W 8 p Op V a c uri a D ~ n O ; y O A Y d O f g W Y N D L. g W$9 3 Q J > C y T T J p V Ci zz l0 Y T y O O). 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