HomeMy WebLinkAboutInformational Item - R23390 Falcon Crest Program SummaryX.
CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: INFORMATIONAL ITEM -- RECEIVE AND FILE THE FALCON
CREST SALES PROGRAM SUMMARY
SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: APRIL 13, 2006
CONTENTS: FALCON CREST SALES PROGRAM SUMMARY
Recommendation:
Receive and file the Falcon Crest Sales Program Summary.
Background:
On July 14, 2005, the Agency Board approved a Disposition and Development
Agreement (DDA) by and between ComDyn PD LLC and the Palm Desert
Redevelopment Agency. As part of that agreement, the developer is required to
develop 93 single-family homes to be made available to households of low and/or
moderate incomes.
The Housing Sub -Committee met and discussed the sales and marketing plan process
to attract buyers for the Falcon Crest homes. The program addresses both the
minimum eligibility qualifications, as well as qualifications based on residency,
employment, rent burden, and overcrowding. The program has been created pursuant
to the DDA and no further Agency Board/City Council action is required.
During the initial 60-day acceptance period, applicants who are residents, employees,
tenants of the Housing Authority properties and those households currently on our for -
sale waitlist who meet the minimum eligibility qualifications will receive categorical
qualification points. Applicants will then be placed in order of points on the initial waitlist.
After the 60-day acceptance period expires, applicants will be added to a waitlist on a
first -come -first -serve basis.
Subsidies to each buyer will vary in amounts from $5,000 to $80,000 depending on
need, and will be in the form of silent subordinate trust deeds from both the City and the
Redevelopment Agency. The subsidies will be payable after the superior deed of trust
(also known as the 1st mortgage loan) is paid in full. The funding for these subsidies will
be from the recently awarded BEGIN (Building Equity and Growth in Neighborhoods)
grant and 20% Housing Set -Aside.
G:\RDA\Maria Hunt\WPDATA4IMOORE\stfrpts\041305 Info FC Sales Program doc
Staff Report — Informational Item
Receive and File the Falcon Crest Sales Program Summary
Page 2 of 2
April 13, 2006
In order to maintain the continued affordability in the development, every buyer will be
required to sign an "Affordable Housing Restriction and Lien Agreement". The
agreement will include resale price restrictions, occupancy restrictions, and limitations
on encumbrances and transfers, among other limitations and restrictions.
The attached program summary is a collaborative effort of the Housing Sub -Committee,
staff and the developer. The complete program details the processes and procedures
that the developer will follow in order to initiate interest in the program, as well as to
complete the actual sales. A copy of the complete program is available upon request.
Submitted By:
M. Moore
sing Authority Administrator
Approval:
Department Head:
Dave Yrigoye
Director g edevelopment/Housing
lopment Carlos L. Orte , City Manager
FALCON c ' IZ I S I
SALES PROGRAM
The community of Falcon Crest is being developed by the Palm Desert
Redevelopment Agency in connection with the City of Palm Desert. There will be
93 single-family homes that will be made available to households of restricted
income who make at least $40,000 annually. The three and four bedroom floor
plans are perfect for the moderate -income household that may currently be
excluded from homeownership opportunities in Riverside County.
The project will incorporate energy efficient upgrades as well as drought tolerant
front yard landscaping resulting in a conservation friendly desert environment.
Falcon Crest will have its own homeowners association that will maintain the front
yards ensuring the community's beauty for years to come.
Falcon Crest is seeking buyers who understand the responsibilities of
homeownership and are willing to participate to keep their community as a
showcase of quality affordable housing.
Buyers in Falcon Crest will receive assistance from both the City and the Agency
in the form of silent second and third trust deeds. The principal will be deferred
until such time as the home falls out of compliance, the primary first trust deed
loan is paid off or the home is sold.
As a part of the Agency's affordable portfolio, there will be restrictions placed on
the homes to ensure affordability for 45 years and buyers must meet certain
minimum qualifications.
Falcon Crest, the City's newest affordable for -sale community, is close to
recreation facilities, shopping and services. Centrally located, Falcon Crest will be
yet another premier affordable housing community in Palm Desert.
Falcon Crest Program and Sales Criteria
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IN ORDER TO PURCHASE A HOME IN THE FALCON CREST COMMUNITY,
ALL PROSPECTIVE APPLICANTS MUST MEET THE FOLLOWING MINIMUM
ELIGIBILITY QUALIFICATIONS:
I. MINIMUM ELIGIBILITY QUALIFICATIONS for all applicants:
1. Annual household income of not Tess than $40,000 and not more than 120% of Area
Median Income (AMI) for Riverside County adjusted for household size.
2. First Time Homebuyer
3. Household size and composition will comply with City of Palm Desert Occupancy
Standards.
4. Buyers will contribute a minimum of 2% of the sales price of a home.
5. Liquid assets must not exceed $50,000 for the 12-month period preceding the registration
period. Liquid assets remaining after down payment must be less than $25,000.
6. Applicants and household members must be able to document their current status as
permanent resident aliens or U.S. citizens.
7. Applicants must demonstrate sufficient credit worthiness to pre -qualify for and obtain First
Trust Deed financing.
II. INFORMATIONAL MEETINGS:
CD Realty, Inc., the broker selling the homes on behalf of the Redevelopment Agency,
will conduct at least three informational meetings regarding the Falcon Crest Sales
Program.
III. OPEN REGISTRATION (60 days):
• The broker will begin accepting completed Falcon Crest Applications "Applications" at the
Falcon Crest Sales Office on a date specific and continue accepting Applications for an
open registration period of 60 days.
• Applications are to be delivered directly to the broker's sales office on -site.
Draft Falcon Crest Sales Criteria
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IV. QUALIFICATION POINTS for initial 60-day acceptance period:
All completed applications received during the Open Registration Period will be
ranked according to the number of points received pursuant to the categories
described below:
Category
Residency
Employment
Waitlist
Tenant
...... .... .
Rent Burden
Scoring
5 points for being a full time year round City resident
5 points for working within the boundaries of the City
of Palm Desert
1 point for being on Desert Rose waitlist; another
point if on waitlist for over a year
1 point for being tenant in Housing Authority property
1 point for paying above affordable housing cost in
rent
2 points
Max. Points
5 points
5 points
1 point
1 point
Overcrowding 1 point for being overcrowded in current housing j 1 point
A maximum of 15 points are possible. (In the event of a scoring tie between two or more
completed Applications, that Application which was submitted first will receive priority.)
V. AFTER THE 60-DAY OPEN REGISTRATION PERIOD EXPIRES:
Interested parties who submit an Application after the 60-day open registration period must meet the
minimum eligibility qualifications, and then will be accepted on a first come first serve basis.
VI. PREQUALIFICATION FOR HOME PURCHASE:
• A preferred lender will review the eligible applicants' completed homeownership
questionnaires in the order in which they have been ranked.
• Buyers will be offered the first home that becomes available which is suitable to their family
size.
• Buyers will be provided with down payment assistance in the form of silent second and third
trust deeds as a part of the Falcon Crest Program.
• The silent assistance loans will range in total from $5,000 to $80,000 and will be provided to
ensure an affordable housing. A restrictive covenant will be recorded.
Draft Falcon Crest Sales Criteria
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