HomeMy WebLinkAboutDown Payment Assistance - Falcon Crest 42204 Golden Eagle lane APN 624-431-012CITY OF PALM DESERT /PALM DESERT HOUSING AUTHORITY
JOINT CONSIDERATION
STAFF REPORT
REQUEST: APPROVE DOWN PAYMENT ASSISTANCE LOANS FROM ANY
AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE
IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE
HOUSING COST ASSOCIATED WITH A DIRECT SALE IN FALCON
CREST 42204 GOLDEN EAGLE LANE (APN 624-431-012).
SUBMITTED BY: Janet Moore, Director of Housing
DATE: March 12, 2015
Recommendation
By Minute Motion, that the City Council and Authority Board,
Approve a silent down payment assistance loan associated with a direct sale in
Falcon Crest, not to exceed forty percent (40%) of the sales price of the home to
ensure an affordable housing cost pursuant to California Health and Safety Code
Section 50052.5 for a qualified low or moderate income household from any
available funding source restricted for such purpose (Low and Moderate Income
Housing Asset Fund, BEGIN Fund and Housing Mitigation);
2. Authorize the use of the Falcon Crest sales program and documents including
the restrictive covenant and loan documents for the applicable funding source,
and authorize the Mayor to execute;
3. Authorize the Finance Director to draw monies from the relative funds to facilitate
the transaction; and
4. Authorize the Authority Chairman and/or the Authority's Executive Director or his
designee to finalize and execute any ancillary documents necessary to effectuate
the actions taken herewith.
Monies are available in the appropriate account in the Low and Moderate Income
Housing Asset Fund, BEGIN Fund and Housing Mitigation Fund.
Executive Summary
When an owner notifies the Palm Desert Housing Authority ("Authority") of their intent to sell,
staff attempts to coordinate a direct sale from the owner to a new purchaser from an interest list.
There are several households interested in the property; however, most of them need some
level of assistance in order to qualify to purchase the property.
Staff recommends approval of a silent Down Payment Assistance Loan in the form of second
and/or third trust deeds not to exceed a total of forty percent (40%) of the respective sales price
for the identified buyer of the property located at 42204 Golden Eagle Lane from any available
funding source restricted for such purpose.
Staff Report
Approval of Silent Down Payment Assistance Loans for the direct sale of APN 624-431-012
March 12, 2015
Page 2 of 2
Background
The Palm Desert Housing Authority ("Authority") received a written Notice to Sell from the
homeowner of a Falcon Crest property located 42204 Golden Eagle Lane (also known as APN
624-431-012).
Based on the affordability covenant against the property, when an owner notifies the Authority of
their intent to sell, staff attempts to coordinate a direct sale from the owner to a new purchaser
from an interest list. Staff will endeavor to qualify a buyer and have the sale negotiated directly
between the seller and a qualified buyer.
There are several households interested in the home; however, most of them need some level
of assistance in order to qualify to purchase the property. In order to ensure an affordable
housing cost, the Housing Authority and/or City will need to provide deferred down -payment
assistance loans. The loan terms will be consistent with the program funding requirements of
the funding source used for this purpose. The actual amount and funding source of the Housing
Authority and/or City assistance loan will depend on the qualifying income and buyer criteria.
The silent homebuyer assistance loan will not exceed forty percent (40%) of the respective
sales price.
Staff therefore recommends approval of a silent Down Payment Assistance Loan in the form of
second and/or third trust deeds not to exceed a total of forty percent (40%) of the respective
sales price for the identified buyer of the property located at 42204 Golden Eagle Lane from any
available funding source restricted for such purpose.
Monies are available in the appropriate account in the Low and Moderate Income Housing
Asset Fund, BEGIN Fund and Housing Mitigation Fund.
Fiscal Analysis
If the City/Authority provides assistance loans the fiscal impact will be the amount of the loans.
There would be no impact to the General Fund.
Submitted by: Fin ce epartment:
�etoore, Director of Housing P I Gibson, Director of Finance
itive Director
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