HomeMy WebLinkAboutDPA - DR - APN 634-241-034CITY 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 DESERT
ROSE 43-755 KELSEY COURT (634-241-034).
SUBMITTED BY: Janet Moore, Director of Housing
DATE: November 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
Desert Rose, not to exceed forty percent (40%) of a sales price of $131,750 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 Desert Rose 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
The home was purchased on January 9, 1998 for the sales price of $89,950. However, the
homeowner experienced a financial hardship and even with the former Agency's attempt to
assist the owner the home was sold at a trustee sale.
The current owners acquired the property at a Trustee Sale on October 17, 2012 in the amount
of $42,000.00. The Palm Desert Housing Authority was notified that the current owners desire to
sell the property. The home is listed for sale on the open market; however, the real estate agent
is attempting to keep the home on the affordable program.
Staff Report
Approval of Silent Down Payment Assistance Loans for the direct sale of APN 634-241-034)
November 12, 2015
Page 2 of 2
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 ($131,750).
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 43-755 Kelsey Court 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: Finance Department:
9/ant Moore, Director of Housing aul Gibson, Director of Finance
M. Wohlmuth, City Manager/Executive Director
GAHOUSINGTatry LeonUM"aft reportSR - HA -City DR DAP Loan (RBB Inv) - 11-12 15.doc