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HomeMy WebLinkAboutRES 2021-67' RESOLUTION NO. 2021-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING ACTIONS RELATED TO HOMEBUYER ASSISTANCE FROM THE HOUSING MITIGATION FUND IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE HOUSING COST ASSOCIATED WITH THE DONATION OF FOURTEEN (14) VACANT PARCELS TO COACHELLA VALLEY HOUSING COALITION FOR THE PURPOSE OF CONSTRUCTING SINGLE-FAMILY HOMES TO BE MADE AVAILABLE THROUGH THE SELF-HELP PROGRAM TO QUALIFIED VERY LOW AND LOW INCOME HOUSEHOLDS WHEREAS, the City of Palm Desert owns the real property located in the City of Palm Desert, County of Riverside, State of California, described on Exhibit "A", attached hereto and incorporated herein (the "Property"); and WHEREAS, on May 28, 2020, the City entered into a Disposition and Development Agreement (the "DDA") with Coachella Valley Housing Coalition, a California non-profit public benefit corporation ("CVHC") to complete a self-help housing project on the Property consisting of 14 detached single family homes that will be restricted for sale to qualified very low and low income households (the "Project") pursuant to Resolution No. HA-57; and ' WHEREAS, the DDA provides for the City to convey the Property by grant deed to CVHC for $560,000 ("Purchase Price") and for the City to loan the Purchase Price to CVHC on the terms set forth in the form of promissory note attached to the DDA, which loan will be secured by a deed of trust on the Property in the form attached to the DDA; and WHEREAS, the DDA requires CVHC to timely construct, or cause to be constructed, the 14 single-family homes on the Property, including public infrastructure improvements associated with the homes, and timely sell the single-family homes to qualified very low and low income households which re first time homebuyers and which include a member who is employed within the City's jurisdictional boundaries, at a price that does not exceed an affordable housing cost in accordance with the terms of the affordable housing restriction agreement attached to the DDA; and WHEREAS, CVHC has notified staff that the originally estimated amount of the construction loan from FIRST BANK as described in the DDA (the "Construction Loan") will not be sufficient to construct the single-family homes as contemplated by the DDA. After several reviews, discussions and evaluations of the feasibility analysis provided by CVHC, City Staff has also determined that that an increase in the amount of the Construction Loan to finance the short -fall in the construction cost will result in the inability of the homebuyers, and primarily the very low income households, to acquire their lots at an affordable cost. -1- P6401-0001 \25921880.doc RESOLUTION NO. 2021-67 WHEREAS, in order to ensure an affordable housing cost pursuant to California , Health and Safety Code Section 50052.5 as prescribed by the conditions of the DDA, CVHC requested additional financing to assist the fourteen (14) prospective homebuyers in the payment of the purchase price of their lots. WHEREAS, CVHC has provided documentation to the City demonstrating that the homebuyers will need additional financial support from the City in the form of the loan described below to partially fund the purchase price of their lots; and WHEREAS, The City proposes to make available homebuyer assistance in the form of a loan/grant (using Housing Mitigation Funds in an aggregate amount not to exceed $355,000.00) to each qualifying homebuyer (collectively, "Loans") in a principal amount necessary to assure that the homes will be available to the purchaser at an affordable housing cost (as defined in California Health and Safety Code Section 50052.5, as amended from time to time). WHEREAS, the Loans will be secured through a soft fourth lien trust deed to be reduced each year equitably over fifteen (15) years at which time the Loan will be deemed a grant and will be forgiven. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY RESOLVES: Section 1. The above recitals are true and correct and a substantive part of this Resolution. Section 2. The Mayor and/or City Manager, or their respective designee (each, an "Authorized Officer'), is hereby authorized to make the Loans from the Housing Mitigation Fund, in an aggregate amount not to exceed $355,000.00 and to execute and deliver, for and in the name of the City, a Loan and Grant Agreement with each of the 14 homebuyers and in substantially the form attached hereto at Exhibit "B", and incorporated herein, with such additions or changes as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 3. The Finance Director of the City is hereby authorized to draw monies from the Housing Mitigation Fund in an amount not to exceed $355,000.00, and transfer such monies to facilitate the Loans. Section 4. The sum of $355,000.00 is hereby appropriated to account number 2144490-04390100 from the unobligated balance of the Housing Mitigation Fund. Section 5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, including the execution and recordation of agreements and documents required or contemplated by the Loan and Grant Agreement, and any such actions previously taken are hereby ratified and confirmed. -2- P6401-0001 \2592188v3.doc RESOLUTION NO. 2021-67 ' APPROVED at a regular meeting of the Palm Desert City Council held on this 18ih day of November, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE �IAAMILY•• I `� hJ'L-l KATHLEEN KELLY, MAYOR I ATT T: 4)7�2lxi NORMA I. ALLEY, MM CITY CLERK -3- P6401-0001 �25921880.doc RESOLUTION NO. 2021-67 EXHIBIT A ' LEGAL DESCRIPTION OF THE PROPERTY That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOTS 95 THROUGH 108 OF TRACT 30795, AS PER MAP FILED IN BOOK 406, PAGES 73 THROUGH 80 OF PARCEL MAPS, ALL IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY OF RIVERSIDE. ASSESSOR PARCEL NUMBERS 624-440-032, 624-440-034, 624-440-035, 624-440- 036, 624-441-014, 624-441-015, 624-441-016, 624-441-017, 624-441-018, 624-441 -019, 624-441-020, 624-441-021, 624-441-022 A-1- P6401-000112592188v3.doc RESOLUTION NO. 2021-67 EXHIBIT "B" ' FORM OF LOAN AND GRANT AGREEMENT 13E P6401-0001 \2592188v3. doc