HomeMy WebLinkAbout1996-06-12 HC Regular Meeting Agenda Packet POSTED AGENDA
HOUSING ADVISORY COMMITTEE
JUNE 12, 1996 - 3:30 P.M.
NORTH WING CONFERENCE ROOM
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. CALL TO ORDER
II. ORAL COMMUNICATIONS
A. Any person wishing to discuss any item not otherwise on the Agenda may
address the Committee at this point by giving his/her name and address
for the record. Remarks shall be limited to maximum of five minutes
unless additional time is authorized by the Committee.
B. This is the time and place for any person who wishes to comment on
nonhearing Agenda items. It should be noted that at Committee
discretion, these comments may be deferred until such time on the
Agenda as the item is discussed. Remarks shall be limited to a maximum
of five minutes unless additional time is authorized by the Committee.
'fir
III. NEW BUSINESS
A. Proposed Refinancing of Desert Rose Bond Issues
B. Portola Palms
IV. ADJOURNMENT
(fr
ii
Minutes
tlt va.r _
orir;'• 9 .ftwai HOUSING ADVISORY COMMITTEE
CONVENE 3:35 p.m., Wednesday, June 12, 1996
ROLL CALL Members Present: G. Holmes, J. Richards, W. Winfield,
R. Murphy
Others Present: J. Benson, B. Spiegel, C. Ortega, D.
Coleman, M. Hunt
ORAL
COMMUNICATIONS Mr. Holmes requested that the Staff provide the
Committee with information regarding Redevelopment
monies spent on housing projects and the tracking of
those funds once the money is disbursed to determine
whether or not those funds are properly used.
Mr. Ortega explained that an audit is currently being
conducted on the Housing Authority Projects and
should be completed in approximately two months. The
expense portion of the audit has been received and
information to that portion can be provided to the
Committee at the next meeting. However, the revenue
portion of the audit will not be completed for at least two
months. Mr. Ortega advised the Committee that they
would receive all the information once the audit is
complete.
Mr. Richards introduced Mr. Murphy as the newest
member of the Committee.
NEW BUSINESS Councilmember Spiegel requested that the Committee
discuss the Portola Palms item first because he and
Councilmember Benson had to leave by 4:15 p.m.
Committee members concurred with his request.
Minutes
JUNE 12, 1996 HOUSING ADVISORY COMMITTEE
NEW BUSINESS
(CONTD)
A. PORTOLA PALMS
Dennis Coleman gave a brief history of the acquisition
of the Park. Committee members were provided with
copy of his memo regarding the Acquisition
Association's ability to pay the current notes. He
explained that the Association had sent a memo to Staff
advising that they would be running out of funds. They
would only be able to pay half of the interest on the
notes for July.
It was noted that complaints pertaining to the
management have been received.
Mr. Coleman explained that if the Agency foreclosed on
• the lots, the Agency would get control of the lots; would
have to pay the Homeowners' Association fees, sewer
hookup and cable; and would get the rents that are
collected.
After discussion, the Committee made the following
recommendations:
1. Obtain an opinion from Legal Counsel who has
reviewed the CC&R's, lots, etc., and find out
what would happen if the Agency were to
foreclose on the lots.
• 2. Staff to obtain a list of all voting members'
names/addresses, and to send out a certified
letter advising them of the Agency's proposed
action (foreclosure) in order to get their input,
include a Yea or Nay ballot with each letter to be
•
2
•
Minutes .
JUNE 12, 1996 HOUSING ADVISORY COMMITTEE
NEW BUSINESS
(CONTD)
returned by each resident indicating their desire
on foreclosure by the City.
Once the information is received, the Committee will
make a recommendation to the Agency Board. The
Committee also requested that the Agency Board be
advised of what the Committee is doing.
Mr. Ortega advised the Committee that the legal opinion
would be obtained and presented to the Committee at
its July 10 meeting.
B. PROPOSED REFINANCING OF DESERT
ROSE BOND ISSUES
Staff provided the Committee with information
pertaining to the $15 million Bonds that were issued for
the Desert Rose Project. It was noted that a Letter of
Credit would have to be paid in August, and Staff would
like the Committee's approval to look into refinancing
those bonds before the Letter of Credit is due.
After discussion:
It was MOVED by Mr. Holmes and SECONDED by
Mr. Winfield that the Committee endorsed the
concept of a new bond issue to both purchase the
inventory of Desert Rose and generate working
capitals on a tax exempt basis by hiring an
•
underwriter and bond counsel. MOTION WAS
UNANIMOUSLY CARRIED.
Committee was provided with an update (memo
attached) of the Desert Rose Project.
1111
Minutes .
JUNE 12, 1996 HOUSING ADVISORY COMMITTEE
ADJOURNMENT Motion was made by G. Holmes and seconded by
W. Winfield and unanimously carried to adjourn the
meeting at 4:45 p.m.
Carlos L. Ortega
Secretary
mh/
•
•
4
INTEROFFICE MEMORANDUM
PALM DESERT REDEVELOPMENT AGENCY
DATE: June 6, 1996
TO: CARLOS L. ORTEGA, EXECUTIVE DIRECTOR
FROM: DENNIS M. COLEMAN, REDEVELOPMENT ANALYST
SUBJECT: PORTOLA PALMS ABILITY TO PAY THE CURRENT NOTES
You have asked me to research and ascertain the ability of Portola Palms Mobile Park
Acquisition Association's (Association) to repay the current notes, at the interest rate of
5%. I believe that the Association was correct when they sent a memo to staff, stating
that they would run out of funds, given their current rate of expenditures, and the interest
expense on our notes, at a rate of 5%.
As of April 24, 1996, the Association had a checking account balance of $19,150. As
of April 30, 1996 the Association owed the Agency $7,665.19, for interest on all notes,
as of that date. This would leave a cash balance of approximately $11,500.
The current rental income as of the month of April, 1996 is approximately $6,000 per
month. Please note that as each low and moderate income renter becomes an owner,
the Association actually loses net revenues, in which to pay us with. It would appear this
is the case even with a reduction of the note.
The current homeowners association fees are $4,132.80 for the Association. They will
be reduced for each lot sale. The property taxes are currently $708.81 per month,
payable semi annually. The current management fees for accounting and collection of
rents is $486.35. These fees total $5,327.96 and does not account for the
miscellaneous fees like cable television charges and or marketing expenses to sell the
park.
The difference between rental income and major expenses is approximately $670 per
month. Our current interest charges, at a rate of 5%, on notes of $1,252,168, is
$5,217.36 per month. As you can see $670 per month is approximately $4,500 per
month short of what is needed.
If that Agency foreclosed, we would get the $670 per month, plus $708.81 per month,
in property taxes, and maybe the $486.35 per month in management fees. As a
governmental entity owning the lots, we would not be subject to paying the property
taxes. Although we would not need financial statements, we would still need someone
to collect rents and manage the lots that the Agency owned.
If you assumed that we would retain one half of the management fees, and the property
taxes, and the $670 per month, the Agency would have a monthly income of
approximately $1,690 per month or a 1.62% return on the note of $1,252,168.
These figures are subject to change as I believe we have had some lot closings that
have occurred in May. The bottom line, however, is that the Association will run out of
funds to pay the current notes, at 5% interest, in the middle of next month, based on a
$4,500 per month shortfall of revenues versus expenses.
Dennis M. Coleman
Redevelopment Analyst
DMC
cc: Janet Moore
Terre La Rocca
i
k J t• ,. !♦yY • 1 i P �, lfl'r � c « r r-r •c,RSJ�,� lei.y?tyYldy) 42-,....,:!, J :::, '`r• = . ;4 yy s1i1`�F1' � 'c. , J ..
d•tie•.'t. ii*,,J' (Ed,•'s!s 1 ... ;,r + 4 -, ar,. 'F ,Jr�h. ,n!i• "L }r'"e'1-`
4!'i.:^fits_?\i.:y r -M, 4 .• 1 .y .,,t 4.+i Ah rs.▪ •0. -z;v. s
4?..11 q •+i"' i 3., - +. > _•. J. .+ -..'•.a1 d 1 2 %' 't ii : .. ' r ,,r..a.
4-' 4 "'3 J`Y �+J�twJ°f•. • • �b,�1 µ"�(,. i. rn3•S``}.. 1�e♦. _,, r t
tars. di}yT
r t , ��!! •,1„ riw :0} .,,-y ' (•'-).. • -. -' :.tr tt yA•ei 4S•yr. ....ea f�yb'.-,4 .1h.. fl { z .-•r/. , .n .
•_� . �!4. +•jA�� }!� <,. Sw+• �1 • 'hR +•j�'M�%1G y ^:' ...•• 1
^• .. -1��f�� 'pie aw'i 1R'J tti -. •
fi AWRITTEN'�BALLOT'TO'VQTE'FOR OK AGAINST''''AN AMENDMENT•OF`THE.BYLAWS•TO CHANGE THE'
•
-{b e . z: ANNUAL'"MEETING'FROM THE MONTH"OF'JUNE�7O'FEBRUARY-WITH`RELATErD CONSEQUENCES RE' -
, l_,„°"* PORTOLA ALMS HOMEOWNERS ASSOCIATIO re: '�' i'r� •
'PA' - p .. N. '-' VI'k, .,Ate . k,,Y,�:. it
^ -'f� w..w!'Y �4�- f • ! 1.... ww/a Via,. ,S- •,,.
1 r t'tY` .yA, ",r N..fa'4Y.h.`.. t"-'te _{a,•� ..f.:�1,;:i.•:a !c„yµ'"•, " '.r.�.er,+s '•t.ram` ' ' - +
�, u' et` llot is being distributed for the:purpose of voting for or against•amending the Bylaws toichange '+P t,- ... �, .. , rg r-••n:Jy•.rty a +r. . ,y;..�J
�'• " 't ig.annual meetings?rom,June to•February to:accommodate_r ors:Owners"and to'provide the Board with
.; dome nodicum;of flexibility regarding annual meetingss, arltjy h ;effect:.thatthe next annual meeting will be
r, f� . ,1;february 1997y In;lieuof ceiling,-a?meeting this°bailotis bsljp, istributed:to all members under the
+r3=rj• authonty ofCorporations:Code Section:7b13 and Article;d14tof`thI. lawi. ',
� y This.ballot must be received'
,. .i ;- ^•by.the Association no:later:than:MONDAY.APRIL.1.'-1996-A'F•5:00'P.M` ,The Board,:reserves the.right to
7e ' y! `" extend this•:!deadline,forJan'additonal•sl �'
� , • xty;(80) days_Y'Atleast2 ballots (i.e. S 19b•of the`142 members):
i. 4_;''. 7.,'.,w;must be:returned to constitute.a:quorum,and:72 ballotrmust be cast In•favor,of amending•.the Bylaws for:
i 'j.the B awsA o be so amenaso.and the u ' at 1Lnext e�ousl msstln deteananped > y `
ram '''�� i1 >l '�'' .. i±;,1,'�.''�(v a,;;i' "aLxJi .�9i , �.1�yy�t• y ••�t.'. k..ez ' .4,. c}�,�.. -
vit
y19hA is •1 tf�i•i . d 4 �j r�J=, • y i 5_ iJt• '•P1 L ��1. a.°?44R! i rs� 'F�a'` l�' •, -
.; • -"w- ''xtThefouowing amendment to bylaw Article-4,3;• nnuel Meet1r,us'C"°is ro�•osed•-
i r }ar �� ,T ,.-.: Y IJ. .z i..c- atri. .; T' -':' • • t - • 4-, t ,.r a �• ,
r• � 4 *itie: he�en re :rat sentence o he o g,na aw. is e , nnue eettn --
Z . �fY r• I wing three 3 sen e c y ie >�. al�all'be`deietedand-the •rfOi 0 8 •f ¢ t n es shall be lnserte•. p ce.t0 a • 4. �'•rY?:.♦te"v t;:, , .• J►i
F ey asp ITit*• "= '2 �. ' ?;� y'♦y,_,"`'1 Y, ;Z S` a3: p'+ �",ram 4, r.:ri a r a .'
• 9 `• r 1u•1113 "A"nnual Meetlnae� COmmencI sate a . ,�Y ant., c l ir)g s'' 1
y . M; _.eij- ere. .. u.z ee x.. „�li, . L..Mzi.Y� 99, ands con-"..• ;,p each year
,i,.; ;;_,, i`..„. h „_r fter, enP m ttngs of the Oweers;.ahahkbe.hhei ion-the`' ourth Tuesd ;evening of
: � ti • xFebruary}a17.00.P:M at•therClubhouselocated at-tt e-Pro eatakerunless otherwise set by
ism ';" Win. 4* 'resolution,ofethe Board of Directors: Annual•met tin r�hell=not,be:held more than:` ,�.. .,p thirteen
.- 1., ,r'- ,,, (,13„ rhamthe efte )hsprevious ennuel meeting.of the'•;"awpers' '•Th :Board shall send written
,�4:,14 '; -1' e x4 i;;- oticcelt ew ere at least.thi, (301�•a.s'prior to :,e change 'dat p ce -
- ' d♦ t e veneof an of.,date, la
4 a,• ': A '' ": itiwaly a a ualJnieetin� ° _ . ; tt.1 �. ,• 1,'
,r,,•- r1.r^, 4 •..... •f ' AS- it '' � :i,t1�j,r' r ,r r ,
>5i,.. c�� t; ....� 7+ 't. .a,`;1A'.' .� t.'S,Y i.,1 T � � , y�•1�a x?,i i7ar .r"♦ ..` J
.:- i ,The balance-of.bylaw.'Ardcle 4 3 shall'contlnue:in'fuli'force-,and effect: ,' '{�r ' �+
-.J:.,t .{q�j '�.. •rikt -J+ :01. `+W"�`�-a�lp.�y i i .gyp '��1 . � ..2a►` 'tx�•-t+"'� •is 3• J a
A7y A„ - L t `t:�"• ` TW r.1W a:T+'_b . _.tr #pl'77 w U,�,� -�+ .,•h.• 'as • `
4 , t,,, A ateJt�o;,ap a this bylawtamendmentlelso'.tunctionsascav_ oho to approve:--,e ,'�`"% ''•7, ♦-
g b .•' i ��'1,^ ° •,rklf 45,r, } • ?•,;,* i v a ie ;, :... .,.. . . ,
y 3r4 ,�,'a, i.y s4 ,
,. ?., .� " cance Ititlo ,,o tlls:.tune; 99 aanue y� '.`' `:t.! :.=4
;� , w. ▪,. r; 4� f meeting, .�d � }
' 'WA-.A i . •r.2- .f theP.ext4,9n�al, e k'bein heidll ebruaiil99.7 �'ra p?�`_ ;i1 J* ,a• ,� };
1•a t- a , ♦,:• 4:t is,,,, ,,,,...�drr.� ♦.,.. zaa fa,' ' L., + - a- •et, i z .
.,,'; 3-- a•cna time 20,,month hiatus. etween annual:tneetingattu.e 8/95:2/87 `, -f
Y` �" t+• �+t'? -y 4:L,,..-,.:shoTtening`,3�present:.board memberster " on a `sxtan g •- ,4 m by months`and axtending Z present board
�` �i �ln.,14.. d>�a,trry4t n tvY •Fr�!,,,.:r." v r ., Y5.5i? . 11 kS ?✓
t , .t.. , ,.,member,terms by 8 months, - ,� -:�,.� ';t�„`4 'I
. .,.�,.�` the•��iext board eiectio t,t,ekeeppiaceei '2297,and will?involve voting or 3:new board •
4 t. members for 2 year terrns-and.2: ewt.board! embers:for 1 . eae terms.
•�"''' `�w J�.. "'-'.8:b;t,;,commencing with the,ann♦ual meeting in`-2/96�ii newly elected board members will serve 2
t, J$ i 2 r 4-h'{.A,.P.7, �{•. .: a I..I ,ws:eiiyt•,"4.1,, -
Ii.... J., .,:� l~K` i!yeer 1. �termaa�ti.r '•.r'•,>1�y'y :i"f`vs ' E2"1Y,iF':# �Atr,y'y;,LF'�r.�t�. t�
Y . Jk ...e ▪ yiFJe-s- S..3f''(-' wA�•.�T tr
-We:- rr ,
�� e ® Ti'{ SAME an 1 rW c`onda y effects.
c ; z
i „� F I f�PAROVE E BYLA DME ,i s abovasecondary�effects. ra, r
f u .•' a /-.• , s.'�t"4 . Y` .j�yi { .. - t :i.� -....'i;�'-;.e.z.i` r+ t .i'a f'= ) * ..
'�. a+ i' ler
i 'b5-` S«stile:l►Pa' i4.-- +,"' r51. -�:a,.Y,x,(?' r i ,s'to .�" ,t; ,tl•I,fDIS^APPROVE THE.BYLAWzAMENDMEN -an.a osecondary:effect=
y�♦, �+ ,f +r Jr r •tiI',tyf(• .. yti.t� w�,i-r• ▪r♦:It'?.�i..,ry i •a....•.,•ir •ai.. �� .w �•
71.J? •7o rY•• wi.i'., -:: a. .,+"' ,v+...•r--' ..yz-:, r,. ..y,.,lJvav r-.;..•!.
r• 'it,f `'. o �1',,`41,s.,0•• !'"','„=(YOU MUST COMPLETE THE-iNFORMATION BELOWI ,� :. ," '
n>._ ..•M, rs. ., '- 1w r.J ,nt,.t rae-}-tarl:w�x w.J:.,r N,.ss�et �,sxr=1, ,T , ,,,. fa
�is?''7♦ -1 w.r 4. ,.' t SFtJ,sf y. ,ti.: kt 4 a
a } '•JNOTE Casa Management Service p.Ronneh not members of Ponofa Patina:w,D use▪she Information below sows to verify that no one
4 • yk j :hat ayw7vr i.••••• • ra ballots.'.:The.two halves of each babot wad ion bas pa ad before the bsMota.r',counted!'
ice , lr. tl ,.i N ar►.,.r 1?s T .• tfhr F r-+1W rag. '+. . �' 7'r", .iS: wt� • # • ,. •
a +
.,.,ra. •,'ti. filed �"t .r e�• +t�! �i fiD lj'•!"'s ,.,! �, F,:a.fq'Ir�I - . "-.'r i t ';- y,t t z.
rit
i s z~ �d7,,+t • y�� rrd a1�'R �.•1i fi- itV'.. -+;'JVr - Y •1., - .J ti • --
�' -S 1". ff k 1;i1.,JMYi i '�.,.• .ft r, ;?�, !.>JI:w r tr'r w4' .,,,,,�r4x : �K Ott •.'J W { .
cf • z± a .'', +r3 ..J+.1 sw Mi^S•• �i i?T$r
' `M‘"r.r�x".�MEMBERS'S-PRINTED NAME , = ' + '"o'i : MEMBER/AUTHORIZED SIGNATURE • - .�,t`▪ "h•g. r.tiw < ,, 4.-•• +', t s j)YM:, r •f,;•i .- '.Y.j, •i Frr� n;a-♦,t.{ ♦ -:A
1• T, . � ,J �•fe A4 t/.' �-.riP",' rr'.-. 2,14y�3.f .i ,7 u.. N▪.y ,.,,t+`7.:e:7,. 1 i•
.
i J� l'J $fy R.,1,�7 t fa ' ♦ + "' i !r ♦ J +. -8,• h. 1 n'
a -,rtr ' Nr•. v; a 2 G s „ 1 a ,i t.. J J. '7•,, }J'
s -44•-y `p4�' .--', ,.7•,. �•F/-''ef•. � Y y•iy , C .t• .!V I.M ,w 7 •- K•. •e t +t , ,• • 1 •t.,. •
t� .iq '►-,}1 'vt'. 1,•, S Jl grJRt 's,4 ",;. .�1. ..r,,r„. 1 ' S''ta H,w. �ti•J' 7,,,,,. j } x •g,= a -.
14.44 ,J i r k • ♦ t r a' Y•R? ; `• Y .,• / +
N� ,;"t•' R, r "ADDRESS OF UNIT(S1.OWNED ,,r J' `ter '''DATE SIGNED TJ = it •
•
I174
PALM DESERT REDEVELOPMENT AGENCY £a4 45e'WW
�., INTEROFFICE MEMORANDUM
TO: CARLOS ORTEGA, Executive D. tor RDA
FROM: TERESA L. LA ROC , • rograms Coordinator
SUBJECT: DESERT ROSE
DATE: June 3, 1996
� Sales: 27 units
my The average subsidy to date is approximately $11,300 in mortgage buydown,
$2,300 closing costs, interest buydown $3,000.
• Total cost to the Agency in subsidy $303,158. Total cost to the Agency in closing
costs $60,294. Total cost to the Agency in interest buydown $85,337.50. Total
• Agency cost on 27 sales: $448,789.50.
� Income Breakdown: 21 families of low income
6 families of moderate income
Phase I: 27 families on contract including 19 in escrow
4 reservations (families in approval process)
in* Phase II: 14 families plus 5 backup offers on waiting list
uw Phase III: 4 families on waiting list
ley Anticipate 10 families move in by mid-June
'* Escrow process taking 6-weeks on average.
m* Seeing return visits by prospective buyers from initial opening.
• in* Traffic: 102 walk-ins for week ending June 2, 1996.
Page 1 of 2
&/v/ G- ,t4/4t Q,,
•
DESERT ROSE UPDATE June 3, 1996
� Consistent traffic averaging 100 families per week.
Plan B in Phase I is not selling well - Only 1 unit of 7 sold. Will try to sell more B
units before opening sales on Phase II.
m* Will begin selling Phase II in 3 to 4 weeks.
•
• TLR/lw Page 2 of 2
POSTED AGENDA
HOUSING ADVISORY COMMITTEE
JUNE 12, 1996
DECLARATION OF POSTING
I, Maria Hunt, Administrative Secretary of the Palm Desert Redevelopment Agency, do
hereby declare that the foregoing agenda for Housing Advisory Committee meeting of
Wednesday, June 12, 1996, was posted on the bulletin board by the outside entry to
the Council Chambers, 73-510 Fred Waring Drive, Palm Desert, on June 7, 1996.
Dated: June 7, 1996
MARIA HUNT, Administrative Secretary
Palm Desert Redevelopment Agency
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: June 7, 1996
TO: HOUSING ADVISORY COMMITTEE
FROM: MARIA HUNT
SUBJECT: JUNE 12 COMMITTEE MEETING AGENDA
Attached is a revised agenda. Please discard the one that was previously sent to you.
Thank you.
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: JUNE 6, 1996
TO: HOUSING ADVISORY COMMITTEE MEMBERS
FROM: MARIA HUNT
SUBJECT: NOTICE OF MEETING
The next regularly scheduled meeting of the Committee will be held on Wednesday,
June 12, 1996, at 3:30 p.m. in the North Wing Conference Room. Attached is a copy
of the agenda.
As you will note, there will only be one item for discussion. The reason for this is that
Terre has not been able to put together the items discussed at the May 8 meeting
because of a serious illness of a family member, which has resulted in the loss of that
family member. She hopes to have all the information ready for the July meeting.
Please let me know whether or not you will be able to attend the meeting. Thank you
for your cooperation in this matter.
91471t,
Maria Hunt
Administrative Secretary
Attachment (as noted)
•
POSTED AGENDA
HOUSING ADVISORY COMMITTEE
JUNE 12, 1996 - 3:30 P.M.
NORTH WING CONFERENCE ROOM
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. CALL TO ORDER
II. ORAL COMMUNICATIONS
A. Any person wishing to discuss any item not otherwise on the Agenda may
address the Committee at this point by giving his/her name and address
for the record. Remarks shall be limited to maximum of five minutes
unless additional time is authorized by the Committee.
B. This is the time and place for any person who wishes to comment on
nonhearing Agenda items. It should be noted that at Committee
discretion, these comments may be deferred until such time on the
Agenda as the item is discussed. Remarks shall be limited to a maximum
of five minutes unless additional time is authorized by the Committee.
III. NEW BUSINESS
A. Proposed Refinancing of Desert Rose Bond Issues
IV. ADJOURNMENT