HomeMy WebLinkAbout1996-12-11 HC Regular Meeting Agenda Packet POSTED AGENDA
HOUSING ADVISORY COMMITTEE
DECEMBER 11, 1996
DECLARATION OF POSTING
I, Maria Hunt, Secretary to the Executive Director of the Palm Desert Redevelopment
Agency, do hereby declare that the foregoing agenda for Housing Advisory Committee
meeting of Wednesday, December 11, 1996, was posted on the bulletin board by the
outside entry to the Council Chambers, 73-510 Fred Waring Drive, Palm Desert, on
December 4, 1996.
Dated: December 4, 1996
MARIA HUNT, Secretary to Executive Director
Palm Desert Redevelopment Agency
• PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: December 4, 1996
TO: HOUSING ADVISORY COMMITTEE MEMBERS
FROM: MARIA HUNT
SUBJECT: NOTICE OF COMMITTEE MEETING
The next regularly scheduled meeting of the Housing Advisory Committee will be held
on Wednesday, December 11, at 3:30 p.m. in the North Wing Conference Room.
Enclosed is the agenda packet for your review.
Please call me at 776-6306 and let me know whether or not you will be able to attend
the meeting because we need a quorum in order to conduct business. If we do not
have a quorum, the meeting will be cancelled.
Thank you for your cooperation in this matter.
Thanks.
POSTED AGENDA
HOUSING ADVISORY COMMITTEE
DECEMBER 11, 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. APPROVAL OF NOVEMBER 13, 1996 MEETING'S MINUTES
IV. CONTINUED BUSINESS
A. Portola Palms Mobilehome Park
B. Proposed Rehabilitation Program Update
C. Housing Authority Audit
V. REPORTS
A. Desert Rose Update
B. Housing Projects Update
VI. ADJOURNMENT
Minutes
I iiviloo 1
HOUSING ADVISORY COMMITTEE
CONVENE 3:30 p.m., Wednesday, December 11, 1996
ROLL CALL Members Present: J. Richards, G. Holmes, W. Winfield
Members Absent: R. Murphy
Others Present: J. Benson, T. LaRocca, M. Hunt
ORAL
COMMUNICATIONS None.
MINUTES It was moved by J. Richards and seconded by G.
Holmes to approve the November 13 meeting's
minutes as submitted. Motion was unanimously
carried.
CONTINUED
BUSINESS PORTOLA PALMS MOBILE HOME PARK
Ms. LaRocca reported that she had talked to the realtor
and had been provided with information on comparable
listings of vacant lots for sale at surrounding mobile
home parks. She noted that the realtor's opinion was
that the lots at Portola Palms Mobile Home Park should
be selling from $25,000 to $28,000 in order to be
competitive.
The Acquisition Association has contacted Amos
Sommers, conversion consultant who continues to
receive a consultant fee as a result of his participation
in the conversion, and have asked if he would consider
reducing the per lot Note fee on the unsold vacant
spaces by 25%. Mr. Sommers has agreed to do so on
the condition that the Agency reduces the asking sale
price accordingly.
NOV. 13, 1996 HOUSING ADVISORY COMMITTEE
CONTINUED PORTOLA PALMS MOBILE HOME PARK (CONTD)
BUSINESS (Contd)
As of December 3, the Acquisition Association is
delinquent in paying the interest on the Note held by the
Agency for the months of September and October.
After discussion the Committee made the following
motion:
Moved by G. Holmes and seconded by W. Winfield
that recommendation be made to the Agency Board
that the Agency foreclose on the loan to the
Acquisition Association. Motion was unanimously
carried.
PROPOSED REHABILITATION PROGRAM UPDATE
Code Enforcement is moving forward with their
process. Staff will go out with Request for Proposal to
affordable housing consultants in December, and will
submit a staff report with recommendations on the
selection of a consultant for the second meeting in
January. In addition, need to apply for Community
Development Block Grant Funds.
HOUSING AUTHORITY AUDIT
Committee was provided with copy of letter from the
Housing Authority regarding the Capital Improvements
for the Housing Authority Bond Units in the City of Palm
Desert.
Report on the Housing Authority Audit will be provided
to Committee in January.
Staff was requested to obtain copy of Housing
Authority's Commissioned Lincoln Properties
Management report on One Quail Place.
2
• DEC. 11, 1996 HOUSING ADVISORY COMMITTEE
REPORTS DESERT ROSE UPDATE
Committee was provided with copy of staff report and
recommendation submitted to Agency Board on
November 14, 1996 for review and action regarding
Desert Rose Program Change. Agency Board
approved the recommendation to establish a
savings/asset cap. Copy of report attached to these
minutes.
Committee was provided with an updated report on
Desert Rose (copy attached). Sales are doing well.
It was noted that the Desert Rose Project was featured
in the December CRA Journal. Copies will be provided
to Committee.
Committee requested staff to recommend the following
to the Desert Rose Homeowners Association:
Would like the HOA to consider a
professional reserve analysis company
set up a complete reserve schedule to
address short and long-term replacement
costs.
HOUSING PROJECTS UPDATE
Committee will be provided with a copy of status report
of Housing Projects at its next meeting. Pro forma of
the Housing income expenses will also be provided to
the Committee at a later date.
3
DEC. 11, 1996 HOUSING ADVISORY COMMITTEE
ADJOURNMENT Motion was made by W. Winfield and seconded by
G. Holmes and unanimously carried to adjourn the
meeting. The meeting was adjourned at 4:30 p.m.
Carlos L. Ortega
Secretary
mh/
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No. 4
PALM DESERT REDEVELOPMENT AGENCY
Now INTEROFFICE MEMORANDUM
DATE: December 3, 1996
TO: Members of the Housing Advisory Co ' - -
FROM: Teresa L. La Rocca, Housing Progr., s Co• .11 ator
SUBJECT: PORTOLA PALMS MOBILE HOME PARK
In response to your inquiry at the November 13, 1996 meeting, I contacted Bonnie Roth of
Tarbell Realtors, who is currently working with the Acquisition Association on the sale of
the vacant lots at Portola Palms Mobile Home Park. She has provided me with a
comparable listing of vacant lots for sale at surrounding mobile home parks. Although
there is no identical property to Portola Palms', the following will give you an idea of area
prices:
`er PALM DESERT GREENS
Lists lots for sale from $32,000 to $39,000. Property contains an 18-hole executive
golf course, tennis courts, 7-8 tennis courts, 3 pools, basketball court, BBQ units,
and a clubhouse.
PORTOLA COUNTRY CLUB
Lists lots for sale from$29,000 to $33,000. Property contains an 18-hole par-three
golf course, tennis courts, 2 pools and a clubhouse.
PORTOLA PALMS MOBILE HOME PARK
Lots listed for sale from$36,000 to $38,500. No golf amenities, no tennis courts,
one pool and recreation hall.
Given Ms. Roth's experience and knowledge on vacant 'for sale' lots in surrounding
mobile home parks, her opinion is that lots at Portola Palms Mobile Home Park should
be selling from$25,000 to$28,000 in order to be competitive with the surrounding
market.
Page 1 of 2
SUBJECT: PORTOLA PALMS MOBILE HOME PARK December 3, 1996
SALES PLAN
The Acquisition Association has contacted Amos Sommers, conversion consultant for
Portola Palms Mobile Home Park, who continues to receive a consultant fee as a result of
his participation in the conversion, and have asked if he would consider reducing the per
lot Note fee on the unsold vacant spaces by 25%, from$1,057 to $750 per space. Mr.
Sommers has agreed to do so, on condition that the Agency reduces the asking sale price
accordingly (see attached letter dated November 25, 1996).
Using $36,300 as an average sales price at Portola Palms, a reduction of 25% per lot
would reduce the sales price to approximately$27,200, putting the asking price within
the range recommended by Ms. Roth.
INTEREST PAYMENTS
As of December 3, 1996, the Acquisition Association is delinquent in paying the interest
on the Note held by the Agency for the months of September and October, 1996. The
November billing has just been released, total unpaid balance is $15,435.48.
ti.. Given the above information, this may be the appropriate time to make an offer to the
Acquisition Association to reduce lot prices. The offer should contain conditions which
will put them`under the gun' to create and implement an aggressive marketing program
to include a timeline under threat of foreclosure.
For discussion at your December 11, 1996, meeting.
TLR:Iw
AMOS SOMMERS RECEIVED
P. O. Box 3288
Rancho Santa Fe, Ca. 92067 DEC 2 1996
(619) 756-0214, fax (619) 756-0591
PALM DESERT
November 25, 1996 REDEVELOPMENT AGENCY
Terry La Rocca, Administrator
City Redevelopment Agency
City of Palm Desert
73510 Fred Warring Drive
Palm Desert, Ca. 92260
Re: Portola Palm Mobilchome Park
Dear Terry,
Ron Halstead contacted me regarding the remaining unsold lots in the above park and
advised me that he had discussed with you the possibility of Agency reducing the prices on these
lots in order to get them sold.
Ron also asked me if i would consider reducing the fee due MPCC, Inc. upon the sale of
each of the remaining lots. I told Ron that I would reduce the fee due MPCC, Inc. by 25% (from
$1057.00 to $750.00 per space) if the City also reduces its price by a significant amount too.
Please contact me regarding this proposal and let me know if you need any signed
document to that effect other than this letter.
Very truly yours,
MPCC< Inc
By:
Amos Sommers, President
cc: Ron Halstead
a:t11t1125.ppk
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: December 3, 1996
TO: Members of the Housing Advisory Committee
FROM: Teresa L. La Rocca, Housing Programs Co diva
SUBJECT: HOUSING REHAB PROGRAM
Staff members from various departments met on November 26, 1996, to discuss the
housing rehab program and review the various role that each department will play in the
implementation.
Copies of the draft guidelines were handed out for staffs review and input. It was the
general consensus that consulting services for design and implementation of the
program will be necessary. Hence, staff will release a Request for Proposal to affordable
New housing consultants in December. Staff will submit a staff report with recommendations
on the selection of a consultant for the January 23, 1997 RDA Board meeting.
In addition, staff will be submitting an application for additional funds to the Community
Development Block Grant program for the rehabilitation program in the upcoming CDBG
23rd entitlement year. The rehab program has been allocated $173,000 in the CDBG
funds from the 22nd entitlement year. It is staffs intent to initiate and implement the
program with a budget of approximately$300,000 in order to make a impact during the
first year of operation in the city.
TLR:lw
/NimiN
HOUSING AUTHORITY OF THE
11711 COUNTY OF RIVERSIDE
Gabriel G. Rodriguez
Executive Director
May 2, 1996
Mr. Carlos L. Ortega, Executive Director
Attn: Ms. Terry La Rocca
Housing Program Coordinator
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
Re: CAPITAL IMPROVEMENTS FOR THE HOUSING AUTHORITY BOND UNITS IN
THE CITY OF PALM DESERT
Attached for your review is a recent capital improvements summary conducted by the Housing
Authority for the seven apartment complexes owned by the Housing Authority. These complexes
are also assisted by the City of Palm Desert Redevelopment Agency by providing funding for debt
service and other affordable housing costs; e.g., resident services programs. Some of these capital
improvements are being considered for inclusion in the Housing Authority proposed fiscal year
1996-97 budget.
One of the objectives of the quarterly meeting between the Housing Authority and Redevelopment
Agency staff is to identify possible areas for Redevelopment Agency funding. The capital
improvements outlined in the attached summaries are the basis for an anticipated five year program
of modernization and rehabilitation for these affordable housing complexes. The Housing Authority
is exploring all possible grant sources for this program and Redevelopment Agency funding
constitutes a key element in the program completion.
If I can be of further assistance or if you have any questions concerning the attached please call me
or Mr. Rudy Tamayo, Deputy Director, Administration at (909)351-0824.
Sincerely,
Gabriel G. Rodriguez �
Executive Director
Nay
5555 Arlington Avenue • Riverside, CA 92504-2506 • (909) 351-0824 • (909) 688-6873 fax
PALM DESERT BOND PROPERTIES - CAPITAL IMPROVEMENT ESTIMATE
One Quail $1,751,525
384 units
Catalina Gardens Apartments $227,074
72 units
Desert Point Apt $461,996
64 units, 4 Bldg
Neighbors Apartments $210,566
24units
Now
Pueblos Apartments $39,895
15 units
Las Serenas Apartments $284,395
150 units
Taos Apartments $245,989
16 units
TOTAL $3,221,439
page 1 of 2
COST ESTIMATE for SITE IMPROVEMENTS
JOB: ONE QUAIL BLDGS SF #OF UNITS
`.,DDRESS: 72-600 Fred Waring Drive, Palm Desert, CA 92260 43 552,880 384
DATE OF ESTIMATE 02/20/96
UNIT
Section # ITEM QTY UNIT PRICE COST TOTAL COST
2000 1 DEMOLITION
2 asphalt removal 200 yrd 0.3 $60
3 demo-concrete walkway 800 sf 1.32 $1,056
4 shrub removal and repalcement 4,000
5 tree removal 19 ea 250 $4,750
6 bldg const. dump charge
7 $9,866
02001 8 SITE WORK
9 asphalt top coat 176,334 SF $0.16 $28,213 $
10 asphalt removal INCL.
11 asphalt new INCL.
12 landscaping &planting 2,000 LS 1.5 $3,000
13 landscaping-sprinkler $1,000
14 irrigation, repair and replace $1,000 •
15 concrete drainage, $9,121
16 tree topping 320 SF ,50 $16,000
17
18 $30,121
03000 19. CONCRETE
20 4'wide sidewalk replacement 700 SF 4.4 $3,080
21 HC curb ramps (6'x6') 3 EA 1,200 $3,600
22 resurface tennis court 2 EA 5,740 $11,480
23 518,160
04000 24 MASONRY
25 NA
26
05000 27 METALS
28 6"wide 10' long steel grates _ 120 LF 5 $600
29 wrought iron fencing, front, sides and rear 265 LF 60.05 $15,913
30 hand rails and railings 2000 LF 36 $72,000
31 $88,513
06000 32 WOOD
• 33 redwood decks, 5 ft. x 9 ft. 19 EA 600 $11,400
34 redwood bridges, 3 ft. x 4 ft. 6 EA 500 $3,000
35 boiler enclosures 10 ft. x 12 ft., 4 ft high 10 EA 500 $5,000
36 $19,400
07000 37 THERMAL& MOISTURE PROTECTION
38 joint sealer 1 LS 500 $500
39 roof 33 EA 26,192 $864,336
08000 40 DOORS &WINDOWS
41 NA
42 $864,836
''r09000 43 FINISHES
44 exerior painting all buildings 43 BUILDING 552,880 SF 0.42 $232,210
45 stucco repair INCL
page 2 of 2
COST ESTIMATE for SITE IMPROVEMENTS
JOB: ONE QUAIL BLDGS SF #OF UNITS
DDRESS: 72-600 Fred Waring Drive, Palm Desert, CA 92260 43 552,880 384
DATE OF ESTIMATE 02/20/96
UNIT
Section # ITEM QTY UNIT PRICE COST TOTAL COST
46 carpeting 700 yrds 12.86 $9,002
47 $241,212
10000 48 SPECIALTIES
49
50
11000 51 EQUIPMENT
52 Vehicular Access gates and motor
53 Pedestrian entry gate 3 EA 300 $900
54
12000 55 FURNISHINGS
56 14 ft. refrigerators 30 ea 400 $12,000
57 $12,900
13000 58 SPECIAL CONSTRUCTION
14000 59 CONVEYING SYSTEMS
60
15000 61 PLUMBING
62 site drainage in the stream area 40 SF 25 $1,000
63 Pool pumsps 3 1,100 $3,300
r.. 64 $4,300
16000 65 ELECTRICAL
66 security lighting
67
68
69 Subtotal $1,289,308
70
71 General Conditions 2.50% $32,233
72 Overhead 7.00% $90,252
73 Plan Check& Permit Fees
74 Profit 7.00% $90,252
75 Contingency 7.00% $90,252
76
77 TOTAL $1,592,295
78
79 Administration Fee 10.00% $159,230
80
81 GRAND TOTAL I $1,751,525 I
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PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: November 14, 1996
TO: EXECUTIVE DIRECTOR, HONORABLE CHAIRMAN AND MEMBERS OR
REDEVELOPMENT AGENCY BOARD
FROM: TERESA LA ROCCA, HOUSING PROGRAMS COORDINATOR
SUBJECT: DESERT ROSE PROGRAM CHANGE
RECOMMENDATION:
That the Palm Desert Redevelopment Agency, by minute motion, establish a savings/asset cap
for participation on the Desert Rose Project as follows:
"total liquid assets inclusive of checking and savings accounts, stocks,
bonds, mutual funds, notes receivable and any real property currently
owned (but exclusive of any currently restricted retirement funds such as
corporate pension plans, keoghs and/or IRAs), shall not exceed $50,000
immediately following the close of escrow for the purchase of a Desert
Rose home".
"For purposes of this program, Applicant(s)' "total liquid assets" shall be
considered to include all assets currently in Applicant(s)' name(s) as well as any
assets which Applicant(s) have transferred to other third party during the twelve
month period preceding the date of application, for which Applicant(s) did not
receive fair market consideration.
BACKGROUND:
Sales to date at Desert Rose have been brisk and a reasonably high level of interest continues.
As a result of six months of sales experience, staff has identified an area which was not
anticipated at program concept, but must be addressed as it relates to policy matters, program
intent and project implementation.
The program design addresses income limits for program participation, but does not address
the issue of excessive savings/assets of prospective buyers who could meet the program criteria
based on annual income, but who possess excessive liquid savings/assets. In researching this
issue and its application, staff has been advised by the Acting Chief Counsel, for the
Department of Housing and Community Development (HCD), that HCD would not oppose a
savings cap applied to Desert Rose since it would be more restrictive than HCD's qualifying
criteria regulation and as such, consistent with HCD's intent to insure affordable housing funds
are distributed to those most in need.
Page 1 of 2
SUBJECT: DESERT ROSE PROGRAM CHANGE November 14, 1996
Nter
State law does not specifically address this issue thereby leaving it open to interpretation. State
law does define "net family assets" and determines how presumed earnings from those assets
are calculated into the income of very low, low and moderate income households, but does
not address specific savings/asset caps as qualifying criteria in affordable housing programs.
Staff has identified other public agencies who have imposed savings caps to participants in
affordable housing projects, including Century Freeway Housing Program and the Riverside
County Economic Development Agency (EDA). The EDA imposes an asset cap that shall not
exceed a 12 month reserve based on the maximum income for a family as criteria for
participation in the First Time Home Buyer Program. Staff will be participating in the EDA's
First-Time Home Buyer Program in conjunction with Desert Rose and offering the program to
families at the lower end of the income scale. Based on this, the EDA's more restrictive asset
cap will be applied to those buyers participating in the First Time Home Buyer Program.
Given the intent of State law, as it applies to the use of housing funds for the production and
availability of affordable housing and, further, the intent of the Agency behind the creation and
development of Desert Rose, it is necessary to set a savings/asset cap to insure that those
families in most need are afforded the opportunity to participate and are being served by this
project.
',taw REVIEWED AND CONCUR
eAL
A A ROCCA Executive Director, RDA
Housin Programs Coordinator
TLR:lw
Page 2 of 2
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
NOW
DATE: November 25, 1996
TO: CARLOS ORTEGA, Executive Director RDA
FROM: TERESA L. LA ROCCA, Housing Prog s Coor . ator
SUBJECT: DESERT ROSE UPDATE
Sales: 61 units (Phase 1 and 2)
Average to date subsidies (exclusive of sales price reduction)
Average mortgage subsidy $ 9,932
Average closing costs $ 2,270
Average interest buy down $ 3,016
mo. Escrows: 41 Closed
11 Currently opened
9 Being processed for submittal to escrow
Income Breakdown: 1 Family of very low income
(Closings) 30 Families of low income
.. 10 Families of moderate income
'* Phase I: 8 Units available
Ho. Phase II: 30 Units available
no. Phase III: Will not be offered until substantial number of units sold in Phase II
Average Sales Rate: 7.6 sales per month
Traffic: 56 Walk-ins for week ending 11/22/96
45% Mature prospective buyers
55% Family prospective buyers
Summary of the Media Campaign:
It is the marketing team's belief that we have now successfully established a positive
identity for Desert Rose in the Valley.Therefore,we are currently working on
developing a harder hitting series of ads which will focus more on the program's
affordability, and subsidy programs available to potential buyers.This campaign will be
scheduled for release in January and will continue to utilize what has proven a very
effective combination of broadcast and print media.We will be adding a direct mail
piece to Palm Desert renters. During the months of November and December we will
continue to place weekly newspaper ads and advertorials in the Desert Sun. On
10/30/96 staff gave a live radio interview to station KWYZ NewsTalk and on Nov. 18
participated in an hour long interview on the Patty Patane Show. Both interviews proved
to be very successful and positive for Desert Rose.
Funding
An additional funding mechanism through the Riverside County Economic
",, Development Agency has been approved. Desert Rose buyers can now participate in
the First Time Home Buyer's Program.The program will contribute soft third trust deed
financing up to 20%toward the sales price behind the RDA's second. This will allow us
to qualify families earning as little as$1,350.00 per month and at total monthly payment
under$450.00 inclusive of PIT! and HOA dues.
Buyer Profile
Attached is a buyer's profile prepared by project broker for your review.
HHs Traffic
It is anticipated that walk-in traffic will decrease considerably during the holiday season.
BUYER PROFILE
DESERT ROSE-PALM DESERT
DEVELOPER SALES NETWORK
ALL BUYERS
11/1496
DEMOGRAPHICS
❑ The average age of the Desert Rose homebuyer is: [36.5]
❑ The average animal income at Desert Rose is: $ 27,314
❑ The average rent that buyers were paying is: $500/mo.
O Most of the Desert Rose buyers are local 91%
❑ The majority are first-time buyers: 85%
❑ Most are moving because of the financing/price 76%
❑ But many clearly stated that the location was their main motivation 24%
❑ There is only one Mature buyer(Over 45 w/o kids) 4%
❑ The majority of Desert Rose buyers only have one car 65%
O Some have two cars 28%
❑ Few have more than two cars 7%
EMPLOYMENT
❑ The largest portion of the buyers work in retail 24%
❑ But many buyers are employed by the hotels 9%
❑ And many are clerical/once workers 0 („/- 14%
O A good portion work for the Hospitals 12%
❑ The restaurants also employ many buyers 21%
❑ There are buyers who have jobs that are laborer-related 16%
❑ There's even a couple retirees 3%
❑ There's even an artist 2%
FAMILY STATUS
❑ The majority of the Desert Rose homebuyers have children at home. 65%
O The average age of the Children at Desert Rose is: [8]
❑ Of all of the buyers, some have only one child 26%
O Others have two children 30%
0 And there are a couple who have three or more 9%
DEVELOPER SALES NETWORK
Desert Rose Buyer Profile
November 14, 1996
stew Page 2
FAMILY STATUS(COTINUED)
❑ There is a notable number of single mothers 28%
❑ And relatively few single fathers 6%
❑ There are also many families with no children 35%
MARITAL STATUS
O Quite a few Desert Rose buyers are married 38%
❑ But there are nearly as many who are divorced/separated 31%
❑ Portion of Divorcees that are women 94%
❑ Portion of Divorcees that are men 6%
❑ The are also quite a few singles 28%
❑ And there is a widow 3%
ORIGIN
Sow' ❑ African American 4%
❑ Asian 4%
❑ Caucasian 57%
0 Hispanic 33%
❑ Middle Eastern 2%
ADVERTISING
❑ Most buyers came in because of the Desert Sun Articles 26%
❑ There were also many who were referred by a friend 32%
O But many said they came in because of the Signs or Driving By 23%
❑ The radio advertising also attracted some buyers 9%
❑ Television Advertising was also effective 7%
❑ Some came in because of the actual Desert Sun ad 2%
O And some were referred by their employer 2%
DEVELOPER SALES NETWORK
Desert Rose Buyer Profile
New November 14, 1996
Page 3
❑ Many of the buyers subscribe to newspapers 43%
Desert Sun 37%
La Opinion 4%
LA Times 2%
❑ Most of the Desert Rose buyers listen to the radio regularly 78%
❑ The most popular radio station is Power 100.5 26%
O However many also listen to EZ 103 9%
KDES 104 11%
91.7 6%
93.7 6%
94.7 4%
92.7 11%
106.1 13%
O We had a small sample of twelve(12) buyers who indicated their,favorite television
stations and their favorite television programs:
Favorite Station:
❑ NBC 25%
0 Fox 25%
Favorite Programs:
❑ Friends 25%
• Statistics were taken from a sample of 54 current Desert Rose homebuyers who had
completed a"Buyer Profile" survey form.
PALM DESERT REDEVELOPMENT AGENCY
`•• INTEROFFICE MEMORANDUM
DATE: December 4, 1996
TO: CARLOS ORTEGA, Executive Director ' DA
FROM: TERESA L. LA ROCCA, Housing Pr, 'r. 'oordinator
SUBJECT: DESERT ROSE UPDATE
im* Sales: 61 units (Phase 1 and 2)
Average to date subsidies (exclusive of sales price reduction)
Average mortgage subsidy $ 10,172
Average closing costs $ 2,312
Average interest buy down $ 3,082
Escrows: 44 Closed
8 Currently opened
9 Being processed for submittal to escrow
NW.
110 Income Breakdown: 1 Family of very low income
(Closings) 32 Families of low income
11 Families of moderate income
'* Phase I: 8 Units available
io Phase II: 30 Units available
v" Phase III: Will not be offered until substantial number of units sold in Phase II
Average Sales Rate: 7.6 sales per month
N+ Traffic: 60 Walk-ins for week ending 11/29/96
48% Mature prospective buyers
55% Family prospective buyers
�► Summary of the Media Campaign:
Advertising for the month of December has been reduced and, as expected, traffic
has remained stable although we are seeing many second home lookie loos' who
do not qualify for the program.
Page 1 of 2
SUBJECT: DESERT ROSE UPDATE December 4, 1996
Buyer Profile
The following is a breakdown of buyers at Desert Rose:
91% Local (originated from one of the desert cities)
48% Palm Desert residents
13% Palm Springs residents
9% Cathedral City residents
9% Indio residents
6.5% Rancho Mirage residents
4% Bermuda Dunes residents
2% La Quinta residents
As you can see from the above list, the project is attracting predominantly
Palm Desert residents who were our target group from the inception.
Program Changes
Attached is a copy of the November 14, 1996, staff report and recommendation to
RDA Board regarding program change and establishment of policy regarding
�.. saving/asset cap. At your pleasure, we will discuss this report at your next
meeting.
Page 2 of 2