HomeMy WebLinkAbout1997-03-12 HC Regular Meeting Agenda Packet POSTED AGENDA
HOUSING ADVISORY COMMITTEE
MARCH 12, 1997 - 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 FEBRUARY 12, 1997 MEETING'S MINUTES
IV. CONTINUED BUSINESS
A. Mobile Home Park Issues
1. Portola Palms Mobilehome Park
2. Silver Spur Mobile Home Manor
B. Proposed Rehabilitation Program Update
C. Housing Authority Audit
D. Santa Rosa Apartments Relocation/Disposition
V. NEW BUSINESS - None
VI. REPORTS
A. Desert Rose Update
B. Housing Projects Update
VII. ADJOURNMENT
•••,.,,.•... .. ...•.••
Minutes
MM 4:4 _ /��
• '• 9• . HOUSING ADVISORY COMMITTEE
••........•.•
CONVENE 3:40 p.m., Wednesday, March 12, 1997
ROLL CALL Members Present: G. Holmes, W. Winfield, Carrie Wick
Others Present: J. Benson, C. Ortega, T. LaRocca, M.
Hunt
ORAL
COMMUNICATIONS None.
MINUTES It was moved by W. Winfield and seconded by G.
Holmes to approve the February 12 meeting's
minutes as submitted. Motion was unanimously
carried.
CONTINUED
BUSINESS MOBILE HOME PARK ISSUES
PORTOLA PALMS MOBILEHOME PARK
New Board has been elected.
Staff to look at possibility of Acquisition Association
tendering a deed in lieu of foreclosure. Need to get title
report first. Letter from RDA attorney to be released
this week which will set in motion foreclosure
procedure.
SILVER SPUR MOBILE HOME MANOR
Staff reported that letter sent to Mr. Gibbs, Silver Spur
attorney, regarding Mr. Bedig's request from the
Agency to release of a letter relative to its power to use
eminent domain. (Copy of letter attached). No
• response has been received. Tenants and owner are
Minutes .
MAR. 12, 1997 HOUSING ADVISORY COMMITTEE
CONTINUED
BUSINESS (Contd) PROPOSED REHABILITATION PROGRAM UPDATE
still negotiating. Will continue to. keep Committee
apprised of events.
Staff met with County Economic Development Agency
staff to discuss County's Home Improvement Program.
Program is offered throughout the County and includes
Coachella Valley cities (Palm Desert). The program
offers loans up to $30,000 per household at an interest
rate of 5% available to owner occupants of single-family
residences only. CDBG funds can be used as
enhancement to the County program. . Staff also
suggested that the Agency offer a grant program which
would provide a maximum of $3,000 per qualified
household to be used for improvements not allowed
under County program.
Staff has proposed that a joint venture be created
between Agency and County. Agency would become
a partner in facilitating the application process, the
inspection process, etc. Currently the process takes
approximately six months to complete. With the
Agency's assistance, it could reduce the time by
approximately three months. An informational staff
report is going to City Council on March 27 (copy
attached).
Code Enforcement Department would identify the
homes and Code violations; Building and Safety
Department would be working with the County
inspectors to facilitate the inspection of the work.
Staff will set up a City Home Improvement Program in
conjunction with County program to be offered citywide
to homeowners who do not qualify for County program.
Maximum grant would be $3,000.
2
Minutes
MAR. 12, 1997 HOUSING ADVISORY COMMITTEE
CONTINUED
BUSINESS (Contd) PROPOSED REHABILITATION PROGRAM UPDATE
(Contd)
Motion was made by G. Holmes and seconded by
W. Winfield to recommend to the City
Council/Agency Board the Committee's support of
the Home Improvement Program. Motion was
unanimously carried.
HOUSING AUTHORITY AUDIT
Mr. Ortega provided the Committee ,with report
regarding audit findings and status of project
acquisitions.
SANTA ROSA APARTMENTS
RELOCATION/DISPOSITION
Staff reported that a meeting was held with Tony Mize
of SoCal Housing wherein he advised that they would
be withdrawing their proposal to rehab Santa Rosa
Apartments, as his Board has directed him to pursue
only projects of 100 units plus.
Staff is currently working with Code Enforcement to
secure the building. Staff has also met with Mr. Bob
Ritchey and has requested that he submit a proposal
for preparation of job specifications in order to go out to
bid for rehabilitation. Proposal will be provided to
Committee at the next meeting.
NEW BUSINESS None
3
•
Minutes .
MAR. 12, 1997 HOUSING ADVISORY COMMITTEE
REPORTS DESERT ROSE UPDATE
Ms. LaRocca provided Committee with oral report. As
of March 7, 80 units sold; 25 are in escrow.
Walktrhough traffic increased from 54 to 194. In the
process of planning new campaign for June. Extended
TV ad one week. FHA approved for Desert Rose
Project. Committee was provided with January's
Month-End Report and an updated Fact Sheet.
HOUSING PROJECTS UPDATE
Report will be provided at next meeting.
ADJOURNMENT Motion was made by W. Winfield, seconded by G.
Holmes and unanimously carried to adjourn the
meeting. The meeting was adjourned at 4:55 p.m.
•
Carlos L. Ortega
Secretary
mh/ •
4
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: MARCH 5, 1997
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, March 12, 1997 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.
'''''''''''''''
_,,114,;,, g�& Y o
= ?;.•• 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260-2578
TELEPHONE (619)346-0611 FAX (619)340-0574
February 20, 1997
Mr. Gerald R. Gibbs
Gibbs and Gibbs ' -
Paiizada Professional Building _ ` \J
110 E. Palizada, Ste. 210 •�
San Clemente, CA 92672-3956
RE: SILVER SPUR RESIDENT CONVERSION
Dear Mr. Gibbs:
In response to your letter of February 10, 1997, this is to advise you that the City of Palm
Desert wholeheartedly supports the ongoing negotiations between the owner and the tenants at
Silver Spur Mobilehome Park for the proposed acquisition of said Park by the residents.
With regard to Mr. Bruce Bedig's request from the Agency requesting release of a letter relative
to its power to use eminent domain, the Agency will agree to release such a letter at a point
where there is a negotiated agreement for the purchase of the Park by the tenants.
It is our legal counsel's contention that releasing such a letter at this time could be construed as
a threat of condemnation by the Agency and that legal ramifications could injure the Agency if it
does not comply with the legal requirements for acquisition of the property as inferred by the
release of such a letter.
Again, once a purchase price has been negotiated and agreement reached by the owner and
the tenants, then release of a letter of this nature will be reconsidered.
Sincerely,
Teres . aRocca
Housing Programs Coordinator
mh
cc: Carlos L. Ortega
RECYCLED PAPER
PALM DESERT REDEVELOPMEN
INTEROFFICE MEMORAN UM AGEMDA PACT EEY
SECTiON
Mime DATE I '
DATE: MARCH 13, 1997
TO: THE CITY MANAGER, HONORABLE MAYOR AND CITY COUNCIL
FROM: PARTNERS IN PRIDE
SUBJECT: HOME IMPROVEMENT PROGRAM (SUPPLEMENTAL REPORT)
As a follow-up to the previously submitted memo regarding the City's proposed Home
Improvement Program (HIP), City staff met with the County of Riverside Economic
Development Agency HIP staff, on March 10, 1997, to discuss Palm Desert's active
participation in the County's HIP described the March 13, 1997, memo.
The County has set aside $750,000 county-wide for implementation of the HIP. The City
of Palm Desert is eligible for participation and it is staffs proposal to tap into the available
funds to benefit the residents of Palm Desert. The County has expressed interest in a
joint-venture project as a County pilot program in an effort to streamline the current 180-
days plus applicant processing time to 90 dayss.
The program will work as follows:
► City Code Enforcement to establish a list of potential participating residences
identified as having code violations which need to be addressed.
► City Code Enforcement would make initial contact with homeowner providing
them with the County HIP brochure and instruct them to contact designated City
Housing representative for further information and application for the program.
► Housing representative will assist homeowner with completion of application, and
coordinate submittal of all required documentation and verification information
then forward (including City's list of code violations) to the County for processing.
City participation at this point is critical in order to reduce the County's current
processing time from 180 days to 60 days.
► Housing representative will provide continuous monitoring for each case file
throughout process and serve as liaison between the County and homeowner.
Page 1 of 3
SUBJECT: HOME IMPROVEMENT PROGRAM (SUPPLEMENTAL REPORT) Mar-13-97
► County reviews application packet for completeness and schedules site visit.
► County conducts site visit and prepares work write-up.
County prepares bid package and releases bid packet.
► County processes application information and submit to escrow.
► Escrow releases various verifications of employment, mortgage, credit history,
insurance, and prepares preliminary risk analysis (time-frame 30 days).
► At close of bid period, County performs review with homeowner and a contractor
is selected by the homeowner. Home improvement contract is between
homeowner and contractor only.
► Upon receipt and review of the risk analysis County authorizes escrow to order
appraisals, title search, credit check, etc. (time-frame 30 days).
► County holds onsite preconstruction meeting with contractor, homeowner and 3
City Building, Code and Housing staff.
► Escrow prepares and submits final loan recommendation to the County and
County authorizes preparation of final loan documents (14 days preparation time).
► Building staff will perform ongoing inspection during the course of construction,
review and authorize progress payments.
► Preliminary participation approval (30 to 45 days) at which time eligibility is
determined.
► Application to construction (90 days) shaving 90 days off the current County
processing time.
CITY'S FINANCIAL PARTICIPATION:
It is anticipated that the City would utilize its current $138,000 CDBG appropriation to the
City Home Improvement Program to enhance the County's HIP by providing grants to
homeowners who qualify up to $3,000 per household (one-time only) for improvements
not allowed under the present HIP such as landscape, irrigation and fencing.
Page 2 of 3
SUBJECT: HOME IMPROVEMENT PROGRAM (SUPPLEMENT, REPORT)
Mar-13-97
In addition, the City's Home Improvement Program would be available to all qualifying
eligible households within the City of Palm Desert. The City program would be
administered and applications processed in a similar manner to that of the County HIP,
but will all be handled in-house by staff as no escrow is required. Processing time shou
take approximately four to six weeks from application to construction if all information is
submitted in a timely manner. Staff would provide a list of qualified licensed contractors
to the homeowner who makes selection. Once again, all contracts would be between
the homeowner and the licensed contractor. The Building Department would rovide
inspections through the course of construction, approvep
ze pro
payments. Additional housing staff will be required tocoordinate with C ugnty HIP and
administer City program.
If additional administrative processing staff is authorized, it will take approximately eight
to ten weeks to hire staff, create guidelines, establish process and become operational.
(---------------
REVIEWED AND CONCUR
TERESA . LA ROCCA a2a)G
Housing Programs Coordinator
CARLOS L. ��
. ORTEGA
Executive Director, RDA
TLR:lw
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: MARCH 13, 1997
TO: THE CITY MANAGER, HONORABLE MAYOR AND CITY COUNCIL
FROM: PARTNERS IN PRIDE
SUBJECT: HOME IMPROVEMENT PROGRAM
It has come to staffs attention that the Riverside County Economic Development
Agency has an ongoing "home improvement program" currently in place which is
offered throughout the county and includes several cities in the valley including the
City of Palm Desert.
The program offers loans up to $30,000.00 per household at an interest rate of 5%
available to owner occupants of single-family residences only.
The County's program mirrors the program being planned by City and RDA staff in that
it includes improvements such as:
new roofs
► window replacements
► exterior and interior painting
► plumbing
► electrical
► flooring
► stucco patching
► sewer hook-up.
► carpeting
► handicap access
► code violations
Eligibility criteria:
► Households up to 80% of the County median income adjusted by family size
► Must be owner and occupant of residence being rehabilitated
► Residence must be located within the County of Riverside or within
incorporated cities approved for program participation
Page 1 of 2
SUBJECT: HOME IMPROVEMENT PROGRAM
The program is handled mainly by telephone contact using an 800 number and mail.
The homeowner is mailed an application and informational material which must be
returned to the County for processing. Once an applicant has been approved they are
given parameters under which they may seek and select their own licensed. Work
inspections are done by County personnel who inspect the site upon approval of the
application and completion of the work. The contract always is between the
homeowner and the licensed contractor. The homeowner must sign off and approve
payment of work after inspection and upon completion prior to release of payment.
Staff has an appointment to meet with County EDA staff on March 10, 1997 in
Riverside, to discuss the City of Palm Desert's participation and the possibility of
reprogramming CDBG funds for County use targeted specifically for Palm Desert
residents. Preliminary meetings have been held with county Indio staff.
In preliminary discussions with County staff, they have expressed interest in working
with the City of Palm Desert to provide home loans to Palm Desert residents through
the use of City CDBG funds and County program funds. In conjunction with this, they
are requesting assistance from the City with inspection of improvements as part of the
overall Palm Desert program. The details and parameters for joint cooperation in
,ft.. implementing the Riverside County Home Improvement Program within the City of
Palm Desert have not yet been formalized.
As mentioned earlier, the County program is currently available to Palm Desert
residents. Based on this, staff recommends that County Home Improvement Program
brochures be distributed by the City's Code Enforcement staff to homeowners who
may qualify for participation in the County of Riverside Home Improvement Program
as part of the City's overall efforts in addressing code violation issues relative to single
family residential properties.
REVIEWED AND CONCUR
TERESA L. LA ROCCA
Housing Programs Coordinator CARLOS L. ORTEGA
Executive Director, RDA
TLR:lw
Page 2 of 2
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4
CONFIDENTIAL
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: December 11, 1996
TO: CARLOS ORTEGA, EXECUTIVE DIRECTOR RDA
FROM: TERESA LA ROCCA, HOUSING PROGRAMS COORDINATOR
SUBJECT: HOUSING AUTHORITY REPORT FINDINGS
As a result of staffs concerns regarding the management and administration of the seven
multi-family projects owned by the Riverside Housing Authority ("Authority") and
subsidized by the Palm Desert Redevelopment Agency ("Agency"), a financial and
program report has been conducted. Report results have increased concerns on project
administration, management, maintenance and handling of Agency subsidy and bond
funds.
BACKGROUND:
On September 8, 1988, the Agency entered a binding contractual Pledge Agreement
("Pledge") to provide a$2,000/unit per year subsidy to cover operating deficits for all seven
Authority projects, as a result of the 1988 bonds which were issued to purchase the
properties. In addition, as a result of the Stipulation for Entry of Judgement executed by
both the City and Agency, the City/Agency were obligated to develop or acquire a certain
number of units within a specific period of time. The stipulation identified the Authority as
a resource to help address the need. Based on this, the Agency entered into a Housing
Assistance Payment Agreement ("HAP") on June 13, 1991, to provide additional funds in
the form of rental subsidy to very low, low and moderate income households to allow for
an additional financing source to cover identified deficits between net operating income
and debt service on each of the seven properties.
The HAP is a contract agreement between the Agency and the Authority that can be
terminated by the Agency at the Agency's discretion through the non-payment of the HAP
funds.
The 1988 Bond issue includes participation by the Cities of Palm Springs and Corona.
ISSUES:
The report raises concerns regarding internal accounting methods, non-compliance with
the HAP agreement and the bond documents, unsupported administrative costs, lack of
reserves as required by the bond documents, lack of tenant recertification for eligibility,
oversubscription of tenant mix in the very low and low income areas, methodology used
.
to request subsidy payments, inappropriate use of interest earned and bond funds, and
excessive project costs.
SUMMARY OF FINDINGS:
► Internal control weaknesses over disbursements and cost allocations.
► Excessive administrative charges.
► Excessive operating expenses.
► Inadequate tenant eligibility recertification process.
► Over subscription of very low and low income tenants versus moderate.
► Failure to credit housing projects with$122,720 in laundry income.
► Unreconciled subsidy charges of$1,441,269 exceeding project operating deficits.
► Unsupported HACR administrative charges of$2,387,451 added to cost of projects.
► Failure to credit Palm Desert projects in the amount of$2,757,935 for debt service
payments made with excess reserves resulting from bond redemption.
► Inappropriate use of cash reserves funded by Palm Desert resulting in a
underfunding of$1,224,149.
OPTIONS:
�.• 1. Continue making Pledge Agreement payments and cease making Housing
Assistance Payments pending complete cooperation from HACR on the
implementation of changes as recommended in the report, requiring reconciliation
of questioned subsidies.
2. Terminate the HAP payments which would force the bonds into eventual default,
thereby allowing the Agency a window of opportunity to renegotiate the HAP
agreement with the Authority requiring the implementation of strict administrative
and management as well as reporting and monitoring controls and work with HACR
on the refinancing of the 1988 Bond issue..
3. Upon default by the HACR on the 1988 Bond issue negotiate purchase and transfer
of all seven properties to the Agency thereby giving the Agency complete
administrative and management controls of the properties.
Should the latter be the preferred option, staff would recommend establishing a City
Housing Authority and contracting with an experienced affordable housing management
firm for day to day management and operation of the seven properties.
TR:lw
Page 2 of 2
Attachment to Letter of January 29, 1997 to Carlos Ortega
MEMORANDUM OF UNDERSTANDING
PROPOSED PROCEDURES FOR EFFECTUATING A SALE OF
HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE OWNED
MULTIFAMILY RENTAL HOUSING PROPERTIES
TO THE CITY OF PALM DESERT
It is understood that the City of Palm Desert California Redevelopment Agency (Agency)
proposes to acquire seven apartment complexes totaling 725 rental units owned by the
Housing Authority of the County of Riverside (Authority) in the City of Palm Desert,
California.
I. The procedures outlined below will identify the procedures that can be used to "buy
out" that portion of the Housing Authority of the County of Riverside (the "Authority")
Revenue Bonds Issue A of 1988 that relates to said multifamily rental housing units
owned by the Authority.
In order to accomplish the transfer of the Palm Desert projects to the Agency, an
advance refunding of the entire 1988 issue will be required. By refunding the entire
bond issue, the existing debt service reserve fund can be released and be used as a
contribution to the refunding escrow. Absent a refunding, there is no mechanism
which will allow for the debt service reserve fund to be released and contributed to the
transaction. The Authority will issue refunding bonds for the projects in the City of
Corona and the City of Palm Springs. The Authority will contribute the net proceeds
of the refunding issue, in combination with the existing debt service reserve fund to
the refunding escrow. The Agency will fmance the remaining amount which is
required to be placed in escrow to defease the outstanding 1988 Bonds. Below we
have listed the estimated sources and uses of funds.
Sources
1988 Debt Service Reserve Fund $ 5,176,000
1997 Authority Refunding Bonds $ 2,227,000
Agency Deposit $48,331,520
Total $55,734,520
Uses
1988 Refunding Escrow $55,734,520
try MEMORANDUM OF UNDERSTANDING Page 2
The Authority will issue its refunding bonds concurrently with the Agency's deposit
to the 1988 Refunding Escrow. A simultaneous deposit of funds with the existing
1988 trustee will be required in order to free up the existing debt service reserve fund
and release the Agency from the obligations under the Pledge Agreement. The
Authority will retain the existing residual fund, approximately $690,000, and will
remit reserve funds held by the Authority under the Housing Assistance Payments
Contract back to the Agency minus any funds owed the Authority under the Agency's
Housing Assistance Payment Contract or Pledge Agreement.
The Authority's refunding issue will be sized at a gross amount of$2,885,000-which
is the amount of debt which can be supported by the current pledge agreements in
place from the cities of Corona and Palm Springs. The Authority will fund a debt
service reserve fund, costs of issuance, underwriter's discount and a financial advisory
fee-resulting in a net deposit to the escrow of$2,227,000.
II. The Authority's bond team identified for these purposes as Dillon Read and Company,
underwriter and Stradling, Yocca, Carlson and Rauth as bond counsel, have invested
considerable time and effort to analyze and formulate a viable refmancing of the Issue
A of 1988 Bonds. Therefore, should the Agency issue its own tax allocation or other
form of revenue bond, the Housing Authority will have its bond team as identified
provide the necessary fmancial advisory and bond counsel services with such being
paid from the Housing Authority's 1997 refunding bond issue.
III. The Agency and the Housing Authority will execute mutual releases waiving any and
all claims that they may have against one another related to the Issue A of 1988 Bonds,
the Pledge Agreement, and the Housing Assistance Payment Contract.
IV. Time Schedule and Staff, Consultant, and Bond Team Actions.
It is understood that time is of the essence to initiate the necessary joint meetings and
preparation of the required proposed refinancing and property transfer documents for
approval by Agency and Authority. Therefore, it is agreed that the respective Agency
and Authority Executive Directors will direct their staff, consultants, bond team and
others necessary to this transaction to proceed with such actions with knowledge that
said proposed actions are all subject to final approval by the governing body of said
Agency and Authority respectively.
• MEMORANDUM OF UNDERSTANDING Page 3
The undersigned agree to assist in every way possible to effect the proposed sale and transfer
of the above referenced real property subject to the approval of the Housing Authority's
Board of Commissioners and the City of Palm Desert Redevelopment Agency's Board of
Directors.
HOUSING AUTHORITY OF THE CITY OF PALM DESERT
COUNTY OF RIVERSIDE REDEVELOPMENT AGENCY
Gabriel G. Rodriguez Carlos Ortega
Executive Director Executive Director
I
Date Date
t
F:I HOME I PB UCKEY I WPDOCS I GABRIEL I CORRESP I MO UPD.WPD
DESERT ROSE
FACT SHEET
3/7/97
Owner / Seller; Palm Desert Redevelopment Agency
Carlos Ortega, Executive Director
Teresa L. La Rocca, Housing Programs Coordinator
Mission: To provide high quality, affordable ownership housing to working families employed in Palm Desert
and surrounding communities in the Coachella Valley who might otherwise be excluded from the for sale
market.
Product Description: (123) 3 bedroom homes starting at $73,950
(38) 4 bedroom homes starting at $80,950
Each home on its own lot.
Financing;
- only 3% downpayment required up front (As little as $2,218. Additional downpayment assistance and
all closing costs covered by Redevelopment Agency subsidy financing.)
- 30 year fixed rate, first trust deed loans from Wells Fargo Bank / PHH at 1% below current market
rates (currently 7.25%).
- Up to $20,000 in second trust deed loan and closing cost assistance from the Redevelopment Agency
depending on a household's income. All payments of principal and interest deferred for the loan term.
Principal and interest forgiven progressively during the life of the loan and in full at the end of a 30
year term provided borrower is in good standing.
- Up to 20% of the purhase price in third trust deed zero interest loan assistance from the Riverside
County First Time Homcbuyer's Program. All payments of principal deferred for the term of the loan.
Joan converts to a grant at the end of a 20 year (Fannie Mae) or 30 year (FHA) affordability period,
Limited availability.
- Monthly payments, including principal, interest, taxes, insurance and HOA fees as low as $451
depending on a person's income (less than rent). This number is based on market rates as of the date
of this document.
Affordability: Based on current market interest rates, phase 3 pricing and assuming maximum available
subsidies from both the Palm Desert Redevelopment Agency and the County of Riverside, these homes are
affordable to families earning as little as $1,366 per month. In a two income household, where both
breadwinners are employed full time, each one need only earn approximately $4 per hour to make this
combined monthly wage.
Resale restrictions: The homeowner may resell his / her unit, and realize substantial appreciation at the time of
sale. However, since the Redevelopment Agency is providing grant-like financing in order to make Desert Rose
affordable to working families and, further, since the Agency wants to ensure that Desert Rose remains
affordable, the amount of appreciation which the buyer can realize at the time of resale is indexed to the
percentage increase in median income for Riverside County from the date of original purchase to the date of
resale.
Specifically, the seller's net purchase price shall equal the lesser of market value, Affordable Housing Cost as
defined under the California Health and Safety Code, or the following formula:
SNPP = OPP x (MI'/MIo)
where such terms have the following meaning:
SNPP= Seller's Net Purchase Price, after broker's commission and reasonable closing costs have been
paid.
OPP= Original Purchase Price
MI'- Median household income for the calendar year in which the home is resold
MIo= Median household income for the calendar year in which the seller originally purchased the
home.
This restriction will run with title to the land for the first 30 years following the original purchase of the home
after which it will be entirely lifted. It should be noted that, even with the restriction, the buyer's profit
potential is still good. If, for example, a buyer purchases a home at $73,950, and then resells it in ten years,
and if we assume that county median income appreciates at an average annual rate of 3% per year' , then at the
time of resale he can offer the home at a net purchase price of $99,382 plus reasonable broker's fees and
closing costs. Assuming the original buyer paid only 3% down ($2,218) at the time of the original purchase,
he/she will have earned a return of $25,432 in appreciation plus approximately $11,455 in accrued equity for a
..r e'IL 00'/ .. •
MONTH-END REPORTfru
L rill OVERALL SUMMARY OF TRAFFIC
eAT
DEVELOPER SALES NETWORK c1C
JANUARY, 1997
Total Gross Net Gross Per Week: 2.76
Summary Traffic: 3931 Sales: 124 Cans: 61 Sales 63 Net Per week: iao Closings 51
January Gross Net Gross Per Week: 1.50
Totals: Traffic: 283 Sales: 6 Cans: 5 Sales 1 Net Per Week: 0.25 Closings 4
Source of Sales
Media Source of Sales
Desert Sun-PR Signs/Drive-by
SOURCE # 25% 21%
Desert Sun-Ad 3
Desert Sun-PR 15
Signs/Drive-by 13
Referral- Friend 20
Referral-
Referral-Employer 1 Desert Sun-Ad Friend
5% Referral-Employer 32%
Radio 5 Television
Radio 2%
7% 8%
Ta'-"vision 4
. \ J
``.
Source of Traffic
Source Sat Sun Mon Tue Wed Thr Fri Total
a2, T 2 T 2 T 2 T 2 T 2 T 2 T I
w u. i w X t w w w U
Desert Sun 1 7 3 11 1 2 3 4 3 1 0 0 1 0 37 15% 37 15% 490 12%
Billboards/Signs 8 14 6 11 6 8 15 4 10 8 15 11 10 9 135 54% 135 54% 1681 43%
Referrals 1 2 1 2 3 3 2 1 1 1 2 2 0 3 24 10% 24 10% 37 1%
Nearby Project 0 0 0 0 0 0 0 0 1 0 1 0 0 0 2 1% 2 1% 602 15%
Be-Back 2 5 2 7 1 2 6 3 1 2 0 2 0 1 34 14% 34 14% 315 8%
Radio 0 0 0 0 0 0 0 0 0 0 2 6 1 4 13 5% 13 5% 124 3%
Television 0 0 0 0 0 1 0 0 1 0 0 0 0 0 2 1% 2 1% 22 1%
Other 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0% 1 0% 11 0%
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0% 0 0% 0 0%
TOTAL 12 28 12 31 11 16 27 12 17 12 20 21 12 17 248 100% 248 100% 3931 100%
Active Interest 0 1 0 3 0 1 0 0 0 0 0 3 0 1 9 4% 9 4% 243 6%
Sit Downs 0 3 1 2 1 1 0 2 1 2 0 2 0 0 15 6% 15 6% 295 8%
Sales 0 0 0 1 0 1 0 0 1 1 0 1 0 1 6 2% 6 2% 124 3%
POSTED AGENDA
HOUSING ADVISORY COMMITTEE
MARCH 5, 1997
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, March 12, 1997 was posted on the bulletin board by the
outside entry to the Council Chambers, 73-510 Fred Waring Drive, Palm Desert, on
March 5, 1997.
Dated: March 5, 1997
MARIA HUNT, Secretary to Executive Director
Palm Desert Redevelopment Agency