HomeMy WebLinkAbout1997-08-26 HC Meeting Agenda Packet T
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: August 26, 1997
TO: CARLOS ORTEGA, Executive Director RDA
FROM: TERESA L. LA ROCCA, Housing Progr Coordiitat
SUBJECT: DESERT ROSE UPDATE -As of August —
Sales: 120 units (Phase 1, 2 and 3)
Average to date subsidies (exclusive of sales price reduction)
Average mortgage subsidy $10,998
Average closing costs $ 2,321
Average interest buy down $ 3,096
Escrows: 94 Closed
26 Open Escrows
» Income Breakdown: 9 Family of very low income
73 Families of low income
38 Families of moderate income
» Phase 1: 4 Units available
Phase II: 11 Units available
Phase III: 17 Units available
Average Sales Rate: 7 sales per month
no Traffic: 36 Walk-ins (average per week)
56% Mature prospective buyers (average)
44% Family prospective buyers (average)
Summary of the Media Campaign:
Summer traffic has been slow as expected. On August 13, 1997 a Desert Rose team
meeting was held to discuss and design Winter campaign. WM continue television,
newsprint and radio advertising. Will focus on urgency to buy as project selling out fast.
May tweek slightly summer campaign program to emphasize urgency_
Page 1 of 2
•
SUBJECT: DESERT ROSE UPDATE August 26, 1997
• Buyer Profile
(See attached).
Program Changes
Riverside County First Time Homebuyer Funds for current fiscal year depleted.
Investigating alternate source of financing for very low income families.
C
Page 2 of 2
I
BUYER PROFILE(111 :t� 5
DESERT ROSE-PALM DESERT : tti
DEVELOPER SALES NETWORK• \+ .
ALL BUYERS ¶CRI
08/01/97 A:
DEMOGRAPHICS
❑ The average age of the Desert Rose homebuyer is: [35.2]
❑ The average annual income at Desert Rose is: $ 26,863 ,
❑ Average income of married couples: $ 31,692
❑ While the average single mother earns: $ 26,488
❑ And the average single woman earns: $ 24,516
❑ Overall, the men earn on average $ 22,200
❑ Overall, the working women earn on average $ 21,504
❑ The average rent that buyers were paying is: $463/mo.
❑ And the number of bedrooms they previously had is: 2.1
❑ Most of the Desert Rose buyers are local 90%
❑ The majority are first-time buyers: 86%
• ❑ Most are moving because of the financing/price 80%
❑ But some clearly stated that the location was their main motivation 5%
❑ There are also some Mature buyer(i.e. over 45 w/o kids) 8%
❑ The majority of Desert Rose buyers only have one car 67%
❑ Some have two cars 30%
❑ Few have more than two cars 3%
EMPLOYMENT
❑ There are many buyers who work in retail 17%
❑ But many buyers are employed by the hotels 7%
❑ And most are clerical/once workers 28%
❑ A good portion work for the Hospitals 11/
❑ The restaurants also employ many buyers 16%
❑ There are buyers who have jobs that are laborer-related 10%
❑ There are a couple of teachers 2%
110 ❑ A few mailmen 3%
❑ Some retirees 4%
❑ There's even an artist 2%
DEVELOPER SALES NETWORK
Desert Rose Buyer Profile
411v August 1, 1997
Page 2
•
FAMILY STATUS
❑ The majority of the Desert Rose homebuyers have children at home. 57%
❑ The average age of the Children at Desert Rose is: [8.5]
❑ Of all of the buyers, some have only one child 25%
❑ Others have two children 25%
❑ And there are a couple who have three or more 7%
❑ There are a notable number of single mothers 27%
❑ Overall, there are a lot of single women 47%
❑ And relatively few single fathers 5%
❑ There are also many families with no children 43%
MARITAL STATUS
• ❑ Quite a few Desert Rose buyers are married 32%
❑ But there are nearly as many who are divorced/separated 31%
❑ Portion of Divorcees that are women 89%
❑ Portion of Divorcees that are men 9%
❑ The are also quite a few singles 33%
❑ There are some widows 5%
ORIGIN
❑ African American 1%
❑ Asian 2%
❑ Caucasian 60%
❑ Hispanic 36%
❑ Middle Eastern 1%
ADVERTISING
❑ Most buyers came in because of the Desert Sun Articles 17%
❑ There were also many who were referred by a friend 32%
• 0 But many said they came in because of the Signs or Driving By 18%
DEVELOPER SALES NETWORK
Desert Rose Buyer Profile
August 1, 1997
Page 3
ADVERTISING(continued)
❑ The radio advertising also attracted some buyers 8%
❑ Television Advertising was also effective 14%
❑ Some came in because of the actual Desert Sun ad 13%
❑ And one was referred by their employer 1%
❑ Many of the buyers subscribe to newspapers 42%
Desert Sun 38%
La Opinion 3%
LA Times 1%
❑ Most of the Desert Rose buyers listen to the radio regularly 76%
411, 0 The most popular radio station is Power 100.5 32%
❑ However many also listen to EZ 103 10%
KDES 104 10%
91.7 5%
93.7 10%
94.7 5%
92.7 18%
106.1 15%
KUNA 4%
❑ We had a sample of forty-four(44)buyers who indicated their favorite television
stations and their favorite television programs:
Favorite Station:
❑ NBC 32%
❑ ABC 20%
❑ Fox 23%
1111 ❑ KVER 11%
O Discovery 4%
DEVELOPER SALES NETWORK
Desert Rose Buyer Profile
August 1, 1997
Page 4
CITY OF ORIGIN
❑ Most of the homebuyers at Desert Rose are local (90%), here's where they're coming from:
❑ Palm Desert 40%
O Palm Springs 17%
❑ Cathedral City 13%
❑ Rancho Mirage 3%
O Bermuda Dunes 5%
D. La Quinta 3%
❑ Indio 8%
BEFORE THEY BOUGHT
❑ Just how long were most Desert Rose buyers looking for a home before they bought?
❑ 1-4 weeks 29%
❑ 1-6 months 35%
❑ 6-12 months 17%
❑ Over 12 months 10%
❑ Weren't looking at all 8%
❑ How many visits did the Desert Rose homebuyer make before they decided to buy:
❑ One 13%
❑ Two 27%
❑ Three 28%
❑ Four 12%
❑ Five 7%
❑ More 13%
• Statistics were taken from a sample of 95 current Desert Rose homebuyers who had
completed a"Buyer Profile" survey form.
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: August 26, 1997
TO: HOUSING ADVISORY COMMITTEE MEMBERS
FROM: Teresa La Rocca, Housing Programs Coordinator
SUBJECT: Housing Projects Update
♦ Building Horizon's Proposal
A proposal to subdivide an Agency-owned parcel located at DeAnza and San Pascual
for the purpose of contributing the site to the Building Horizons Program allowing them
to build 2 single family homes was approved by the Planning Commission on August
19, 1997 with a condition the each home contain a minimum of 2,000 square feet under
roof. Given the terms of the Amended Stipulation for Entry of Judgment with the
Western Center, a condition of this nature would serve only to raise red flags with the
Western Center as they have amended the Stipulation to provide for the development,
acquisition and rehabilitation of additional housing for very low income households.
The cost and size of these homes would not lend itself to a very low income participant.
In addition, the Amended Stipulation dictates the amount of subsidy the Agency is
allowed to subsidize on for-sale housing based on the median cost of subsidy over 30
years for rental units of similar size. Given this, it was staff's recommendation that
participation in the Building Horizon's program be via the contribution of a single family
parcel located on Buena Circle currently owned by the Agency. This parcel is
immediately available and would allow Building Horizons to implement the program in
Palm Desert this school year.
♦ Portola Palms Mobile Home Park
Attached is an August 8, 1997 letter to Epstein & Grinnell, Attorneys for the Acquisition
Association for Portola Palms Mobile Home Park. The letter has been released and we
are awaiting signature and acceptance from the Acquisition Association. Once the
letter has been signed and returned, staff will prepare the necessary report to go to the
Agency for their acceptance of a Deed in Lieu of Foreclosure for the 37 lots currently
owned by the Acquisition Association. Once the property has been transferred to the
Agency, and fair market value has been established staff will begin putting together a
marketing plan for resale of the vacant lots and a program offering the rented lots to the
current tenants.
Page 1 of 2
+ Silver Spur Mobile Home Park - Proposed Ordinance
Staff is preparing a staff report to go the City Council for the second meeting in
September requesting direction on the preparation of a mobile home park conversion
ordinance similar to that adopted by the City of Westminster.
+ Home Improvement Program
The application period for the part-time employee position closed on August 22, 1997.
Interviews will be scheduled for mid-September.
+ Housing Authority Negotiations
Staff has prepared a recommendation to be reviewed by the Agency at their August 28,
1997 meeting (Closed session).
+ Santa Rosa Apartments
The Property is now 100% vacant and has been fenced for security purposes. Staff will
be requesting authorization to go out to bid at the August 28, 1997 Agency Meeting.
Scope of Work and Bid Package has been prepared and will be released upon
authorization. It is anticipated that construction will begin the latter part of October with
41, construction completed by the end of December.
+ Desert Rose
120 Units have been sold today
94 Escrows have closed
26 Escrows currently open
+ SB71 (Kelley) CVAG Proposed Bill
Attached is a newspaper article regarding the status of SB71 for your information.
TERESA-L. ROCCA
Housing Programs Coordinator
Enclosures
Page 2 of 2
PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: August 28, 1997
TO: EXECUTIVE DIRECTOR,HONORABLE CHAIRMAN AND MEMBERS OF THE
REDEVELOPMENT AGENCY BOARD
FROM: TERESA LA ROCCA, HOUSING PROGRAMS COORDINATOR
SUBJECT: , BUILDING HORIZON'S PROPOSAL
RECOMMENDATION:
Staff recommends that the Agency Board, by minute motion, approve the following:
1. Participation in the Building Horizon's program for fiscal year 1997-1998.
2. Make available Agency-owned parcel known as 43-871 Buena Circle, Palm
Desert, APN 622-200-059-8 to Building Horizons.
3. Agree to buy down the mortgage, if necessary, to a qualified very low/low
income buyer on the home constructed.
4. Direct staff to prepare a Disposition Development Agreement for review and
action by the Agency Board.
5. Approve a short term interim loan at zero percent (0%) interest in the amount of
$75,000 to Building Horizons to be repaid upon sale of the home at close of
escrow.
6. Appropriate $75,000 from the Agency's Low and Moderate Income Housing
unobligated funds.
BACKGROUND
The Boys and Girls Club has formed an alliance with the Building Horizons, Inc. and
have established a vocational training program. The program is accredited by the
Coachella Valley and Desert Sands Unified School Districts and is associated with the
College of the Desert. Their goal is to provide career opportunities to members of the
Boys and Girls Club and the community by teaching them the knowledge and skills
required to pursue careers in construction-related fields, while providing affordable
housing to families of low and moderate income.
BUILDING HORIZON'S PROPOSAL Page 2
Building I iorizons had proposed to build two 3-bedroom, 2-bath homes on a lot
'111110r currently owned by the Agency. The lot required the approval of a Tentative Parcel
Map to subdivide the 28,400 square foot parcel into two parcels, each 13,068 square
foot lots, a lot split which in turn required Planning Commission approval. This matter
was heard before the Planning Commission initially on August 5 and continued to the
August 19 meeting at which time the Commission approved the subdivision of the
parcel with the condition that 2,000 square foot homes be built on each lot.
Given the above condition of approval of the Planning Commission and the
implications of the condition as it relates to the Amended Stipulation for Entry of
Judgment with the Western Center, staff does not recommend the construction of two
homes of this size at this time. In addition, Building Horizons has indicated that the
construction of 2,000 square foot homes does not fit within the parameters of their
program design.
Staff has identified a single family parcel currently owned by the Agency located at
43-871 Buena Circle, Palm Desert, APN: 622-200-059-8 that can accommodate the
construction of one single family residence.
The parcel is zoned R1-8000 and allows for the construction of a single family
• '`` residence of 1,250 square feet. Per Planning, there are no extenuating circumstances
that would required additional approvals other than the normal building permit
processing required by the City.
Since the parcel is currently owned by the Agency, it can be made available
immediately to Building Horizons for participation in their 1997-98 school year
program.
REVIEWED AND CONCUR
E A L. LA ROCCA Executive Director, RDA
Housing Programs Coordinator
TLR:dcl
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Epsten & Grinnell
16835 West Bernardo Drive, Suite 210
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Attn: Mary Howell, Esq.
Re : Portola Palms Foreclosure
Dear Ms . Howell :
As you know, we represent the Palm Desert Redevelopment
Agency (the "Agency" ) , which is the current holder of :
1 . that promissory note (the "Ring Note" ) , dated
September 22 , 1992, in the original principal amount of
$3 , 000, 000, executed by Portola Palms Mobilehome Park Acquisition
Association, Inc. , a California nonprofit corporation (the
"Association") , payable to Ring Financial, Inc. , secured by a
deed of trust recorded September 24 , 1992, as Document No.
360943 , in the Official Records of the County of Riverside,
California; and
2 . that promissory note (the "Natter Note" ) , dated
September 22, 1992, in the original principal amount of $250, 000,
payable to Joseph Natter and Anna J. Natter, Trustees of the
Natter 1988 Trust , secured by a deed of trust recorded
September 24 , 1992, as Instrument No. 360949, in the Official
Records of the County of Riverside, California.
Both the Ring Note and the Natter Note (the "Notes" )
are in default, and the value of the real property (the
"Property") encumbered by the deeds of trust is less than the
aggregate unpaid balance of the Notes .
This will confirm that :
HIJG-09-1997 ib::7 R I CHHRUS IJHTSUN & LEt1SHUN P.U4/'U'f'
RiCHARDS, WATSON & GERSHON
Epsten & Grinnell
August 8 , 1997
Page 2
1 . subject to the approval of a majority of its
members, the Association is willing to deliver title to the
Property to the Agency by a deed in lieu of foreclosure (the
"Deed" ) on the condition that concurrently with delivery of the
Deed the Agency releases the Association and its members and
agents from further liability under the Notes; and
2 . the Agency is willing to accept the Deed subject
to satisfaction of the following conditions :
a. within 30 days after the date of this letter,
the Agency shall have received satisfactory evidence (in the sole
and absolute discretion of the Agency) of the approval of this
letter by a majority of the members of the Association;
b. a title insurance company acceptable to the
Agency shall be prepared to issue to the Agency a policy of title
insurance guarantying title in the Agency subject to only those
exceptions which (i) were of record prior to recordation of the
deeds of trust, or (ii) are approved by the Agency in its sole
and absolute discretion;
c . the Agency shall have received satisfactory
Ill evidence (in the sole and absolute discretion of the Agency) that
\ all nondelinquent taxes which constitute a lien on the Property
shall have been paid;
d. the Agency shall have received satisfactory
evidence (in the sole and absolute discretion of the Agency) that
all nondelinquent homeowners association dues and assessments on
the Property shall have been paid;
e. the Agency shall have received from the ,
Association and approved (in the sole and absolute discretion of
the Agency) all leases of the Property and estoppel certificates
of the tenants;
f . the Agency shall have received from the
Association all tenant deposits;
g. the Agency shall have received satisfactory
evidence (in the sole and absolute discretion of the Agency) that
all debts and obligations of the Association (other than the
Notes and the instruments securing the Notes) shall have been
satisfied or released;
h. the Association shall concurrently with
delivery of the Deed transfer and deliver to the Agency all cash
and other assets of the Association, other than a mutually-agreed
amount reserved for dissolving and winding up the Association .
HUG-U8-1997 15:38 R I C:HHRES wOTSON 8. GERSHON P.05/0'i
RICHARDS. WATSON& GERSHON
Epsten & Grinnell
August 8, 1997
Page 3
Neither the delivery of this letter on behalf of the
Agency nor the execution hereof by or on behalf of either party
shall be deemed to waive any of the rights of the Agency to
proceed with either a judicial or a nonjudicial foreclosure of
either or both deeds of trust .
Please confirm that the foregoing correctly states the
understanding of the Association so that we can prepare the
necessary documents.
Very truly yours,
cr. L--Ab
ALLEN E. RENNETT
AER: ir
c : Ms . Teresa LaRocca
0261093
APPROVED AND ACCEPTED:
PORTOLA PALMS MOBILEHOME PARK
ACQUISITION ASSOCIATION, INC. ,
a California nonprofit corporation
By: -
_ftw PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: August 28, 1997
TO: EXECUTIVE DIRECTOR, HONORABLE CHAIRMAN AND MEMBERS OR
REDEVELOPMENT AGENCY BOARD
FROM: TERESA LA ROCCA, HOUSING PROGRAMS COORDINATOR
SUBJECT: AUTHORIZATION TO ADVERTISE AND CALL FOR BIDS
FOR THE REHABILITATION OF 73-625 SANTA ROSA WAY,
SANTA ROSA APARTMENTS
RECOMMENDATION:
Staff recommends that the Agency Board, by minute motion, authorize the City Clerk
to advertise and call for bids for the rehabilitation of the Santa Rosa Apartments located
at 73-625 Santa Rosa Way. •
•
BACKGROUND
The Agency acquired the Santa Rosa Apartments in 1995 for the purpose of
rehabilitation and thereby adding the project to its affordable housing stock. The
agency contracted with Robert S. Ritchey, Stoney Creek Design Studios, to provide
architectural services and prepare the scope of work, specifications and bidding
package. The bid package is now ready to go out to bid.
The work will include the renovation of both the exterior and interior of the five
structures which contain a total of 20, 2-bedroom, 1-bath units. The bathrooms will be
reconfigured. The general items of work consist of mobilization, non-structural
demolition of existing elements, construction of new walls and opening installation of
new doors and windows, plumbing facilities for the handicapped, electrical system,
heating and air conditioning and ventilation equipment, ceilings, lighting, electrical
services, sewer hook-ups, fire sprinkler systems, exterior patios and seat walls. In
addition, the landscape will be enhanced and the parking area improved. The existing
pool will be filled and a larger playground area for children created. All appliances,
(60 cabinetry and flooring have been removed and will be replaced with new product.
• AUTHORIZATION TO ADVERTISE AND CALL FOR BIDS PAGE 2
FOR THE REHABILITATION OF 73-625 SANTA ROSA WAY,
SANTA ROSA APARTMENTS
Bid award will be scheduled for early October with rehabilitation commencing the
latter part of October and completion projected for the end of December.
REVIEWED AND CONCUR
TERESA L. LA ROCCA Executive Director, RDA
Housing Programs Coordinator
TLR:dcl
L.
•
Page 2
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Spreading the wealth: IA.,Coachella Valley, leaving some
,• . • .3 ,: Commtinitieil liith ore money
Coalition:won:t back bilj , *than they ehiilpehd cwithinjheir
allowingIranSferof .:.01.4•, , :botders,.,and leavinglotheri Ali-
; r,ktri2V 4 4 tit./!"."1 n :. enough Money ti; build dw
redevelopment was ;o -gnomes-liurrehibilitare Ill'ali &I
. . . .... g
build housing for needy.
' ..., ,:e:• ';. -,‘:,!:::,n 9 neighborhoods.'f' %
- . • , ,,, / Supporters,ptn d.','''' ‘-'e,n- A'I
l
By MATT FITZSMONS K t would providrore efficient The Desert Sun, 2.1410 mettlth •I+
.way to wewl,t,l1PaPileY,since it's
;);f.t.i'4,t 0%1 f4,:i0.11,, I. cheaper to.Puild.,in some commu-
Af ter„failing- to gain critical 'nities.,than aiii.grp.:!And,ii1 pdian i
support from the Coachella Val- Wells„Inrimample, can cost E; Sr-
ley Housing Coalition, a bill that ,eral antes mor.e.lhan in Desert
would let "desert' ;'communities Hot Springs. !f,?9
share iedeVeloprnent' .funds air !' But the bill, has several oppo-
pears to helipcSeflouiliouble, -,... 'hents arouliti the'§tite and in the
With leii-,thiiiiV,niontli tii'igal iValley Sortie'leaked it would al
befoie.:141e'fl4Wninkti,g close.up 'slow Wea thy-Oninianities to shirk '' 4.
for thc eiitlonittalf for the in- Aieiir.1- iivps0' ' y..,Aci l'i_hie
diO-bas d! nonprofit„ciinnounbed low-inc 'me`tiol6 f!. Vndenpiglhe " •
Wednesday they.Were,iipt ready to ;gap between , ' and poor, lob •
back the bill,.which would allow ;,...,1"Thefe.,,aKe,,,ctopcerns,that one 1,
the valley to act as a single mar- _consequence voUld,be to further
ket when spending redevelopment segregate,the Valley,".said Julie
funds on affordable housing. Bornstein,:la former asseinbly-
The 'coalition's 'support was woman who is the president of the .-
widely considered essential'for Coachella -.:*Valley •Li7 'Housing
the bill's approval.,'''''' '. :7"-' Coalition. '=1#i!0.---*tIV.0,•;44' '1'1•44, •
State Sen."David Kelley, the ' Under'attack:Gni'libeial'ald
bill's author,,said he still hoped conservative organizations, the
the legislation,could be passed in ,-bill stalled in the Assembly Hotts-
,.
the next few. week's::But others ing and Community Development
were far less,optimistic than the Committee.' The'::"T':-.61-firnittee's
Idyllwild Republican, conceding chairman,: Tom,,Torlakson,
that the coalition's neutral stance Martinez,fiasjaid,he's open to the ..
had probably killed any chance idea of transferring funds. But he
for the bill's approval this year. wants‘ greater consensus, and has
. SETBACK:"Obviously,this is a specifically cited the need to win
setback," said Corky Larson, the the support of the Coachella Val-
executive director of the Coachel- ley Housing Coalition.
la Valley Association of Govern- 'WORK OUT DIFFERENCES:
ments. "I honestly ,don't know Instead,,the coalition's board of
where met go from here."'' .directors,voted Tuesday night "to
Kelley's proposal, Senate Bill continue working with ... other
71, would clear legal hurdles so interested parties to reconcile dif-
Riverside County and the nine cit- ferences" about the bill.
...... ies in the valley can transfer hous- ..Translation: the bill won't re-
ing money among redevelopment ceive the coalition's support be-
agencies. • ' fore the Legislature'adjourns for
The bill's proponents argued the year in September —if ever.
that the funds often can't be used Bornstein acknowledged that
where they are most needed in the See BILL/B4
' Tj�' fuy ' `,cr I 'y'160 contending the private sector al-. Others have resigned themselves
�1'1'J f i`1..Aic' " gN ready''builds''am le^' oderate-in to trying again next year.
• v `��s . a5, itt i come housing.' x °'' 4' t "n'� ``� '`' "My personal feeling is that
ConbtAled from Bi I .' „ + ,
- I don't know why'it has to be that's probably good," said Coa-
(i, oft iit + �+-`""'4'" approved this"year," 1 Bornstein chella Housing Director Bonnie
some #tars Of? , u + rd'.flatly said. "I think it can be taken u in ' Garcia,mho would like her city to
lat .'sald'others the Legislature's next session." ' receive'' redevelopment money
• ,etpeai "'''' orth explor- "s;- Kelley,however; hoped-last -from some of its wealthier
g,''`but 1 71'"'" ; th certain minute adjustments to the bill neighbors. r
proviso �' might persuade Tortakson and oth- '• '"This gives us more time to eval-
For,`example, he'Ibill would al ers to act this year. •-.' hate how to make these transfers
low the transfer of funds for very "We're working on some changes 'work best for the benefit of the
low-, lbw= and''•nidderate-iticome'' :hO*,"'hd said."We're going to take ''`comtnunities,'1 she said. "I think it
housing: some'coalitioh members tit UP there, give it to the people in eventually' will happen, we just
want money transferred only'for Sacramento and see what need to make sure that everybody
yerx•Igpq-and,low-income housing, happens.' 1 . buys into it."
(11111.
S
Jul -23-97 09: 24A CoachellaValleyAssoc0fGov 760-340-5949 P.01
COACHELLA VALLEY ASSOCIATION of C OVERNMENTS
FAX TRANSMISSION
To: S.B.71 Ad Hoc Committee Housing Officials& Non-Profit Supporters
Mayor Chuck Cervello Warren Bradshaw
Councilmember Marcos Lopez Susan Williams
Councilmember Frank Duran Come Kates
Mayor Pro Tem Greg Pettis Francisco Urbina
Councilmen. Gary Bosworth Christine di Iorio
Mayor Pro Tern Jean Benson Steve Sobotta
Councilmember Walt Snyder Dave Yrigoyen
Keith Scott Terre La Rocca
Carlos Ortega Francesca Toscano
George Watts Linda Hodge
John Cook Paul Franco
George Truppeli Margarita H.de Escontrias
Pat Pratt Father Robert Crafts
Bonnie Garcia Jonathan Hunter,ECS
Mac Villines Sister Georgianna Cahill,Catholic Charities
Ed Kibbey Clarence Spier,Habitat for Humanity
Sam Sato Joe Carreras,SCAG
Betty Carapellese
cc: Corky Larson Pages: 3, including this cover sheet.
From: Tom Kirk Date: July 23, 1997
Subject S.B. 71-Status Report
F UI '.c.E202011HSGREFRM\HSGSFAX7 WPD
Jul-23-97 09:24A CoachellaValleyAssocOfGov 760-340-5949 P.02
New Senate Bill 71 (Kelley) Update
July 23, 1997
On July 16, Senate Bill 71,which would authorize redevelopment agencies in the Coachella
Valley to transfer housing funds to other communities under specific conditions,was pulled from
the agenda of the Assembly Housing and Community Development Committee. The chairman,
Assemblyman Torlakson,requested that we pull the bill because of too many outstanding issues.
Assemblyman Torlakson specifically called on us to negotiate with the Coachella Valley
Housing Coalition and solicit their support for the bill. The chair of the Senate Housing and
Land Use Committee requested that we do the same. While the Housing Coalition has not taken
a position on the bill,the Coalition has approached these chairs,their staff and statewide housing
interest that oppose the bill.
The bill has broad support within the Coachella Valley from the cities that would benefit from an
infusion of funds into their downtowns, from Catholic Charities, Episcopal Community Services
and Habitat for Humanity. However,to get the bill passed,we will need the Coalition's
support. They have four demands:
Demand#1: An Oversight Committee be created to review and approve transfers. The
Committee shall be comprised of 1 "donor"community representative, 1 "receiver"community
to, representative,2 Coachella Valley Housing Coalition representatives,and 1 CVAG
representative.
Our Response: The Coachella Valley Housing Coalition is not the only non-profit engaged in
providing and facilitating affordable housing. Only one member of the committee should come
from the Coalition and 1 member should come from Catholic Charities, Habitat for Humanity,
Episcopal Community Services or the Community Action Agency. The CVAG representative may
be the chair, vice chair or chair of the Human and Community Resources Committee
(donor/receiver community electeds would be disqualified for a conflict of interest).
Demand#2: No transferred funds shall go to moderate income housing.
Our Response: Unacceptable. The current law requires jurisdictions to meet very low, low and
moderate income housing requirements and jurisdictions are currently using their housing funds
to assist moderate income housing. We agree that very low and low income households need
more assistance but we also recognize that very low and low income housing is concentrated in
neighborhoods that could benefit from move-up moderate income housing. We propose that
Coachella Valley-wide an amount equaling up to one-half of the amount spent on low and very
low income housing may be spent on moderate income housing.
Demand#3: No Mileage Restrictions for Transfers.
Our Response:Agreed. However, all transfers must occur within the Coachella Valley.
3.E30E AC T I V I TY REPORT ),*amE
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Jul -23797 09:25A CoachellaValleyAssocOfGov 760-340-5949 P.03
Demand#4: The initial project using transferred funds must be a migrant farmworker housing
project at least 200 units in size(housing approximately 1600 farmworkers)and that operating
subsidies be provided for the project.
Response: There is certainly a need for migrant farmworker housing. However one of this bill's
main objectives is to improve downtowns, not only migrant farmworker housing. Additionally a
migrant farmworker housing project of that size would require literally lens of millions of
dollars. And the Coalition has said that the money cannot be spent on any currently proposed
farmworker project, it must be spent on some new, undefined,future project. The amount of time
and money required to plan, approve, construct and operate a 1600 farmworker project would
make the legislation useless for any other purpose. To acknowledge the need for farmworker
housing and the importance of the Coalition's support we propose that 10%of transferred funds
be targeted to farmworker housing.
Note that the legislation has already gone through significant changes since it was introduced to
respond to the concerns of the Coalition and others. Two of the most recent demands,no
moderate income housing and the 200 unit migrant farmworker housing project, while well-
meaning,make the legislation unworkable and unacceptable. If we do not reach agreement on
these issues with the Coalition,our prospects for success are very dim. However,we will seek a
special hearing in August to make the case for treating our communities as a single, integrated
`r.. region that is committed to revitalizing downtowns,making effective use of limited resources
and meeting a wide range of housing needs.
We have until the Coalition's August 12 Board hearing to seek their support.
Please let me know if you have any comments or concerns about the demands and our responses.
Thanks, Tom Kirk, CVAG (760)346-1127