HomeMy WebLinkAboutRes 05-81 and 508 Application to the CA Dept. of Housing & Community Dvlpmnt R23390CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT AND PALM DESERT REDEVELOPMENT AGENCY
AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT REQUESTING BEGIN PROGRAM FUNDING
FROM: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: OCTOBER 13, 2005
CONTENTS: CITY RESOLUTION NO. 05- 81
AGENCY RESOLUTION NO. 568
Recommendation:
By Minute Motion that the City Council:
Adopt Resolution No. 05- 81 a resolution of the City Council of Palm Desert
authorizing the submittal of an application to the California Department of
Housing and Community Development requesting BEGIN Program funding in an
amount up to $2,790,000 for down payment assistance for the 93 single-family
residences at the 20 acre site, and
2. Authorize the City Manager to execute all documents that may be necessary to
facilitate the application or award.
By Minute Motion that the Agency Board:
1. Adopt Resolution No. 508 , a resolution of the Palm Desert Redevelopment
Agency authorizing the submittal of an application to the California Department
of Housing and Community Development requesting BEGIN Program funding in
an amount up to $2,790,000 for down payment assistance for the 93 single-
family residences at the 20 acre site, and
2. Authorize the Executive Director to execute all documents that may be
necessary to facilitate the application or award.
Executive Summary:
Approval of this request will authorize staff to submit an application for funding provided by the
California Department of Housing and Community Development. If the application is
successful, the City and/or Agency will utilize the funds as down payment assistance for first
time homebuyers for the 93 single-family residences at the 20 acre site. Denial of this request,
will result in the Agency funding the entire monetary differential between an affordable housing
Resolution No. 05-81 & 508
Staff Report
Request for BEGIN FUNDING PROGRAM
October 13, 2005
Page 2 of 2
cost and the sales price of the home.
Discussion:
On March 17, 2005, the California Department of Housing and Community Development (HCD)
announced the issuance of this Notice of Funding Availability (NOFA) under the Building Equity
and Growth in Neighborhoods (BEGIN) Program. Proposition 46, the Housing and Emergency
Shelter Trust Fund Act of 2002, provides funding to local public agencies for low- and
moderate -income first-time homebuyer mortgage assistance.
The City and/or Agency proposes to apply for available funding under the BEGIN Program in
order to assist the buyers of the 93 single-family units at the 20 acre site. If the Agency is
successful with its application the City and/or Agency could be awarded up to $2,790,000 in
grants which shall be used for down payment assistance in the form of a loan to qualifying first-
time homebuyers of low- and moderate -income purchasing newly constructed homes in a
BEGIN project.
A successful application will reduce the Agency's assistance obligations which staff estimates
to be between $60,000 and $85,000 per household. This NOFA is a competitive application
process. In the event that there are more project funding requests than available funding, the
applications will be competitively scored and funding wil be allocated accordingly.
There is a possibility that the City and/or Agency may be successful in its application, however,
may not receive the entire amount of funding applied for. In the event this happens, the City
and/or Agency will utilize the allocated funding in the most appropriate manner to ensure that
the benefit of the award is maximized.
The attached resolutions authorizes the Executive Director and City Manager to execute the
application for the BEGIN funds as well as any documentation necessary to facilitate this
funding request. Agency staff will work with the contracted developer of the 20 acre site, Com-
Dyn, Inc., to prepare and submit the required application.
Staff recommends approval of said resolutions authorizing the submittalof the application to
HCD in order to request funding under the BEGIN Program.
Submitted By: Department Head:
Jan M. Moore
sing Authority Administrabr
\proval:
D • /,
i McCarthy,
for Redevel oment
"Dave Yrigoye
Director of edevelopment and Housing
Carlos L. O a
Executive Director/City Manager
G WDAIPatty LeonlWpdocsVMMWaN report)BEGW Program doc
RESOLUTION NO. 05- 81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT WHEREIN THE CITY COUNCIL HEREBY
AUTHORIZES THE SUBMITTAL OF AN APPLICATION TO
THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE
BEGIN PROGRAM; THE EXECUTION OF A STANDARD
AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY
AMENDMENTS THERETO; AND ANY RELATED
DOCUMENTS NECESSARY TO PARTICIPATE IN THE
BEGIN PROGRAM.
THE GOVERNING BOARD OF:
The Citv Council of the Citv of Palm Desert
WHEREAS:
A. The City of Palm Desert, a municipal corporation, wishes to apply for and
receive an allocation of funds through the BEGIN Program; and
B. The California Department of Housing and Community Development
(hereinafter referred to as "HCD") has issued a Notice of Funding Availability ("NOFA") for
the BEGIN program established by Chapter 14.5, Sections 50860 throuqh 50866 of Part 2
of Division 31 of the Health and Safetv Code (the "statute"). Pursuant to the statute, HCD
is authorized to approve funding allocations utilizing monies made available by the State
Legislature to the BEGIN program, subject to the terms and conditions of the statute and
the BEGIN Program Guidelines adopted as amended by HCD on 03/04/05; and
C. The City Council wishes to submit an application to obtain from HCD an
allocation of BEGIN funds in the amount of $2,790,000.00
IT IS NOW THEREFORE RESOLVED THAT:
1. The City Council shall submit to HCD an application to participate in the BEGIN
Program in response to the NOFA issued on March 17, 2005, which will request a .
funding allocation for the following activities:
Down Payment Assistance for first time homebuyers at a 20 acre development in
the City of Palm Desert west of Cook Street that will consist of 93 single-family
residences available to persons and families of low to moderate income. All grant
G \RDAIPATTY LEON\WPDOCSUMMASTAFF REPORTIRESOLUTIONSIBEGIN PROGRAM - CITY'S RES.DOC
Resolution No. 05-81
funding will be used for this purpose in an amount not to exceed the allowable
assistance pursuant to the NOFA described above.
2. If the application for funding is approved, the Palm Desert Redevelopment Agency
(hereby agrees to use the BEGIN funds for eligible activities in the manner
presented in the application as approved by HCD and in accordance with program
Guidelines cited above. It also may execute any and all other instruments
necessary or required by HCD for participation in the BEGIN Program.
3. The City Council authorizes Carlos L. Ortega, City Manger, to execute in the name of
the City Council of Palm Desert, the application, the Standard Agreement, and all
other documents required by HCD for participation in the BEGIN Program, and any
amendments thereto.
PASSED, APPROVED, and ADOPTED by the City Council of Palm Desert, this
13th day of October, 2005, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Buford A. Crites, Mayor
ATTEST:
Rachelle D. Klassen, City Clerk
City of Palm Desert, California
G.\RDA\PATTY LEON\WPDOCSWMMISTAFF REPORT\RESOLUTIONS\BEGIN PROGRAM - CITY'S RES.DOC
RESOLUTION NO. 508
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY WHEREIN THE AGENCY BOARD HEREBY
AUTHORIZES THE SUBMITTAL OF AN APPLICATION TO
THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE
BEGIN PROGRAM; THE EXECUTION OF A STANDARD
AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY
AMENDMENTS THERETO; AND ANY RELATED
DOCUMENTS NECESSARY TO PARTICIPATE IN THE
BEGIN PROGRAM.
THE GOVERNING BOARD OF:
The Palm Desert Redevelopment Aqencv
WHEREAS:
A. Palm Desert Redevelopment Agency, corporate and politic, wishes to
apply for and receive an allocation of funds through the BEGIN Program; and
B. The California Department of Housing and Community Development
(hereinafter referred to as "HCD") has issued a Notice of Funding Availability ("NOFA") for
the BEGIN program established by Chapter 14.5, Sections 50860 through 50866 of Part 2
of Division 31 of the Health and Safetv Code (the "statute"). Pursuant to the statute, HCD
is authorized to approve funding allocations utilizing monies made available by the State
Legislature to the BEGIN program, subject to the terms and conditions of the statute and
the BEGIN Program Guidelines adopted as amended by HCD on 03/04/05; and
C. The Palm Desert Redevelopment Agency wishes to submit an application
to obtain from HCD an allocation of BEGIN funds in the amount of $2,790,000.00
IT IS NOW THEREFORE RESOLVED THAT:
1. The Palm Desert Redevelopment Agency shall submit to HCD an application to
participate in the BEGIN Program in response to the NOFA issued on March 17,
2005, which will request a funding allocation for the following activities:
Down Payment Assistance for first time homebuyers at a 20 acre development in
the City of Palm Desert west of Cook Street that will consist of 93 single-family
residences available to persons and families of low to moderate income. All grant
GARDA\PATTY LEON\WPDOCS\TLAROCCA\STAFF REPORTS\RES\DE ANZA PROPERTY DOC
Resolution No. 508
funding will be used for this purpose in an amount not to exceed the allowable
assistance pursuant to the NOFA described above.
2. If the application for funding is approved, the Palm Desert Redevelopment Agency
(hereby agrees to use the BEGIN funds for eligible activities in the manner
presented in the application as approved by HCD and in accordance with program
Guidelines cited above. It also may execute any and all other instruments
necessary or required by HCD for participation in the BEGIN Program.
3. The Palm Desert Redevelopment Agency authorizes Carlos L. Ortega, Executive
Director, to execute in the name of the Palm Desert Redevelopment Agency, the
application, the Standard Agreement, and all other documents required by HCD for
participation in the BEGIN Program, and any amendments thereto.
PASSED, APPROVED, and ADOPTED by the Palm Desert Redevelopment
Agency, this 13th day of October, 2005, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Buford A. Crites, Chair
Palm Desert Redevelopment Agency
ATTEST:
Rachelle D. Klassen, City Clerk
GARMPATTY LEONIVWPDOCS%TLAROCCA\STAFF REPORTSIRESME ANZA PROPERTY.000