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HomeMy WebLinkAboutCC RES 2012-07RESOLUTION NO. 2012-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT MAKING AN ELECTION IN CONNECTION WITH HOUSING ASSETS AND FUNCTIONS UNDER PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. AB XI 26 and AB X1 27 were signed by the Governor of California on June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law"), including adding Part 1.8 (commencing with Section 34161) ("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85"). B. The California Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861)) alleging that AB X1 26 and AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its opinion in the Matosantos case, largely upholding AB X1 26, invalidating AB X1 27, and holding that AB X1 26 may be severed from AB X1 27 and enforced independently. C. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 arising before May 1, 2012, to take effect four months later. D. As a result of the Supreme Court's decision, the Palm Desert Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the City of Palm Desert (the "City"), created pursuant to the Redevelopment Law, was dissolved pursuant to Part 1.85 on February 1, 2012. E. Health and Safety Code Section 34176(a) authorizes a city that created a redevelopment agency to elect to retain the housing assets and functions previously performed by the redevelopment agency. Pursuant to Section 34176(a), if a city elects to retain the responsibility for performing housing functions previously performed by the redevelopment agency, all rights, powers, duties, and obligations, excluding any amounts on deposit in the Low and Moderate Income Housing Fund, shall be transferred to the City. F. Health and Safety Code Section 34176(b) provides that if a city does not elect to retain the responsibility for performing housing functions previously performed by the redevelopment agency, all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the redevelopment agency, excluding any amounts in the Low and Moderate Income Housing Fund, shall be 81000-0163\ 14 17031 v3.doc RESOLUTION NO. 2012-07 transferred as follows: (1) where there is no local housing authority in the territorial jurisdiction of the former redevelopment agency, to the Department of Housing and Community Development; (2) where there is one local housing authoring in the territorial jurisdiction of the former redevelopment agency, to that local housing authority; and (3) where there is more than one local housing authority in the territorial jurisdiction of the former redevelopment agency, to the local housing authority selected by the city that authorized the creation of the redevelopment agency. G. The Palm Desert Housing Authority and the Riverside County Housing Authority are in the territorial jurisdiction of the former Redevelopment Agency. H. Health and Safety 34176(c) provides that the entity assuming the housing functions formerly performed by the redevelopment agency may enforce affordability covenants and perform related activities pursuant to applicable provisions of the Redevelopment Law, including, but not limited to, Health and Safety Code Section 33418. I. The City Council desires to adopt this resolution in connection with the housing assets and functions previously performed by the Redevelopment Agency. NOW, THEREFORE, THE CITY COUNCIL HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34176. Section 3. Pursuant to Health and Safety Code Section 34176(b), the City Council hereby elects for the City not to retain the responsibility for performing housing functions previously performed by the Redevelopment Agency, and herby determines that all of the assets, as allowed by law, and all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Redevelopment Agency shall be transferred to the Palm Desert Housing Authority. Section 4. The officers and staff of the City are hereby authorized and directed, jointly and severally, to make all notifications of the Council's election, as set forth in Section 3 hereof, as deemed necessary or advisable and to execute all documents and take all actions which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. Section 5. The adoption of this Resolution is not intended to and shall not constitute a waiver by the City of any right the City may have to challenge the legality of all or any portion of AB X1 26 through administrative or judicial proceedings. -2- 81000-0163\141703 I v3.doc G: rda`Patty LeomJMMstaffrepon`RESOLLTIONS:City Council Resolution Making an Election in connection with Housing Assets and Functions:doc RESOLUTION NO. 2012-07 Section 5. The adoption of this Resolution is not intended to and shall not constitute a waiver by the City of any right the City may have to challenge the legality of all or any portion of AB X1 26 through administrative or judicial proceedings. Section 6. This Resolution has been reviewed with respect to applicability of the Califomia Environmental Quality Act ("CEQA"), the State CEQA Guidelines (Califomia Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's environmental guidelines. The City Council has determined that this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b) (5)). Section 7. This Resolution shall take effect immediately upon its adoption. PASSED, APROVED, AND ADOPTED this 9th day of February, 2012 by the following vote, to wit: AYES: BENSON, FINERTY, AARNIK, KROONEN, and SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: Ra elle D. Klassen, City ' Ierk CITY OF PALM DESERT, CALIFORNIA / d!.�.�� Robert A. Spiegel, MayoY1 -3- 81000-0163U417031 v3.doc G:Yda`Fatty LcomlMMNtaff rcpontRESOLUCIONS\City Council Resolution Making an Election in connection with Housing Assets and Funct,ons.doc RESOLUTION NO. 2012-07 [This page has intentionally been left blank.] Rsolution No. 2012-07 REVENUES Rental Income Other Income Reimbursement from Bonds hiovley Loan Repayment2 Housing Loan Repayments3 TOTAL REVENUE EXPENDITURES GENERAL COSTS Staffing° Administrative Costs (budget) Programs5 PDHA DIRECT COSTS Operation Costs Management Fee TOTAL EXPENDITURES NET OPERATING INCOME CAPITAL Replacement Costs5 Capital Improvements5 TOTAL CAPITAL HOUSING AUTHORITY PROJECTIONS FYE 6/30/2010 6/30/2011 6I30/2012* 4,729,313 4,728,432 117,915 131,035 654,731 381,388 4,750,465 A 114,559 98,101 510,918 186,210 5,501,959 5,240,854 5,660,253 4,043,501 427,750 4,471,251 • 335,756 E * 87,188 E * 1,000,000 D' E 3,850,341 * 3,514,438 BI0 430,360 * 426,670 4,280,701 5,364,051 1,030,708 960,154 296,202 NET PROFIT & LOSS SERAF Loan Repayment' Nct Piohl and Loss if SERAF is rrefaiiled 511,348 454,458 654,731 381,388 1,166,079 835,846 (135,370) 195,681 ac 98,101 BC 293,783 124,308 2,419 4,455,322 4,457.741 6/30/2013* 6/30/2014* 4,987,988 116,850 100,063 521,137 189,934 5,915,972 A 5,237,387 119,187 102,065 531,559 193,733 6,183,931 821,931 838,370 213,435 217,704 1,020,000 D 1,040,400 3,584,726 Bc 3,656,421 435,203 443,907 6,075,296 6,196,802 (159,324) (12,871) 199,595 ac 203,587 100,063 WC 102,065 299,659 305,652 (458,983) (318,523) 4,455,322 4,455,322 3.996.339 4.136 7t:9 ' Amounts estimated based on current year acfuais. Notes: 1 Agency asset - Loan Receivable from Successor Agency totalling $17.8 million. To be paid in full by June, 2015 2 Agency asset - Loan Receivable from PO Development (Hovley Gardens Apts) totaling $6.8 million. To be paid annually upon positive net cash flow. 3 Agency asset - Loan Payoffs from Affordable Housing Loans made to qualified buyers. 4 Staffing includes housing salaries and benefits, which were previously funded by the LowiMod Housing Fund. 5 Some costs have been listed on the EOPS, part of the reserve fund calculation, or are bond funded and qualify for reimbursement. A Includes 5% rent adjustment. 8lncludes reduction to PDHA costs of $200,000. C Does not consider potential sale of poor performing properties, which cost approx. $400,000 annually. D Does not consider for -sale housing assets that upon sale, can be used to fund future program costs for qualified buyers. E Amounts prorated for the balance of the year from February 1 through June 30. Costs before February1 are pad from the existing cash in the fowhnod fund, Exhibit A 2/2/2912 8:16 AM Resolution No. 2012-07 PALM DESERT HOUSING REAL PROPERTY LIST as of January 31, 2012 California Villas (aka Country Club Estates) 77-111 Califomia Drive Multi -family: (141) 1-br units Candlewood Apartments 74000-74002 Shadow Mountain Dr. Senior Housing: (26) 1-br, (4) 2-br units Catalina Gardens Apartments & Community Center Senior Housina: (48) studio, (24) 1-br units Desert Pointe Apartments 43805 Monterey Ave Multi -family: (32) studio, (26) 1-br, (6) 2-br units Laguna Palms Apartments 73-875 Santa Rosa Way Multi -family: (4) studio, (18) 1-br, (26) 2-br units La Rocca Villas 42205 Eagle Ln Senior. (27) studio Units Las Serenas Apartments 73-315 Country Club Dr. Senior: (150) 1-br units Neighbors Apartments 73-535 Santa Rosa Way Multi -family (24) 2-br units One Quail Place 72-600 Fred Waring Drive Multi -family (156) 1-br, (228) 2-br units Palm Village Apartments 73-650 Santa Rosa Way Multi -family: (12) 2-br units The Pueblos Apartments 73-695 Santa Rosa Way Senior: 15 studio units Sagecrest Senior 73-811 Santa Rosa Way Senior. (14) studio units Taos Palms Apartments 44-830 Las Palmas Avenue Multi -family: (16) 2-br units EXHIBIT B AcIn Date I Approx Acres i APN PPublicUse 3.53 637-190-006 3/1412003 4.57 637-190-007 0.19 625-132-032 8/3/2006 0,09 625-132-045 1/29/1998 3.07 627-111-027 0.75 640-071-002 1/29/1998 1.43 640-071-003 7/1/2003 0.45 627-122-005 5/12/2005 2.65 624-432-001 1/29/1998 7.25 622-020-002 1/29/1998 1.39 627-102-022 1.91 640-040-008 1/29/1998 15.94 640-040-009 various 1.29 627-101-055 1/29/1998 0.63 627-102-023 2/27/2009 0.67 627-122-004 1/29/1998 0.82 627-093-003 Total 46.63 Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Affordable Rental Housing Page 1 of 3 Resolution No. 2012-07 HOUSING - Vacant Land PALM DESERT HOUSING EXHIBIT B REAL PROPERTY LIST as of January 31, 2012 I Acq'n I Approx Aces I Date APN 4/15/2009 2.10 Part of 637-071-002 IProject/ I Public Use Carlos Ortega Villas 0.51 637-170-003 Sr Affordable Rental 42615 Washington Ave Housing (aka Country Village Apts/ 66 studio units) 12/1/2006 0.46 637-170-004 72 Units 1.66 637-170-007 Sagecrest Apartments Santa Rosa Way 2/28/2008 1.26 627-122-013 Affordable Rental Multi -family: (1) 1-br, (13) 2-br units Housing Sagecrest Apartments 73805 Santa Rosa Way 2/27/2009 0.16 627-122-003 Affordable Rental SFH Housing 73255 Country Club Dr 7/15/2011 7.12 622-020-089 Las Serenas Expansion Approved Habitat Lot 44885 San Benito Cir 12/18/2008 0.14 627-092-054 Donation for Build of SFH Approved Habitat Lot 44871 San Benito Cir 12/30/2010 0.19 627-092-050 Donation for Build of SFH HOUSING - Other Candlewood Apartments Ingress/Egress Lot Candlewood Apartments Easement Lot Candlewood Apartments Landscape Easement Lot Desert Pointe Parking Lot La Rocca Villas Lot L of Tract 30795 Total 13.60 4/2/2010 0.17 625-132-035 Access 8/2/2006 0.09 625-132-045 Access 8/2/2006 0.34 625-171-001 Landscape Easement 0.28 640-071-004 10/5/1988 0.29 640-071-005 Parking 0.31 640-071-006 0.35 640-071-007 5/12/2005 0.28 624-441-025 Proposed Storage /Maintenance Bldg Total 2.11 Page 2 of 3 Resolution No. 2012-07 PALM DESERT HOUSING REAL PROPERTY LIST as of January 31, 2012 I Daten I Approx Acres' APN EXHIBIT B .a I Project) I ... Public Use HOUSING For -Sale Falcon Crest 42-075 Hovley Gardens Ln 2/25/2011 0.14 624-430-006 Homeownership 74-478 Falcon Ln 6/29/2011 0.14 624-430-018 Homeownership 42-190 Golden Eagle Ln 4/29/2011 0.11 624-431-011 Homeownership 42-253 Verdin Ln 5/27/2011 0.13 624-431-016 Homeownership 42-071 Verdin Ln 11/23/2010 0.11 624-431-029 Homeownership 42-190 Verdin Ln 6/28/2011 0.13 624-440-006 Homeownership 74-572 King Fisher Cir 1/22/2010 0.11 624-440-012 Homeownership 74-642 King Fisher Cir 6/4/2010 0.11 624-440-017 Homeownership 74-537 King Fisher Cir 10/18/2010 0.12 624-441-007 Homeownership 42197 Verdin Ln 11/28/2011 0.11 624-431-020 Homeownership 42218 Verdin Ln 10/28/2011 0.13 624-440-008 Homeownership 74670 King Fisher Cir 10/28/2011 0.11 624-440-019 Homeownership 42050 Golden Eagle Ln 12/7/2011 0.14 624-431-001 Homeownership Desert Rose 43-840 Blueberry Ln 9/9/2009 0.10 634-061-038 Homeownership 75-455 Wildflower Ln 6/30/2009 0.10 634-062-028 Homeownership 43-710 Kelsey Ct 11/30/2010 0.10 634-241-042 Homeownership 75-333 Kelsey Cir N 5/2212009 0.09 634-242-019 Homeownership 43155 Portola Ave #129 (For -Sale) Lot 73 (For -Rent) 2/4/2011 0.08 622-351-129 Homeownership 2/1/1998 0.09 622-351-073 Affordable Rental Housing Total 2.15 Page 3 of 3