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RESOLUTION NO. 2012-7 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, AUTHORIZING A REQUEST
TO THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT TO AMEND THE TERMS OF
THE ENHANCED FIRST TIME HOMEBUYER ASSISTANCE
COMPONENT OF THE CALIFORNIA NEIGHBORHOOD
STABILIZATION PROGRAM (NSP)
The City Council of the City of Palm Desert, California (hereinafter referred to as the
"City Council") does resolve as follows:
WHEREAS, the County of Riverside ("County") and the City of Palm Desert
("City") executed a Cooperation Agreement for the use of Neighborhood Stabilization
Program Funds ("Cooperation Agreement"), dated 22 December 2009, whereby the City
elected to participate with the County in a joint effort to apply for, receive and use
Neighborhood Stabilization Program ("NSP" or the "Program") funds from the State of
California to assist and undertake essential neighborhood stabilization and housing
assistance activities pursuant to the Housing and Economic Recovery Act of 2008
("HERA"), and the subsequent program regulations promulgated by the United States
Department of Housing and Urban Development ("HUD"); and
WHEREAS, the California Department of Housing and Community Development
("HCD") administers NSP funds for the State of California; and
WHEREAS, the City, in cooperation with the Palm Desert Redevelopment
Agency, established a 2009-10 NSP Action Plan (the "Plan") for the participation of very
low, low and moderate income residents in the Program within the City, approved by the
City Council on May 26, 2009; and
WHEREAS, the County and the City desire to seek authorization from HCD to
amend the terms of the Enhanced First Time Homebuyer Assistance component of
California NSP consistent with HUD and HCD regulations and rules.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
Section 1. The City Council has reviewed and hereby approves and consents to
the County and the City seeking authorization from HCD to amend the terms of the
Enhanced First Time Homebuyer Assistance component of the California NSP
consistent with HUD and HCD regulations and rules, for the following activities:
Proposed amended terms
Activity: NSP3 Enhanced First Time Home Buyer ("EFTHB") Program
The EFTHB Program is to provide purchase price assistance to eligible first time home
buyers in the form of a silent second lien as follows: Up to thirty percent (30%) of the
selling price for moderate income first time homebuyers with a household income which
does not exceed 120% of the area median income ("AMI"); Up to forty percent (40%) of
RESOLUTION NO. 2012-72
the selling price for low income first time homebuyers with a household income which
does not exceed 80% of the AMI; and finally, up to fifty percent (50%) of the selling
price for very low income first time homebuyers with household income which does not
exceed 50% of the AMI. All assistance loans will be capped for a maximum amount of
seventy five thousand dollars ($75,000), with an affordable restriction for a time period
not to exceed fifteen (15) years. The purchase price assistance provided to eligible first
time home buyers will be funded from the net proceeds of the sale.
Section 2. In the event that additional NSP funding becomes available at a later
date, the City is authorized to apply for, and/or accept such additional NSP funding, up
to the amount eligible under any revised or reissued notice of funding availability. Any
additional NSP funding will be used in accordance with funding requirements
established by HUD and/or HCD.
Section 3. The City Council hereby authorizes and directs the City Manager, with
concurrence with City Attorney, to take such further actions and execute such other
agreements as may be necessary or appropriate in administering the actions authorized
by this Resolution.
Section 4. The City Council hereby authorizes, the City Manager to sign Program
amendment and other reporting forms that are required by the Program.
PASSED, APPROVED AND ADOPTED this 15th day of November, 2012
by the following vote to wit:
AYES: BENSON, FINERTY, HARNIK, KROONEN, and SPIEGEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST
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/ 4/ RACHELLE D. KLASSEN, CitgClerk
City of Palm Desert, California
/-/( -4C)/D-X-4Q-1
ROBERT A. SPEIGEL( Mayo
GVda\Veronica TapiaWSP Propram\Contract Amendment NSP Resolution Amending EFTHB 11-15-12.doc