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HomeMy WebLinkAboutRDA RES 308RESOLUTION NO.308 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY ADOPTING POLICIES AND PROCEDURES REGARDING THE CONVERSION OF MOBILEHOME PARKS TO RESIDENT OWNERSHIP THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. California Redevelopment Law, Health and Safety Code Section 33334.2 provides for the Agency's involvement in the increasing, improvement, and preservation of the community's supply of low and moderate income housing within the jurisdiction of the Agency. Section 2. It is in the community's interest to provide assistance, as applicable, to residents of mobilehome pazks who desire to convert to resident ownership in order to preserve the supply of affordable housing to individuals of low and moderate income. Section 3. In order to determine conversion feasibility, it is necessary to establish policies and procedures to follow in making this determination. Section 4. The Agency hereby adopts policies and procedures relative to the conversion of mobilehome parks to resident ownership, a copy of which is on file in the office of the City Clerk. APPROVED AND ADOPTED this8th day of 3une, 1995. AYES: BENsort, KELLY, SNYDER, SPIEGEL, CRITES NOES: Norr ABSENT: NONE ABSTAIN: rrorrE `;. Chairman ATTEST: - '? ; ', `' ,,. Z C , Sheila . (iilligan, cre POLICIES AND PROCEDURES REGARDING THE CONVERSION OF MOBILE HOME PARKS TO RESIDENT OWNERSHIP . ;. . Mobile home parks represent a significant source of affordable housing and community security for low and moderate income families and senior households, many of which subsist on limited or fixed incomes. � Conversion of mobile home parks to resident ownership provides an effective means whereby residents can be assured greater financial stability with respect to housing costs, enhanced control over the management of their park, and security from the threat of park sale or closure. The Palm Desert Redevelopment Agency generally recognizes the benefits of resident- owned mobile home parks; However, in order to assure that mobile home park conversions work to the benefit of their residents, these policies and procedures have been developed. � n Y � POLICY STATEMENT It is the policy of the Palm Desert Redevelopment Agency (Agency") to encourage the conversion of mobile home parks to resident ownership when the following conditions are met: (1) The individual or entity sponsoring the conversion provides documentation evidencing support by at least two-thirds of the mobile home park space occupants. (2) The conversion of the mobile home paric includes safeguards which guarantee that no existing mobile home park resident will be disptaced physically or economically by the conversion project or its implementation or operation. (3} The ownership entity which results from the conversion project agrees to place non- owned lots (e.g., those occupied by mobile home park residents who do not wish or cannot afford to purchase their space) under enforceable space rent restrictions in keeping with the existing City of Palm Desert rent control ordinance. (4) A mobile home park conversion feasibility report has been submitted to and approved by the Agency, which includes the following components: (a) a financial feasibiiity analysis documenting: (I) a verified source of permanent financing to be used to purchase the mobile home park from the existing owner; (ii) a verified source of permanent financing to be used by individual residents in purchasing #heir spaces; (iii) a financial analysis which demonstrates that conversion of the park is financially feasible without financial assistance or participation by the City and/or the Agency. (b) documentation verifying the number of residents that have indicated interest in purchasing their space based on full disclosure as to estimafed purchase cost inclusive of homeowners' association fees; O an analysis of demographics within the park relative to income and housing costs sufficient to verify that residents who have indicated interest in purchasing spaces will be qualified to do so; (d) a homeowner's association budget indicating the source and application of funds to be used to operate the park and assure adequate capital and debt service reserves on a long term basis; (e) a management plan for the operation of non-owner occupied spaces including projected space rents for residents who do not participate in a purchase program and, as an altemative, intend to remain tenants within the mobile home park; (F) a Phase I hazardous waste study reflecting the soils condition within the park proposed for conversion; (g) an engineering study indicating the condition of the park infrastructure including utility systems and common area improvements. The study should include estimated improvement costs for rectifying any substandard conditions and �completing any appropriate rehabilitation and identify an appropriate capital reserve for replacement for purposes of establishing a homeowner's association budget. 2 It shall further be the policy of the Agency to consider providing financial assistance, directly or indirectly, for the conversion of mobiie home parks to resident ownership only if (1) such assistance serves to preserve, create or improve low to moderate income housing resources, and (2) the following additional conditions are met: (1) The public participation provided by the Agency is in di�ect proportion to the number of low to moderate income residents and very low income residents within the park. (2) The mobile home park proposed to be converted represents the sole and full-time residence of at least two-thirds of the households occupying spaces within the park. (3) Housing costs within the park are restricted by tong term affordability covenants in not less than direct proportion to the amount of financial participation provided by the Agency in accordance with Califomia Community Redevelopment Law. (4) The proposed mobile home park resident conversion program does not require the long term ownership or management by the City; Redevelopment Agency or Housing Authority, or any subdivision of the City, Redevelopment Agency or Housing Authority. 3