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HomeMy WebLinkAboutRDA RES 512RESOLUTION NO. 512 -- A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A REPORT REGARDING EXCESS TAX INCREMENT REVENUES AND MAKING FINDINGS RELATED THERETO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency (the "Agency") has caused to be prepared a Report Regarding Excess Tax Increment Revenues, which Report is attached hereto as Exhibit A. Such Report indicates the last equalized roll of taxable property in each of the Project Areas of the Agency, the projected amounts to be set aside into the Low and Moderate Incorpe Horasing Fund of the Agency pursuant to Health and Safei`y Code Sections•33334.2(a) and 33334.6(c), the housing requirements specified in paragraph 1.a, b and c of that certain Stipulation for Entry of Judgment in Case Nq. Indio 51143, as amended in 1997 and again in 2002, the projected housing needs included in the requirement set forth in paragraph 1.d of such Stipulation, as amended, and the estimated amounts of money necessary to meet the requirements of paragraph �.a, b, c and d. Such Report includes evidence and analysis reasonably supporting and substantiating the projections therein. Such Report is hereby approved. — Section 2. The Agency hereby finds and determines that the surplus revenues described in the Report are not and will not be necessary to meet the housing requirements set forth in paragraph 1a, b and c of such Stipulation, as amended, with respect to Project Areas Nos. 1 and 2 of the Agency, and are not and will not be necessary to meet the housing requirements set forth in paragraph 1d of such Stipulation, as amended, with respect to Project Area No. 2 of the Agency. Such surplus revenues thereby constitute "excess tax increments" within the meaning of that term under paragraph 2 of such Stipulation, as amended. Such surplus revenues therefore may be pledged on an annual basis to pay future debt service on bonds, notes or other indebtedness of the Agency to finance its redevelopment activities, which are unrelated to low and moderate income housing, and such bonds, notes, or other obligations or indebtedness P6402-0001\83734�v l.doc RESOLUTION N0. 512 will thereby constitute a"prior indebtedness" within the meaning of such term under paragraph 2 of such Stipulation. 2005. PASSED, APPROVED AND ADOPTED this lOth day of November , AYES:BENSON, FERGUSON, KELLY, SPIEGEL, CRITES ���rr�_ ........ 2 I'6402-0001\837347v1.doc Resolution No. 512 REPORT REGARDING EXCESS TAX INCREMENT REVENUES October, 2005 This Report has been prepared pursuant to paragraph 2 of the Stipulation for Entry of Judgment in Case No. Indio 51143, entitled City of Palm Sprin�s v. All Persons Interested, as amended in 1997, and as amended again in September of 2002. The purpose of this Report is to set forth facts and projections upon which the Palm Desert Redevelopment Agency may make a finding that certain amounts of tax increment revenues, as identified in this Report, are not and will not be necessary to meet the housing requirements set forth in the Stipulation, as amended, and that such tax increment revenues may be pledged on an annual basis to pay annual debt service requirements on long term bonds, notes, or other obligations or indebtedness of the Agency to finance redevelopment activities other than housing. As used in this Report, "Agency" sometimes also collectively means related public entities such as the City of Palm Desert and the Palm Desert Housing Authority. 1. According to reports issued by the Auditor-Controller's Office of the County of Riverside, based upon the last equalized tax assessment roll� the assessed value of taxable property in all Project Areas of the Agency is set forth on Table 1, below, and is as follows: the Original Territory of Project Area No. 1, $825,767,882; the Added Territory of Project Area No. l, $3,772,744,132; Project Area No. 2, $1,467,872,833; Project Area No. 3, $433,362,444; and Project Area No. 4, $1,619,071,451. i . __ - - TABLE 1 . — PALM DESERT REDEVELOPMENT PROJECT AREAS 2005-2006 EQUALIZED ASSESSED ROLL VALUE Assessed Valuations Pro'ect Area Secured & Utili Unsecured Total Value Project Area No. 1 Original Territory $729,583,351 $96,184,531 $825,767,882 Project Area No. 1 Added Territory Project Area No. 2 Project Area No. 3 Proiect Area No. 4 $3,693,561,100 $79,183,032 $3,772,744,132 $1,451,555,514 $16,317,319 $1,467,872,833 $383,280,660 $50,081,784 $433,362,444 $1,607,187,667 $11,883,784 $1,619,071,451 � County Auditor-Controller report for fiscal year 2004-2005 available for review at office of Executive Director of Agency. P6402-0001 \857122v2.doc Resolution No. 512 2. Table 2, below, details the growth during the last several fiscal years of the net assessed value of taxable property within all Project Areas of the Agency. The information in Table 2 is based upon previous reports issued by the Riverside County Auditor Controller's Office.z : - -- --- ._ _ __ . -_. _.. __ TABLE 2 --.... - -.. � PALM DESERT REDEVELOPMENT AGENCY ! PALM DESERT REDEVElOPMENT PROJECT AREAS , ASSESSED VALUATION HISTORY FOR ALL PROJECT AREAS' Fiscal Project Area No. 1 ProJect Area No. 1� Project Project Project Year Original Terrkory Growth Amended Area Growth � Area No. 2 Growth Area No. 3 Growth Area No. 4 Growth ' 1985-86 $301,032,783 $976,968,289 (notavailable) NotAppliCable-YearspriortoAdoption � 1986-87 $329,193,372 9.35% 31,054,219,473 7.91% $102,157,186 base yr. Of RedEv6lopme�rt Projed Areas i 1987-88 $360,380,256 9.47% 31,106,840,081 4.99% (not availabie) - 1988-89' 5356,789,397 -1.00% $1,141,345,276 3.12% 5267,444,268 ' 1989-90 3397,104,031 11.30°/a $1,278,633,404 12.03% $345,058,631 29.02% 1990-91 5443,241,598 11.62% 51,403,837,206 9.79% $431,794,716 25.14% $152,824,265 base yr. 1991-92 $460,970,175 4.00% 31,515,782,443 7.97% $516,031,260 19.51% $158,703.458 estimate � 1992-93 $476,509,811 3.37% $1,612,292,706 6.37% 5542.212,121 5.07°h a185,318,169 16.77% 587,462,305 1993-94 $504,139,473 5.80% 51,692,432,395 4.97% $583,724,579 7.66°/a $191,012,915 3.07� 610,960,797 4.00% � 1994-95 $508,363,101 0.84% a1,735,805,615 i 2.56°h �$565,046,462 -3.20% $192,765,917 0.92% 666,027,711 9.01°h 1995-96 3536,921,330 5.61% $1,745,423,703 ' 0.55% 3603,863,572 6.87% 5203,423,387 5.53% 695,032,503 4.35°h 1996-97 $545,676,935 1.63% $1,752,305,202 0.39% $639,950,488 5.98% $201,557,484 -0.92% 697,487,317 0.35% 1997-98 $561,656,577 2.93% 51,784,367,801 1.83% ;$692,074,003 8.14% $210,542,941 4.46% 729,959,356 4.66% 1998-99 $575,683,706 2.50% 31,835,985,315 ' 2.89% $735,914,253 6.33% $218,502,516 3.78% 789,753,193 8.19% � 1999-00 5582,008,406 1.10% $1,924,383,612 4.81% 5814,178,455 10.63°/a 5235,022,348 7.56% 916,534,060 16.05% 2000-01 $647,354,888 11.23% $2,253,001,599 17.08% $883,822,369 8.55°k 3252,343,372 7.37% 1,048,408,747 14.39% 2001-02 $663,561,785 2.50% 52.638,690,766 17.12%' $959,692,226 8.58%a $269,924,155 6.97% 1,207,732,362 15.20% ' 2002-03 3677,837,352 2.15% $2,952,832,758 11.91% $1,144,432,059 19.25% $285,478,840 5.76% 1,314,714,496 8.86% i 2003-04 $720,961,253 6.36% 33,160,784,451 7.72% 51,273,944,318 11.32% 3353,531,549 23.84% 1,405,798,678 6.93% 2004-OS 5768,146,022 6.54% a3,433,954,486 � 7.96% � 51,365,153,234 7.16% $363,298,238 2.76% 1,488,937,945 5.91% j 2005-06 $825,767,882 7.50% $3,772,744,132 9.87% $1,467,872,B33 7.52% $433,362,444 19.29% 1,619,071,451 8.74% Average annualpercentageincrease 5.24Y, � 7.09% 10.80'/. 7.65%. 8.20Y. Note: 'Decrease In assessed value Is the result of IeglslatJon that removed the unitary uUllty value fiom the secured assessment roll. Z County Auditor Controller's reports for prior fiscal years available for review at office of Executive Director of Agency. P6402-0001 \857122v2. doc 2 Resolution No. 512 As shown by Table 2, the average percentage increase in assessed valuation of taxable property in Project Area No. 1 over the prior 20-year period is as follows: for the Original Territory, 5.24 percent; and for the Added Territory, 7.09 percent. The average percentage increase in assessed valuation of taxable property in Project Area No. 2 over the prior 17-year period is 10.80 percent. The average percentage increase for Project Area No. 3 over the prior 15-year period is 7.65 percent, and the average percentage increase for Project Area No. 4 over the last 13 years is 8.20 percent. 3. New development and construction activity continues in all Project Areas. Rosenow, Spevacek Group, Inc., working with the City's Building Department and Planning Department, has reviewed new development and construction activity that will significantly increase the assessed value of the Project Areas. That new development and construction activity is projected to result in additions to the assessment rolls for 200?-2008 for the Original Territory of Project Area No. 1 of $6,914,910; for the Added Territory of Project Area No. 1 of $15,512,620; for Project Area No. 2 of $40,936,340; for Project Area No. 3 of $11,801,127; and for Project Area No. 4 of $1,173,670. The various development projects are separated by Project Area and set forth on Table 3, below. TABLE 3-A-1 PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0.1 ORIGINAL TERRRORY 2007-08 ASSESSINENT ROLL 2006-09 ASSESSMENT ROLL Y009-10 ASSESSAIENT ROLL ESTIMATED VALUE ESTIMATED VALUE E5TIMATED VALUE Approvetl a Estimated Under SoFT or Cortqle6on Date- � Descriptlon Use Construc6on A.tres # Units Rdl Date ResidenOal I Comnercial Industrial ResidenUal CormierclA Industrial ResiOential Commercial � Industrial A1 � Zylsba ofice approved 5250 1 12106-ARO&09 5705.000 Cfiamber ot — - — Comrierce ol6ce approved 5725 1?!OB-AR09-10 550.000 � Robert under McLxhGn me0icalolficeconsVuction 15076 12N6 53,541,450 under RM Budders office wnstruc6on 2140 1 8/07-ARO&09 5502,900 vi5itpfs � center, i chamber ot Entrada Del commerce, under � Paso restawants wnstruc6on 12 acres 11/O6-AR07-0B NO VAI.UE � — --�— FBddeAy 8 — — Associales aparVnents approved 12 12106-AR07-08 52,618,460 Tot+k f2,816,480 f�,296,�50 SO f502.900 f0 f0 SO f0 I'6402-0001\857122v2.doc 3 Resolution No. 512 TABLE 3•A-2 PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0. 1 ADDED TERRITORY 2007•OB ASSESSMENT ROLL 200A•09 ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL ESTIINATED YALUE ESTIIAATED VALUE ESTIMATED VALUE Esumated Approved a Comple6on Under SQFT a Date-Rdi Oescrip6on Use ConstrucOon Acres # Unit� Date Residential Commercial Indusbial Readential Corm�ercia' Industrial Residential � Comnercial Industrial Perfecl Balanc 12/06-AR07- Olfice ol�ce apD��d 2111 1 OB 5496.OB5 Ham�e/Adams under 12/06�AR07- Park pubiic park wnsWc6on 17 acres OB NO VALUE Matinee Trust 11J06-AR07- .-. . -- Ofiice ofice approved Na _OB _ Oracle Plaza � Freg�fBing a(fice app�py�tl 12450 --- Sl07-AROB-0 52,925,750 - - - - - --- ----- � Professional ofice wnstuc6on 6213 2 5107-AR08-0 _ 51,460,055 The Living administraG under 12/07-ARO& � Desert e bu�6ng construcGon 19075 1 09 NO VALUE Katz Office — — 12106-AR03 - — _ Complex office approved 64521 3 10 53,500.000 church and Sacred Heart schod apDroveO 6108-AR09-1 NO VALUE AAonterey — --- — 12lO6-AR07- ---- - � � Properties ofice apDroved 1460 1 08 31.153,100 under Sunwest office construcbon 4971 S/OEAR07-0 51.168,185 Desert Partner medical under 70106-AR07- Olfice _ olfice construction 9000 08 52,115,000 �� _ .�.. Hait Office 12/O6-AR07- � I Building office apDroved 6192 1 OB _ 3356.000 _ � � Canyons at single family. under ---�- -�� 12/07-ARO& � &ghorn gdfcourse consWc6on 93 09 � SiB,9B5,1)5 '� i 518,9BSJ75 i LindQuest under � 1?A6�AR07- ..-1- �-�-1--�� �-- i Devebpment single family constructian 3 08 51,837,275 � , � _ _ _� �-- LiMQuest under 12/06-AR07- � I Development singlefartWy construcuon 3 OB f1,837.275 � ! Clwice un0er t0106-AR07. - - — �. - --- � i i Enterpnses single famiy construc0on 4 OB f2.449,700 _ _ i _ _ u� __ . _.. _ _.�- � Paseo VisU single family consWc6on 9 75 xres 65 1/07-AROB-0 539,807,625 aRoreaWe untler 12106�AR07- ! PalmVdlage housing consWcUon 36 OB NOVALUE � i 58,124,250 59,36l,370 f0 SSl,792,l00 f4,385,l05 f0 516,985,175 SO f • P6402-0001\857122v2.doc Resolution No. 512 TABLE 3-B PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0. 2 2007•08 ASSESSMENT ROLL 2008-09 ASSESSMENT ROLL 2009•10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATED VALUE ESTIMATED VALUE Esfirtwted I I Approvad a Cort�ple0on I Under SoFTa Date�Rdl Descrip6on Use ConsWc�on Acres #Unils DaOe Residen6al Comrercial, Industrial ResidenUal Cortvr�ercial Industrial Residental I Commercial Industrial Cal State i Universiry under 2008-09- MasterPoan schod consWc6on 200au AR09-10 ,�f� I I NOVALUE I - - — -- — — i � --�� Marriofs 6meshare/ under I I i ' SAadowRid{�a gol(course construction Na Na 12106-AR07- I i - Basic Capital o16ce approved 23500 1 08 f5.522,500 � - - -I----�-- --�--. --�-- � - Gerald Fad otficel under � I Drive indusbial constructlon 6.1 xres 5 4/07-AROB-0 NO VALUE _ _� i _ Universily Cortmerce olFce 19.39 8 17/O6-AR07- Center /�ndustrial approved acres buildings OB NO VALUE , -- — — - �- —�---. 1 I Me7oplex One ofice apprwed 29950 Al06AR07-0 57.039,250 � Wlsonand ofice/ I � I ,bh�on Office industrial^ apptrned 32910 7I06-AR07 _� S6,SB2,000 _ � retail; t �— retail, ofite, roam ' Rick Evans hotel approved hotel: 4107-AROB 530.548.700 53.583,000 I --- � ^_ � Scotele Office under 12/06-ARO& Building o�ice wnstruction 53662 5 09 51,344.000 ' ValleyCenter approved 166,000 Sb�ndin U07-AROB-0 I I 539,010,000 � -- ----F- - fi- - . -_ � -�. W����, � _ -�- Demundo Tie showroan apprwed 19565 7107-AR � 53.913,000 � Lowe's i Improvement under 12706-AR07- Center retail construction 135152 2 OB NO VALUE , � W4son and � � Johnson Office ofice apDroved 14474 7IOfrAR07-0 SS,I51,39� � Communiry cammunity NO VALUE I �_ Center cenler apProved 94000 1 1/0&AR09-7 _ � Caurto Homes smgle family approved 5 acres i6 fillUGCrAR�l-0 59,748,BOU 1 — - �zro�-r�o�- — ----- �,—I FortoiaDante s�ng�efamily approved Sxras 16 98 54.899,400 f4,899,400 . --- -l__.. 4 6B I I Paolini Homes single famiry approved acres 76 2I07-AROB-0 S9,)98.800 � --�-- —} — Ponderosa 3BA5 12/0&AR03 � Hanes single family approved acres 237 10 372.572.363 . _— — - -� — - KibEylP¢le 3.88 12/07-AROB� Devebpment singlefami�Y apProved acres 14 09 .- -- -- 58,573,950 -- — I Desert Welis 69.26 � 237 single famYY approved aues 2)0 3/OB-AR09-1 SB2,677.375 ftl,89e,200 f19,656,1f0 i6,5A2,000 s53,l20,6S0 f47,59�,000 t7,913,000 f155,i49,73A SO SO Yfi402-0001\857122v2.doc Resolution No. 512 TABLE 3�C PA�M DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0.3 2007-0A ASSESSIAENT ROLL i006-09 ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL ESTIMATEO VALUE ESTINATED VALUE E5TINATED VALUE EsUmated Approved ar C«rqletion Under S�FT or Date-Roll pestriptlon Use Construction Acres #UniLt Da(e Residen6al Carmercial Industrial ResidenOal Conmercial Industrial Reatlen6al Cammercial Industrial under 12/08-AR09- Canterre aparbnents construction 612 10 Lakeside under 12/O6-AR07- Properties carvnercial construcGon 27115 2 08 56,372,025 McCoyand officeiwareho under 12/06-AR07- Valen6ne e construc6on 10,000 08 52,000,000 Yankee industrial under 12/05-AR07- Workchop warelause consttuceon SSBO 08 51.116,000 Gh Capaalion Yaro 12/O7�AR0& Erpansion aDDroved 3.3 xres 09 NO VALUE GiA Desert Prpper0e5 Ofice under 872 10I06•ARW� Cartplex medicalotfice canstruc0on acres 08 52,313,102 Cook/GottlieU olfice apprrned 25000 4101-AR08-0 55,875,000 12108�AR03 20 Pc�e Site single family approved 94 10 522,560,000 WazaGc otfice approved 6500 2 Aro&AR09-1 51,300,000 SO SA,885,127 f3,118,000 SO 55,875,000 SO 522,560,000 SO 51,300,000 Y6402-0001\857122v2.doc Resolution No. 512 TABLE 3-D PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0. 4 2007-0BASSESSMENT ROLL 2008-09ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATEO VALUE ESTIMATED VALUE esemaced I I CompleGon S�Ff # Date-Rdl I Descrip6on Use aAcres Units Date ResidenGal Carturwdal Industrial Residen0al Cortn�ercial Industrial ResidenUal Camrerc;al indusbial P/A 4 Palm Desert single 11/07-ARO� I Country qub � 13 10 541,644,900 547,644.900 p�, --- — _ reaea6on � -- Freedan office, I Cormiuniry cnildcare, 12/07-ARO& I I • Parlc tennis 09 NOVALUE — ---I —� -- � ----- —j—�-- I Wend�s 12I06-ARO& i ResUurant restaurant 09 31,173,670 n/a S 51,173,870 f0 s41,844,900 f0 s0 s41,8J4,800 SO SO For purposes of this Report, the Agency has conservatively estimated future growth based upon historical experience and based upon expected new development and construction activity and projected development. Estimated future growth in all cases is less than actual historical experience. Estimated future growth is shown on Table 4, below. Projections contained in Table 4 utilize a four percent growth rate. Growth in the unsecured assessment roll for all Project Areas has been estimated at one percent per annum for the term of the projections. Based upon the foregoing, the future assessed value of taxable property in each of the Project Areas is projected on Table 4. These projections are well below the actual historical experience of the Agency. 1'6402-OOOI\857122v2.doc 7 Resolution No. 512 TABLE 4-A PALM DESERT REDEVELOPMENT AGENCY Housing Set-Aside Fund Tax Increment Revenue Projection Summary By Project Area Fiscal 20% Housing Set Aside Tax Increment Revenues Total Year Project Project Project Project Project Housing Area No. 1 Area No. 1 Area Area Area Fund co Original Added No.2 No.3 No.4 Revenues � Territory Territory 1 2005-06 $1,630,694 $6,173,614 $2,699,293 $560,234 $2,035,625 �13,099,461 2 2006-07 1,688,678 6,465,367 2,813,939 590,734 2,162,487 13,721,205 3 2007-08 1,762,591 6,799,367 2,933,167 645,730 2,296,731 14,437,586 4 2008-09 1,826,807 7,240,715 3,141,165 691,224 2,516,166 15,416,076 5 2009-10 1,892,582 7,612,549 3,479,352 774,466 2,744,376 16,503,325 6 2010-11 1,960,970 7,961,801 3,943,770 813,497 2,899,573 17,579,611 7 2011-12 2,032,076 8,325,007 4,108,179 854,081 3,060,977 18,380,320 8 2012-13 2,106,008 8,702,728 4,279,161 896,278 3,228,834 19,213,009 9 2013-14 2,182,880 9,095,542 4,456,980 940,154 3,403,403 20,078,958 10 2014-15 2,262,808 9,504,054 4,641,908 985,775 3,584,953 20,979,498 11 2015-16 2,345,915 9,928,891 4,834,230 1,033,212 3,773,762 21,916,011 12 2016-17 2,432,328 10,370,707 5,034,243 1,082,537 3,970,122 22,889,937 13 2017-18 2,522,180 10,830,181 5,242,252 1,133,825 4,174,333 23,902,772 14 2018-19 2,615,607 11,308,018 5,458,579 1,187,156 4,386,711 24,956,072 15 2019-20 2,712,754 11,804,954 5,683,556 1,242,610 4,607,582 26,051,455 16 2020-21/1 2,813,767 0 5,917,528 1,300,272 4,837,286 14,868,854 17 2021-22 2,918,803 0 6,160,857 1,360,232 5,076,175 15,516,067 18 2022-23 3,028,022 0 6,413,915 1,422,580 5,324,617 16,189,135 19 2023-24 3,141,591 0 6,677,093 1,487,413 5,582,995 16,889,092 20 2024-25 3,259,684 0 6,950,795 1,554,829 5,851,706 17,617,014 21 2025-26 22 2026-27 23 2027-28 24 2028-29 25 2029-30 26 2030-31 27 2031-32/2 28 2032-33 29 2033-34 30 2034-35 31 2035-36 32 2036-37 33 2037-38 34 2038-39 3,382,483 0 0 0 0 0 0 0 0 0 0 0 0 0 � � � � 0 0 0 0 0 0 0 0 0 7,235,441 7,531,471 7,839,338 8,159,517 8,492,499 8,838,798 9,198,946 9,573,496 9,963,025 10,368,132 10,789,440 11,227,598 11,683,278 0 1,624,932 1,697,830 1,773,634 1,852,460 1,934,429 2,019,667 2,108,306 2,200,479 2,296,330 2,396,005 2,499,657 2,607,445 2,719,535 2,836,098 6,131,163 6,421,796 6,724,052 7,038,395 7,365,311 0 0 0 0 0 � � 18,374,019 15,651,096 16,337,023 17,050,372 17,792,239 10,858,466 11,307,251 11,773,975 12,259,355 12,764,137 13,289,097 13, 835, 042 14,402,812 2,836,098 35 2039-40 0 0 0 2,957,313 0 2,957,313 36 2040-41 0 0 0 3,083,368 0 3,083,368 37 2041-42 0 0 0 3,214,454 0 3,214,454 38 2042-43 0 0 0 3,350,774 0 3,350,774 Totals $50,519,229 $132,123,494 $215,770,942 $63,729,556 $109,199,129 $571,342,350 1/ Year in which the Added Territory of Project No. 1 is projected to hit its $500,000,000 tax increment limit. 2/ Year in which Project No.4 is projected to hit its $600,000,000 gross tax increment limit. P6402-0001\857122v2.doc g Resolution No. 512 TABLE 4-B-1 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 1 ORIGINAL TERRITORY Tax Increment Revenue Projections Fiscal Asseaaed Valuation Estimated Unitary County Total Housing Redev. Year Secured New Unsecured Total Tax Utility Admin. Gross Tax Fund Fund � Growth Factor Value Growth Factor Incremental Inc�ement Revenue Fee Increment at 20% Before Tax Ag } @ 4% Added @.25% Valuation Revenue 0.01467 Revenue Pymts.11 1 2005-06 729,583,351 96,184,531 798,282,046 7,982,820 292,060 (121,409) 8,153,471 1,630,694 6,522,777 2 2006-07 758,766,685 96,424,992 827,705,841 8,277,058 292,060 (125,726) 8,443,392 1,688,678 6,754,714 3 2007-08 789,117,352 6,914,910 96,666,055 865,212,481 8,652,125 292,060 (131,229) 8,812,956 1,762,591 7,050,364 4 2006-09 B27,873,553 502,900 96,907,720 897,798,337 8,977,983 292,060 (136,010) 9,134,033 1,826,807 7,307,227 5 2009-10 861,511,511 0 97,149,989 931,175,664 9,311,757 292,060 (140,907) 9,462,909 1,892,582 7,570,327 6 7 s 9 10 11 12 13 14 15 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 895,971,971 97,392,864 965,879,000 9,658,790 931,810,850 97,636,346 1,001,961,361 10,019,614 969,083,284 97,880,437 1,039,477,886 10,39d,779 1,007,846,616 98,125,138 1,078,485,918 10,784,859 1,048,160,4B0 98,370,451 1,119,045,096 11,190,451 1,090,086,900 98,616,377 1,161,217,441 11,612,174 1,133,690,376 98,862,918 1,205,067,458 12,050,675 1,179,037,991 99,110,D76 1,250,662,230 12,506,622 1,226,199,510 99,357,851 1,298,071,525 12,980,715 1,275, 247,491 99,606,245 1,347,367,900 13,473,679 16 2020-21 1,326,257,390 17 2021-22 1,379,307,686 18 2022-23 1,434,479,993 19 2023-2d 1,491,859,193 99,855,261 1,398,626,815 13,986,268 100,104,899 1,451,926,749 14, 519,267 100,355,161 1,507,349,319 15,073,493 100,606,049 1,564,979,406 15,649,794 292,060 292,060 292,060 292,060 292,060 (145,999) 9,804,851 1,960,970 (151,293) 10,160,381 2,032,076 (156,797) 10,530,041 2,106,008 (162,521) 10,914,398 2,182,880 (168,d71) 11,314,039 2,262,808 292,060 (174,659) 11,729,575 292,060 (181,093) 12,161,642 292,060 (187,782) 12,610,900 292,060 (194,738) 13,078,037 292,060 (201,971) 13,563,768 292,060 (209,492) 14,068,836 292,060 (217,312) 14,594,016 292,060 (225,443) 15,140,110 292,060 (233,899) 15,707,955 2,345,915 2,432,328 2,522,180 2,615,607 2,712,754 2,813,767 2,918,803 3,028,022 3,141,591 7,843,881 8,128,304 8,424,033 8,731,519 9,051,232 9,383,660 9,729,313 10,088,720 10,462,430 10,851,014 11,255,069 11,675,212 12,112,088 12,566,364 20 2024-25 1,551,533,561 100,857,564 1,624,905,289 16,249,053 292,060 (242,691) 16,298,422 3,259,684 13,038,737 21 2025-26 1,613,594,903 101,109,708 1,687,218,776 16,872,188 292,060 (251,834) 16,912,414 3,382,483 13,529,931 Total s 2005-06 through 2025-26 7,417,810 250,224,165 6,133,256 (3,761,275) 252,596,147 50,519,229 202,076,917 Tofais Totai 1977-78 through 2024-25 367,587,588 t I Revenue net of Housing Set-Aside but gross to tax agency payments. I'6402-OOOI\857122v2.doc 9 Resolution No. 512 TABLE 4-B-2 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA N0.1 ADDED TERRITORY Tax Increment Reveue Project3o�s Assessed Valualion Total Secured Unsecured Inaemental General Total Total Redev Fiscal growth@ growth New Value Levy(1%) Unitary Tax County Total Housing Fund Year 4.0% 025°/a Value Tax Utility Increment Admin. Gross Tax Fund Before Tax Ag Increment Fees Increment at 20% Pymts.11 1 2005-06 3,693,561,100 79,183,032 Actual 3,116,679,073 31,166,791 1J8,01T 31,304,BOE (436,140) 30,868,068 6,173,61! 24,694,d54 2 2006-07 3,841,303.544 79,380,990 3,264,619,475 32,606,195 138,017 32,784,212 (457,379) 32,326,833 6,465,367 25,861,466 3 2007-08 3,994.955,686 79,579,442 15,512,620 3,433.982,689 34,339,827 138.017 34.477.844 (481,008) 33.996,837 6,799,367 27,197,469 4 2008-09 4,170,887,038 79,778.391 63,178,605 3,657,778,975 36.577,790 138,017 36,715,807 (512,230) 36,203,577 7,240,715 28,962,862 5 2009-10 4,403,428,269 79,977,837 18,985,175 3,846,326.221 38,463,262 138,017 38,601,280 (538,535) 38,062,)45 7,612,549 30,450,196 6 201a11 4,599,309.981 80.177,781 4.023,422,704 40.234.227 138.017 00,372244 (563,242) 39,809,003 7,961,801 31,847,202 7 2011-12 4,783,282,381 80,378,226 4,2(17,595,547 42,075,955 i38,017 42,213,9)3 (588.936J 41,625,037 8,325,007 33,300,029 8 2012-13 4,974,613,676 80,579.171 4,399,127,788 43,991,278 138,017 44,129,295 (615,657) 43,513,638 8,702,728 34,810,911 9 2013-14 5,173,598,223 80,780,619 4,598,313,783 45,983,138 138,017 46,121,155 (643,446) 45,477,709 9,095,542 36,382,167 10 2014-15 5,380,542,152 80,982,571 4,805,459,664 48,054,597 138,017 48,192,614 (672,345) 47,520,269 9,504,054 38,016,215 11 2015-16 5,595,763,838 81,185,027 12 2016-17 5.819.594,391 81.387,990 13 2017-18 6.052,378,167 81,591,460 14 2(?18-19 6,294,473,294 81,795,438 15 2019-20 6,546,252.226 81.999,927 16 2020•2112 6,808,102,315 82,204,927 17 2021-22 7,OBO,d26,407 82,d10,439 18 2022•23 7,363,643,463 82,616,465 19 2023-24 7,658,189,202 82,823.006 20 2024-25 7,964,516,770 83,030,064 27 202&26 8.283,097,441 83,237,639 22 2026-27 8,614,421,339 83,445,733 23 2027-28 8,958,998.192 83,654,347 24 2028-29 9.317,358,120 83,863,483 25 2029-30 9,690,052,445 84,073,142 5,020,BB3,806 50,208,838 138,017 5,24d,917,322 52,449,173 138.017 5,477,904,568 54,779,046 138,017 5,720,203,673 57,202,037 138,017 5,972,iB7,094 59.721.871 138,017 6,234,242,182 62,342,122 138,017 6.506,771)87 65.067.718 138.017 6,790,194,870 67,901,949 138,017 7.Q84.947,149 70,849,471 138,017 7,391,481.775 73.914,818 138.017 7,710.270,021 B.OA1.802,013 8,386.587,481 8, 745,156,544 9,118,060,528 77,102,700 80,418,020 83,865,875 87,451,565 91,180,605 138,017 138.017 138,017 138.017 138,017 50,346,855 (702,400) 52,587,191 (733,655) 54,917,063 (766.159) 57,340,054 (799,963) 59,859,888 (835.118) 62,180,439 (871,678) 65,205,735 (909,699) 68,039,966 (949,240) 70.987,489 (990,361) 74,052,A35 (1,033,127) 77,240,718 (1,077,601) 80,556,037 (1,123,854) 84,003.892 (1,171,956) 87,SB9,5B3 (1.221,981) 91,318,623 (1,274,005) 49,644,456 9,928.891 39,715.565 51,853,536 10,370,707 41,482,828 54,150,904 10,830,181 43,320,723 56,540,091 11,308,078 45,232,073 59,024,770 11,804,954 47,219.816 61,608,T61 12,321,752 49,287,009 64,296,036 12,859,207 51,436,829 67,090,726 13,418,145 53,672,SB1 69,997,127 13,999,425 55,997,702 73,019.708 14,603,942 58415,767 76,163,116 79,432,183 82,831,936 86,367,602 90,044,617 15,232,623 15,886,437 16,566,387 17,273,520 18,008,923 60,930,493 63,545,747 66,265,549 69,09d,082 72,035,694 26 203031 10,077,654,542 84,283,325 9,505,872,808 95,058,728 138,01� 95,196,745 (1,328,110) 93,868.636 18,773,127 75,094,909 27 2031-32 10,480,760.724 84,494,033 9,909,189,698 99,091,897 138,017 99,229,914 (1,384,377) 97.845,537 19,569.107 78.276,430 28 2032-33 10,899,991,153 84,705,268 10,328,631,362 103,286,314 138,017 103,424,331 (1,442,895) 101,981,436 20,396,287 81,585,149 97,676,400 Tota12005-06 faxard 341,032,979 1,364,131,916 1/ Revenue net of Housing Set-Aside but gross to taz agency payments 21 Year in which Projed Area is projected to hit fax inaement revenue cap. P6402-0001\857122v2.doc 1� Resolution No. 512 TABLE 4-B-3 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 2 Tax Increment Revenue ProJections Fiscal Secured Unaecured New Dev. Net Eatimated Unitary County Total Housing Total Redev. Year Values Valuea at Dev. Incremental Tax Utplty Admin. Gross 7ax Fund Fund before @ 4% per yr. 0.25% Valuation Increment Revenue Fee Increment @ 20% Tax Ag PymffiI1 Fee to date (1,036,588) E83,808,325 1 2005-06 1,451,555,514 16,317,319 Actual 1,365,715,386 13,657,154 23,063 (183,749) 13,496,467 2,699,293 10,797,174 2 2006-07 1,509,617,735 16,358,112 1,423,818,400 14,238,184 23,063 (191,554j 14,069,693 2,813,939 11,255,754 3 2007-08 1,570,002,444 16,399,Q08 40,936,340 1,484,244,005 14,842,440 23,063 (199,670) 14,665,833 2,933,167 11,732,666 4 2008-09 1,6T5,376,335 16,440,005 100,326,850 1,589,658,893 15,896,589 23,063 (213,829) 15,705,823 3,141,165 12,564,658 5 2009-f0 1,846,731,313 16,481,105 155,249,738 1,761,054,971 17,610,550 23,063 (236,850) 17,396,762 3,479,352 13,917,409 6 2010-11 2,082,060,292 16,522,308 1,996,425,153 19,964,252 23,063 (268,465) 19,718,849 3,943,770 15,775,079 7 2011-12 2,165,342,704 16,563,614 2,079,748,871 20,797,489 23,063 (279,657) 20,540,895 4,108,179 16,432,716 B 2012-13 2,251,956,412 16,605,023 2,166,403,988 21,664,040 23,063 (291,296) 21,395,806 4,279,161 17,116,645 9 2013-14 2,342,034,669 16,646,535 2,256,523,757 22,565,238 23,063 (303,401) 22,284,899 4,456,980 17,827,920 10 2014-15 2,435,716,055 16,688,152 2,350,246,760 23,502,468 23,063 (315,989) 23,209,541 4,641,908 18,567,633 11 2015-16 2,533,144,698 16,729,872 2,447,717,122 24,477,171 23,063 (329,081) 24,171,152 4,834,230 19,336,922 12 2016-17 2,634,470,485 16,771,697 2,549,084,735 25,490,847 23,063 (342,697) 25,171,213 5,034,243 20,136,971 13 2017-18 2,739,849,305 16,813,626 2,654,505,484 26,545,055 23,063 (356,857) 26,211,261 5,242,252 20,969,009 14 2018-19 2,849,443,277 16,855,660 2,764,141,490 27,641,415 23,063 (371,583j 27,292,895 5,458,579 21,834,316 15 2019-20 2,963,421,008 16,897,799 2,87$,161,360 28,781.614 23,063 (386,898) 28,417,779 5,683,556 22,734,223 i6 2020-21 3,081,957,848 16,940,044 2,996,740,445 29,967,404 23,063 (402,825) 29,587,642 5,917,528 23,670,114 17 2021-22 3,205,236,162 16,982,394 3,120,061,109 31,200,611 23,063 (419,389) 30,804,285 6,160,857 24,643,428 18 2022-23 3,333,445,609 17,024,B50 3,248,313,012 32,483,130 23,063 (436,615) 32,669,577 6,413,915 25,655,662 19 2023-24 3,466,783,433 17,067,412 3,381,693,39B 33,816,934 23,063 (454,531) 33,385,466 &,677,093 26,708,373 20 2024-25 3,605,454,771 17,110,080 3,520,407,404 35,204,074 23,063 {473,163) 34,753,974 6,950,795 27,803,179 21 2025-26 3,749,672,961 17,152,856 3,664,668,370 36,646,684 23,063 (492,539) 36,177,207 7,235,441 28,941,766 22 2026-27 3,899,659,880 17,195,738 3,814,698,170 38,146,982 23,063 (512,691) 37,657,353 7,531,471 30,125,883 23 2027-28 4.055,646,275 17,238,727 3,970,727,555 39,707,276 23,063 (533,648) 39,196,690 7,839,338 31,357,352 24 2028-29 4,217,872,126 17,281,824 4,132,996,503 41,329,965 23,063 (555,444) 40,797,584 8,159,517 32,638,067 25 2029-30 4,386,587,011 17,325,028 4,301,754,592 43,017,546 23,063 (578,111) 42,462,497 8,492,499 33,969,998 26 2030-31 4,562,050,491 17,368,341 4,477,261,385 44,772,614 23,063 (601,685) 44,193,992 8,838,798 35,355,193 27 2031-32 4,744,532,511 17,411,762 4,659,786,826 46,597,868 23,063 (626,201j 45,994,730 9,198,946 36,795,784 28 2032-33 4,934,313,812 77,455,291 4,849,611,656 48,496,117 23,063 (651,698) 47,867,481 9,573,496 38,293,985 29 2033-34 5,131,686,364 17,498,929 5,047,027,846 50,470,278 23,063 (678,215) 49,815,126 9,963,025 39,852,101 30 2034-35 5,336,953,619 17,542,677 5,252,339,048 52,523,390 23,063 (705,791) 51,840,662 10,366,132 41,472,529 31 2035-36 5,550,431,971 17,586,533 5,465,861,058 54,658,611 23,063 (734,471) 53,947,202 10,789,440 43,157,762 32 2036-37 5,772,449,250 17,630,500 5,687,922,303 56,879,223 23,063 (764,298) 56,137,988 11,227,598 44,910,390 33 2037-38 6,003,347,220 17,674,576 5,918,864,349 59,188,643 23,063 (795,318) 58,416,389 11,683,278 46,733,111 TOTALS 296,512,928 1! Revenue net of Hausing Set-Aside bu! gross to tax agency payments. TotalTerm 1,1BB,524,835 215,770,942 863,083,768 P6402-0001\857122vZ.doc ll Resolution No. 512 TABLE 4-B-4 PALM DESERT REDEVELOPMENT AGENCY PROJEC7 AREA NO. 3 Tax Increment Revenue Proiections Assessed Revenues Year Secured Unsecured New Dev. Inaemental Tax Rate Of Rev. Admin. Gross Housing Ta�c. lnc. Growfh @ Growth @ Value Value 1.0°h Fee Tax Inc. Fund after Housing 4.�0°h 0.25°lo Added (0.0134) @ 20°lo be(ore TA Pyfnts BY 149,523,255 12005-06 383,280,660 50,081,784 283,839,189 2,838,392 741 (37,961) 2,801,172 560,234 2,240,937 2 2006-07 398,611,886 50,206,988 299,295,620 2,992,956 741 {40,028) 2,953,669 590,734 2,362,935 3 2007-08 414,556,362 50,332,506 11,801,127 327,166,740 3,271,667 741 (43,J56) 3,228,652 645,730 2,582,922 4 2008-09 443,411,788 50,458,337 5,875,000 350,221,871 3,502,219 741 (46,839) 3,456,120 691,224 2,764,896 5 2009-10 467,258,260 50,584,483 24,087,5�0 392,406,988 3,924,07� 741 (52,A81) 3,872,330 �74,466 3,097,864 6 2010-11 510,999,590 50,710,944 7 2011-12 531,439,574 50,837,722 8 2012-13 552,697,157 50,964,816 9 2013-14 574,805,043 51,092,228 10 2014-15 597,797,245 51,219,959 11 2015-16 621,709,135 51,348,008 12 2016-17 646,577,500 51,476,378 13 2017-18 672,440,600 51,605,069 14 2018-19 699,338,224 51,734,082 15 2019-20 727,311,753 51,863,417 16 2020-21 756,404,223 51,993,076 412,187,280 4,121,873 432,754,041 4,327,540 454,138,718 4,541,387 476,374,016 4,763,740 499,493,948 4,994,939 523,533,888 5,235,339 548,530,624 5,d85,306 574,522,At4 5,745,224 601,549,051 6,015,491 629,651,915 6,296,519 658,874,044 6,588,740 741 (55,127) 741 (57,67� 741 (60,737) 741 (63,711) 741 (66,803) 741 (70,016) 741 (73,361) 741 (76,838) 741 (80,452) �a� iaa,z��) 741 (88,119) 4,067,487 813,497 4,270,404 854,081 4,481,391 696,278 4,700,770 94�,154 4,928,877 985,775 5,166,061 1,033,212 5,412,686 1,082,537 5,669,127 1,133,825 5,935,779 1,187,156 6,213,049 1,242,610 6,501,362 1,300,272 3,253,99� 3,416,323 3,585,113 3,76�,616 3,943,102 17 2021-22 786,660,392 52,123,058 18 2022-23 818,126,808 52,253,366 19 2023-24 850,851,880 52,384,000 20 2024-25 884,885,955 52,514,960 21 2025-26 920,281,394 52,646,247 22 2026-27 957,092,649 52,777,863 23 2027-28 995,376,355 52,909,807 24 2028-29 1,035,191,409 53,042,082 25 2029-30 1,076,599,066 53,174,687 26 2030-31 1,119,663,028 53,307,624 27 2031-32 1,164,449,550 53,440,893 26 2032-33 1,211,027,532 53,574,495 29 2033-34 1,259,468,633 53,708,431 30 2034-35 1,309,847,378 53,842,702 31 2035-36 1,362,241,273 53,977,309 32 203637 1,416,730,924 54,112,252 33 203738 1,473,400,161 54,247,533 34 2038-39 1,532,336,168 54,383,152 35 2039-00 1,593,629,614 54,519,110 36 2039-40 1,657,374,799 54,655,407 689,260,196 6,892,602 720,856,919 7,208,569 753,712,625 7,537,126 787,877,660 7,878,777 823,404,386 8,234,044 860,347,257 8,603,473 898,162,907 8,987,629 938,710,236 9,367,102 980,250,498 9,802,505 1,023,447,397 10,234,474 1,068,367,187 10,683,672 1,115,078,772 11,150,785 1,163,653,609 11,636,538 1,214,166,825 12,141,668 1,266,695,327 12,666,953 1,321,319,922 13, 213,199 1,378,124,439 13,�81.244 1,437,196,064 14,371,961 1,498,625,469 14,986, 255 1,562,506,951 15,625,070 741 (92,183) 741 (96,409) 741 (100,803) 741 (105,372) 741 (110,123) 741 (115,064) 741 (120,202) 741 (125,545) 741 (131,100) 741 (136,878) 741 (142,885) 741 (149,132) 741 (155,629) 741 (162,385) 741 (169,410) 741 (176,715) 741 (184,313) 741 (192,213) 741 (200,429) 741 (208,972j 4,132,849 4,330,149 4,535,302 4,748,623 4,970,439 5,201,090 6,801,160 1,360,232 5,440,928 7,112,901 1,422,580 5,690,321 7,437,064 1,487,413 5,9d9,651 7,774,145 1,554,829 6,219,316 8,124,661 1,624,932 6,499,729 8,469,149 1,697,830 6,791,319 8,868,168 1,773,634 7,094,534 9,262,299 1,852,460 7,409,839 9,672,145 1,934,429 7,737,716 t0,Q98,337 2,�19,667 8,078,670 10,541,528 2,108,306 8,433,222 11,002,396 2,200,479 8,601,917 11,481,650 2,296,330 9,185,320 11,980,024 2,396,005 9,564,020 12,498,284 2,499,657 9,998,627 13,037,225 2,607,445 13,597,673 2,719,535 14,180,489 2,836,098 14,786,567 2,957,313 15,416,838 3,083,368 10,429,780 10,878,138 11,344,391 11,829,254 12,333,470 37 2040-01 1,723,669,791 54,792,046 1,628,938,582 16,289,386 741 (217,857) 16,072,270 3,214,454 12,85�,816 38 2041�2 1,792,616,583 54,929,026 1,698,022,354 16,980,224 741 (227,096) 16,753,868 3,35Q774 13,403,094 TOTALS 41,763,627 2005-06 forward 322,938,661 28,150 (4,319,034) 318,647,778 63,729,556 254,918,222 P6402-0001\8�7122v2.doc l2 Resolution No. 512 TABLE 4-B-5 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 4 Tax Increment Revenue Projections ` Fiscal ASSESSED VALUE Estimated Tax Unitary Counry Total Total Housing Tax. Inc. Year Seured Unsecured Projected Net Inaement at Utility Admin Fee Revenue Cumulative Fund after Housing Forecasted =orecasted al New Incremental 1.0% Revenue (SB 2557) �Nofe: adual Gross Tax Inc. at 20�o before Growfh @ 0.25% Dev. Value 1.3821% revenue Revenue TA Pymts 4.0°k �eceived) TOTALPRIOR 47,657,622 14,669 (670,019) 48,729,657 48,729,657 9,738,808 1 2005-06 1,607,187,687 11,883,784 1,031,879,233 10,318,792 1,977 (142,643) 10,178,126 58,907,783 2,035,625 8,142,501 2 2006-07 1,671,475,174 11,913,493 1,096,196,449 10,961,964 1,977 (151,505) 10,812,437 69,720,219 2,162,487 8,649,949 3 2007-OB 1,738,334,181 11,943,277 1,173,6�0 1,164,258,910 11,642,589 1,977 (160,912) 11,483,654 81,203,874 2,296,731 9,186,923 4 2008-09 1,809,088,165 11,973,135 41,644,900 1,275,513,982 72,755,140 1,977 (176,288) 12,580,828 93,784,702 2,516,166 10,064,663 5 2009-10 1,924,762,387 12,003,068 41,644,900 1,391,218,137 13,912,181 1,977 (192,280) 13,721,879 107,506,581 2,744,376 10,977,503 6 2010-11 2,045,063,579 12,033,076 1,469,904,437 14,699,044 1,977 (203,155) 14,497,866 122,004,447 2,899,573 11,598,293 7 2011-12 2,126,866,122 12,063,159 1,551,737,O6Z 15,511,371 1,977 (214,465) 15,304,883 137,309,330 3,060,977 12,243,906 8 2012-13 2,211,940,767 12,093,316 1,636,841,865 16,368,419 1,977 (226,227) 16,144,168 153,453,498 3,228,834 12,915,335 9 2013-14' 2,300,418,397 12,123,550 1,725,349,729 17,253,497 1,977 (238,460) 17,017,014 1�0,470,512 3,403,403 13,613,611 10 2014-15 2,392,435,i33 12,153,859 1,817,396,774 18,173,968 1,977 (251,182) 17,924,763 188,395,275 3,584,953 14,339,810 11 2015-16 2,488,132,539 12,184,243 12 2016-17 2,587,657,840 12,214,�04 13 2017-18 2,691,164,154 12,245,241 14 20t8-19 2,798,810,720 12,275,854 15 2019-20 2,910,763,149 12,306,543 1, 913,124, 564 19,131, 2 46 2,012,680,326 20,126,803 2,116,217,176 21,162,172 2,223,894,356 22,238,944 2,335,877,474 23,358,775 1,977 (264,412) 1,977 (278,172) 1,977 (292,482) 1,977 (307,364) 1,977 (322,841) 18,868,810 19,850,608 20,871,667 21,933,557 23,037,911 207,264,085 3,773,762 227,114,693 3,970,122 247,986,360 4,174,333 269,919,917 4,386,711 292,957,828 4,607,582 15,095,048 15,880,487 16,697,334 17,546,845 18,430,329 16 2020-21 3,027,193,675 12,337,310 2,452,338,766 24,523,388 1,977 (338,937) 24,186,428 317,144,25fi 4,837,286 19,349,142 17 2021-22 3,148,281,422 12,368,153 2,573,457,357 25,734,574 1,977 (355,677) 25,380,874 342,525,129 5,076,175 20,304,699 18 2022-23 3,274,212,679 12,399,073 2,699,419,534 26,994,195 1,977 (373,086) 26,623,086 369,148,216 5,324,617 21,298,469 19 2023-24 3,405,181,186 12,430,071 2,830,419,039 28,304,190 1,977 (391,191) 27,914,976 397,063,192 5,582,995 22,331,981 20 2024-25 3,541,388,433 12,461,146 2,966,657,361 29,666,574 1,977 (410,021) 29,258,530 426,321,722 5,851,706 23,406,924 21 2025-26 3,663,043,970 12,492,299 22 2026-27 3,830,365,729 12,523,530 23 2027-28 3,983,580,358 12,554,839 24 2028-29 4,142,923,573 12,586,226 25 2029-30 4,308,640,516 12,617,691 26 2030-31 4,480,986,136 27 2031-32 4,660,225,582 28 2032-33 4,846,634,605 29 2033-34 5,040,499,989 30 2034-35 5,242,119,989 31 2035-36 5,451,804,788 32 2036-37 5,669,876,980 33 2037-38 5,896,672,059 34 2038-39 6,132,538,941 35 2039-40 6,377,840,499 36 2040-41 6,632,954,119 37 2041-42 6,898,272,284 12,649,236 12,680,859 12,712,561 12,744,342 12,776,203 12,808,144 12,840,164 12,872,264 12,904,445 12,936,706 12,969,048 13,001,471 3,108,344,052 3,255,697,041 3,408,942,979 3,568,317,581 3,734,065,989 3,906,443,154 4,085,714,222 4,272,154,948 4,466,052,113 4,667,703,974 4,877,420,714 5,095,524,926 5,322,352,105 5,558,251,169 5,803,584,987 6,058,730,849 6,324,081,536 31,083,441 32,556,970 34,089,430 35,683,176 37,340,660 39,064,432 40,857,142 42,721,549 44,660,521 46,677,040 48,774,207 50,955,249 53,223,521 55,582,512 58,035,850 60,587,309 63,240,8t5 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 (429,603) (449,969) (471,149) (493,176) (516,084) (539,908) (564,685) (590,453) (617,252) (645,122) (674,107) (704,251) (735,601) (768,204) (802,112) (837,375) (874,049) 30,655,814 32,108,978 33,620,258 35,191,977 36,826,553 38,526,500 40,294,434 42,133,073 44,045,246 46,033,895 48,102,077 50,252,975 52,489,897 54,816,284 57,235,715 59,751,911 62,368,743 456,977,536 489,086,514 522,706,772 557,898,749 594,725,302 833,251,802 673,546,236 715,679,309 759,724,555 805,756,450 853,860,527 904,113,502 956,603,400 1,011,419,684 1,068,655,399 1,128,407,310 1,190,776,053 6,131,163 6,421,796 6,724,052 7,038,395 7,365,311 7,705,3�0 8,058,887 8,426,615 8,809,049 9,206,779 9,620,415 10,050,595 10,497,979 10,963,257 11,447,143 11,950,382 12,473,749 24,524,651 25,687,183 26,896,206 28,153,581 29,461,242 30,821,200 32,235,547 33,706,459 35,236,197 36,827,116 38,481,662 40,202,380 41,gg1,918 43,853,028 45,786,572 47,801,529 49,894,994 38 2042-43 7,174,203,175 13,033,974 6,600,044,931 66,000,449 1,977 (g12,190) 65,090,236 1,255,866,289 13,018,047 52,072,189 39 2043-44 7,461,171,302 13,066,559 6,887,045,643 68,870,456 1,977 (951,857) 67,920,577 1,323,786,866 13,584,115 54,336,461 Totals 84,463,470 1,340,506,178 91,773 (18,538,468) 1,323,786,866 264,750,2501,020,045,767 P6402-000 ]',857122v2.doc 13 Resolution No. 512 4. The base year assessment roll for each of the Project Areas is identified in Table 4, attached hereto. The first fiscal years shown on Table 4 through 2005-2006 are the actual tax increment revenue figures and are based on reports of the County Auditor-Controller. Base year values are adjusted by the County Auditor-Controller's Office from time to time. The base year values identified are the adjusted values per the most recent reports from the Auditor-Controller's Office. For purposes of this Report, all projections utilize the general levy of one percent. A one percent rate levied on the projected incremental increase in assessed valuation of taxable property in each of the Project Areas would produce the gross tax increment revenues shown on Table 4 for the applicable Project Area. The amounts of tax increment revenues to be set-aside into the Low and Moderate Income Housing Fund of the Agency from each of the respective Project Areas are also shown on Table 4. The Stipulation, as amended, provides that before December 31, 1992, 21 units were to be available to and occupied by very low income households and 78 units were to be available to and occupied by low income households. Under the terms of the Stipulation prior to its first amendment in 1997, the Agency was to develop, acquire, rehabilitate or otherwise assist 366 very low income units, 367 low income units and 367 moderate income units prior to December 31, 1995. At the time of the amendment of the Stipulation in 1997, the Agency had developed or acquired, or caused to be developed or acquired, most of those units, and the 1997 amendment to the Stipulation includes an extension of time relating to such development or acquisition to January 1, 2002, for the very low and low income units, and to January l, 2006 for the moderate income units. However, the 1997 amendment to the Stipulation also provides that before January 1, 2001, one-half of the units which "remained" to be developed or acquired as of April 15, 1997 under the original Stipulation were to be developed or acquired before January 1, 2001. The "remaining units" as of April 15, 1997, were 96 very low income units (a total of 291 were being provided at that time), 2201ow income units (a total of 225 were being provided at that time), and 245 moderate income units (a total of 122 were being provided at that time). In lieu of the development or acquisition of the remaining 245 moderate income units, the 1997 amendment to the Stipulation provides that the Agency is to instead develop or acquire 49 very low income units prior to January 1, 2006. Thus, under the 1997 amendment to the Stipulation, as of January 1, 2001, the Agency was to have developed or acquired a total of 339 very low income units (the 291 being provided on April 15, 1997, plus 48 of the remaining units) and a total of 335 low income units (the 225 being provided Y6402-0001\857122v2.doc 14 Resolution No. 512 on April 15, 1997, plus 110 of the remaining units). As of January 1, 2002, the Agency was to have developed or acquired 366 very low income units (plus the 21 very low income units provided by December 3 l, 1992, for a total of 387 very low income units) and 367 low income units (plus the 78 low income units provided by December 31, 1992, for a total of 445 low income units). By January l, 2006, the Agency is to have developed or acquired the 122 moderate income units (which were already developed or acquired as of April 15, 1997), plus an additional 49 very low income units (49 very low income units being 20 percent of the "remaining" 245 moderate income units). The Stipulation, as amended, also requires the Agency to commence development of 142 very low income units and 60 low income units before December 31, 2003. The Agency is providing the following rental housing units as of August 31, 2005 (based upon the September, 2005 report of rental information provided to the Agency by RPM Management), available at an affordable housing cost and occupied by persons and families at the income levels so indicated: Desert Point Apartments (64 units - 32 studio, 26 one-bedroom and six two-bedroom) 30 very low income 14 low income 20 moderate income One Quail Place Apartments (384 units - 156 one-bedroom and 228 two-bedroom) 150 very low income 1541ow income 80 moderate income Neighbors Apartments (24 units - all two-bedroom) 11 very low income 6 low income 7 moderate income Taos Palms Apartments (16 units - all two-bedroom) 6 very low income S low income 2 moderate income 1'6402-0001 \857122v2.doc 1 S Resolution No. 512 Las Serenas Apartments (150 units - all one-bedroom) 101 very low income 341ow income 15 moderate income Pueblos Apartments (15 units - all studio) 12 very low income 3 moderate income Catalina Gardens Apartments (72 units - 48 studio and 24 one-bedroom) 50 very low income 12 low income 10 moderate income Santa Rosa Apartments (20 units - all two-bedroom) 20 very low income Laguna Palms Apartments (48 units — studios, one and two-bedroom units) 20 very low income J 20 low income 8 moderate income California Villas (141 units — one-bedroom) 76 very low income SO low income 15 moderate income Country Village Apartments (66 units — all studios) 33 very low income 33 low income Hovely Gardens Apartments (162 units — 72 two-bedrooms, 72 three-bedroom and 18 four-bedroom) 73 very low income $9 low income P6402-0001 \857122v2.doc 16 Resolution No. 512 Sevilla Apartments (103 units — one and two-bedroom units) 22 very low income 81 low income Villas on the Green (15 units — three studio, ten one-bedroom, two two- bedroom) 8 low income 7 moderate income Candlewood Apartments (26 units - all one-bedroom) 13 very low income 13 1ow income Pacific Assisted Living (two units - one-bedroom) 21ow income Canterra Apartments (3 I units — 12 one-bedroom, 17 two-bedroom and two three-bedroom) 31 low income River Run One (two units - studios) 1 low income 1 moderate The report of RPM attached hereto as Attachment No. 3 provides a breakdown of the subcategories of income levels of certain of the foregoing rental units. With respect to the Candlewood Apartments described above, there are currently no affordability restrictions on the project, but the owners accept Section 8 certificates. With respect to the Hovely Gardens Apartments and the Las Serenas Apartments, an aggregate total of 35 units are replacement housing for a street-widening project. V�ith respect to Sevilla Apartments, Villas on the Green, Pacific Assisted Living, Canterra Apartments and River Run One, only limited affordability restrictions have been placed on these units as a part of agreements with developers of each project in exchange for increased density. I'6402-OOO1t857122v2.doc 1 % Resolution No. 512 The Agency is providing the following ownership housing units available at an affordable housing cost and occupied by the persons and families at the income levels so indicated: Building Horizons (2 units - both three-bedroom) 21ow income Coachella Valley Housing Coalition (11 units - all three-bedroom) 11 low income Desert Rose (161 units - 123 three-bedroom and 38 four-bedroom) 26 very low income 103 low income 32 moderate income Habitat for Humanity (6 units - all four-bedroom) 6 very low income Rebecca Road (2 units - both three-bedroom) 2 low income Portola Palms Mobilehome Park(141 units - number of bedroom not available) 25 very low income 13 low income San Marino Circle (one unit - two-bedrooms) 1 low income Home Improvement Program (141 units) 78 very low income 49 low income 14 moderate income The subcategories of income levels of the above-described ownership housing are set forth on Attachment No. 4. P6402-0001\857122v2.doc 1 g Resolution No. 512 To date, only limited affordability restrictions have been placed on the above-described homes improved under the Home Improvement Program and three of the four Habitat for Humanity Homes. Thus, the Agency is currently providing 619 very low income units (excludin� the above- described very low income units at the Candlewood Apartments and the units improved under the Home Improvement Program), 5371ow income units (excludin� the low income units at the Candlewood Apartments and the units improved under the Home Improvement Program), and 189 moderate income units (excluding the units improved under the Home Improvement Program). In further meeting its obligations under the Stipulation, as amended, the Agency intends to undertake all of the following: A. The City owns a 20-acre site generally located on 42nd Avenue and Sheryl Street, west of Cook Street. The design for development has an aggregate total of approximately 107 units of very low, low and moderate income single family ownership housing and 27 senior rental housing. The ownership housing is proposed to include 14 units of very low income, self-help housing and 93 single family units. Agency staff expects that the 93 single family units will be made available to both low income and moderate income households. The Agency has entered into an agreement with Community Dynamics to construct the 27 senior rental units and the 93 single family units. Construction began in October of this year. The Agency will solicit proposals from nonprofit developers for the self-help housing. B. A 36-unit apartment project on Santa Rosa Way known as the Palm Village Apartments is cunently under construction. All 36 units will consist of two bedrooms, 18 of which will be available to very low income households and 18 of which will be low income households. C. Agency staff is currently negotiating with the owner of an existing 23-unit apartment project located on Shadow Hills Drive. The units in the project consist of one and two bedrooms. The project would consist of 23 low income units. The Agency expects to successfully conclude negotiations by the end of this year. D. Pursuant to a development agreement, the developers of Canterra Apartments on Hovely Lane will provide an additional 31 low income units upon completion of the second phase of the project. The 31 low income units in this second phase will consist of 12 one-bedroom units, 17 two-bedroom units and two three-bedroom units. P6402-0001\857122v2.doc 19 Resolution No. 512 E. The Agency is currently negotiating with the owner of a 192-unit mobilehome park in the City to ensure that the affordability of very low, low and moderate units is preserved in connection with a proposed condominium conversion. Preliminary estimates show approximately 35 percent of the mobilehome park to be very low, low or moderate income households. F. The City has entered into a statutory development agreement with the Sares Regis Group which provides for 64 moderate income apartment units. The units will consist of 19 one-bedroom, 39 two-bedroom and six three-bedroom units. G. The City currently owns a three bedroom, single-family rental unit located on Goleta Avenue. Upon the termination of the current rental agreement in January of 2006, the Agency will acquire the residence from the City and sell it to a low income family with appropriate deed restrictions. H. The Agency has established an Acquisition Rehabilitation and Resale Program for existing single family units that become available in the City. The Agency will, when feasible, acquire single family units in need of rehabilitation and restrict the resale to very low, low and moderate income households. In order to assure that the Agency will meet the January 1, 2006 very low and low income units requirements (as well as its future construction need as forecasted in the Regional Housing Needs Assessment of the Southern California Association of Governments), Agency staff has directed its property manager to relet moderate income units through attrition as soon as possible to low income households. At the end of the 2005-2006 fiscal year, Agency staff the unit makeup at its various apartment projects to ensure that an economically diverse blend of tenants, so as not to over concentrate any one income group at its larger projects. The Agency has established a Rental Subsidy Program. Under the terms of the Rental Subsidy Program, owners of single family homes, condominiums, mobilehomes or multi-unit apartment complexes who rent to persons and families of very low, low or moderate income may receive direct rental payment assistance from the Agency. Owners must enter into a recorded agreement with the Agency which provides that in exchange for the ongoing direct rental payment assistance, the owner will ensure the affordability of the home, condominium, mobilehome or apartment for the term required by law. Property owners and tenants will be notified of the Rental Subsidy Program by several methods. In addition, the Agency will endeavor to identify all apartment owners in the City and notify them of the program and invite their participation. The Agency will publish notice of the Rental Subsidy Program in local newspapers, including a Spanish language P6402-0001\857122v2.doc 20 Resolution No. 512 newspaper, at least once a year. The Agency will also publish the same notice at least once a year in the City's newsletter, Bri htside, which is published monthly and which is sent by mail to every resident in the City. Part of the Rental Subsidy Program provides tenants with a direct opportunity to select apartment projects whose owners will then cooperate with the Program. The Agency has established a First-Time Homebuyers Program. The First-Time Homebuyers Program provides financial assistance in the form of low interest loans to very low, low and moderate income homebuyers. At least once per year, the Agency will publish notice of the Homebuyers Program in local newspapers, including a Spanish language newspaper and in the City's newsletter, Bri h�tside. Assuming the above-described projects stay on schedule and the Agency is successful in its negotiations the Agency expects that the cumulative effect of the foregoing acquisitions together with the above-described developments will result in an additional 68 very low income units, 45 low income units and 144 moderate income units being provided. The units which will be assisted at the Indian Springs Mobilehome Park, and those which will receive assistance under the First Time Homebuyers Program and the Rental Subsidy Program will be in addition to the foregoing totals. Thus, the Agency expects to comply with the provisions of the Stipulation with respect to developing and acquiring the required number of units by January 1, 2006. Agency staff will continue to pursue other acquisition and development opportunities for affordable housing. 6. The Stipulation, as amended, also provides that the Agency is to meet its existing and future housing needs for very low, low and moderate income households over the life of the Agency's Project Area No. 2. In the Housing Element of its General Plan, the City has included a thorough identification of existing needs, established appropriate priorities reflective of those needs and has included programs (including those described below) which will serve to address those needs. The projected housing needs are identified through the regional housing needs assessment of SCAG. As noted by the Department of Housing and Community Development of the State of California and SCAG, existing need numbers are not used as construction targets, nor are local governments expected to solve their existing need. Nevertheless, as shown by the programs discussed in this report, the Agency is aggressively seeking to address the City's existing need. Consistent with SCAG directives and pronouncements, existing need is being used by the Agency to demonstrate logical and consistent programming, goal setting and the allocation of resources. Attachment No. 1 to this Report is the most recent forecast of SCAG of existing and future (construction) needs of the City. P6402-0001\857122v2.doc 21 Resolution No. 512 As noted above, to assist in its efforts to meet the existing housing need as soon as practicable, the Agency has established two separate housing payment assistance programs, the Rental Subsidy Program (attached as Exhibit A) and the First-Time Homebuyers Program (attached as Exhibit B). The Agency has also established a Home Improvement Program which is designed to address issues relating to substandard housing in the City. Agency staff makes efforts to both identify eligible homeowners and advertise the availability of the Home Improvement Program. Those efforts will include all those described above in connection with the Rental Subsidy Program and the First-Time Homebuyers Program, including publication of the notice. A component of the Home Improvement Program includes acquisition, rehabilitation and resale of existing housing units that may become available. The Agency will, when feasible, acquire single family units in need of rehabilitation and restrict the resale to very low, low and moderate income households. 7. Attachment No. 2 to this Report is the operating cash revenue pro forma of the Agency's Housing Fund. Attachment No. 2 identifies the total estimated costs of the Agency's housing programs over time. It includes amounts necessary to subsidize housing available at affordable costs to households at the more restrictive income levels for the applicable time periods set forth in the Stipulation, as amended. Those income levels require that for housing units to be made available to very low-income households, at least one-half of the housing units must be affordable to households with 35 percent or less of inedian income. Of that 50 percent, at least one- third must be affordable to and occupied by households with 25 percent, or less, of area median income and at least 18 percent must be affordable to and occupied by households with 20 percent, or less, of area median income. The remaining very low income units must be affordable to households with 45 percent or less of inedian income. Those income levels also require that for housing units to be made available to lower income households, at least one-third of the housing units shall be affordable to households with 55 percent or less of inedian income, one-third to households with 65 percent or less of inedian income and the remainder to households with 75 percent or less of inedian income. These income levels further require that for housing units to be made available to moderate- income households, the units shall be at least affordable to moderate-income households who cannot afford housing at market rates. The estimates set forth in Attachment No. 2 are in turn based upon the actual experience of the Agency. The analysis in Attachment No. 2 also takes into account the costs of developing, maintaining and managing the housing units. It also identifies by year the number of additional affordable very low, low and moderate-housing units the Agency expects to fund. Amounts necessary to pay annual debt service for prior indebtedness of the Low and Moderate Income Housing Fund have been identified in the row labeled "Debt Service Pledge." I'6402-0001 \85 7122v2.doc 22 Resolution No. 512 Based upon the estimates and projections set forth in Attachment No. 2, the estimated total amounts necessary to meet the obligations of the Agency to acquire, develop or rehabilitate housing units for occupancy by households at the income levels specified above, as compared to amounts available in the Low and Moderate Income Housing Fund to meet those obligations, are detailed in Attachment No. 2. Attachment No. 2 also identifies debt service on bonds issued to fund the purchase and construction of units within the Agency's housing stock and includes among other costs, the total annual required payment for housing units for occupancy at the more restrictive income levels specified in the Stipulation, as amended (i.e., 20, 25, 35, 45, 55, 65 and 75 percent of inedian income). Attachment No. 2 also provides the basis for the annual housing obligations. Attachment No. 2 identifies a beginning Housing Fund balance of $31,467,793 and includes detailed estimates of other income such as bond proceeds and investment earnings and operating income from the Agency-owned affordable housing, which is available monies of the Agency in the funding of the Agency's housing programs. Attachment No. 2 sets forth a present value calculation of the projected cost of the housing requirements of the Stipulation, as amended, together with a present value calculation of the projected available revenues from the Agency's Housing Fund. As shown on Attachment No. 2, from both a cumulative total and present value standpoint, the Agency will have sufficient moneys over the life of Project Area No. 2 to meet the housing requirements. Based upon the foregoing analysis of past, current and projected future assessed values of taxable property in all Project Areas of the City, the tax increment revenues set-aside into the Low and Moderate Income Housing Fund of the Agency, as shown on Table 4 and Attachment No. 2, will be more than sufficient to meet the obligations of the Agency under the Stipulation, as amended. After making the required set-asides into the Housing Fund from tax increment revenues allocated and paid to the Agency through fiscal year 2005-2006, and after deducting debt service requirements on existing indebtedness and obligations to taxing agencies, the surplus (or excess) revenues of the Agency for Project Area No. 1, As Amended and Project Area No. 2 are shown on Table 5 beginning on the following page. P6402-0001\857122v2.doc 23 Resolution No. 512 TABLE 5 PALM DESERT REDEVELOPMENT AGENCY PROJECTED AVAILABLE TAX INCREMENT REVENUES NET OF HOUSING SET-ASIDE AND PASS THROUGH PAYMENTS PROJECT AREA NO. 1, AS AMENDED AND PROJECT AREA NO. 2 Fiscal Year Projected Net Annual Surplus Net Revenues 2005-06 Tax Increment Revenue/1 Debt Service Project Area No. 1-Original Territory $6,347,892.85 Project Area No. 1-Added Territory $10,158,426.26 Total Pro'ect Area No. 1 $16,506,319.10 $9,273,626.25 $7,232,692.85 Project Area No. 2 $5,601,116.84 $2,265,833.75 $3,335,283.09 Fiscal Year Projected Net Annual Surplus Net Revenues 2006-07 Tax Increment Revenue/1 Debt Service Project Area No. 1-Original Territory $6,521,845.38 Project Area No. 1-Added Territory $10,563,028.56 Total Pro'ect Area No. 1 $17,084,873.94 $9,277,801.25 $7,807,072.69 Project Area No. 2 $5,767,057.68 $2,185,045.00 $3,582,012.68 Fiscal Year 2007-08 Project Area No. 1-Original Territory Project Area No. 1-Added Territory Total Project Area No. 1 Area No. 2 Projected Net Tax Increment Revenue/1 $6,743,583.44 $11, 026, 220.13 $17, 769.803.57 $5,984,654.89 Annual Debt Service 081.25 $2,189, 596.25 Surplus Net Revenues $8, 493, 722.32 $3,795,058.64 Fiscal Year Projected Net Annual Surplus Net Revenues 2008-09 Tax Increment Revenue/1 Debt Service Project Area No. 1-Original Territory $6,936,229.97 Project Area No. 1-Added Territory $11,638,280.74 Total Pro'ect Area No. 1 $18,574,510.72 $9,274,871.25 $9,299,639.47 Project Area No. 2 $6,260,416.39 $2,191,031.25 $4,069,385.14 Fiscal Year Projected Net Annual Surplus Net Revenues 2009-10 Tax Increment Revenue/1 Debt Service Project Area No. 1-Original Territory $7,133,555.67 Project Area No. 1-Added Territory $12,153,938.73 Total Pro"ect Area No. 1 $19,287,494.40 $9,275,621.25 $10,011,873.15 Project Area No. 2 $6,708,782.27 $2,189,560.00 $4,519,222.27 P6402-0001\857122v2.doc 24 Resolution No. 512 The amounts of surplus described on Table 5 are projected through fiscal year 2005-2006 because the Agency may incur long-term indebtedness, which is based upon the tax increment revenues as __ anticipated in 2005-2006. For example, the Agency may issue long-term bonds and place a portion of the proceeds in an escrow. The proceeds placed in the escrow would only be withdrawn by the Agency in the future if the future tax increment revenues allocated to the Agency met the projections. If the projections were not met, the tax increment revenues would not support the debt represented by the proceeds of the bonds placed in the escrow, and those proceeds would then be used to call and redeem a like principal amount of bonds prior to their stated maturity date. Pending their withdrawal from the escrow (either for the purpose of expenditure by the Agency or for the purpose of call and redemption of bonds) those proceeds would be invested at a rate of interest sufficient to pay interest on the bonds from which the escrowed proceeds were derived. The amounts of tax increment revenues described as surplus on Table 5 constitute "excess tax increments" within the meaning of that term under paragraph 2 of the Stipulation, as amended, and are not and will not be necessary to meet the housing requirements set forth in paragraph l.a, b and c of the Stipulation, as amended, with respect to Project Areas Nos. 1 and 2, and are not and will not be necessary to meet the housing requirements set forth in paragraph l.d with respect to Project Area No. 2. Long term obligations (including, without limitation, bonds, notes and other evidences of indebtedness) of the Agency to finance redevelopment activities unrelated to affordable housing which are payable on an annual basis from such amounts, will constitute "prior indebtedness" within the meaning of that term under paragraph 2 of the Stipulation, as amended. P6402-0001\857122v2.doc 25 Resolution No. 512 LIST OF ATTACHMENTS ATTACHMENT NO. 1: Regional Housing Needs Assessment ATTACHMENT NO. 2: Agency's Cash Revenue Housing Fund Pro forma — Number of Units to be provided by Year ATTACHMENT NO. 3: Income Level Subcategories for Rental Units and Ownership Units EXHIBIT A: RENTAL SUBSIDY PROGRAM EXHIBIT B: FIRST TIME HOMEBUYERS PROGRAM P6402-0001\857122v2.doc 26 m Resolution No. 512,' ,' , S�A� RHNA99 Adopted Existing Need - All incomes Housing Problems Oetail Coachella Valley PALM DESERT lncome Level (°/o of � Less than 30 to 50 to 80 to Greater Total 30°l0 50% 80% 95% than 95% A�� Renters 516 ' T18 1�294 581 2,414 5,521 Housoholds OwnQrs 496 576 942 556 7,201 9,771 Total �,010 1,294 2,236 1, t 37 9,615 15,292 Households: Households � wlth any Rente�s 420 714 1,084 360 469 3,047 Problems Ow�ers 373 _ 45Q 4T7 22T 1,423 , 2,950 Total �93 ��� g,4 1,582 588 1,891 5,997 Housoholds: Households with. Rente�s 38S 714 992 360 358 2,808 Overpayment Ownsrs 373 428 47T 22T 1.423 2.928 Total 759 ���qZ 1,469 588 1,780 5,736 Ftouseholds: Households 92 147 97 �32 467 with Re�te�s a Overorowdin9 Owne�s 18 28 30 14 75 163 Totsl � g 118 1 T7 110 207 630 Households: ATTAC��vIENT' NO. 1 , � e Adopted RHNA Construction Need (Nov.'00) � I J Jurisdiction is PALM DESERT Draft Construction Need (11199) ..� 444 Reduction Per Local Revision Request v 0 Reduction Per Appeal (8100) G� 0 Redistrfbuted Units a� p ADOPTED FINAL CONSTRUCTION NEED � 4� County is Rtversids FINAL ADOPTED NUMBERS BY INCOME Incomo Category Very Law Incomo —•� Low Income —� Moderate Income —� Abovo Moderate Income � Total � �raft (11/99) 7T 67 = 8S z�s 444 Adopted (11l00) 77 67 8S 2�s 444 ATTAC��viENT NO. 1 Resolution No. 512 - IM N � 2 N � = J wQ oi U `3 = i � Wo3 LL 4� �� � j ��� U H OJ U 1 i o � O �(l M � N t0 oi N t0 (") O � N m � m �p O �O tD N f7 � ai ^ N (") r M � m �� � � T O � � �Q O 1� �[J tD M N m 4J � O Op O � t`�') O�1 O O O N t7 � O O p(pi � l�h � O � OI � � m N A� O O I N O pO O 10 � 1� N M A O N p � � � O O O OI f�0 h � O O N M � �h o n a M o m � �c o N l�V_ O Op O S t�yV r(N'J tO N O M O ! < O O O O O Op fp OpI O Op O O Op Y OI m t0 o N OrI � ^ � N � N �t+I N 1� T Q) 0�0m h � � N pl ��Gop f7 rD �D 10 YI [1 � I� I� O q � W � ri vi ' ' M w M O � m Op� NI Oi f'� tOp� O>N f�p Q � O NO� f`� t0 t0 �fp I� m(� �(I �[ I!� A O O � O�f � � � � N � M O^�D O� N ��ff C N� � t`�') f0 t0 10 O �� � �� o o�� � � � w h N � O Ptp Q n m N� �t0 1�1 m OI�O in r c�i e � 'A N N t�D_thN pN� O n (�ptp � m� N � N f0 O T a0 N r a M N h m Q O♦ � (O I� O N A l�D Ol n N� t0 m 1� N �O m�� w i u �^ N N O m � l`m'1 O N � N ��O LL9 p M fM N N m t0 O � O�f rym O N V P'1 w M N t`)Q O aD t0 m00 �r�o ai ui ui o �o m � n �n o GO O I� � N f A � N M mt0 ' OI 0�00 O t0 t") n� N N N ("I � � ri In (pO cNV O O� p h O� ' p � � o ry oi rntp ,ri f�l t"� M eD � A O � 1A � Q� N O pr� oi " " p O� M ��t�0 � N � Oj O Qv � O m O O � ' O < S t� � N � n � � � W h 0 O M � � � ^ Q O ' O M N � O �N l") M ^ � a 0 O� O W O O M N O� N pO N N (h � M N N � — v m� O O O O O ^ Op tO C9 M � (7 Q � C) S O O O O O f 7 O O O O O O m mocQi�ia � � 0 � O O O fV IA N O O IA ' t0 O O O O i0 � ^ � c0 N h o � o � °' q � O M O) O O O O N q m O O O M1 h O lA O 01 ♦ ± h h P M 10 a � � � n � A tD N N � O � O O O O �N 01 (O � h " 0 0 � < S � O ry p � �"� a u � w N � � O O O ♦ N m O O S O l7 o � �ci m d m � a � n h M O� N N N � O O � O O � O O � O h O ' n � O O O O O m o 0 m O O m o 0 oi 1�1 ci M � � A � n n 0 0 wi ri � o� g o 3� �i � � � N O N N ^ I�ff N N O y � � t0 N 1� � N � N '�' O �mO O O O � O 1A OI O � m O O tD l+f � 1+1 N N � N � ^ q O N ' N M N ��j r � d�� N N M m (�O �� � � � � M N N N • mv� Yl � O � T O D Q m � n O � li p �y N � � � � J � Tj yMj W N �c $ � -� '� o o`" a Hr u � � �'ub n m = E � c�'L' �'� 2 u� O °i n0 U E E m a� d c N$ � �.� � o Xry�; � �� ��� '� ����� p8 ^ a � o � � C a � a � ,� � � X E � m � Q � � � m U � � m � � �a ac� a¢�$ < C��� � �° g5a �n 4 z �ao� rm, 2a � M — U 3 Z2 ��wo o mE � o g''� a`�Y5, E� � �9 E`°�A 'n o m� � �y �'°(�« mNoo � b ��� ,k a � C3 N � � °� °1 d v ,Q �fn' � O O j W � �� O� U N m G y N a N V= D �C K K� T W C q „ m;, _� °° o N� t�i —` ��c? � 8 �m€'F r����?'a� a"it'n 8a a €. � m � E� u� o � by E w a n = a� '� e ��'�� i�<.'U � o � 2� q a�� Q � u E�� �i � m m m$� � E E o V $�' w w.a u � �� L,Tga�LLc� c y A 5 W c rn rnc�b'ii� �s � S�-2f y G� wm m �J �_�- a�d3�p 8� Si �r a�i}� o q � oi�4� ccc � y� mbo ?,j n�A �j ¢��EE K E6 �Qy n�EEE acrc ' � U j�q` ��NE' �u�ivC 4 m� w u � W�j fntn�n w C E c $ O �p.�� m i ��C�� o$a O y�i?� oU�U a c � 2 F p� M Q e Z d �� O��... 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With respect to developer provided units such as Sevilla, Canterra, Vitias on the Green, Candlewood, Pacific Assisted Living, and River Run O�e, they are not included in these totals but are provided pursua�t to Developers Agreements restricting affordability. Income Level % of Riverside Coun Median for famil of four FOR SALE UNITS Ve Low Low Mod Total <20 20-25 ; 26-35 36-40 41-45 46-50 51-55 . 56�0 61-65 66-70 71-75 ` 76-80 81-120 Units I Desert Rose (161) � � 1 i 3 5� 5 � 11 20 � 2Z I 14 � 18 I 18 I 13 31 161 I � � Habitat for Huma�ity (6) I i 1 2 I 1 � 2 � � I � I g � ! I i � � � Self-Help (11) I � � I i � 2 2: 1 � 1 � 3 I 2 71 � i I � � I i � Building Horizons (2) � ; � � � I 1 I � I 1 2 Rebecca Homes (2) I I � � j � i ! �'I � � 2 I I j i ; Portola Palms (37) � I 4 � 9 i 3 � 4 � 8 � j 5 � � 4 I 37 � � I � � I � � ' , For Sale Sub-total: 6 12 10 10 13 32 24 20 22 25 13 32 219 ATTACHMENT NO. 3 Resolution No. 512 EXHIBIT "A" City of Pafm Desert PALM DESERT REDEVELOPMENT AGENCY Rental Subsidy Program OVERVIEW The creation of this Rent Subsidy Program was authorized by — the Agency Board to help those residents whose housing cost exceeds the limits set by Redevelopment Law. This program will assist rent burdened households with the cost of rent up to appropriately determined maximums. The Program will provide assistance to very low or low income persons or families by subsidizing their monthly rent. This subsidy may be pad directly to the landlord or apartment manager or to the tenant upon proof of payment of rent. Selection Criteria Age - To qualify as a"Senior" you must be 62 years or older. One point given for every two-year increment over 62. Income - 75% or less of area median income. One point for every 10% below the income limit. (Income figures are provided by the U.S. Department of Housing and Urban Devefopment and updated annually.) Resolution No. 512 Farm Workers - Those employed in the agricultural industry as defined in the Stipulation will receive any additional point. Residency - One point given for every two years of Palm Desert residency, up to a maximum of 15 points. However, Palm Desert residency at the time of application is NOT required. Rent-Burdened - If applicant's rent is 35% or more of income, one-half point will be awarded for every 10% increment above 35%. Palm Desert Government - Twenty points given if applicant was displaced from previous unit through Palm Desert Redevelopment Agency or City of Palm Desert action. Disabled or Handicapped - Are Two and one-half points given if applicant handicapped or disabled. Occupancy - The Agency follows an occupancy standard adopted by Resolution to protect against underutilization and overcrowding of units. Waiting Period - One and one-half points given per year for every year that the applicant's name is on the waiting list. Real Property - An applicant may not own any real property. Maximum Rent - the maximum amount that can be charged for rent by an owner or apartment manager will be that which is determined under the HUD Section 8 standards for the appropriate unit size. Rent Control - The Agency will follow all Federal, State and Local laws or regulations relative to rent control. Retroactivity - The program is not retroactive and will not commence until the first of the month following the month in which the tenant has been qualified for the program and a unit has been located and approved by the Agency. Resolution No. 512 Frequently Asked Questions How long is the wait after applying for the Subsidy Rent Program? There is no way to gauge how long an applicant will be on the waiting list. How does the Subsidy Program work? The Palm Desert Redevelopment Agency is utilizing revenue which it has designated for affordable housing to reduce the rent for tenants in Palm Desert. Participating tenants can live in mobile home parks, apartments, or legal rental units in Palm Desert. In each case, the subsidy is paid directly to the landlord or manager, thus reducing the tenant's rent by the subsidized amount. (Note: The Agency does NOT locate rental units for applicants who wish to move. Tenants must find available rental units on their own.) Who is eligible for Palm Desert's Rental Subsidy Program? — Persons or families whose incomes are below 75% of area median income. After the application is submitted, if qualified that applicant's name is placed on a waiting list. What is the selection criteria? Each application for Palm Desert's Rental Subsidy Program is evaluated based upon specified selection criteria (see below) and a rating scale. An applicant's place on the waiting list depends upon accumulated points. What if I am currently participating in another rental assistance program? In case applicants are participating in other programs, the agency will participate only to the extent the applicant's rent will be no less than 25% of their monthly income including utilities (utility allowances are established by the Riverside County Housing Authority for the area). Resolution No. 512 How long is the wait after applying for the rent subsidy? There is no way to gauge how long an applicant wiii be on the waiting list. How can I be sure that my name is kept on the waiting list? On an annual basis, applicants are sent reapplication forms which must be completed and returned to the Palm Desert Redevelopment Agency. Returning the reapplication assures the applicant that his/her name will remain on the waiting list if still qualified for the Program. The reapplication provides staff with the most current information regarding each applicant. How does one apply for Palm Desert's Rental Subsidy Program? An interested party must complete the application which is contained in this brochure and forward it to the Palm Desert Redeveiopment Agency, 73-510 Fred Waring Drive, Palm Desert, CA 92260. Which number do I call if I have additional questions about the Program? Please call the Palm Desert Redevelopment Agency at (760) 346-0611. Resolution No. 512 Rev. 0401905 DRAFT — FOR DISCUSSION ONLY EXHIBIT "B" Palm Desert Redevelopment Agency _ FIRST TIME HOME BUYERS PROGRAM (FTHBP) I. Guidelines 1. Pro_qram Overview The First Time Home Buyers Program (FTHBP) provides a deferred repayment loan of up to $75,000 for low-to-moderate income first time homebuyers to purchase a single family detached home in the City of Palm Desert. This Program is specifically designed to provide qualified persons and families with down payment monies necessary to secure financing towards the purchase of a home. To qualify for a FTHBP loan, both the participant and the property must satisfy specific eligibility criteria. 2. Proqram Participating Parties • Palm Desert Redevelopment Agency The Palm Desert Redevelopment Agency, a public agency operating in the City of Palm Desert, funds the Program with its low and moderate income Housing Fund, to increase, improve, and preserve the community's supply -- of affordable housing. The Agency serves as the Program Administrator but may contract with an outside administrator to assist with the administration of the program. The Agency provides a Pre-Qualification Questionnaire and Checklist along with Program information to interested participants. • Program Administrator The Program Administrator will oversee the Program and work closely with qualified Lenders by providing training in Program requirements, undervvriting criteria, and Program procedures. The Program Administrator assists applicants with the Program guidelines and will provide information regarding eligible Lenders who will provide detai{ed information on the loan requirements. • Participating Lender(s) Only qualified Lenders approved by the Agency may participate in the Program (See Lender section of guidelines). FTHB Program Manual Resolution No. SI2 Palm Desert FTHBP Program Manual Page 2 of 17 3. Eli_qib/e Participant First Time Homebuyers: The Applicant cannot have had any ownership interest in a residential dwelling unit (includes mobile homes regardless of the land ownership by the Applicant) at any time within the three (3) years preceding the application date for Pre-Qualification Checklist. This must be verified by the Lender's examination of the ApplicanYs federal tax returns for the preceding three (3) years to determine whether the borrower has claimed a deduction for mortgage interest or taxes on a residence. • Income Requirement: The ApplicanYs annual gross household income must be within the following limits, which represent 120% of inedian household income for the Riverside County area as published by the Department of Housing and Urban Development (HUD). These income limits change slightly from year to year and will be published by the Palm Desert Redevelopment Agency. Maximum Gross Household Income 2004 Ver Low Lower Moderate t person $19,000 $30,400 $45,600 2 erson $21,725 $34,760 $52,140 3 person $24,425 $39,080 $58,620 4 erson $27,150 $43,440 $65,160 5 person $29,325 $46,920 $70,380 6 erson $31,500 $50,400 $75,600 7 person $33,675 $53,880 $80,820 8 person $35,850 $57,360 $86,040 Applicant Assets: The Applicant's assets will be utilized in determining household income as provided for under California law. The ApplicanYs assets may not exceed $5C?,000, except as provided by Califomia law. Affordability Requirements: Applicants must meet established, affordable housing requirements for Low or Moderate Income Households, as defined by California Health and Safety Code Section 50093. "Affordable Housing Cost" is defined as the maximum amount of gross monthly household income that can be used for the cost of housing, which includes the monthly mortgage payment, property taxes, insurance, and homeowners association fees. This calculation will be made by the Lender and varies depending on actual annual household income and the home selected for purchase; however, the cost of housing may not exceed 30% of gross household income, including principal, interest, taxes, and insurance. 73-510 Fred Waring Drive, Palm Desert, California 92260 :• {760) 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 3 of 17 4. Eli_qible PropertY Must be a single family stick-built 1, 2, 3 or 4 bedroom dwelling unit located in the City of Palm Desert with a life expectancy of at least the term of the affordability restriction described in Section 11 below. Mobile homes may be considered only in the case where the land is also owned by Applicant (both the land and the mobile home will be encumbered as a part of the program). 5. Purchase Price The maximum purchase price of an eligible home is $295,000 increased annually on July 1st by the percentage difference in the Median Income as set by HUD for Riverside County. 6. Maximum Loan Amount The maximum Program loan amount is $75,000 increased annually on July 1St by the same respective percentage as the maximum purchase price is increased. Any costs financed as part of the FTHBP loan must be included in the maximum loan amount. In addition, the Participating Lender will provide the appiicant with a Good Faith Estimate of all charges when the applicant is pre-qualified. The FTHBP loan may be used in the form of a down payment and/or for closing costs. T. Occu anc The applicant must certify that the home will be the household's principal residence and that its occupancy will remain in compliance with the Agency's Occupancy Standards adopted as Resolution No. 484 on October 23, 2003. 8. Minimum Down Pavment Revuirements The Applicant must contribute a minimum of three percent (3%) of the purchase price toward down payment and/or closing costs. Gift funds may only be used as allowed by the first Lender. 9. Participation Prioritv Applications will be accepted on a first come, first served basis. In the event that the Agency receives more applications than funds are available, the following order of priority will be applied: 1. Applicants currently living in unsanitary, unsafe, or unhealthful condition; 2. Applicants currently living in an overcrowded condition; 3. Applicants currently paying over 30% of household income in total housing cost; 4. Those with the most suitable family size for the dwelling unit proposed to be purchased; 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 :• Fax (760) 341-6372 F1�HB Program Manual Resolution No. 5l2 Palm Desert FTHBP Program Manual Page 4 of 17 5. Palm Desert residents; 6. Those with employment in Paim Desert; 7. Those with family in Palm Desert; and 8. Others. 10. 11. Maintenance/criminal activity covenants require the participant to maintain the Property and the improvements in good condition, free from gang or drug-related activities or from other felonious criminal activity or public nuisance and in accordance with the Palm Desert Municipal Code. These covenants are in effect for the term of the Program loan. The Participant must maintain, during the term of the Agency loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement va(ue of the structure on the Property. The Participant will be required to make timely payment of property taxes. Agency will encourage Participants and Lenders to establish escrow impound accounts to pay real estate taxes and insurance premiums. The Property must be used as Participant's principal residence and for no other purpose except as expressly approved by the Agency in accordance with the Palm Desert Municipal Code. Participant shall not enter into an agreement for the rental or lease of all or any portion of the Property. 12. Resa/e of the Propertv The Property needs to remain "affordable" for a period of forty-five (45) years, beginning on the date the Participant's Deed of Trust is recorded with the County Recorder's Office and ending on the forty-fifth (45'h) anniversary thereof. A Unit Regulatory and Lien Agreement shal! be recorded against the Property for that time period to enforce the affordability requirement. During the "affordable period", if the Property is sold by Participant to a buyer determined by the Agency to be an eligible Program participant at an Affordable Housing Cost, then, upon the sale, the Participant will not pay the Equity Share described below, but will pay the Agency the remaining principal balance due. After the affordable period, the Property may be sold to any buyer at any price, but if the Property is sold to a buyer not qualified for the Program or at a sales price that exceeds Affordable Housing Cost, upon the sale the Participant still must pay to the Agency the Equity Share in addition to the principal amount of the Agency loan. 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 ❖(760) 346-0611 •3 Fax (760) 341-6372 F1'HB Program Manual ProQertv Use, Occupanclr and Tax Pavments Resolution No. 512 Palm Desert FTHBP Program Manual Page 5 of 17 Equity is deflned as the dollar amount that constitutes the difference between the sales price of the Property and the sum of the following amounts: a) The principal and interest due on the "First" note and Trust Deed with the "First Lender". b) The principal on the Note and Trust Deed in favor of the Agency. c) All costs of the sale, including costs of broker's commissions, escrow fees, title costs and recording fees, etc. d) Current year taxes — prorated to the close of escrow. e) The borrower's down payment and all principal reductions made by the borrower. fl Any "Qualified Capita{ Improvements". The Equity Share is the amount equal to a percentage share of the appreciation in the value of the Property determined by multiplying a percentage factor (the "Applicable Factor") by the difference between the sales price and the purchase price, provided that the Equity Share does not exceed an amount permitted under the law for a shared appreciation loan. The Applicable Factor is calculated by dividing the amount of the Agency loan by the Purchase Price. For example, if the Agency loan is $15,000 and the Purchase Price equals $150,000, the Applicable Factor equals 10°fo. The Equity Share would then equal: 10°!o x(Sales Price -$150,000 `Purchase Price') = Equity Share 13. Repavment Terms The Program loan is a second position loan secured by a deed of trust. There are no monthly payments until the first loan is paid off. At such time as the First Lien in favor of the original First Lender is paid in full, fully amortized payments over the remainder of the 45-year term of principal and interest will be due to the Agency on the first day of the second month following the date of the final payment on the First Lien was due. However, in the event the First Lien was refinanced extending the term of the First Lien past its original maturity date, the first payment due date would not change. In the event the term of the refinanced lien is shortened, then the first payment would be due on the first day of the second month following the date of the final payment on the First Lien was due. All monthly payments combined may not exceed the Affordable Housing Cost established by state law. In the event that the combined payments exceed the Affordable Housing Cost, then the Agency's payment will be reduced by the amount that exceeds the Affordable Housing Cost. Any remaining amounts due to the Agency at the end of the term will then be due and payable. The loan and all other applicable payments will become due and be immediately payabfe in full upon the occurrence of any one of the following "Events of Acceleration": ■ Sale or transfer of the Property without prior written Agency approval; 73-510 Fred Waring Orive, Palm Desert, Califomia 92260 :• (760) 346-0611 :• Fax (760) 341-6372 FTHB Prog�am Manual Resolution No. 512 Palm Dese�t FTHBP Program Manual Page 6 of 17 � Refinance of the first trust deed for a loan amount more than the originai principal balance of the first mortgage being refinanced; or ■ Refinance without the prior written approval from the Agency; _ The AQencv wil! not subordinate its deed of trust to a new first deed of trust that has a variable interesr rate, an interest rate Qreater than the oriarinal first mort_qa_qe, a maturitv date beyond the maturitv date of the oriqinal first mort_qa_qe (unless the covenant is extended for the same number of vears as the new first loan extends past the oripinal �rst Ioan mafuritv) or any ne_qative amortization associated with it, and will not subordinate below second position. In the event that the Agency loan becomes due and payable prior to the forty-fifth (45tn) anniversary of the date that the Trust Deed is recorded with the County Recorder, the Participant must pay the Agency the principal amount of the Agency loan. !n the event the Property is sold to a buyer not qualified for the Agency Program, the Participant must pay the Agency the principal on the Loan plus the Equity Share (see Section 11: Resale of the Property). Strict penalties may be imposed on any applicant making a material misstatement, misrepresentation, or fraudulent act on documents submitted to obtain a Program loan. Any person making a negligent material misstatement or misrepresentation in any a�davit or certification made in connection with the application for, or the issuance of a Program loan, shall be subject to all applicable fines and penalties. _ 14. Subordinate Liens Subordinate fiens will not be allowed for any reason unless approved in writing by the Agency in its sole and absolute discretion prior to securing such loan and only for the purpose of qualified home improvements. 15. Accounf Information To obtain a current account balance or a payoff amount, homeowners must contact the Agency's Program Administrator for information. 16. Approved Lenders Only qualified Lenders approved by the Agency may participate in the Program. They are as follows: 17. Compatible First MortQaQes The First Time Home Buyers Program may be used with conventional and FHA fixed- rate loans. The Lender will process the underlying mortgages using standard underwriting procedures, taking into account the value of the Program in qualifying 73-510 Fred Waring Drive, Palm Desert, Catifomia 92260 s• (760) 346-0611 : Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 7 of 17 applicants. The Lender is expected to maximize the amount of its loan to ensure Participant's housing cost is no more than 30°/o of gross household income. II. Procedures The Program's loan processing procedures are designed to coincide with the standard mortgage loan processing and underwriting procedures at most mortgage lending institutions. Step 1: Pre-Qualification Questionnaire and Required Documentation Applicant submits to the Agency a completed and signed Pre-qualification Questionnaire and the documentation required to determine the eligibility of Program participation. The documentation required to determine eligibility in the program shall include: - At least two years tax returns or equivalent - Identification (driver's license, picture identification, proof of citizenship or legal residency - Social Security cards for all household members - W-2's for the last two years, pay stubs or other form of notification of all household income - Other such documentation as may be required to substantiate household income or any other conditions under which eligibility must be verified. Step 2: (nformation Packaqe If the Agency determines Applicant qualifies, the Agency sends the Applicant an Information Package. The Agency's package contains the following items: • Program Manual • Approved Lenders List Step 3: Participant Prequalification Loan Approval From An Aqencv Approved Lender Applicant contacts a qualified lender from the Approved Lenders List to obtain prequalification approval. Lender determines if applicant is eligible for the Program loan approval based on preliminary indications of income, purchase price, prior home ownership, and other Program eligibility factors. Step 4: Propertv Identification Applicant locates a potential property for purchase and enters into a purchase agreement. Agency will not reimburse fees or commissions of real estate professionals or realtors, however, it is strongly recommended that both buyer and seller be 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 ❖ Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 8 of 17 represented by a real estate professional licensed in the State of California. Said commissions and fees will be allocated and paid through escrow as is customary in Riverside County. Step 5: Real Estate Purchase Contract Real estate purchase contract completed between buyer and seller noting affordable restrictions as required. Step 6. Formal Loan Approval From An AQencv Approved Lender Applicant formally applies to an Agency approved lender for a mortgage loan for the purchase of the home. Step 7: Request of Proqram Commitment/Resenration If applicant pre-qualifies for a primary loan, the Participant will agree to release any documentation provided by Participant to Primary lender for purposes of securing said loan. Lender then submits a Request of Program Commitment/ Reservation package to the Agency's Program Administrator. The package is to include the following: • Lender's Application (FNMA 1003) • Good Faith Estimate • Purchase Agreement signed by both buyer and seller • Escrow instructions, certified copies, Preliminary Title Report • Applicant Affidavit • Lead-Based Paint Hazards Notification Statement (if applicable) The Applicant Affidavit contains all of the certifications and acknowledgements required by the Program, some of which are: • Certification that the residence will be used as the ApplicanYs Principal Residence and that the Applicant must notify the Agency/Lender when the home ceases being the Principal Residence. • Certification that the Applicant has not had an ownership interest in a residence during the preceding three (3) year period. • Certification that this is a new mortgage loan. • Certiflcation of household income of all adults intending to occupy the property. • Acknowledgement that the Program loan cannot be transferred. • Acknowledgement that any material misstatement of fraud is made under penalty of perjury. Step 8: Formal Aqency Approval 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 •: (760) 346-0611 ❖ Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 9 of 17 The Agency's Program Administrator reviews the Request of Program Commitment/ Reservation package submitted by the lender. If the package meets Agency — requirements, the Agency's Program Administrator initiates one of the following options: • Issues a"Commitment/Reservation Approved Letter" to lender; • Provides a"Additional Information Needed Letter"; or • Provides a"Denial Letter" including reasons for denial. As a part of purchase, the Property must be inspected and its condition approved by the buyer. Any serious code violations or other health and safety deficiencies reported by inspector must be corrected as a condition precedent to funding a Program loan. Step 9: Underwritinq of First MortQaqe When the lender submits the loan package to its underwriter, it must also send copies of the following to the Agency's Program Administrator: • Appraisal • Lender's Underwriting Worksheet and/or Approval Memorandum Credit Report • Two (2) years signed and completed tax retums All appropriate verifications including but not limited to: • Bank statements as required by Lender for all sources of funds • Pay stubs, W2's • Gift Letters where applicable • Explanation of derogatory credit • MCAW or 1008 • Statement of Household Composition, including Name, Age, and Relationship for everyone who will occupy the home Step 10: Underwritinu of A�encv Loan Once the Agency receives the Loan Package described in Step 8 from Lender, the Agency will review for completeness. Agency will s�bmit a"Missing Items Checklist" to Lender if any documents are not included. Loan underwriting is suspended until missing items are received. Administrator reviews the documentation for the Program loan and sends a Final Loan Recommendation (FLR) to Participant and a copy to the Lender. The FLR includes one of the following: • Approval of the Program Request for Assistance which authorizes the Agency to draw documents and proceed through funding; or • Denial of the Program Request for Assistance. Step 11: Execution of Loan Documents & Fund Disbursement 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 :• (760) 346-0611 :• Fax (760) 341-6372 FTfiB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manuai Page 10 of 17 Upon receipt of an approved FLR and Authorization for Payment, Program Administrator will send the following to the designated escrow: • Agency Executed Escrow Instructions. • Loan Agreement for Participant to execute through escrow. • Promissory Note for Participant to execute through escrow. • Deed of Trust for Participant to execute through escrow. • Unit Regulatory and Lien Agreement for Participant to execute through escrow. • Other documents as required by Agency for Participant to execute through escrow. Step 12: Escrow Process and Closina The escrow company assists Applicant to execute both Lender and the Program documents. Upon execution of loan documents, escrow will contact the Agency's Program Administrator to order funds. (The Agency needs a set of all executed documents.) Upon receipt of funds, the escrow company will effect completion of the transaction and loan closing (escrow closes and documents record). County Recorder's Office sends the recorded loan documents to the Agency. Step 13: Loan Servicinq The Program Administrator will service the Program loan as follows: • Review title changes which may constitute an event of default; . Payoff quotation if property is refinanced or sold; • Reconvey if loan is paid-off; and • Monitor other requirements per contract. III. Lender Section The Palm Desert Redevelopment Agency maintains a list of approved Lenders for this Program. Only approved Lenders may participate in this program. This section contains information specifically for Participating Lenders. Approved Lenders must agree to participate in accordance with the Participant, Lender and Program guidelines. 1. Coordinate with Pro_qram Administrator Participating Lenders will coordinate the Program requirements with the Agency according to Program Procedures. Program Procedures are designed to coincide with standard mortgage loan processing and underwriting procedures that are in place at most mortgage lending institutions. Recognizing there are procedural variations among 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760) 346-0611 •: Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 11 of 17 the Participating Lenders, the procedures outlined here are meant to serve as guidelines with respect to the sequence of events. However, since time frames are — limited, it is recommended that Participating Lenders work closely with Agency to effectuate a timely and successful close of escrow in accordance with the Purchase Contract. 2. Pre-Qualification of Applicant Conventional underwriting standards will be modified to recognize the Program assistance in determining housing expense and indebtedness ratios. In addition, fees associated with the Program loan, charged by the Program Administrator, must be included in costs contained in the Good Faith Estimate. 3. Affidavits and Certifications Applicant and Participating Lender must complete and sign the appropriate Program documents and attest to their validity. The Lender will be required to submit certifications which will state that to the best of the Lender's knowledge, material misstatements do not appear in the application and program documents. If the Lender becomes aware of misstatements, whether negligently or willfully made, it must notify the Agency and the Program Administrator immediate(y. The Agency will take all appropriate actions to enforce Program requirements. The Lender should also be aware and inform the Applicant that penalties are provided — by Federal and California law if a person makes a false statement or misrepresentation to participate in this Program. 4. Verifications The Lender shall verify that the Applicant, the home, and the mortgage transaction comply with the Program restrictions. In conjunction with the Lender's standard verification process and under its agreement with the Agency, the Lender performs a reasonable investigation to verify that all Program requirements have been satisfied. Lender may verify these facts in any reasonable, efficient manner, according to investor/government guidelines for processing mortgage loan applications. 5. Proqram Char_qes and Fees The Lender may, at its option, charge each Applicant a non-refundable application fee of up to $50.00 for processing each Program loan. The Lender may also charge reasonable and customary fees as would be charged to a potential borrower applying for a mortgage not to exceed 1.5% of the 1S� loan amount, including, but not limited to points, origination fees, underwriting fees, etc. These fees are exclusive of title, escrow charges, and mortgage insurance premiums. Lender fees in excess of 1.5% must be approved in writing by the Program Administrator prior to Agency's loan approval being granted by Lender. 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 s(760j 346-0611 :• Fax (760) 341-6372 FTF�B Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 12 of 17 6. Applicant Eli_qibilitv Requirements A. Prior Home Ownership: The Applicant may not have held an ownership interest in a residential dwelling unit within the past three (3) years (includes mobile homes regardless of land ownership by the participant). This must be verified by the Lender's examination of the Applicant's federal tax returns for the preceding three (3). This examination will determine whether the Applicant has claimed a deduction for mortgage interest or taxes on a residence, within the last three years. To demonstrate compliance within this three year requirement, the Applicant must complete and sign the Program Affidavit and provide copies of its last three years signed federal tax returns, or one of the following alternatives: • If the Applicant has filed the short form 1040A or 1040EZ for the last three (3) years, completes and signs the required affidavits, but is unable to produce the signed returns, the Lender will accept a letter from the IRS, or authorized IRS Servicing Agent verifying the filing status of the Applicant. The letter should confirm that the Applicant filed the 1040A or 1040EZ for the years in question. • If the Applicant filed the 1040 Long Form and cannot produce an original copy of the signed tax retums, the Lender will accept a letter [saying what?] from the IRS or authorized IRS Servicing Agent. A 4506 audit will be performed for years in question by third party IRS Service Agent. [?] • In the event the Applicant was not obligated to file federal income tax returns for any of the preceding three years, it will be necessary for the Lender to obtain from the Applicant a completed and signed Income Tax Affidavit which is required in place of the above options, along with the other Program Affidavits. The Income Tax Affidavit must be supported with documented proof of the reason for not filing taxes. Affidavit must also be supported by documented proof that the Applicant was a renter during the specified period (i.e., notarized letter from landlord or manager, canceled checks, or rent receipts). When a Program application is submitted during the period between January 1 and April 15 and the Applicant has not yet filed a federal tax return for the preceding year with the IRS, the Lender may rely on an affidavit of the Applicant. The affidavit will report that the Applicant was not entitled to claim deductions for taxes or interest, on indebtedness, with respect to property constituting a residence for the preceding calendar year. The affidavit must be forwarded to the Agency with the Request of Program CommitmenUReservation package. 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760) 346-0611 •: Fax (760) 341-6372 FTH13 Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 13 of 17 If the tax returns indicate the Applicant took a deduction for mortgage interest or real estate taxes on property, Applicant must provide proof that the — mortgage interest deduction or real estate taxes were related to property that does not contain a residential dwelling unit. Said property will be considered an asset and used to determine income as provided in Section 3 of the Guidelines. In the event the signed tax returns do show a deduction for interest or taxes on a Principal Residence, or in the event the signed tax returns are not obtained; the Agency will not issue the Program loan because the Applicant does not qualify for this Program. B. Occupancy: The Program Applicant must occupy the acquired residential house as a"Principal Residence". The Lender must obtain from the Applicant, a program affidavit that states the ApplicanYs intent to use the residence as Principal Residence. This affidavit further states that the Applicant will notify the Agency if the residence ceases to be the Principal Residence. C. Affordability Requirements: Applicants must meet established affordable housing cost requirements as defined by California Redevelopment Law. "Affordable Housing CosY' is defined as the maximum amount of gross monthly household income that can be used for the cost of housing, which includes the monthly mortgage payment, property taxes, insurance, and homeowners association fees. Lender is responsible for determining that all Applicants meet the affordability standards, and the Program Administrator will review and confirm compliance. The calculation of the Affordable Housing Cost will and varies depending on actual annual household selected for purchase; however, the cost of housing gross household income. be made by the Lender income and the home may not exceed 30% of D. Income Limits: The Applicant's annual household income must be less than the following limits, which represent 120% of inedian household income from the Riverside area published by the Department of Housing and Urban Development (HUD). These income limits change slightly from year-to-year and will be published by the City of Palm Desert. [Section 3 says Agency will do this.] Maximum Annual Gross Income 2004 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 •:• (760) 346-0611 �o Fax (760} 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 14 of 17 Ve Low Lower Moderate 1 person $19,000 $30,400 $45,600 2 person $21,725 $34,760 $52,140 3 person $24,425 $39,080 $58,620 4 person $27,150 $43,440 $65,160 5 person $29,325 $46,920 $70,380 6 person $31,500 $50,400 $75,600 7 person $33,675 $53,880 $80,820 8 person $35,850 $57,360 $86,040 The foilowing definition of Gross Income must be used when calculating income limits for a Program loan: In calculating gross income, all payments from all sources received by the Applicant and each additional member of the household who is not a minor and who share the same dwelling unit or share in the ownership of the unit, whether in cash or in kind, shall be considered pursuant to Section 6914 of the California Code of Regulations and as generally set forth below: a. The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services [provided they are normal and consistent income of the Applicant?]; b. The net income from operation of a business or profession, or from rental of personal property. In accordance with Section 3 of the Program Guidelines, Ownership in real property [residential or commercial, disqualifies Applicant from this program] [something is missing]; c. Interest and dividends; d. The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similarity types of periodic receipts; e. Payment instead of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay, subject to 2c, below. NOTE: Such payments may be excluded by the lending institution providing the first mortgage for purposes of underwriting, but shall be included in eligibility determinations for the Program; Periodic and determinable allowances, such as alimony and child support payments, any regular contributions or gifts received from persons not residing in the dwelling; 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760) 346-0611 s• Fax (760) 341-6372 fTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 15 of 17 g. All regular pay, special pay, and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of � the family, spouse, or other person whose dependents are residing in the unit sub�ect to 2c below; h. Public assistance; Any earned income tax credit to the extent it exceeds income tax liabiiity; and Any other income that must be reported for federal and state income tax purposes. ' All other income and assets will be allocated in the computation of household income pursuant to the California Code. 2. The following shall not be considered as income: a. Casual, sporadic, or irregular gifts; b. Amounts that are specifically for, or in reimbursement of, the cost of medical expenses; c. Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workers compensation), capital gains, and settlement for personal or property losses; d. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to veterans for use in meeti�g the costs of tuition, fees, books, and equipment; e. Special pay to a serviceman head of household away from home and exposed to hostile fire; f. Relocation payments; g. Foster childcare payments; and h. Amounts specifically excluded by any federal or state statute from consideration as income. T. Material Chan_qes If an Applicant has a pending application and changes the Property to be purchased, the Lender must submit a new Request of Program Commitment/Reservation package to the Agency indicating that the new package replaces any prior request. The Agency will issue a revised Commitment/Reservation Approval Letter. 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760} 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual � Resolution No. 512 Palm Desert FTHBP Program Manual Page 16 of 17 8. Re-Submissions of Returned or Reiected Applications If a Program application has been returned or denied by the Administrator or Agency, any resubmission for reason other than a disqualification of Applicant must include all information as required by a new submission and will be processed on that basis. 9. Chanqes Prior to Closinq The eligibility of Applicant for a Program loan is based upon the Applicant's current income. The Program will issue the Commitment based on factors as they are verified as of the date the Commitment is issued. The income verified for Commitment is valid as long as the loan closes within a reasonable amount of time after the financial information was originally submitted and there are no new sources of income that were not previously reported. Increases (e.g., raises) in income previously reported would not affect the validity of a Program Commitment if the loan closes within 60 days from the time the Program Commitment was issued. If the loan does not close within 60 days, any additional income must be included in household income. If total income exceeds the Program maximum, the Applicant will be disqualified. If an Applicant experiences a change in marital status after issuance of the Commitment and prior to closing, the applicant(s) must still satisfy the prior home ownership requirements contained in the Application Affidavit. Any income added to the household income because of a new spouse will be considered and may effect the eligibility of the Applicant. 10. ChanQes of Home Ownership Status or Amount of Mortpa_qe Loan If the Applicant acquires a present ownership interest in a principal residence prior to loan closing, the Program Commitment shall be revoked. If the total acquisition cost of the residence to be purchased in connection with the Program increases so as to require an increase in the amount of the Program subsidy, then the Program Commitment shall be revoked. The Lender would in this case be required to submit a new Request of Program Commitment/Reservation package to the Agency. 11. Other Chan_qes in Circumstances The Program Commitment is issued in reliance upon the Applicant's Affidavit that the requirements necessary for issuance of a qualified Program loan have been met. The Lender must immediately notify the Agency in writing of any change in circumstances upon which the Commitment was issued. Such changes may result in Commitment revocation. 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760) 346-0611 s Fax (760) 341-6372 FTHB Program Manual Resolution No. 512 Palm Desert FTHBP Program Manual Page 17 of 17 12. Conflict of Interest No Program loan shall be issued to a person, or the immediate family of a person, who — is in a decision-making position relative to the Program or the issuance of a Program loan. This includes, but is not limited to, staff and immediate family members of staff, of the Lenders, the Agency, and the Program Administrator. 13. Pro_qram Administrator— Handlin_q Prioritv Applications will be accepted and processed on a first come, first served basis according to the date of receipt. In the event that the Agency receives more applications than funds are available, the following order of priority will be applied: 1. Applicants currentiy living in unsanitary, unsafe, or unhealthful condition; 2. Applicants currently living in an overcrowded condition; 3. Applicants currently paying over 30% of household income in total housing cost; 4. Those with the most suitable family size for the dwelling unit proposed to be purchased; 5. Palm Desert residents; 6. Those with employment in Palm Desert; 7. Those with family in Palm Desert; and 8. Others. 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual