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
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Resolution No. 512
PALM DESERT REDEVELOPMENT AGENCY
RESTRICTED UNITS
Income Level % of Riverside Count Median tor famil of four
RENTAL UNITS Ve Low Low i Mod Total
20 21-25 26-35 36-45 46-55 � 56-65 66-75 76-120 Units
Housing Authority I I I j '
Desert Pointe (64) I 2 7 15 � 6 3 4 � 7 20 64
One Quail Place (384) � 9 � 11 I 62 I 68 78 � 59 � 17 80 384
I I �
Neighbors (24) i 1 � 2 � 4'� 4 3� 1 � 2 7 24
i
California Villas (141) i 3 I 15 � 29 ', 29 9 � 21 � 20 15 141
i
Laguna Palms (48) � 4 j 4 � 5 i 7 2 � 18 � 0 8 48
Taos Palms (16) � 0� 1 3; 2 3 � 4 1 2 16
Las Serenas (150) � 7 I 18 I 49 � 27 17 ! 5 � 12 15 150
Pueblos (15) � 1; 1� 9 i 1 0 � 0 i 0 3 15
Catalina Gardens (72) � 7 I 10 i 25 i 8 4 � 4 � 4 10 72
Country Village (66) � 13 i 14 i i 6 17 � 8 i 8 66
� 0
HA Rentals Sub-total: 47 83 201 � 158 136 i24 71 160 980
Housing i j I � �
Santa Rosa � 5 � 7 � 1 i 7 i � 20
Portola Palms MHP � � 1 i I i 7
I
Hs Rental Sub-total: � 5 7. 2 7 0 0 0 0 21
The above units are owned by the Agency. 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).
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Palm Desert FTHBP
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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.
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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;
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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.
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ProQertv Use, Occupanclr and Tax Pavments
Resolution No. 512
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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;
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Palm Dese�t FTHBP
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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
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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
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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
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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
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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
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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.
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Resolution No. 512
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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.
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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
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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;
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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.
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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.
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FTHB Program Manual
Resolution No. 512
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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.
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FTHB Program Manual