HomeMy WebLinkAboutHousing Agreemennt Summit-Monterey Properties, LLCCITY OF PALM DESERT
STAFF REPORT
REQUEST: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF
PALM DESERT AND SUMMIT-MONTEREY PROPERTIES, LLC.
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: JULY 13, 2006
CONTENTS: HOUSING AGREEMENT
Recommendation:
By Minute Motion that the City Council:
1. Approve a Housing Agreement in accordance with the conditions of approval
of the Summit -Monterey Properties, LLC project by Resolution No. 06-27 by
and between the City of Palm Desert and Summit -Monterey Properties, LLC.,
substantially as to form; and
2. Authorize City Manager or his designee to execute all necessary documents to
facilitate the agreement.
Executive Summary:
Approval of the Housing Agreement will satisfy the developers requirement as part of Resolution
No. 06-27 conditions of approval (change of zone, precise plan/conditional permit including a height
exception, and a tentative tract map for the condominium purpose to construct 247 residential units;
Case Nos. 05-03, PP/CUP 05-22 AND TT34179) that the condominium project owner shall reserve
20% of the units at specified prices based on the December 15, 2005 Pro forma. Failure to approve
the Agreement will result in the developer not being able to obtain building permits.
Discussion:
As part of the Resolution No. 06-27, authorization and Case Nos.05-03, PP/CUP 05-22 and
TT34179, approved February 23, 2006, the developer is required to enter into a Housing
Agreement by and between the City of Palm Desert and Summit -Monterey Properties, LLC., in
order to effectuate the condition of approval.
G IRDAIJessIca Gonzales\HOUSING AGREEMENTStDEVELOPERS\SUMMIT-MONTEREY PROPERTIESSTAFFRPRT-authonzahon request.071306 wpd 62006
Staff Report
Summit -Monterey Properties, LLC - Approval of a Housing Agreement
Page 2
July 13, 2006
The condominium project (247 units) will be known as "Falling Waters" and will provide 49 units at
an exclusive restricted housing cost. The 49 units will be dispersed throughout the residential
development, and will comprise of 14 one-bedroom/den (1,000 square foot) units and 35 two -
bedroom (1,205 square foot) units.
The condominium project was required to provide an offset for the affordable housing component
because it fell within the high -density provisions. After an analysis of the Pro forma of December •
2005, staff found that the project would not be financially feasible for even "moderate" units. In lieu
of re -analyzing the project when the developer's bidding process is complete, the developer offered
to price cap 20% of the units and give the City the option to buy them down at its discretion. Staff
considers the proposal reasonable and beneficial to a population not served by low/mod housing
programs. The price capped units will be restricted to households who will make the unit their sole
and primary residence and whose income does not exceed 200% of the area median income,
which for a family of two is approximately $90,000.
The development is in proximity to residential neighborhoods and has convenient access to public
transportation, schools, parks, and commercial services. In addition, a number of amenities are
being provided within the project for the residents of the entire development.
Staff, therefore, recommends approval of the Housing Agreement in accordance with the
requirement for the 20% price capped housing condition of TT34179.
Submitted by:
Jane oore
Hou uthority Administrator
jmg
Approval:
Department Head:
Dave Yri�gijen J
Director of Redevelopment/Housing
velopment - ITY `'ug , mn £ity Manager
APPROVED DENIED
RECEIVED OTHER
MEETIN DATE ?-/L-pce
AYit
VOESES: : Oyu
ABSENT:/ A1;nAiJ
ABSTAIN:
VERIFIED BY: 1e.LAK f1 y
Original on File wit
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Housing Administrator
This document is exempt from the payment of a recording fee pursuant to Government Code Sections 27383 and 6103
RESTRICTED HOUSING COST AGREEMENT
(OWNERSHIP UNITS)
This Restricted Housing Cost Agreement (the "AgreemenY') is entered into as
of this day of , 2006, by and between the CITY OF PALM DESERT,
a California municipal corporation ("City"), and SUMMIT-MONTEREY PROPERTIES, LLC,
a California limited liability company ("Developer") as follows:
RECITALS
A. Developer is the owner of certain real property (the "Property") located within the
City of Palm Desert, County of Riverside, State of California, commonly known as the
approximately 20-acre site in the University Park planning area located at the northeast
corner of 35th Avenue and Gateway Drive, with address of 73-600 35th Avenue, and more
fully described as set forth in Exhibit "A", attached hereto and incorporated herein by
reference; and
B. Developer has improved or intends to improve the Property by constructing a
housing development on it containing a total of 247 dwelling units (the "Residential
DevelopmenY'), in accordance with the plans on file with City of Palm Desert, California;
and
C. The City of Palm Desert General Plan Land Use Element, Residential Program
9.A (the "Program") provides that medium density residential land use and high density
residential development within the University Park planning area shall be consistent with a
number of performance criteria including the reservation of dwelling units to meet
affordable housing needs of the community; and
D. The Property is within the University Park planning area, and is subject to the
"High Density Overlay" and Residential Program 9.A, adopted in the City's General Plan
Land Use Element; and
E. In exchange for the City's grant to Developer of the right to construct the
Residential Development on the Property, and in compliance with the High Density
Overlay and the Program, Developer has agreed to designate twenty percent (20%) of the
247 units in the Residential Development, which is 49 units, for initial sale at a Restricted
Housing Cost as defined in this Agreement; and
F. In connection with the Residential Development, Developer has received the
following discretionary approval(s) from City: Change of Zone Number 05-03, Precise
Plan / Conditional Use Permit Number 05-22 and Tentative Tract Map Number 34179
(collectively, the "Discretionary Approvals"); and
G. City granted the Discretionary Approvals on the condition, among others, that
Developer and City enter into an agreement regarding the construction and sale of a
specified number of housing units in the Residential Development for sale at a Restricted
Housing Cost; and
H. Pursuant to the Discretionary Approvals, the building permit for the Residential
Development cannot be issued until Developer and City enter into an agreement regarding
the construction and sale of the Designated Units (as defined herein); and
I. City and Developer desire to enter into this Agreement in furtherance of the
Program and the conditions of approval imposed on the Discretionary Approvals.
NOW, THEREFORE, in consideration of the mutual covenants and provisions
contained herein, the parties agree as follows:
AGREEMENT
1. Recitals. The Recitals set forth above are true and accurate, and incorporated
herein.
2. Definitions. For purposes of this Agreement, the terms listed below shall have
the meanings thereafter specified:
(a) "Restricted Housing CosY' means the total purchase price (including
parking amenities such as a garage or carport, but exclusive of utilities) paid by a Qualified
Purchaser, which shall not exceed the following costs:
(i) One-bedroom/den (1,000 square foot) units: $305,990.00
(ii) Two bedroom (1,205 square foot) units: $329,990.00
►.
(b) "City Manager" means the City Manager of the City of Palm Desert, or his
or her designee, as set forth in a written document filed with the City Clerk.
(c) "Designated UniY' means a dwelling unit that will be offered for sale at a
cost not exceeding the Restricted Housing Cost to a Qualified Purchaser.
(d) "Developer" means the person or entity defined as such in the
introductory paragraph of this Agreement, and includes all successors and assigns of that
person or entity.
(e) "Non-Designated UniY' means those dwelling units in the Residential
Development that are not a Designated Unit.
(� "Program" means General Plan Land Use Element Residential Program
9.A, as stated in Recital C of this Agreement.
(g) "Qualified Purchaser" means (i) the City as purchaser, or (ii) a person or
persons who intend to purchase a Designated Unit for use as his or their primary and sole
residence, and who do not own other residential property and have not owned other
residential property for a three-year period prior to the time of purchase of the Designated
Unit and whose household income may not exceed 200 percent of the Area Median
Income (AMI) for Riverside County based on the household's size. For purposes of this
definition, residential property shall include, but is not limited to, property rented or leased
out for residential purposes, second homes, and condo-hotel units.
3. Notices. All notices required herein shall be sent by certified mail, return receipt
requested or express delivery service with a delivery receipt and shall be deemed to be
effective as of the date received or the date delivery was refused as indicated on the return
receipt, as follows:
To Developer: Summit-Monterey Properties, LLC
2082 Michelson Drive, Suite 100
Irvine, California 92612
Attn: Steven H. Levenson
To City: City Manager
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
The parties may subsequently change addresses by providing written notice
of the change in address to the other parties in accordance with this Section 3.
4. Desianated Units.
(a) Developer hereby designates 49 of the 247 units in the Residential
Development to be sold exclusively at a Restricted Housing Cost. The 49 units shall be
dispersed throughout the Residential Development, and shall consist of fourteen (14) one-
bedroom/den (1,000 square foot) units, and thirty-five (35) two-bedroom (1,205 square
foot) units, and shall conform to the Allocation of Units provisions of City of Palm Desert
Resolution 484 as it pertains to the allocation of units for occupancy for for-sale units, a
copy of which is attached hereto as Exhibit "B." The Eligible Families definition and income
limits for Resolution 484 do not apply.
(b) The Designated Units shall be as depicted on Exhibit "C" attached hereto
and incorporated herein by this reference. The location of the Designated Unit shall not be
changed without the prior written approval of the City Manager.
(c) The Designated Units shall be of the same quality and provide the same
amenities as other dwelling units in the Residential Development and Developer shall
ensure compliance with all applicable fair housing laws and regulations.
5. Initial Sale of Ownership Unit.
(a) Developer agrees to sell each Designated Unit solely to a Qualified
Purchaser, at not more than the applicable Restricted Housing Cost as defined in this
Agreement. At the close of escrow for each Designated Unit, a notice of restrictions in
form acceptable to the City shall be recorded against the Designated Unit to provide notice
of the resale restrictions of Section 6 below and City's right of first refusal provisions of
Section 7 below.
(b) As a condition of the close of escrow of the sale of a Designated Unit,
Qualified Purchaser shall certify to Developer, and Developer shall certify to City (based
on documentation provided by the Qualified Purchaser), under penalty of perjury, that
Qualified Purchaser meets the criteria set forth in this Agreement, and shall provide
evidence to demonstrate adherence to the criteria, which may include, but is not limited to,
State and Federal tax returns and property ownership records.
6. Resale to a Subsequent Qualified Purchaser;
(a) During the first five (5) years after the initial sale of the Designated Unit
by Developer, the unit shall be occupied by Qualified Purchasers for the term of this
Agreement, except that the owner of a Designated Unit may sell that unit to a subsequent
Qualified Purchaser at a price not to exceed the price calculated as follows:
(i) An affordable Housing Cost (as defined in Section 2(a) hereof)
for the subsequent Qualified Purchaser, with (i) a reasonable down payment, and (ii) a 30
year fixed rate mortgage at prevailing interest rates.
(ii) THE SUM of;
4
a) the selling Owner's original purchase price of the
Designated Unit times a fraction, the numerator of which is the AMI for the year in which
the sale takes place, and the denominator of which is the AMI for the year in which the
Owner purchased the Designated Unit; plus
b) escrow costs, title insurance premiums paid, and other
customary closing costs and fees; plus
c) if the Owner sells the Designated Unit after a default
under a mortgage or deed of trust, but prior to a trustee's sale, the purchase price shall be
further increased by all expenses actually incurred by the holder of such mortgage or
beneficiary under such deed of trust due to the Owner's default including, but not limited to
trustee's fees, attorney's fees, costs of sale and debt service on the debt secured by such
mortgage or deed or trust will be paid from Owner's proceeds.
(b) After the fifth anniversary of the close of escrow of the initial purchase of
such Designated Unit from Developer, the then Owner may sell the Designated Unit at
market rate or other price, provided that upon such sale or resale, the seller of the unit
shall retain the value of any improvements made subsequent to the initial sale of the
Designated Unit by Developer and 80% of the appreciation, if any, realized by such seller,
and City shall be paid the remaining 20% of any appreciation realized by such seller,
calculated based upon an appraisal of the Designated Unit if the sale price is below the
fair market value of the Designated Unit.
7. Riaht of First Refusal.
Prior to consummating a proposed sale of any Designated Unit, the Developer or
any subsequent Qualified Purchaser selling a Designated Unit (the "Seller" for purposes of
this Section 7), shall provide the City with a right to purchase the Designated Unit on and
subject to the terms and conditions hereinafter stated:
(a) The Seller of any Designated Unit shall give written notice (the "Proposed
Sale Notice") to the City setting forth the proposed purchase or sale price and any other
material economic terms of the proposed sale to a potential buyer (collectively, the "Basic
Sale Terms").
(b) City shall have forty five (45) days (the "Election Period") after the receipt
of the Proposed Sale Notice to elect to purchase the Designated Unit at the price
calculated pursuant to Section 6(a) or (b) above or at fair market value less 20 percent of
the appreciation, if any, realized by such Seller, if it is after the fifth anniversary of the
close of escrow (such election to be made, if at all, by giving written notice thereof to Seller
within the Election Period). Election occurs at Agency Board of City approval or
authorization to purchase the Designated Unit. If City shall elect not to purchase the
Designated Unit, then promptly following receipt of written request thereof from Seller, the
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City shall provide to Seller, or to such party as Seller may designate, written confirmation
of City's election not to purchase the Designated Unit as provided in this clause (b).
(c) If City fails to deliver written notice to Seller of its election to purchase the
Designated Unit within the Election Period, then Seller may close a sale of the Designated
Unit at any time during the one-year period (the "Closing Period") that commences on the
first day after the Election Period, for a purchase price and on terms which are at least as
favorable to the Seller as the Basic Sale Terms contained in the Proposed Sale Notice; but
if a sale of the Designated Unit for such purchase price and on such terms is not
consummated within the Closing Period, then the rights of City to notice of purchase as
aforesaid will continue as to any sale occurring subsequent to such Closing Period.
(d) If City makes the election to purchase the Property, then such election
shall be deemed to create a contract between Seller and City pursuant to which City
agrees to acquire the Designated Unit from Seller on the Basic Sale Terms, except that the
closing date for such sale shall be the date which is 60 days after the making of such
election, and City and Seller shall promptly and in good faith enter into a purchase and
sale contract incorporating the terms of such sale. If City makes the election to purchase
the Designated Unit but the closing fails to occur due to City's default, then without
limitation on the Seller's other rights and remedies (including specific performance and
damages), City's rights under this Section 7 will be suspended for a one-year period
commencing 30 days after making the election.
(e) The City's right of first refusal contained in this Section 7 may not be
assigned, sold or otherwise transferred by City except to another public agency to perform
City's obligations or to exercise its rights under this Agreement, but shall not apply to any
transfer or conveyance of the property by Qualified Purchaser to Qualified Purchaser's
spouse, children, or registered domestic partner, or by transfer through the estate of
Qualified Purchaser upon Seller's death. However, the first right of refusal shall remain
effective for subsequent transfer to another Qualified Purchaser.
8. No Lease; Limitation on Encumbrances. A Qualified Purchaser owning a
Designated Unit may not lease, rent, subsequently encumber the property in excess of 80
percent of the appraised value, or sublet the Designated Unit without the written
permission of City; provided, however, that the foregoing 80 percent limitation on financing
shall not apply to the Qualified Purchaser's acquisition financing. The City shall not grant
permission to lease, rent, or sublet the Designated Unit unless it finds specific unique
circumstances warranting allowance for a Qualified Purchaser to reside somewhere other
than in the Designated Unit without being forced to sell the Designated Unit pursuant to
the terms of this Agreement.
9. Penalty for Ineliaible Use. In the event of a change of use from owner-occupied
residential unit to any other use without the prior written approval of the City Manager,
including if the Designated Unit is rented, in addition to any other remedies available to the
City, all income generated by that change in use, including all rent obtained there from,
shall be immediately paid to City.
10. Maintenance of Units. Developer or, following initial sale of all dwelling units in
the Property, any successors, including but not limited to any Homeowners Association
that may be formed, shall (a) maintain and operate all units on the Property so as to
provide decent, safe and sanitary housing consistent with federal housing quality
standards; (b) make any required repairs or provide any required cleanup and (c) provide
the Designated Units with the same levels of services and maintenance as are provided to
the other dwelling units on the Property.
11. Utilization of Desianated Units. All Designated Units required bythisAgreement
shall be sold and fully utilized in accordance with this Agreement during the Term; no
Designated Unit shall be withdrawn from the market or otherwise held vacant by Developer
or any subsequent Qualified Purchaser without the prior written approval of the City
Manager.
12. Federal and State Laws. Notwithstanding the above provisions, nothing
contained herein shall require Developer or City to do anything contrary to or refrain from
doing anything required by Federal and State laws and regulations promulgated there
under applicable to the construction, management, maintenance, and ownership of
affordable housing units in the City.
13. Prohibition Aaainst Discrimination. Developer shall not discriminate against any
tenant or potential tenant on the basis of sex, color, race, religion, ancestry, national origin,
age, pregnancy, marital status, family composition, sexual orientation, or the potential or
actual occupancy of minor children. Developer further agrees to take affirmative action to
ensure that no such person is discriminated against for any of the above-mentioned
reasons.
14. Successors and Assians. This Agreement shall be binding upon and inure to the
benefit of City and Developer, and their respective successors and assigns including all
subsequent Qualified Purchasers owning a Designated Unit during the term of this
Agreement. City reserves the right to designate another public agency to perform City's
obligations or to exercise City's rights under this Agreement.
15. Burden to Run with Property. The covenants and conditions contained herein
shall run with and burden each Designated Unit until the earlier of: (i) the date that is 45
years after the date of close of escrow conveying the Designated Unit to the initial
Qualified Purchaser; (ii) such earlier date approved by the City in a recorded amendment
to this Agreement; or (iii) the date on which the City receives its 20% appreciation payment
pursuant to a sale of any Designated Unit pursuant to the terms of Section 6(b) of this
Agreement, with the Agreement remaining in full force and effect as to Designated Units
not so transferred.
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16. Attorney's Fees. In any action brought to declare the rights granted herein or to
enforce or to interpret any of the terms of this Agreement, the prevailing party shall be
entitled to an award of reasonable attorney's fees in an amount determined by the court.
17. Entire Aareement. The text herein, consisting of nine pages and two
attachments, constitutes the entire agreement between the parties. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of any party,
which are not embodied herein, and that any other agreement, statement or promise not
contained in this Agreement shall not be valid or binding. This Agreement may be
amended only by written instrument signed by both City and Developer.
18. Non-Waiver. Failure to exercise any right City may have or be entitled to, in the
event of default hereunder shall not constitute a waiver of such right or any other right in
the event of a subsequent default.
19. Indemnification. Developer shall defend, indemnify and hold harmless the City
of Palm Desert and its elected officials, officers, agents, employees, representatives, and
volunteers from and against any loss, liability, claim orjudgment relating in any manner to
the Residential Development, any Designated Unit, or this Agreement.
20. Default. Failure or delay by either party to perform any term or provision of this
Agreement, which is not cured within thirty (30) days after receipt of notice from the other
party, constitutes a default under this Agreement. The party who so fails or delays must
immediately commence to cure, correct or remedy such failure or delay, and shall
complete such cure, correction or remedy with due diligence. The injured party shall give
written notice of default to the party in default specifying the default complained of by the
injured party. Except as required to protect against further damages, the injured party may
not initiate proceedings against the party in default until 30 days after giving such notice.
Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall
it change the time of default.
21. Remedies.
(a) Any Qualified Purchaser who sells or rents (including subleasing) a
Designated Unit in violation of the provisions of this Agreement shall be required to forfeit
to City all monetary amounts so obtained.
(b) City may institute any appropriate legal actions or proceedings necessary
to ensure compliance with this Agreement, including but not limited to:
(i) actions to revoke, deny or suspend the Permit and/or certificate
of occupancy for the Designated Unit that is subject to the violation; and
(ii) actions for injunctive relief or damages.
s
(c) In any action to enforce this Agreement, City shall be entitled to
recover its reasonable attorney's fees and costs.
22. Further Assurances and Recordation. Developer shall execute any further
documents consistent with the terms of this Agreement, including documents in recordable
form and do such further acts as may be necessary, desirable or proper as City shall from
time to time find necessary or appropriate to effectuate its purpose in entering this
Agreement.
23. Governinq Law. The laws of the State of California shall govern this Agreement.
Any legal action brought under this Agreement must be instituted in the Superior Court of
the County of Riverside, State of California, in an appropriate municipal court in that
County, or in Federal District Court in the Central District of California.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.
CITY OF PALM DESERT
:
Name: Jim Ferquson
Its: Mayor
APPROVED AS TO FORM:
Dave Erwin, City Attorney
DEVELOPER:
SUMMIT-MONTEREY PROPERTIES,
LLC, a California limited liability
company
By: Summit Properties, a
California Corporation
:
0
Steven H. Levenson, President
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ACKNOWLEDGMENTS
STATE OF CALIFORNIA )
)
COUNTY OF RIVERSIDE )
On , 200_ before me,
the
undersigned notary public, personally appeared
personally known to me to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Signature
STATE OF CALIFORNIA )
)
COUNTY OF RIVERSIDE )
On , 200_, before me,
the
undersigned notary public, personally appeared
personally known to me to
be the person whose name is subscribed to the within instrument and acknowledged to
me that he executed the same in his authorized capacity, and that by his signature on
the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
WITNESS my hand and official seal.
Signature
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EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
The land referred to herein is situated in the State of California, County of
RIVERSIDE,
City of PALM DESERT, described as follows:
THE SOUTH HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST
QUARTER OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN
BERNARDINO BASE AND MERIDIAN.
TOGETHER WITH A 20 FOOT EASEMENT FOR INGRESS AND EGRESS
ALONG WITH THE SOUTH LINE OF THE SOUTHWEST QUARTER OF THE
NORTHWEST QUARTER OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6
EAST, SAN BERNARDINO BASE AND MERIDIAN.
EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF
PALM DESERT BY DEED RECORDED JANUARY 10, 2005, AS INSTRUMENT
NO. 2005-0021756, OF OFFICIAL RECORDS.
EXHIBIT "B"
CITY OF PALM DESERT
RESOLUTION NO. 484
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RESOLUTION NO. 484
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY APPROViNG OCCUPANCY STANDARDS FOR
ALLOCATING RESIDENTIAL UNITS OWNED BY THE
AGENCY THROUGH ITS LOW AND MODERATE INCOME
HOUSING PROGRAM
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The Palm Desert Redevelopment Agency (the "Agenc�')
owns a significant number of residential units in the City of Palm Dese�t,
California (the "Agency Units"), which it sells or leases to qualified families as
part of the Agency's Low and Moderate Income Housing Program (the
"Program") pursuant to the Community Redevelopment Law of Califomia.
Section 2. The Agency wishes to prevent Agency Units from becoming
overcrowded in violation of the Uniform Housing Code as adopted by Califomia
Health and Safety Code §17922 as additional residents move in or families
become too iarge for their existing apartments. Such overcrowding can pose a
threat to the health and safety of residents, lead to parking and traffic congestion,
overburden waste and sewer disposal systems and increase the financial burden
on and other pubtic use facilities in the City.
Section 3. In addition, the Agency has a limited budget for the Program.
As a result, the Agency does not want to waste resources or underutilize Agency
Units by placing families in larger Agency Units than are necessary.
Section 4. The Agency wishes to adopt a policy that establishes
standafds for the allocation of all Agency Units in the Program in order to allow
the Agency to prevent overcrowding and to minimize underutilization in the sale
or leasing of Agency Units that are too large or too small for the contemplated
fami�ies.
Section 5. The policy will be applied as Agency Units are altocated to
purchasers and new tenants, and to existing tenants as their leases expire if they
seek new leases.
Section 6. The Agency hereby approves the "Policy on Occupancy
Standards for the Allocation of Agency Units" attached hereto as Exhibit A and
incorporated herein by this reference, and the Executive Director of the Agency is
G�RDA�Mar�a HunhWPpATA�moore\Resolution -- Palm Desert Redevelopmem Agency Occ Stnd OQC
RESOLUTION NO.
hereby authorized and directed, for and in the name and on behalf of the Agency,
to undertake such actions as he or she deems necessary to implement the
Allocation Standards for purchasers and new tenants, and existing tenants as
their existing leases expire and they seek new lease terms.
PASSED, APPROVED and ADOPTED this 23`d day of October, 2003, by
the following vote to wit:
AYES: CRITES, KELLY, SPIEGEL, BIIdSON
NOES: Not�
ABSENT: �cusoN
ABSTAIN: rwr�
ATTEST:
/ �
, �
on, Chairperson
R che le D. assen, ecretary
2
G:�RDAUviana HunP�WPDATA\jmoorelResolution -- Palm Desert Redevelopment Agency Occ Stnd.DOC P6402/(
EXHIB� TO RESOLUTION 48�
POLICY ON OCCUPANCY STANDARDS
FOR THE ALLOCATION OF AGENCY UNITS
1. Purpose. The purpose of this policy is to establish p�orities for the allocation of residential units
owned by the Redevelopment Agency of the City of Palm Desert (the "Agenc�') and sold or leased, by the
Agency or the Palm Desert Housing Authority ("Authorit�'), as part of the Agency's Low and Moderate Income
Housing Program (the "Program") in order to minimize underutilization and overcrowding of such units in violation
of the Uniform Housing Code and to prevent the waste of scarce affordable housing resources which results when
units are allocated that are too large or too small for the family of the tenant.
Definitions. For the purpose of this policy, the following definitions shall be used:
a. "Agency Units" means the units sold or leased by the Agency as part of its Program pursuant
to the Community Redevelopment Law of the State of California ("Redevelopment La�n/').
b. "Authority Units" means the units leased and operated by the Authority for the benefit of the
Agency.
c. "Eligible Families" means families whose total household income does not exceed the limits
established for the Program and Redevelopment Law for families of very low, low and
moderate income, adjusted for family size.
d. "Executive Directo�" shall mean the Executive Director of the Agency, or his or her designee.
e. "Household" shall mean the total number of Persons defined in 2.g.
f. "Housing Commission" shall mea� the Palm Desert Housing Commission established by the
City Council on January 8, 1998 by Ordinance No. 861.
g. "Person" means (i) every person with satisfactory identification, regardless of age, who is an
intended resident occupant of an Agency Unit during the lease term, induding minor children
whose parent or legal guardian has court-awarded physical custody of at least 50% and (ii)
unborn children at 30 weeks gestation, but only where the addition of one child wouid cause
the unit to exceed the maximum in this policy. Minor child�en whose parent or legal guardian
has court awarded custody of less than 50% will be allowed to occupy the unit during custody
visits but will not be counted as a person in deterrnining the unit size to be allocated.
h. "Visito�' means a person who temporarily resides in a unit for a period of less than 30 days
per calendar year, only fourteen of which may be consecutive. The exception are minor
children whose parent or legal guardian have court awarded custody of less than 50% who
would not be considered a visitor but rather allowed occupancy as noted under Z.g. Any
person not inctuded in the lease and occupying the unit for longer than 30 days per calendar
year will be considered an u�autho�ized occupant and a violation of the lease agreement_
"Waiting Lists" shall mean tists maintained by the Agency for the purposes of pr�viding
affordable housing at each affordable fevel, for both sale or leasing purpases.
2. Allocation of Units. Agency Units that become available for sale or lease to new Eligible Families or that
are occupied by Eligible Families with expiring Ieases who wish to enter into a new lease will be sold or
Page 1 oi 3
G�RDA'Janet Moore�Statl Rcports�Palm Dcscn Alfordable Flousing Allocation Pol�cy DOC
�
EXHIf A TO RESOLUTtON 4s4
leased in accordance with the minimum and maximum occupancy standards below. When a unit
becomes available, an Eligible Family will be selected from the applicable waiting list based first on
appropriate family size for the unit (within the minimums and maximums below), second on the ability to
pay the rent or conventional mo�tgage (consistent with the requirements of the Program). In the event
that there is a unit available and there are no Eligible Families of appropriate size, then Eligible Families
of the most nearly appropriate size wilt be assigned to or offered that unit. At no time will the initiat
assignment oi a unit exceed the maximum occupants described below.
FOR SALE:
INumber of Persons
� Maximum at Initial
Number of Bedrooms I
� Minimum Assignment
� Studio
I�
I2
i3
�4
'S
FOR RENT:
��
�1
l2
�4
I
�5
�7
I2
I3
15
��
I9
� 11
� Number of Persons
� - -- --
Number of Bedrooms � Maximum During
Minimum Occupancy Term
I Studio
�--
I�
� 2 ----
�-------
'3
i--- —
l4
i-----� —
� 5
� � - -- -- � 2 - -=-I
�1 { 3 �
r2 — — 5 �
!
--�---�---- - --- ---�
i 4 -- i 7-- -- t
------- 5 ------i 9�---�-�-------�
� i
----� 7 ----�-- —�-�1------'---- •--'--i
I i
Notwithstanding the foregoing, the minimums and maximums shall be increased or decreased if, due to
the size or configuration of the rooms in a particular Agency Unit, the Uniform Housing Code adopted pursuant to
California Health and Safety Code section 17922 or the Fair Housing Act, provide for a different minimum or
maximum for that Agency Unit, in which case the minimum or maximum established by the Uniform Housing
Page 2 of 3
G`•RDn'�Janei Moorc�Stal'1 Repoits�.Palm Desen Alfordablt Housmg Allocauon Policy DOC
EXHIB. , TO RESOLUTfON 484
Code, or the Fair Housing Act, shall appfy. In addition, in such cases that the Agency Unit is funded in whole or in
part by any Federally mandated sources, the occupancy standards set forth therein shall apply.
4. Process for Determininq Eliqible Familv Size to Units Available; Appeals. For the purposes of this
po4icy and for the pu�poses of being p4aced on a w�aitirig 4tist, the size o� ttie E4igibte Family sha11 first be
determined as of the date the Eligible Family makes written application to the Agency for an Agency Unit. At such
time as a unit becomes availabfe, the size of the Eligib�e Family wil{ be the total number of Eligible Persons at the
date of the acceptance of the unit, if different than the Eligible Family Size at application. An Eligible Family that
is denied a unit based on Eligible Family Size may file a written appeal for consideration by the Executive Director
of the Agency within ten (10) business days of receiving the written denial, stating the reasons for and providing
documentation where possible for iis ciisagreement.
5. Notice; Lease Covenants. The Agency shatf indude a copy of this policy with all of its
promational and application materials used in the Program after the date this policy is adopted by the Agency. In
addition, all leases for new tenants in Agency Units and all leases entered into with existing tenants in Agency
Units for terms beginning after the termination of their current leases shall include the minimum and maximum
numbers of persons who may reside in the unit in accordance with this policy, along with covenants by the tenant
to comply with such minimum and maximum numbers of residents. Once a unit is allocated, any violations of
either this policy or the executed lease terms will result in termination of tenancy. Any witlful omission of
information required in the atlocation process wil! result in immediate termination of tenancy.
6. State and Federal Lavv. li any provision of this policy is incansistent with applicable 4aw,
the provisions of the law will prevail.
Page 3 of 3
G'•RllAVanet Moore�Stat( Reports�Palm Desen Afturdahlc Housing Allocauun Puhcy DO(�
EXHIBIT "C"'
IDENTIFICATION AND LOCATION OF
DESIGNATED UNITS
(A) All of the fourteen (14) one-bedroomlden (1,000 sq. ft.) Plan 1 units, which are
located in Building Type II as depicted on attached plan, which buildings are
dispersed throughout the Project
(B) Thirty-five (35) of the forty-three (43) two-bedroom (1,205 sq. ft.) Plan 2 units,
which are located in Building Types I, III � IV as depicted on attached plan,
which buildings are dispersed throughout the Project
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