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HomeMy WebLinkAboutAcquistion 74-5430 King Fisher Circle - Falcon Crest CITY OF PALM DESERT/ PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE ACQUISITION OF A PROPERTY LOCATED IN FALCON CREST KNOWN AS APN 624-440-009 (74530 KING FISHER CIRCLE) OWNER(S): GEORGE AND LIDIJA PEJOVIC 74530 KING FISHER CIRCLE PALM DESERT, CA 92260 SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING JESSICA GONZALES, MANAGEMENT ANALYST DATE: MARCH 26, 2009 CONTENTS: CERTIFICATE OF ACCEPTANCE OF DEED Recommendation: By Minute Motion, that the City Council and Agency Board, 1) Authorize the acquisition of 74530 King Fisher Circle (APN 624-440- 009)for the purpose of retaining affordability covenants in the amount of $215,744.00 plus reasonable closing costs and commissions, if necessary, in anticipation of the expiration of the 45-day First Right of Refusal period; 2) Approve Agency Silent Second and City "BEGIN" Third Trust Deed in amounts necessary to secure an affordable housing cost pursuant to Redevelopment Law for either a direct sale or Agency sale from Housing Set-Aside Fund and BEGIN Program monies; 3) Authorize the Finance Director to appropriate and draw monies to facilitate the transaction from the Housing Set-Aside Fund and the BEGIN Program Fund; and 4) Authorize the Executive Director or his designee to execute any documents necessary to facilitate this transaction. Executive Summary: The Agency has the first right of refusal to purchase properties in Falcon Crest, when the seller desires to sell, in order to maintain affordability covenants and resell the unit to another qualified buyer. If the Agency fails to execute its option to purchase within a 45- day period, the homeowner can sell the house to a non-qualified buyer and the Agency would lose its covenants on the property. ' Staff Report Authorize the Acquisition of 624-440-009 March 26, 2009 Page 2 Discussion: Staff recommends that the Agency exercise its option to purchase the home located at 74530 King Fisher Circle, in the event that it becomes necessary prior to the expiration of the 45-day First Right of Refusal period. This will allow for additional time to identify a qualified buyer to purchase the home. The home was purchased on June 21, 2007, for the sale price of$206,000 which includes an Agency Trust Deed in the amount of $12,230 and a City BEGIN Trust Deed in the amount of $30,000.00. Based on the formula for resale, the owner is authorized to sell the home for$215,744.00 plus commissions and reasonable closing costs. The Agency has the right to purchase the properties for the same amount as the owners are authorized to sell to a qualified buyer. It will be necessary for the Agency and City to provide Second and Third Trust Deeds to a new buyer in amounts necessary to ensure an affordable housing cost, not to exceed $80,000 in total. The exact amounts of the trust deeds will be determined by the qualified buyer's household income. The funding for these loans will come from the payoffs of the existing owner's Second and Third Trust Deeds and will not be "new" money. Monies are available in the Housing Set-Aside and BEGIN Program funds. Staff is requesting that the Director of Finance appropriate and draw monies from the relative funds for the purpose of completing this transaction. Submitted by: Department Head: Jessi a Gonzales, M na ement nalyst _.._ �-= Jan t M oore ave Yrig n Dire r of Housing Director f Redevelopment/Housing Approval: 3 • � J n McCa y, ACM/Rede lopment Paul Gibson, Director of Finance John Wo uth, Executive Director REGULAR PALM DESERT CITY COUNCIL MEETING MARCH 26, 2009 XIV. NEW BUSINESS G. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED IN FALCON CREST, 74-530 KING FISHER CIRCLE (APN 624-440-009), PALM DESERT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). crr�rc�xc�i,A�roN APPROVED DENiE'tf 1tECE�IVEn OTHER MEE ���1 f ; AYES JJG � a� ,l' No� ' ABSENTt ABSTAINs YERIFIED BY: OriginAt on Fik w�itL City erk's Oftice ����� �'? ��:�.�; �—� �ri �'1c�r�d1 �(�..�c� ���$���� �� �'��c %m�� ._ � ��iad°�ti„a?�4'�il� �€� ��it� �j;�'i;i < s+'`,� t'� .x .t',_ +, i;`.�.. A.P.N. 624-440-009 CERTIFICATE OF ACCEPTANCE OF DEED (Gov. Code 27281) THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed from GEORGE AND LIDIJA PEJOVIC, to THE PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, the legally described property as: Lot 59 of Tract Map No. 30795, in the City of Palm Desert, County of Riverside, State of California, as per map recorded in book 249 of maps, page(s)63 through 68 inclusive, of the official records of Riverside County, also known as 74530 KING FISHER CIRCLE, is hereby accepted by order of the Agency Board on behalf of the Agency pursuant to Minute Motion of the Agency Board on March 26, 2009 , the Grantee consents to the recordation thereof by its duly authorized officer. Date: PALM DESERT REDEVELOPMENT AGENCY A public body, corporate and politic By: Robert A. Spiegel, Chairman State of California ) ) SS. County of Riverside ) On , 2009, before me, M. Gloria Martinez, a Notary Public, personally appeared Robert A. Spieqel, who proved to me on the basis of satisfactory evidence to be the person(s) whose (names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the persons(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal Signature