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Home My WebLink AboutAcquisition - 74-537 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 624-441-007 (74537 KING FISHER CIRCLE) IF NECESSARY IN ANTICIPATION OF THE EXPIRATION OF THE FIRST RIGHT OF REFUSAL PERIOD OWNER(S): Fabian O. and Erika Munoz 74537 King Fisher Circle Palm Desert, CA 92260 SUBMITTED BY: Janet M. Moore, Director of Housing Jessica Gonzales, Management Analyst - Housing DATE: August 26, 2010 CONTENTS: Certificate of Acceptance of Deed Recommendation By Minute Motion, that the City Council and Agency Board, 1) Authorize the acquisition of 74537 King Fisher Circle (APN 624-441- 007) for the purpose of retaining affordability covenants and resale, if necessary in anticipation of the expiration of the 45 day first right of refusal period, in the amount pursuant to the Affordable Agreement; 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 resale from Housing Set-Aside Fund and BEGIN Program monies; 3) Authorize the Finance Director to draw monies from the relative funds to facilitate the transaction; and 4) Authorize the Executive Director or his designee to execute any documents necessary to facilitate this transaction. Funds are available in Acquisition Rehab and Resale Account No. 870-4492- 464-4001, BEGIN Program Fund Account No. 214-4494-464-3901, and Homebuyer Assistance Account No. 870-4699-464-4001. 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- Staff Report Authorize the Acquisition of 624-441-007 August 26, 2010 Page 2 of 3 day period, the homeowner can sell the house to a non-qualified buyer and the Agency would lose its covenants on the property. Backqround Once an owner notifies the Agency of their intent to sell, Agency staff begins identifying potential buyers from an interest list. In some cases this takes a good portion of the 45-day exercise period. Because of this, staff desires to exercise its option to purchase the home located at 74537 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. Staff will endeavor to qualify a buyer and have the sale negotiated directly between the seller and qualified buyer; however due to the qualification process it is not always feasible within the timeframe required. The home was purchased on August 7, 2007, for the sale price of$224,000 which includes an Agency Trust Deed in the amount of $15,920 and a City BEGIN Trust Deed in the amount of$30,000. Pursuant to the Affordable Housing Restriction and Lien Agreement ("Affordable Agreement"), the owner is authorized to sell the home in the amount which is the lesser of either the fair market value of the property or the sum of the calculated resale price which is $245,952.00 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. If it becomes necessary for the Agency to purchase the home to maintain affordability, a low or moderate income household will be identified from an established interest list and will purchase the home directly from the Agency subject to the public hearing process. 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 new qualified buyer will be required to sign a new affordable agreement. Monies are available in Acquisition Rehab and Resale Account No. 870-4492-464-4001, BEGIN Program Fund Account No. 214-4494-464-3901, and Homebuyer Assistance Account No. 870-4699-464-4001. Staff is requesting that the Director of Finance draw monies from the relative funds for the purpose of completing this transaction. � G:1rdalPatty Leon\JMM\staff reportWCQUISITIONS\Munoz,Fabian Falcon Crest 082610.doc Staff Report Authorize the Acquisition of 624-441-007 August 26, 2010 Page 2 of 3 Fiscal Analvsis The fiscal impact to the Agency will be in an amount necessary to purchase the home to maintain affordability and any maintenance costs necessary until the property is resold to a qualified buyer. Submitted by: Department Head: .Q.._ .� �.- .� Jes ic Gonzale nagement Analyst ..�Ja et . Moore, Di r of Housing Approval: � ,��Z�'��-''�- Ju �n cCarthy, ACM/ e elopment Paul Gibson, Director of Finance c n . Wohlmuth, Executiv Director/City Manager CtTY COUNCiLACTTON ��R�Rovrn � nFNTFD �Z[;C[?IVED OTHER MFE:TZi�G DATI; � AYES: - � trr�e!' NO�S: ��- Ad3�TNT: �`� AI3STAt1Y: �lQ.. VTI2IFII:D Rv��1 .� Original on File witla City C1c�-k's �f�ce G:\rda\Patty Leon\JMNl�staff reportWCQUISITIONS\Munoz,Fabian Falcon Crest 082610.doc A.P.N. 624-441-007 CERTIFICATE OF ACCEPTANCE OF DEED (Gov. Code 27281) THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed from FABIAN O. AND ERIKA MUNOZ, to THE PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, the legally described property as: Lot 88 of Tract Map No. 30795, in the City of Palm Desert, County of Riverside, State of California, as per map recorded in book 406 of maps, page(s) 73 through 80 inclusive, of the official records of Riverside County, also known as 74537 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 Auqust 26, 2010, the Grantee consents to the recordation thereof by its duly authorized officer. Date: PALM DESERT REDEVELOPMENT AGENCY A public body, corporate and politic By: Cindy Finerty, Chairman State of California ) ) SS. County of Riverside ) On , 2010, before me, M. Gloria Martinez, a Notary Public, personally appeared Cindv Finertv, 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 G:\rda\Patty Leon\JMtunslaff reportWCQUISITIONSVvlunoz,Fabian Falcon Crest 082610.doc