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Home My WebLink AboutAcqustn - Falcon Crest - 74-642 King Fisher Cl CITY OF PALM DESERT/ PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE ACQUISITION OF A PROPERTY LOCATED IN FALCON CREST KNOWN AS APN 624-440-017 (74642 KING FISHER CIRCLE) OWNER(S): John Thomas and Rosalinda Hargrove 74642 King Fisher Circle Palm Desert, CA 92260 SUBMITTED BY: Janet M. Moore, Director of Housing Jessica Gonzales, Management Analyst - Housing DATE: February 25, 2010 CONTENTS: Certificate of Acceptance of Deed Recommendation By Minute Motion, that the City Council and Agency Board, Authorize the acquisition of 74642 King Fisher Gircle (APN 624-440-017) for the purpose of retaining affordability covenants in the amount pursuant to the Affordable Agreement as the lesser of; the fair market value of the property or, the sum of the calculated resale price which is $244,048.00 plus reasonable closing costs and commissions; 1) Authorize staff to conduct an appraisal to determine the fair market value of the property for the purpose of finalizing the allowable resale price of the property; 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 draw monies to facilitate the transaction from Account No. 870-4492-464-4001 and the BEGIN Program Fund, Account No. 214-4492-464-4001; 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 624-440-017 February 25, 2010 Page 2 Backqround Staff recommends that the Agency exercise its option to purchase the home located at 74642 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 22, 2007, for the sale price of$224,000 which includes an Agency Trust Deed in the amount of$19,408.00 and a City BEGIN Trust Deed in the amount of $30,000.00. 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$244,048.00 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 sellto 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. Monies are available in Account No. 870-4492-464-4001 and the BEGIN Program Fund. Staff is requesting that the Director of Finance draw monies from the relative funds for the purpose of completing this transaction. Fiscal Analysis 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: � ,�, ��f�%��' i�k� nz I s Man ement Anal st � ne . Moore Director of Housin J e s a G o a e , g y � , g Approval: . ,��N�� Ju n cCarthy, ACM/ ev lopment Paul Gibson, Director of Finance , Jo Wohlmuth, Executive Director/City Manager G:\rda\Patty Leon\JMM\staff reportW.CQUISITIONS\Hargrove,John T.and Rosalinda.doc XIV. NEW BUSINESS C. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED IN FALCON CREST KNOWN AS 74 642 KING FISHER CIRCLE (APN 624_440_017), PALM DESERT (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCY). Rec: By Minute Motion: 1) Authorize acquisition of 74-642 King Fisher Circle (APN 624-440-017) for the purpose of retaining affordability covenants in the amount pursuant to the Affordable Agreement as the lesser of: the fair market value of the property, or the sum of the calculated resale price, which is $244,048.00, plus reasonable closing costs and commissions. 2) Authorize staff to conduct an appraisal to determine the fair market value of the property for the purpose of finalizing the allowable resale price of the property. 3) 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. 4) Authorize the Director of Finance to draw monies to facilitate the transaction from Account No. 8704492-464-4001 and the BEGIN Program Fund, Account No. 214-4492-464-4001. 5) Authorize the Executive Director or his designee to execute any documents necessary to facilitate this transaction. Action: Approved the recommendations. 5-0 CiTY COUNCIL A�'ION APPROVED '� DENTE'D �� BY RDA � � � RECEIVED OTHER oN � -02.�� o�,�/� MEET NG DA ` � �� AYE �� 7 � � [� , � �' VERIFIED BY.�_�-- � "�_ NOES:.i�(��... �---- Original ort file witn Cit� s k'� G�ic� ABSENT: ��... ��_...�.�. � ABSTAIN: VERIFIED BY: Original on File with City C 's Offica A.P.N. 624-440-017 CERTIFICATE OF ACCEPTANCE OF DEED (Gov. Code 27281) THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed from JOHN THOMAS AND ROSALINDA HARGROVE, to THE PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, the legally described property as: Lot 67 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 74642 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 February 25, 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 Cindy Finerty, 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\JMM\staff reportWC�UISITIONS\Hargrove,John T.and Rosalinda.doc