HomeMy WebLinkAboutReimburse Housing Set-Aside Fund - $122,376CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
REQUEST:
SUBMITTED BY:
DATE:
STAFF REPORT
AUTHORIZATION TO REIMBURSE THE HOUSING SET -ASIDE
FUND IN THE AMOUNT OF $122,376 FROM HOUSING
MITIGATION FUND FOR THE VALUE OF VACANT LOTS
ASSOCIATED WITH THE 14 SELF HELP UNITS LOCATED ON
MERLE STREET
Veronica Tapia, Redevelopment Accountant
March 11, 2010
Recommendation
By Minute Motion, that the City Council and Agency Board:
1. Authorize staff to reimburse Housing Set -Aside in the amount of
$122,376 from Housing Mitigation Funds.
Funds are available in Housing Mitigation Account Number 214-4490-466-
3901.
Background
On April 28, 2005, the Agency purchased 20.845 acres from the City of Palm Desert.
The property has subsequently been developed to include a 27 unit senior apartment
complex and 93 single family homes for low income households. There are 14 single
family lots (APN 624-440-032 thru 624-440-036 and 624-441-014 thru 624-441-022),
that front Merle Street and remain vacant. These lots are designated for the purpose of
developing affordable self-help housing.
At this time, the property remains undeveloped. Although the Agency has taken steps
towards development, staff has received a less than favorable response based on
current market conditions and State Funding constraints. Although it is staff's intent to
once again seek proposals in the upcoming fiscal year, the time period allowed for the
Agency to develop these properties from Housing Set -Aside is only five years, per the
code. While there is the option to extend the period for another five -years, based on the
requirement set forth for use of Housing Mitigation, this project fits well within the
definition and appears to be a better use of funds.
G:\rda\Veronica Tapia\Word Files\Staff Reports\Self Help Properties -Reimburse from Housing Mitigation.doc
Staff Report
Authorization to Reimburse Housing Set -Aside for value of Vacant Lots
(APN 624-440-032 thru 624-440-036 and 624-441-014 thru 624-441-022)
March 11, 2010
Page 2 of 2
On September 13, 1990, the City Council established the Housing Mitigation Fee to be
assessed against all commercial and industrial development within the City to be used
to increase, produce, improve, or preserve affordable housing for low and very low
income Palm Desert employee households. The fee structure assigns mitigation costs
according to the relative impact of various commercial and industrial uses on low and
very low income housing demand. Considering the location of these units and their
proximity to nearby commercial, professional, hotel, and industrial businesses, the
project fits well within the requirements set forth for the use Housing Mitigation Funds.
Therefore, staff recommends reimbursement to the Housing Set Aside fund in the
amount of $122,376 from Housing Mitigation for the subject properties in order to
develop affordable housing for low and very low income Palm Desert employee
households.
Fiscal Analysis
The project would be paid entirely from the Housing Mitigation Fund. Estimated costs of
the entire project are approximately $500,000 when you consider the potential silent
second subsidies that may be necessary for the purpose of down payment assistance
for the completed units. Subsidies would be repaid and reused at either the transfer of
property, or end of affordability covenants, whichever occurs first. There would be no
impact to the General Fund.
Submi ed By:
a Tapia, Re
eronic
Approval:
Department Head:
develo ment Accountant
in McCarthy, ACM for R
M. Moore, Director of Housing
CITY COUNCIL�TN IO
APPROVED DF,NtED
RECEIVED OTHER
MEETING DATE ' I / ' 1 O
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ABSENT: One
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John ohlmuth, City Manager/Executive pit-WE/AHED BY: K 1 /7z`_ ir-)
Original on File with City Cttrk's Office
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Original on file with City Jerk's Office