HomeMy WebLinkAboutAcquisition Falcon Crest 42190 Verdin Lane APN 624-440-006 - Joint ConsiderationCITY OF PALM DESERT/
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE ACQUISITION OF A PROPERTY LOCATED IN
FALCON CREST KNOWN AS APN 624-440-006 (42190 VERDIN
LANE) IF NECESSARY IN ANTICIPATION OF THE EXPIRATION OF
THE FIRST RIGHT OF REFUSAL PERIOD
OWNER(S): Anthony D. Limon
Cynthia G. Medina
42190 Verdin Lane
Palm Desert, CA 92260
SUBMITTED BY: Janet M. Moore, Director of Housing
Jessica Gonzales, Management Analyst - Housing
DATE: May 12, 2011
CONTENTS: Certificate of Acceptance of Deed
Recommendation
By Minute Motion, that the City Council and Agency Board,
1) Authorize the acquisition of 42190 Verdin Lane (APN 624-440-006) 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
approximately $218,502.00 (to be increased by reasonable closing
costs and commissions);
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.
Staff Report
Authorize the Acquisition of 624-440-006
May 12, 2011
Page 2 of 3
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.
Background
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 proposes to exercise its option to purchase the
home located at 42190 Verdin Lane, 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 October 24, 2007, for the sale price of $199,000 which
includes an Agency Trust Deed in the amount of $19,975.00 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 approximately $218,502.00 and adding commissions and reasonable closing costs
(currently estimated at $8,057.00). 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.
G,\rda\Patty Leon\JMM\staff repbrt\ACQUISITIONS\Liman, Anthony and Medina, Cynthia.doc
Staff Report
Authorize the Acquisition of 624-440-006
May 12, 2011
Page 2 of 3
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.
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:
J s ica Gonzale , Ma agement Analyst
Approval:
njMcCarthy, ACM/WeJelopment
Joh4. Wohlmuth, Executive Director/City Manager
CITY GPiJNCIL AC 11' ON
APPROVED DENIED
RECEIVED
MEETING DATE,-
AYES:
NOES:
ABSENT:
ABSTAIN:
VERIFIED BYs 0/122
Original on File with City
OTHER
Office
Department Head:
1 /
J net . Moore, Director of Housing
aul Gibson, Director of Finance
2 �(� BY RDA �_ CD
ON _ 51 /vim-
'7 VERIFIED BY
Original on fide with City Clerk's Office
G:\rda\Patty Leon\JMM\staff report\ACQUISITIONS\Limon, Anthony and Medina, Cynthia.doc
A.P.N. 624-440-006
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant
Deed from Anthony D. Limon and Cynthia G. Medina, to THE PALM DESERT
REDEVELOPMENT AGENCY, a public body, corporate and politic, the legally
described property as: Lot 56 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 42190 Verdin Lane, is hereby accepted by order of the Agency Board on
behalf of the Agency pursuant to Minute Motion of the Agency Board on May 12, 2011,
the Grantee consents to the recordation thereof by its duly authorized officer.
Date:
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
By:
Jean M. Benson, Chairman
State of California )
SS.
County of Riverside )
On , 2011, before me, M. Gloria Martinez, a Notary Public, personally
appeared Jean M. Benson , 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
Wrda\Patty Leon\JMM\staff report\ACQUISITIONS\Limon, Anthony and Medina, Cynthia.doc