HomeMy WebLinkAboutDwnpymnt Assistance - Falcon CrestCITY OF PALM DESERT /PALM DESERT HOUSING AUTHORITY
JOINT CONSIDERATION
STAFF REPORT
REQUEST: APPROVE DOWN PAYMENT ASSISTANCE LOANS FROM ANY
AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE
IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE
HOUSING COST ASSOCIATED WITH DIRECT SALES IN FALCON
CREST.
SUBMITTED BY: Jessica Gonzales, Management Analyst
DATE: June 27, 2013
Recommendation
By Minute Motion, that the City Council and Authority Board,
1. Approve silent down payment assistance loans associated with direct sales in
Falcon Crest, not to exceed $80,000 per property in accordance with the Falcon
Crest sales program and documents to ensure an affordable housing cost
pursuant to California Health and Safety Code Section 50052.5 for qualified low
or moderate income households from any available funding source restricted for
such purpose (Low and Moderate Income Housing Asset Fund, BEGIN Fund and
Housing Mitigation); and
2. Authorize the use of the Falcon Crest sales program and documents including
the restrictive covenant and loan documents for the applicable funding source,
and authorize the Mayor to execute; and
3. Authorize the Finance Director to draw monies from the relative funds to facilitate
the transaction; and
4. Authorize the Authority Chairman and/or the Authority's Executive Director or his
designee to finalize and execute any ancillary documents necessary to effectuate
the actions taken herewith.
Monies are available in the appropriate account in the Low and Moderate Income
Housing Asset Fund, BEGIN Fund and Housing Mitigation Fund.
Executive Summary
When an owner notifies the Palm Desert Housing Authority ("Authority") of their intent to sell,
staff attempts to coordinate a direct sale from the owner to a new purchaser from an interest list.
There are several households interested in the properties; however, most of them need some
level of assistance in order to qualify to purchase the properties.
Staff recommends approval of silent Down Payment Assistance Loans in the form of second
and/or third trust deeds not to exceed not to exceed $80,000 per property in accordance with
the Falcon Crest sales program and documents for the identified buyers of the properties
Staff Report
Approval of Down Payment Assistance Loans for a direct sale of APN 624-440-027 and 624-440-014
June 27, 2013
Page 2of2
located at 74-719 King Fisher Circle and 74-600 King Fisher Circle, from any available
funding source restricted for such purpose.
Background
The Palm Desert Housing Authority ("Authority") received a written Notice to Sell from the
homeowners of Falcon Crest properties located at 74-719 King Fisher Circle (also known as
APN 624-440-027) and 74-600 King Fisher Circle (also known as APN 624-440-014).
Based on the affordability covenant against the properties, when an owner notifies the Authority
of their intent to sell, staff attempts to coordinate a direct sale from the owner to a new
purchaser from an interest list. Staff will endeavor to qualify buyers and have the sale of the
properties negotiated directly between the seller and a qualified buyer.
There are several households interested in the properties; however, most of them need some
level of assistance in order to qualify to purchase the properties. In order to ensure an
affordable housing cost, the Housing Authority and/or the City will need to provide deferred
down -payment assistance loans. The loan terms will be consistent with the program funding
requirements of the funding source used for this purpose. The actual amount and funding
source of the Housing Authority and/or the City assistance loans will depend on the qualifying
income and buyer criteria. The silent homebuyer assistance loans will not exceed $80,000 per
property in accordance with the Falcon Crest sales program and documents for the identified
buyers of the properties.
Staff therefore recommends approval of a silent Down Payment Assistance Loan in the form of
second and/or third trust deeds not to exceed $80,000 per property in accordance with the
Falcon Crest sales program and documents for the identified buyers of the properties located at
74-719 King Fisher Circle and 74600 King Fisher Circle from any available funding source
restricted for such purpose.
Monies are available in the appropriate account in the Low and Moderate Income Housing
Asset Fund, BEGIN Fund and Housing Mitigation Fund.
Fiscal Analysis
If the City/Authority provides assistance loans for each of the properties, the fiscal impact will be
the amount of the loans. There would be no impact to the General Fund.
Submitted by:
ess a onzales, Manage ent ieNtiffaiczL
APPROVED
Final -Dart ,►ent: RECEIVED
artment Head:
Gibson, Director of Finance
Appr
AYES:
NOES• /l�
IN: Nu 1. /
John M. ohlmuth, City Manager) 1 I Qr .1 ( -��,
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