HomeMy WebLinkAboutDown Pymnt Assistance - Falcon Crest CITY 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 A DIRECT SALE IN FALCON
CREST.
SUBMITTED BY: Janet Moore, Director of Housing
Jessica Gonzales, Management Analyst
DATE: July 11, 2013
Recommendation
By Minute Motion, that the City Council and Authority Board,
1. Approve silent Down Payment Assistance Loans associated with a direct sale in
Falcon Crest, not to exceed $80,000 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 property; 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 $80,000 in accordance with the Falcon Crest sales
Staff Report
Approval of a Down Payment Assistance Loan for a direct sale of APN 624-440-003
July 11, 2013
Page 2 of 2
program and documents for the identified buyers of the property located at 42-148 Verdin Lane,
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 a Falcon Crest property located at 42-148 Verdin Lane (also known as APN
624-440-003).
Based on the affordability covenant against the property, 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 property
negotiated directly between the seller and a qualified buyer.
There are several households interested in the property; however, most of them need some
level of assistance in order to qualify to purchase the property. 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 in accordance with the
Falcon Crest sales program and documents for the identified buyers of the property.
Staff therefore recommends approval of silent Down Payment Assistance Loans in the form of
second and/or third trust deeds not to exceed $80,000 in accordance with the Falcon Crest
sales program and documents for the identified buyers of the property located at 42-148 Verdin
Lane 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 the property, the fiscal impact will be the
amount of the loans. There would be no impact to the General Fund.
Department Head: Finance Depa h •
•
:-t M. Moore, Dir c r of Housing Finance
APPROVED DENIM
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RECEIVED OTHER
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n M. , hlmuth, City Manager/Executive DiretleEs:
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VERIFIED BY: Original on Fik with City C 's Office
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