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HomeMy WebLinkAboutDwnpymnt 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 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 2 of 2 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: Department Head: ______O s____3 2____ c ,( ,..(c6T2A Z__,_ ess' a onzales, Ma an ge ent Analyst- Housing anet Moore, Director of Housing Fina, — ,-pa ent: eP:• Gibson, Director of Finance Appr• - filigil ) / 41111P John M. ohlmuth, City Manager/Executive Director C:\Usersljgonz•les1Desktop\SR-HA-City FC_DAP Loans 6-27-13.doc