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Home My WebLink AboutDDA - Amndmnt 2 - Habitat for Humanity - APNs 627-092-050 and 054 PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVAL OF AMENDMENT NO. 2 TO THE SCHEDULE OF PERFORMANCE OF THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC. RELATED TO THE CONSTRUCTION OF TWO SINGLE- FAMILY LOTS KNOWN AS APN NOS. 627-092-050 AND 627-092-054 SUBMITTED BY: Jessica Gonzales, Senior Management Analyst DATE: December 8, 2016 CONTENTS: Schedule of Performance Amendment No. 2 Habitat for Humanity of the Coachella Valley, Inc. Extension of Construction Completion Letter (dated November 10, 2016) Habitat for Humanity of the Coachella Valley, Inc. Construction Update Letter (dated November 10, 2016) Recommendation By Minute Motion, that the Housing Authority Board, 1) Approve Amendment No. 2 to the Schedule of Performance of the Disposition and Development Agreement with Habitat for Humanity of the Coachella Valley, Inc. related to the construction of two single family lots located at San Benito Circle known as APN 627-092-050 and 627-092-054; and 2) Receive and file Habitat for Humanity of the Coachella Valley, Inc. construction update letter dated November 10, 2016 3) Authorize the Palm Desert Housing Authority Executive Director to execute Amendment No. 2 to the Schedule of Performance and any documents necessary to effectuate the actions taken herewith. Housing Commission Recommendation The Housing Commission will receive the recommendation as informational at its regular meeting of December 7, 2016. Strategic Plan Objective: This request preserves the original project approval including the land donation to Habitat for Humanity of the Coachella Valley ("Habitat") objective identified as priority number 2 under 'Land Use, Housing and Open Space section of the City's Envision Palm Desert Strategic Plan. With the approval of this request, the intent of the original request will be maintained and the City will continue to further its goal to facilitate development of high-quality housing for people of all income levels. Staff Report Approval of Amendment No. 2 to Exhibit B of DDA with Habitat for APN 627-092-050 and 627-092-054 December 8, 2016 Page 2 of 2 Background A Disposition and Development Agreement ("DDA") was approved by the former Agency Board on February 24, 2011 by and between the former Palm Desert Redevelopment Agency ("former Agency") and Habitat for the construction of two (2) single-family homes located on San Benito Circle, known as APN Nos: 627-092-050 and 627-092-054 (Resolution No. RDA-582). With the elimination of redevelopment in 2011, the project was put on hold until action could be taken. In 2014, the Palm Desert Housing Authority ("Authority") memorialized the approval of the DDA of the former Agency. The DDA included a schedule of performance that was made part of the Agreement as Exhibit "B". Habitat requested an extension, which was granted by the Executive Director in early 2016, due to insufficient funds to complete the work. However, in the middle of acquiring additional funding through the purchase of several existing mortgages, Habitat had a management change that caused another delay. Habitat for Humanity is now requesting another amendment to Exhibit "B" to revise the completion date from November 30, 2016 to January 31, 2017 (Amendment No. 2). The existing DDA allows for Exhibit "B" to be amended by written agreement by both parties. After the delays noted, construction is nearing completion, and staff is recommending the approval of the revised schedule. Fiscal Analysis There is no direct fiscal impact with the approval of the request. Submitte by: Department Head: Je si Gonzalsenior Management Analyst J net core, Director of Finance Approval: Lauri Aylaian, Executive Director (--s-0)BY HOUSG AUTO ON I D- �H I VERIFIED BY:_ "L Original on file with City Clerk's Office RES. NO. 582 and Resolution No. HA-69 APN NOS: 627-092-050 AND 627-092-054 EXHIBIT B SCHEDULE OF PERFORMANCE Amendment No. 2 1. Authority's Publication of Notice of Public Hearing October 31, 2014 and November 7, 2014 2. Approval of the Agreement by Authority Board November 13, 2014 3. Opening of Escrow 30 days from Authority Board Approval. 4. Execution of the Agreement by the Developer, and 30 days from Authority tender to the Authority Board Approval 5. To the extent required, Developer shall prepare and 30 days from Authority submit Plans and Specifications and related Board Approval documents 6. Before commencement of the construction of 365 days from Authority Improvements on the Property, Developer shall, at Board Approval its own expense, secure or cause to be secured any and all permits that may be required 7. Developer's approval or disapproval of Title Report 15 days from the date of receipt 8. Developer's approval or disapproval of the physical 15 days from full execution condition of the Property of the Agreement by parties 9. Close of Escrow 60 days from opening of Escrow 10. Commencement of the Construction of 365 days from Closing Improvements 11. Completion of the Construction of Improvements January 31, 2017 12. Transfer of title to Qualified Households No later than 540 days after the issuance of the Certificate of Occupancy NOTE: Schedule may be amended with written approval of the Authority's Executive Director, which approval may be given or withheld in the sole and absolute discretion of the Executive Director. 1 (i 710CSI'.0 pR(XiRAMSFIRSI 11 NIi IIONF.BCY ER ARR.DAIEI'1'AT FOR III_MANI'IY'SAN 13ENITO LOTS 90 AND SXS)DA Amcnd of E•hibn 13',EX1IIIEIT F)Schcdn k of Pcrfornancc_Amd No 2 doc RES. NO. 582 and Resolution No. HA-69 APN NOS: 627-092-050 AND 627-092-054 IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the day and year first above written. DEVELOPER: AUTHORITY: HABITAT FOR HUMANITY OF COACHELLA PALM DESERT HOUSING AUTHORITY, a VALLEY, INC., a California non-profit, public public body, corporate and politic benefit corporation By: By: Lauri Aylaian, Executive Director Title: ATTEST: By: Rachelle D. Klassen, Secretary Title: 2 (i IlOYSING.PROGRAMSU9RST I Ii IE IIOMIAILYER-ARR'.IIAIIITAT FOR IIUMASITY SAN RE:NITO LOTS SR AND 98 DDA Amend of Eshibn R'F:XHIRIT B Schedule of Performance And No 2 da 411011111�,,� Dave Thornton • ' •r. Habitat for Humanity° "``'`' "`'``` lkof the Coachella Valley, Inc. Building houses, building hope November 10, 2016 Palm Desert Housing Authority City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Palm Desert City Council 73-510 Fred Waring Drive Palm Desert. CA 92260 Re: Construction of two (2) homes on San Benito Circle pursuant to the DDA dated November 13, 2014 APN Nos 627-092-050 and 627-092-054 Ladies and Gentlemen: On July 19, 2016, we wrote to you regarding Habitat's need for an extension of time within which to complete construction of the two veteran homes being built on San Benito Circle in Palm Desert. On October 4, 2016, you kindly accepted and approved our request and issued Amendment No. 1 to the Schedule of Performance. Amendment No. 1 extended Habitat's construction completion date to November 30, 2016. Although Habitat has been working diligently to complete the construction of the two homes after an infusion of additional capital, since our original request we realize that at this time, unfortunately, we will not be able to meet the November 30th deadline. Therefore, pursuant to the terms of the Disposition and Development Agreement referenced above, Habitat once again hereby notifies Authority and the City Council that it will be unable to complete the construction of the veteran homes by the anticipated date and, as a result, seeks a second amendment to the Schedule of Performance to accommodate its need for additional time. It is now contemplated that construction will be completed on or before January 31. 2017. Notwithstanding the Agreement between the parties, under the terms of the DDA, particularly those contained in Exhibit B Schedule of Performance, the schedule for completion of the project may be amended with the written approval of Authority's Executive Director, which approval Habitat understands may be given or withheld in the sole discretion of (Office) 34470 Gateway Drive, Suite 100, Palm Desert, CA 92211 (Tel( (760)969-6917 (Email)executivedirector@hfhcv org Palm Desert Housing Authority Palm Desert City Council November 10. 2016 Page -2- the Authority's Executive Director. habitat appreciates, too, that Authority will need to bring this request fir amendment before the City Council at its next regularly scheduled hearing in order to approve another modification of the terms of the Agreement. Habitat wishes to once again thank both Authority and the City Council for their understanding and consideration of this second request. Very truly yours, Dave Thornton Executive Director DT:bjb (Office) 34470 Gateway Drive, Suite 100, Palm Desert, CA 92211 (Tel) (760)969-6917 (Email)executivedirector@hfhcv.org Dave Thornton 10• ' • Habitat for Humanity Executive Director 14 of the Coachella Valley, Inc. Building houses, building hope November 10, 2016 Jessica Gonzales Palm Desert I lousing Authority City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: Status of Construction of two (2) homes on San Benito Circle APN Nos 627-092-050 and 627-092-054 Dear Jessica: Pursuant to your request, please be advised that construction on the two veteran homes on Benito Circle is progressing well. The following is the up-to-date status for both Lot 98 and Lot 99, exterior and interior: CVWD sewer/underground utilities hookup complete Water meters scheduled to be installed within 3 weeks Stucco coatings (x3) completed Interior doors going in today w/hardware Electrical completed Kitchen cabinets ordered and appliances purchased Interior drywall texture done and primer painted Garage doors purchased and installation scheduled within a week Tub +enclosure in hallway bathroom installed Master bath shower + enclosure installed Flooring throughout scheduled to begin Nov 14th Very truly yours, ---77 i Ci 'll ,/ 7C(71-/' Dave Thornton Executive Director DT:bjb (Office) 34470 Gateway Drive, Suite 100. Palm Desert, CA 92211 (Tel) (7601 969-6917 (Email)executivedirector@hfhcv org