HomeMy WebLinkAboutProperty Acquisition - 43935 Rockrose Court (APN 634-241-017) - Desert RosePALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE ACQUISITION OF 634-241-017
SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: AUGUST 25, 2005
CONTENTS: CERTIFICATE OF ACCEPTANCE OF DEED
Recommendation:
By Minute Motion,
1) Authorize the acquisition of 43-935 Rockrose Cout (APN 634-241-017) for
the purpose of retaining affordability covenants and resale if necessary in
anticipation of the expiration of the 60 day Right of Refusal period;
2) Approve a Silent Second Trust Deed in an amount necessary to secure an
affordable housing cost pursuant to Redevelopment Law for either a direct
sale or Agency sale; and
3) Authorize the Executive Director to execute any documents necessary to
facilitate this transaction. Funds are available in the Housing Set -Aside
Fund.
Executive Summary:
The Agency has the first right of refusal to purchase resales at Desert Rose 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 60-day period, the homeowner can sell the house to a non -qualified
buyer and the Agency would lose its covenants on the property.
Discussion:
The Agency has the first right of refusal to purchase properties from owners in Desert Rose who
desire to sell. Staff desires to exercise the Agency's option to purchase in order to retain
affordability covenants in the event that it becomes necessary prior to the expiration of the 60-day
Right of Refusal to purchase period. This will allow for additional time to identify a low income
family to purchase the unit.
Staff will endeavor to qualify a buyer and have the sale negotiated directly between the seller and
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Staff Report
Authorize the Acquisition of 634-241-017
August 25, 2005
Page 2
new qualified buyer, however due to the qualification process it is not always feasible within the
time frame required.
The home was purchased in March 15, 2002, for the sale price of $91,500.00. There has only been
two (2) owners and based on the formula for resale described in the Unit Regulatory Agreement,
the owner is authorized to sell the home for $101,226.00 plus commissions and reasonable closing
costs. The Agency has the right to purchase the properties for the same amount as the owners
are authorized to sell.
If it becomes necessary for the Agency to purchase the home to maintain affordability, a low or
moderate income family will be identified from an established waiting list and will purchase the
home directly from the Agency subject to the Public Hearing process.
In either event, it will be necessary for the Agency to provide a Second Trust Deed to a new buyer
in an amount necessary to secure an affordable housing cost in order for them to qualify to
purchase the home. The new buyer will be required to sign a new Unit Regulatory Agreement for
a covenant period of 30 years as prescribed in the Desert Rose Unit Regulatory Agreement.
Monies are available in the Agency's Housing Set -Aside Fund.
Submitted by:
Jan M. Moore
sing Authority Administrator
JMM: pl
Approval:
Department Head:
,Dave Yri n
Directo f Redevelopment and Housing
McCarthy, ACM/ elopment Paul Gibson, Director of Finance
Carlos L. Ortec,�/�xecutive Director
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A.P.N. 634-241-017
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed
from Judith D'Avianon , to THE PALM DESERT REDEVELOPMENT AGENCY, a public
body, corporate and politic, the legally described property as: Lot 17 of Tract Map No.
27546, in the City of Palm Desert, County of Riverside, State of California, as per map
recorded in book 249 of maps, pages(s) 63 through 68 inclusive, of the official records of
Riverside County,also known as 43-935 Rockrose Court, is hereby accepted by order of
the Agency Board on behalf of the Agency pursuant to Minute Motion of the Agency Board
on Auaust 25, 2005, the Grantee consents to the recordation thereof by its duly authorized
officer.
Date: Auaust 25. 2005
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
Buford A. Crites, Chairman
State of California }SS
County of }
On , 20 , before me, , a Notary Public,
personally appeared , personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(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 signatures) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.
WITNESS my hand and official seal. [ Notarial Seal ]
Signature