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HomeMy WebLinkAboutRes 500 and HA-26 R23800 Housing Cooperation AgreementPALM DESERT REDEVELOPMENT AGENCY AND PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AUTHORIZE THE PALM DESERT REDEVELOPMENT AGENCY AND HOUSING AUTHORITY TO ENTER INTO A HOUSING COOPERATION AGREEMENT IN ORDER TO PLAN, UNDERTAKE, CONSTRUCT OR OPERATE HOUSING PROJECTS SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: MAY 12, 2005 CONTENTS: RESOLUTION NOS. 500 AND HA-26 HOUSING COOPERATION AGREEMENT Recommendation: That the Palm Desert Redevelopment Agency/Palm Desert Housing Authority open the public hearing and following public testimony take the following action: By Minute Motion: Authorize the Palm Desert Redevelopment Agency and Palm Desert Housing Authority Board approve Resolution No. 500 , a resolution of the Palm Desert Redevelopment Agency and Resolution No. H -26a resolution of the Palm Desert Housing Authority approving a Housing Cooperation Agreement. 2. Authorize the Palm Desert Redevelopment Agency and Palm Desert Housing Authority to enter into a Housing Cooperation Agreement in accordance with Housing Cooperation Law in order to plan, undertake, construct or operate housing projects. 3. Authorize the Chairman to execute all documents necessary to enter into the Housing Cooperation Agreement. Executive Summarv: Entering into this Agreement will allow the Agency to exercise certain powers for the purpose of aiding and cooperating in planning, undertaking, construction, operation and selection of qualified contractors as provided under the Housing Cooperation Law. In order for the Agency to have the flexibility to utilize these powers it must enter into an agreement with the Housing Authority. Discussion: The Palm Desert Redevelopment Agency owns a 20-acre site located west of Cook Street between 42nd Avenue and Merle Drive, which is near Hovley Gardens. The 20-acre site is suitable for a housing development consisting of 26 senior housing units, 94 single-family homes and 14 self help homes, as well as certain on -site and off -site improvements. The Agency has solicited proposals from GARDATatty Leon\WpdocsUMMMstaff report\Housing Cooperation Agrment 41205.wpd Resolution No. 500 STAFF REPORT HOUSING COOPERATION AGREEMENT MAY 12, 2005 PAGE 2 OF 2 developers to assist with the development of the 20 acre -site and hopes to select a qualified developer by August 2005. The Redevelopment Agency also owns the multi -family apartment complexes known as California Villas and Laguna Palms, both of which are operated by the Palm Desert Housing Authority. The Agency is in the design process for the exterior renovations and repairs for both projects. The Redevelopment Agency proposes to enter into an agreement with the Housing Authority in connection with the development of the 20-acre site and the renovations of the two apartments projects. The proposed agreement is a Housing Cooperation Agreement, and by entering into the agreement the Agency will be afforded more flexible powers, including more flexibility in the selection of qualified contractors to build the units at the 20-acre site and the renovations of the apartment projects. The Agency, from 20% set -aside or a bond issue secured by the 20%, will provide the funding and be the lead Agency for the above noted projects, although ultimately the Housing Authority may operate them. Under the Housing Cooperation Law (California Health and Safety Code Sections 34500, et.seq.) The Redevelopment Agency is authorized to exercise certain powers for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of housing projects. The Housing Cooperation Agreement generally provides that the Redevelopment Agency, at its expense, will develop the 20-acre site and renovate the apartment projects. Pursuant to the Housing Cooperation Law, the Redevelopment Agency and Housing Authority must hold a public hearing on the Housing Cooperation Agreement. Notice of the hearing will be published and three copies of the Agreement will be available for public inspection. Submitted by: Ja t M. Moore using Authority Administrator Approval: Carlos Otte xecutive Director GARDATatty Leon\Wpdocs\JNMstaff reporMousing Cooperation Agrment 41205.wpd Department Head: Dave Yrigoe Director o evelopment/Housing �;al_ a�-----' PauGibson Director of Finance RESOLUTION NO. 500 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE EXERCISE BY THE AGENCY OF THE POWERS GRANTED BY THE HOUSING COOPERATION LAW THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Th e Palm Desert Redevelopment Agency is a public body, corporate and politic, and a "state public body" within the meaning of that term under California Health and Safety Code Section 34506. Section 2. Under Cali fornia Health and Safety Code Section 34521, the exercise by a state public body, such as the Agency, of the powers granted by the Housing Cooperation Law (California Health and Safety Code Section 34500, et. seq.) may be authorized by resolution adopted by a majority of the members of its governing body. Section 3. Th e Agency is hereby authorized to exercise the powers granted in the Housing Cooperation Law. Section 4. Th e Agency and the Palm Desert Housing Authority have held a joint public hearing on a proposed Housing Cooperation Agreement between the Housing Authority and the Redevelopment Agency. Section 5. Th a Housing Cooperation Agreement dated as of May 12, 2005, between the Agency and the Palm Desert Housing Authority, presented to the governing board of the Agency at this meeting is hereby approved. PASSED, APPROVED and ADOPTED this day of , 2005. AYES: NOES: ABSENTS: ABSTAINS: BUFORD A. CRITES, CHAIRMAN Attest: RACHELLE D. KLASSEN, SECRETARY P6402-0001 \814690v2. doc RESOLUTION NO. HA-26 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY AUTHORIZING THE EXERCISE BY THE HOUSING AUTHORITY OF THE POWERS GRANTED BY THE HOUSING COOPERATION LAW THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Th a Palm Desert Housing Authority is a public body, corporate and politic, and a "state public body" within the meaning of that term under California Health and Safety Code Section 34506. Section 2. Under Cali fornia Health and Safety Code Section 34521, the exercise by a state public body, such as the Housing Authority, of the powers granted by the Housing Cooperation Law (California Health and Safety Code Section 34500, et. seq.) may be authorized by resolution adopted by a majority of the members of its governing body. Section 3. Th a Housing Authority is hereby authorized to exercise the powers granted in the Housing Cooperation Law. Section 4. Th a Housing Authority and the Palm Desert Redevelopment Agency have held a joint public hearing on a proposed Housing Cooperation Agreement between the Housing Authority and the Redevelopment Agency. Section 5. Th a Housing Cooperation Agreement dated as of May 12, 2005, between the Palm Desert Redevelopment Agency and the Housing Authority, presented to the governing board of the Housing Authority at this meeting is hereby approved. PASSED, APPROVED and ADOPTED this day of , 2005. AYES: NOES: ABSENTS: ABSTAINS: BUFORD A. CRITES, CHAIRMAN Attest: RACHELLE D. KLASSEN, SECRETARY P6402-000 1 \81469 1 vldoc HOUSING COOPERATION AGREEMENT This HOUSING COOPERATION AGREEMENT is entered into this 12th day of May, 2005, by and between the Palm Desert Redevelopment Agency, a public body, corporate and politic (the "Redevelopment Agency"), duly organized and validly existing under and pursuant to the constitution and laws of the State of California, and the Palm Desert Housing Authority, a public body, corporate and politic, duly organized and validly existing under and pursuant to the constitution and laws of the State of California. The Agency and the Housing Authority may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS A. By ordinance, the City Council of the City of Palm Desert has declared the need for the Redevelopment Agency to function in the City, and the Redevelopment Agency is thereby authorized to transact business and exercise its powers. B. By resolution, the City Council of the City of Palm Desert has declared the need for the Housing Authority to function in the City, and the Housing Authority is thereby authorized to transact business and exercise its powers. C. Under California Health and Safety Code Section 33334.2, not less than 20 percent of all taxes which are allocated to the Redevelopment Agency pursuant to California Health and Safety Code Section 33670 shall be used by the Redevelopment Agency for the purposes of increasing, improving, and preserving the supply of low- and moderate -income housing in the City of Palm Desert available at affordable housing cost. In carrying out the purposes of Section 33334.2, the Redevelopment Agency may exercise any or all of its powers, including the acquisition of real property or building sites; the improvement of real property or building sites with onsite or offsite improvements; donating real property to private or public persons or entities; the construction of buildings or structures; the provisions of subsidies to, or for the benefit of, very low income households, lower income households, or persons and families of low or moderate income, to the extent those households cannot obtain housing at affordable costs on the open market; and the development of plans, the payment of principal and interest on bonds, loans, advances, or other indebtedness, or payment financing or carrying charges. D. Under Section 34509 of the Housing Cooperation Law (California Health and Safety Code Sections 34500, et. seq.), for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of Housing Projects (as hereinafter defined) located within the area in which it is authorized to act, any State public body (as hereinafter defined), such as the Redevelopment Agency, may exercise the powers prescribed in Sections 34510 P6402-0001\814283v9.doc to 34518, inclusive, of the Housing Cooperation Law, upon such terms, and with or without consideration, as it may determine. E. Under Section 34516 of the Housing Cooperation Law, a State public body, such as the Redevelopment Agency, may do any and all things, necessary or convenient, to aid and cooperate in the planning, undertaking, construction, or operation of Housing Projects. F. Under Section 34511 of the Housing Cooperation Law, a State public body, such as the Redevelopment Agency, may cause parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake, to be furnished adjacent to or in connection with Housing Projects. G. Under Section 34512 of the Housing Cooperation Law, a State public body, such as the Redevelopment Agency, may furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other place which it is otherwise empowered to undertake. H. Under Section 34515 of the Housing Cooperation Law, a State public body, such as the Redevelopment Agency, may enter into agreements with the Housing Authority respecting action to be taken by the State public body pursuant to the Housing Cooperation Law. I. Under Section 34518 of the Housing Cooperation Law, a State public body, such as the Redevelopment Agency, may incur the entire expense of any public improvements made by it in exercising the powers granted in the Housing Cooperation Law. J. Under Section 34518 of the Housing Cooperation Law, any law to the contrary notwithstanding, a State public body, such as the Redevelopment Agency, may make any sale, conveyance, lease, or agreement provided for in Section 34510 to 34517, inclusive, of the Housing Cooperation Law, without appraisal, public notice, advertisement, or public bidding. K. Under Section 34502 of the Housing Cooperation Law, the powers conferred by the Housing Cooperation Law are supplemental to the powers conferred by any other law. L. The Redevelopment Agency is the owner of certain real property (the Development Site, as hereinafter defined), which is suitable for development of the Housing Development (as hereinafter defined). M. The Housing Development is a Housing Project. N. The development of the Housing Development pursuant to this Agreement constitutes a public use and purpose and an essential governmental function for which public money may be spent and other aid given. P6402-0001\814283v9.doc -2- O. The Redevelopment Agency is the owner of an apartment project commonly known as California Villas, which is located at 77-107 California Avenue and an apartment project commonly known as Laguna Palms, which is located at 73-875 Santa Rosa Way, both in the City of Palm Desert (together, the Apartment Projects, as hereinafter defined). The Apartment Projects are in need of renovations, rehabilitation and repairs. P. The Apartment Projects are Housing Projects. Q. The Redevelopment Agency and Housing Authority held a joint public hearing on this Agreement on May 12, 2005, at which interested persons were afforded the opportunity to provide testimony. R. Notice of the joint public hearing was duly published pursuant to California Government Code Section 6066 in the Desert Sun, a newspaper of general circulation, on April 28, 2005 and May 5, 2005. S. At least three copies of this Agreement were available for inspection by any interested person at the Redevelopment Agency counter at Palm Desert City Hall as of April 28, 2005 between the hours of 8:30 a.m. to 4:30 p.m. T. The Redevelopment Agency and the Housing Authority wish to enter into this Agreement. NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereto agree as follows: Section 1. Definitions. In this Agreement, unless the context otherwise requires: (a) "Apartment Projects" means the California Villas and Laguna Palms apartment projects, described in Recital O, above. (b) "City" means the City of Palm Desert, California, and may also refer to the territorial jurisdiction within the City. (c) "Development Site" means the 20-acre parcel of real property owned by the Redevelopment Agency and described more fully in Exhibit "A", attached hereto. (d) "Housing Authorities Law" means the Housing Authorities Law, California Health and Safety Code Section 34200, et. seq. (e) "Housing Cooperation Law" means the Housing Cooperation Law, California Health and Safety Code Section 34500, et. seq. P6402-0001 \814283v9. doc -3 - (f) "Housing Development" means the project to carry out the development of 26 senior housing units, 94 single-family homes, and an additional 14 single-family homes to be built as part of a "self help" program, on the Development Site, and all on -site and off -site improvements in connection therewith which the Redevelopment Agency deems necessary and desirable. (g) "Housing Project" means any work or undertaking to be financed in whole or in part by a state public body, such as the Redevelopment Agency, or to which a State public body, such as the Redevelopment Agency, extends assistance by supplying all or part of the labor, by guaranteeing the payment of liens, by providing financing through the issuance of its debt obligations, or otherwise, to provide decent, safe, and sanitary urban or rural dwellings, apartments, or other living accommodations for persons of low and moderate income. Such work or undertaking may include buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare, or other purposes. "Housing Project" also includes the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration, and repair of the improvements, and all other work in connection therewith. (h) "Redevelopment Law" means the Community Redevelopment law, California Health and Safety Code Section 33000, et. seq. (i) "State" means the State of California. (j) "State public body" means any city, county, borough, commission, district, authority, or other subdivision or public body of the State. For the purposes of this definition, "State public body" also means the State, any city, county, city and county, borough, commission, district, authority, or other subdivision or public body of the State, including any housing authority. Section 2. The Redevelopment Agency shall develop the Housing Development on the Development Site. The Redevelopment Agency shall use its best efforts to cause the commencement of construction of the 26 senior housing units to begin on or before November 1, 2005 and use its best efforts to cause the commencement of construction of the 96 single-family homes to begin on or before January 1, 2006. Within 120 days of the completion of construction of the foregoing units and homes, the Redevelopment Agency shall begin the process of selecting a qualified developer or developers to assist the Agency with the development of the 14 self help homes. Section 3. The Redevelopment Agency shall renovate, rehabilitate and repair the Apartment Projects. The Redevelopment Agency shall use its best efforts to cause such renovation, rehabilitation and repair, including, without limitation, re -stucco, re -roofing, replacement of windows, repair or replacement of P6402-0001\814283v9.aoc -4- mechanical systems, retrofit landscape and hardscape, and the addition of parking, fire safety features and facade improvements, to be completed in calendar year 2006. Section 4. The 26 senior housing units and the units at the Apartment Projects shall be available at an affordable housing cost to persons and families of low and moderate income. The 94 single-family homes shall be available at an affordable housing cost to persons and families of low and moderate income. At least 50 percent of the senior housing units and the units at the Apartment Projects shall be available at an affordable housing cost to persons and families of low income. At least 20 percent of the single-family homes shall be available at an affordable housing cost to persons and families of low income. Section 5. The Redevelopment Agency may enter into any and all such agreements with private parties as the Redevelopment Agency deems necessary to develop the Housing Development on the Development Site and to renovate, rehabilitate and repair the units at the Apartment Projects. The Redevelopment Agency may also enter into any and all such agreements with public entities as the Redevelopment Agency deems necessary to develop the Housing Development on the Development Site and to renovate, rehabilitate and repair the units at the Apartment Projects; provided, however, that no other public entity shall share in the expense of the Housing Development or the renovation, rehabilitation and repair of the units at the Apartment Projects, and the entire expense of the Housing Development and the renovation, rehabilitation and repair of the Apartment Projects shall be borne by the Redevelopment Agency from its Low and Moderate Income Housing Fund, or from a combination of private funds and the Low and Moderate Income Housing Fund. Section 6. The Redevelopment Agency shall perform all required preparatory work for the improvements, including the acquisition of land and rights -of -way, and shall install and construct, or cause to be installed and constructed, the improvements not previously installed and constructed. The Redevelopment Agency shall retain one or more persons or entities experienced in the design and construction of the improvements to undertake the design of the improvements and to prepare plans and specifications therefor. The Redevelopment Agency shall, in accordance with all applicable federal, state and local laws, rules and regulations, install and construct, or cause to be installed and constructed, all improvements in accordance with such plans and specifications. Section 7. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding on the Parties hereto and their successors in interest. Section 8. No member of the governing body of the Redevelopment Agency or the Housing Authority, and no official, agent, or employee of the Redevelopment Agency or the Housing Authority shall be personally liable to the P6402-0001\814283v9.doc -S- other Parties, or any successor in interest, in the event of any default or breach by the Redevelopment Agency or the Housing Authority, or for any amount which may become due to the Redevelopment Agency or Housing Authority, or successor, or on any obligations under the terms of this Agreement. Section 9. The Redevelopment Agency and the Housing Authority covenant and agree for themselves, their successors and assigns that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, marital status, sex, age, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the lands, rights -of -way in respect of the Development Site, the Housing Development and the Apartment Projects, nor shall the Redevelopment Agency, or the Housing Authority, or any person, claiming under or through them, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the lands, rights -of -way and improvements. The Redevelopment Agency shall refrain from restricting the rental, sale, or lease of the rights -of -way and improvements on the basis of race, color, creed, religion, marital status, age, sex, national origin, or ancestry of any person. All such deeds, leases or contracts for the sale, lease, sublease or other transfer of the rights -of -way and improvements shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: A. In deeds: "The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself or any persons claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees on the land herein conveyed. The foregoing covenants shall run with the land." B. In leases: "The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, marital status, age, sex, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall the lessee itself, or any person claiming under or through it, establish or permit such P6402-0001\814283v9.doc -6- practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees on the land herein leased." Section 10. The Parties hereto agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 11. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 12. This Agreement is made in the State under the constitution and laws of the State, and is to be so construed. Section 13. This Agreement may be amended at any time, and from time to time, by an agreement executed by both Parties to this Agreement. Section 14. Pursuant to California Health and Safety Code Section 34518, the Redevelopment Agency shall assume the entire expense associated with carrying out its obligations under this Agreement. Section 15. There are no third party beneficiaries to this Agreement. Section 16. The Redevelopment Agency and the Housing Authority may utilize any and all of their powers under the Housing Cooperation Law and under any other law in exercising their rights and performing their obligations under this Agreement. Section 17. The term of this Agreement shall extend from the date hereof until 45 years from the end of the year in which the Housing Development becomes available for occupancy. IN WITNESS THEREOF, the Parties have executed this Agreement on the date first above written. PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic Buford A. Crites, Chairman Rachelle D. Klassen, Secretary PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic Buford A. Crites, Chairman Rachelle D. Klassen, Secretary P6402-0001\814283v9.doc -%- EXHIBIT "A" [DEVELOPMENT SITE DESCRIPTION] 20-Acre Site Development, west of Cook Street between 42nd Avenue and Merle Drive 2. California Villas, 77-107 California Avenue, Palm Desert, CA 92260 3. Laguna Palms, 73-875 Santa Rosa Way, Palm Desert, CA 92260 P6402-0001\814283v9.doc -8-