Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Res No. 512 - Apprv'g Report
RESOLUTION NO. 512 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A REPORT REGARDING EXCESS TAX INCREMENT REVENUES AND MAKING FINDINGS RELATED THERETO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency (the "Agency") has caused to be prepared a Report Regarding Excess Tax Increment Revenues, which Report is attached hereto as Exhibit A. Such Report indicates the last equalized roll of taxable property in each of the Project Areas of the Agency, the projected amounts to be set aside into the Low and Moderate Income Housing Fund of the Agency pursuant to Health and Safety Code Sections 33334.2(a) and 33334.6(c), the housing requirements specified in paragraph 1.a, b and c of that certain Stipulation for Entry of Judgment in Case No. Indio 51143, as amended in 1997 and again in 2002, the projected housing needs included in the requirement set forth in paragraph 1.d of such Stipulation, as amended, and the estimated amounts of money necessary to meet the requirements of paragraph 1.a, b, c and d. Such Report includes evidence and analysis reasonably supporting and substantiating the projections therein. Such Report is hereby approved. Section 2. The Agency hereby finds and determines that the surplus revenues described in the Report are not and will not be necessary to meet the housing requirements set forth in paragraph la, b and c of such Stipulation, as amended, with respect to Project Areas Nos. 1 and 2 of the Agency, and are not and will not be necessary to meet the housing requirements set forth in paragraph 1d of such Stipulation, as amended, with respect to Project Area No. 2 of the Agency. Such surplus revenues thereby constitute "excess tax increments" within the meaning of that term under paragraph 2 of such Stipulation, as amended. Such surplus revenues therefore may be pledged on an annual basis to pay future debt service on bonds, notes or other indebtedness of the Agency to finance its redevelopment activities, which are unrelated to low and moderate income housing, and such bonds, notes, or other obligations or indebtedness P6402-0001\837347v 1.doc RESOLUTION NO. 512 will thereby constitute a "prior indebtedness" within the meaning of such term under paragraph 2 of such Stipulation. PASSED, APPROVED AND ADOPTED this day of 2005. AYES: NOES: ABSENT: ABSTAIN: ATTEST: BUFORD CRITES, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY 2 P6402-00011837347v1.doc REPORT REGARDING EXCESS TAX INCREMENT REVENUES October, 2005 This Report has been prepared pursuant to paragraph 2 of the Stipulation for Entry of Judgment in Case No. Indio 51143, entitled City of Palm Springs v. All Persons Interested, as amended in 1997, and as amended again in September of 2002. The purpose of this Report is to set forth facts and projections upon which the Palm Desert Redevelopment Agency may make a finding that certain amounts of tax increment revenues, as identified in this Report, are not and will not be necessary to meet the housing requirements set forth in the Stipulation, as amended, and that such tax increment revenues may be pledged on an annual basis to pay annual debt service requirements on long term bonds, notes, or other obligations or indebtedness of the Agency to finance redevelopment activities other than housing. As used in this Report, "Agency" sometimes also collectively means related public entities such as the City of Palm Desert and the Palm Desert Housing Authority. 1. According to reports issued by the Auditor -Controller's Office of the County of Riverside, based upon the last equalized tax assessment roll' the assessed value of taxable property in all Project Areas of the Agency is set forth on Table 1, below, and is as follows: the Original Territory of Project Area No. 1, $825,767,882; the Added Territory of Project Area No. 1, $3,772,744,132; Project Area No. 2, $1,467,872,833; Project Area No. 3, $433,362,444; and Project Area No. 4, $1,619,071,451. TABLE 1 PALM DESERT REDEVELOPMENT PROJECT AREAS 2005-2006 EQUALIZED ASSESSED ROLL VALUE Assessed Valuations If Project Area Secured & Utility Unsecured Total Value Project Area No. 1 Original Territory Project Area No. 1 Added Territory Project Area No. 2 Project Area No. 3 Project Area No. 4 $729,583,351 $96,184,531 $825,767,882 $3,693,561,100 $79,183,032 $3,772,744,132 $1,451,555,514 $16,317,319 $1,467,872,833 $383,280,660 $50,081,784 $433,362,444 $1,607,187,667 511,883,784 $1,619,071,451 County Auditor -Controller report for fiscal year 2004-2005 available for review at office of Executive Director of Agency. P6402-00011857122v2.doc 1 2. Table 2, below, details the growth during the Last several fiscal years of the net assessed value of taxable property within all Project Areas of the Agency. The information in Table 2 is based upon previous reports issued by the Riverside County Auditor Controller's Office.2 TABLE 2 PALM DESERT REDEVELOPMENT AGENCY PALM DESERT REDEVELOPMENT PROJECT AREAS ASSESSED VALUATION HISTORY FOR ALL PROJECT AREAS Fiscal Project Area No. 1 Project Area No. 1 Year Original Territory Growth Amended Area ( Growth 1985-86 $301,032,783 1986-87 $329,193,372 9.35% 1987-88 $360,380,256 9.47% 1988-89' $356,789,397 -1.00% 1989-90 $397,104,031 11.30% 1990-91 $443.241,598 11.62% 1991-92 $460,970,175 4.00% 1992-93 $476,509,811 3.37% 1993-94 5504.139,473 5.80% 1994-95 $508,383,101 0.84% 1995-96 $536,921,330 5.61% 1996-97 $545,676,935 1.63% 1997-98 $561,656,577 2.93% 1998-99 S575,683,706 2.50% 1999-00 S582,008,406 1.10% 2000-01 $647,354,888 11.23% 2001-02 $663.561.785 2.50% 2002-03 $677,837,352 2.15% 2003-04 $720,961,253 6 36% 2004-05 $768,146,022 6.54% 2005-06 $825,767.882 7.50% Average annual percentage increase 5.24% $976,968,289 $1,054,219,473 7.91% S 1,106, 840, 081 4 99% $1.141.345,276 , 3.12% 31, 278,633.404 12.03% 51.403,837,206 9.79% $1,515,782,443 7.97% $1,612,292,706 6.37% $1,692,432,395 4.97% $1,735.805,615 2.56% $1,745,423, 703 $1,752,305,202 $1,784,367,801 $1,835, 985, 315 $1, 924. 383, 612 $2,253,001, 599 $2,638,690,766 $2,952,832,758 $3,180,784,451 $3,433,954,486 $3,772,744,132 0.55% 0.39% 1.83% 2.89% 4.81% 17.08% 17.12% 11.91% 7.72% 7.96% 9.87% 7.09% Project Project Area No. 2 Growth Area No. 3 (not available) $102,157.186 base yr (not available) 5267,444,268 $345.058,631 29.02% S431,794,716 25.14% $152,824,265 base yr. • $516,031,260 19.51% S158,703,458 estimate =° j' 3542,212,121 5.07% $185,318,169 $583,724,579 7.66% 5191,012,915 $565,046,462 -3.20% $192,765,917 $603,863,572 6.87% $203,423,387 $639,950,488 5.98% $201,557,484 $692,074,003 8.14% $210,542,941 $735,914,253 6.33% $218,502,516 $814,178,455 10.63% 3235,022.348 $883,822,369 8.55% $252,343,372 $959,692,226 8.58% $269,924,155 $1,144,432,059 19.25% $285,478,840 $1,273,944,318 11.32% $353,531,549 $1,365.153.234 7.16% $363,298,238 $1,467.872,833 7.52% S433,362.444 Project Growth I Area No. 4 Growth 10.80% 16.77% 3.07% 0.92% 5.53% -0.92% 4.46% 3.78% 7.56% 7,37% 6.97% 5.76% 23 84% 2.76% 19.29% 587.462.305 610,960,797 4,00% 666,027,711 9.01% 695,032,503 4.35% 697,487,317 0.35% 729,959.356 4.66% 789,753,193 8,19% 916.534, 060 16.05% 1,048,408,747 14.39% 1,207, 732,362 15.20% 1,314,714,496 8.86% 1.405,798,678 6.93% 1,488.937,945 5.91% 1, 619,071.451 8.74% 7.85% 8.20% Note: 'Decrease in assessed value Is the result of legislation that removed the unitary utility value from the secured assessment roll. 2 County Auditor Controller's reports for prior fiscal years available for review at office of Executive Director of Agency. P6402-0001\857122v2.doc 2 As shown by Table 2, the average percentage increase in assessed valuation of taxable property in Project Area No. 1 over the prior 20-year period is as follows: for the Original Territory, 5.24 percent; and for the Added Territory, 7.09 percent. The average percentage increase in assessed valuation of taxable property in Project Area No. 2 over the prior 17-year period is 10.80 percent. The average percentage increase for Project Area No. 3 over the prior 15-year period is 7.65 percent, and the average percentage increase for Project Area No. 4 over the last 13 years is 8.20 percent. 3. New development and construction activity continues in all Project Areas. Rosenow, Spevacek Group, Inc., working with the City's Building Department and Planning Department, has reviewed new development and construction activity that will significantly increase the assessed value of the Project Areas. That new development and construction activity is projected to result in additions to the assessment rolls for 2007-2008 for the Original Territory of Project Area No. 1 of $6,914,910; for the Added Territory of Project Area No. 1 of $15,512,620; for Project Area No. 2 of $40,936,340; for Project Area No. 3 of $11,801,127; and for Project Area No. 4 of $1,173,670. The various development projects are separated by Project Area and set forth on Table 3, below. Desorption Use PIA 1 TABLE 3-A-1 PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA NO. 1 ORIGINAL TERRITORY 2007.08 ASSESSMENT ROLL ESTIMATED VALUE 2006.09 ASSESSMENT ROLL 2009.10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATED VALUE Approved or Estimated Under SOFT or Completion Date - Construction Acres a Units Roll Date Residential I Commercial Industrial Residential Zylstra office approved 5250 1 12/06-AROS-OS Chamber of Commerce office approved 5725 12/06-AROO-10 Robert under McLactin medical office consbucoon 15070 12/06 under RM Builders office construction 2140 1 8/07-AR08-09 utSdO,S center, chamber o1 Enbada Del commerce. erce. under Paso restaurants construction 12 acres 12/06-AR07.08 NO VALUE IFedderly 8 Associates apartments approved 12 12/06-AR07-08 $2.618.460 6705,000 $50.000 $3,541.4,50 Totals $2.818,460 $4,296,450 $0 $0 Commercial $502.900 Industrial Residential Commercial Indusoial 1502,900 I s0 s0 I s0 s0 P6402-00011857122r2.doc 3 TABLE 3-A-2 PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA NO. 1 ADDED TERRITORY 2007-08 ASSESSMENT ROLL 2008-09 ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATED VALUE ESTIMATED VALUE Estimated Approved or Complebon Under SOFT or Date -Roil Desarpbon Use Construction Acres # Units Date Residential Commercial Industrial Residential Perfect Balance 12106.AR07- OfToe office approved 2111 1 06 Home/Adams under 12/06-AR07- Park pubic park construction 27 acres 08 NO VALUE Matinee Trust 12/06-AR07- II Office office approved Na 08 Oracle Plaza Fre@IFT6tng office agproted 12450 5,r07-AR08-09 Professional office construction 6213 2 507-AR08-09 The Living administrativ under 12/07-AR08- Desert e building construction 19075 1 09 Katz Office Complex Sacred Heart Monterey Properbes Sunwest S496.085 12/06-AR09- office approved 64521 3 10 S3.500,000 church and school approved 6/08•AR09-10 NO VALUE 12/064R07• office approved 7460 1 08 S1,753,100 under office construction 4971 5106-AR074:18 S1,168,185 (Desert Partners medical under 10 06-ARO7- 01fice office construction 9000 08 Had Office 12106-AR07- Buildmg office approved 6192 1 08 Canyons at single really. under 12/07-AR08- Bighorn godcourse construction 93 09 Lindquest under 12/06-AR07- Development single family construction 3 08 S1,837.275 Lindpuest under Development single famly construction Choice under Enterprises singletamay conslrocbon 12106-AR07- 3 08 S1.837,275 10106-AR07- 4 08 92 449.760 $2.115.000 S356.000 1 under Paseo Vista single family construction 9.75 acres 65 2/07-AR08-09 affordable under 12106-AR07- Palm Village housing construction 36 08 NO VALUE $6,124,250 I S9,388,370 S18.985,175 S39,807.625 Commeraal S2,925,750 51,460,055 N0 VALUE Industrial Residential Commercial Industrial S18,985,175 50 556,792,800 $4,385,805 I SO S18,915,175 S0 S P6402-00011857122v2.doc 4 Approved or Under SOFT or Description Use Construction Acres #tints Cal State University under Master Plan school Construction 200 acres TABLE 3•B PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA NO. 2 2007.08 ASSESSMENT ROLL 2008-09 ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATED VALUE ESTIMATED VALUE Estimated Completion Date•Rol Date Residential Commercial 2008-09• AR09-10 Mamofs timeshare/ under Shadow Ridge golf course construction nice rua 12/06-AR07- Basc Capital office approved 23500 1 08 Gerald Ford omce/ under Dnve industrial construction 61 acres 5 4107-AR0B-05 University Commerce office 19.39 8 12/06-AR07• Center 0ndustriA approved acres buildings 08 NO VALUE Metroplex One office approved 29950 4/06-AR07.06 Wilson and office/ Johnson Office industrial approved 32910 7/06-AR07-0E retail, 14( retail office. room Rick Evans hotel approved hotel, 4/07-AR08-00 IScoleie Office under 12/06-AR08. Burlding office construction 53662 5 09 'Valley Center approved 166.000 5 buidings-4/07-AR08.01 ware -house! Demundo roe showroom approved 19565 7/07-AR08-01 owe's mprovement under 12/06•AR07• enter retail construction 135152 2 08 NO VALUE Wilson and Johnson Office office approved 24474 7106•AR07-08 'Community community Center center approved $5,522,500 $7.038.250 $1,344.000 S5,751,390 Industrial Resdenhal $6.582.000 NO VALUE $30,548,700 Cormreraal Industrial Residential 1 Commerciai $3,583.000 $39,010,000 $3,913,000 NO VALUE 94000 1 1108-AR09-1( NO VALUE `Caurro Homes single tamely approved 5 acres 16 6N6-AR01-0f $9,798,800 1 12,06•AR07- Portola Pante single famy approved 5 acres 16 08 S4,899,400 468 Peakni Homes single family approved acres 16 2/07-AR08-05 (Ponderosa 38 05 12/08-AR09- Homes single famly approved acres 237 10 IKibbyrPete 3.88 12J07-AR08- Deveopment single family approved acres 14 09 Desert Wels 69.26 237 s'ngte tar,ly approved acres 270 3/08-AR09-1( S4.899,400 $9,798,800 $72.572,363 $8,573.950 Industrial $82,677,375 $14,1911200 I $19,156,140 j $1,512,000 $53.620,S50 542,593,000 $3,913,000 $155.249,738 90 00 P6402-0001\857122v2.doc 5 TABLE 3•C PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA NO. 3 2007.08 ASSESSMENT ROLL 2008.09 ASSESSMENT ROLL 2009.10 ASSESSMENT ROLL ESTIMATED VALUE ESTIMATED VALUE ESTIMATED VALUE Estimated Approved or Completion Under SOFT or Date -Rol Dexnptpn Use Construction Acres # Units re Date Residential Commercial Industrial Residential Commercial Industrial Residential Commercial Industna PAS under 12/08-AR09- Canterra apartments construction 612 10 Lakeside under 12/06-AR07- Properties commercial construction 27115 2 08 S6,372.025 McCoy and officehvarehour under 12/06-AR07- Valentine e construction 10,000 08 52.000,000 Yankee industrial under 12106-AR07- Workshop warelause construction 5580 08 S1,116,020 City Corporation Yard 12107•AR08- Expansion approved 3.3 acres 09 NO VALUE Gil Desert Properties Office under 8 72 10N6-AR07- Complex medical office constn,ction acres 08 52.313,102 Cook/Gotdeb office approved 25000 4/07•AR08-09 S5,875.000 12108-AR09- 20 Acre Site single faro ty approved 94 10 622,560,000 Maack office approved 6500 2 4418-AR09-ID S1,300.000 50 $8,615,127 $3,116,000 50 55,875,000 50 522,560,000 50 51,300,000 P6402-00011857122v2.doc 6 TABLE 3-D PALM DESERT REDEVELOPMENT AGENCY NEW DEVELOPMENT PROJECTS BY PROJECT AREA PROJECT AREA N0.4 2007-08 ASSESSMENT ROLL 2008-09 ASSESSMENT ROLL 2009-10 ASSESSMENT ROLL Estimated Completion SOFT 9 Date -Roll Descnpbon Use or Acres Units Date Residential PIA 4 Palm Desert &ogle 17J07•AR09- Counby Club yob, 136 10 Park. recreation Freedom office. Community childcare. 17107-AR08- Park tennis 09 Wendys Restaurant restaurant ESTIMATED VALUE Commercial 11J06-AR08- 09 $1,173,670 $ I 61,173,670 ESTIMATED VALUE ESTIMATED VALUE Industrial Residential Commercial $41.641,900 NO VALUE Na S0 S41,644,900 S0 Industrial Residential $41,644,900 Commercial S0 S41,644,900 I SO Industrial S0 For purposes of this Report, the Agency has conservatively estimated future growth based upon historical experience and based upon expected new development and construction activity and projected development. Estimated future growth in all cases is less than actual historical experience. Estimated future growth is shown on Table 4, below. Projections contained in Table 4 utilize a four percent growth rate. Growth in the unsecured assessment roll for all Project Areas has been estimated at one percent per annum for the term of the projections. Based upon the foregoing, the future assessed value of taxable property in each of the Project Areas is projected on Table 4. These projections are well below the actual historical experience of the Agency. P6402-00011857122v2.doc 7 TABLE 4-A PALM DESERT REDEVELOPMENT AGENCY Housing Set -Aside Fund Tax Increment Revenue Projection Summary By Project Area Fiscal I 20% Housing Set Aside Tax Increment Revenues I Total Year Project Project Project Project Project Housing Area No. 1 Area No. 1 Area Area Area Fund Original Added No. 2 No. 3 No.4 Revenues >- Territory Territory 1 2005-06 $1,630,694 $6,173,614 $2,699,293 $560,234 $2,035,625 $13,099,461 2 2006-07 1,688,678 6,465,367 2,813,939 590,734 2,162,487 13,721,205 3 2007-08 1,762,591 6,799,367 2,933,167 645,730 2,296,731 14,437,586 4 2008-09 1,826,807 7,240,715 3,141,165 691,224 2,516,166 15,416,076 5 2009-10 1,892,582 7,612,549 3,479,352 774,466 2,744,376 16,503,325 6 2010-11 1,960,970 7,961,801 3,943,770 813,497 2,899,573 17,579,611 7 2011-12 2,032,076 8,325,007 4,108,179 854,081 3,060,977 18,380,320 8 2012-13 2,106,008 8,702,728 4,279,161 896,278 3,228,834 19,213,009 9 2013-14 2,182,880 9,095,542 4,456,980 940,154 3,403,403 20,078,958 10 2014-15 2,262,808 9,504,054 4,641,908 985,775 3,584,953 20,979,498 11 2015-16 2,345,915 9,928,891 4,834,230 1,033,212 3,773,762 21,916,011 12 2016-17 2,432,328 10,370,707 5,034,243 1,082,537 3,970,122 22,889,937 13 2017-18 2,522,180 10,830,181 5,242,252 1,133,825 4,174,333 23,902,772 14 2018-19 2,615,607 11,308,018 5,458,579 1,187,156 4,386,711 24,956,072 15 2019-20 2,712,754 11,804,954 5,683,556 1,242,610 4,607,582 26,051,455 16 2020-21/1 2,813,767{. ;s `�'', 5,917,528 1,300,272 4,837,286 14,868,854 17 2021-22 2,918,803 0 6,160,857 1,360,232 5,076,175 15,516,067 18 2022-23 3,028,022 0 6,413,915 1,422,580 5,324,617 16,189,135 19 2023-24 3,141,591 0 6,677,093 1,487,413 5,582,995 16,889,092 20 2024-25 3,259,684 0 6,950,795 1,554,829 5,851,706 17,617,014 21 2025-26 3,382,483 0 7,235,441 1,624,932 6,131,163 18,374,019 22 2026-27 0 0 7,531,471 1,697,830 6,421,796 15,651,096 23 2027-28 0 0 7,839,338 1,773,634 6,724,052 16,337,023 24 2028-29 0 0 8,159,517 1,852,460 7,038,395 17,050,372 25 2029-30 0 0 8,492,499 1,934,429 7,365,311 17,792,239 26 2030-31 0 0 8,838,798 2,019,667: 3::, �,4:^ fir'!; 10,858,466 27 2031-32/2 0 0 9,198,946 2,108,306 0 11,307,251 28 2032-33 0 0 9,573,496 2,200,479 0 11,773,975 29 2033-34 0 0 9,963,025 2,296,330 0 12,259,355 30 2034-35 0 0 10,368,132 2,396,005 0 12,764,137 31 2035-36 0 0 10,789,440 2,499,657 0 13,289,097 32 2036-37 0 0 11,227,598 2,607,445 0 13,835,042 33 2037-38 0 0 11,683,278 2,719,535 0 14,402,812 34 2038-39 0 0 0 2,836,098 0 2,836,098 35 2039-40 0 0 0 2,957,313 0 2,957,313 36 2040-41 0 0 0 3,083,368 0 3,083,368 37 2041-42 0 0 0 3,214,454 0 3,214,454 38 2042-43 0 0 0 3,350,774 0 3,350,774 Totals $50,519,229 $132,123,494 $215,770,942 $63,729,556 $109,199,129 $571,342,350 1/ Year in which the Added Territory of Project No. 1is projected to hit its $500,000,000 tax increment limit. 2/ Year in which Project No.4 is projected to hit its $600,000,000 gross tax increment limit. P6402-0001 \857122v2.doc 8 TABLE 4-B-1 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 1 ORIGINAL TERRITORY Tax Increment Revenue Projections Fiscal I Assessed Valuation I Estimated Unitary County Total Housing Redev. Year Secured New Unsecured Total Tax Utility Admin. Gross Tax Fund Fund Growth Factor Value Growth Factor Incremental Increment Revenue Fee Increment at 20% Before Tax Ag } @ 4% Added @ .25% Valuation Revenue 0.01467 Revenue Pymts.11 1 2005-06 729,583,351 96,184,531 798,282,046 7,982,820 292,060 (121,409) 8,153,471 1,630,694 6,522,777 2 2006-07 758,766,685 96,424,992 827,705,841 8,277,058 292,060 (125,726) 8,443,392 1,688,678 6,754,714 3 2007-08 789,117,352 6,914,910 96,666,055 865,212,481 8,652,125 292,060 (131,229) 8,812,956 1,762,591 7,050,364 4 2008-09 827,873,553 502,900 96,907,720 897,798,337 8,977,983 292,060 (136,010) 9,134,033 1,826,807 7,307,227 5 2009-10 861,511,511 0 97,149,989 931,175,664 9,311,757 292,060 (140,907) 9,462,909 1,892,582 7,570,327 6 2010-11 895,971,971 97,392,864 965,879,000 9,658,790 292,060 (145,999) 9,804,851 1,960,970 7,843,881 7 2011-12 931,810,850 97,636,346 1,001,961,361 10,019,614 292,060 (151,293) 10,160,381 2,032,076 8,128,304 8 2012-13 969,083,284 97,880,437 1,039,477,886 10,394,779 292,060 (156,797) 10,530,041 2,106,008 8,424,033 9 2013-14 1,007,846,616 98,125,138 1,078,485,918 10,784,859 292,060 (162,521) 10,914,398 2,182,880 8,731,519 10 2014-15 1,048,160,480 98,370,451 1,119,045,096 11,190,451 292,060 (168,471) 11,314,039 2,262,808 9,051,232 11 2015-16 1,090,086,900 98,616,377 1,161,217,441 11,612,174 292,060 (174,659) 11,729,575 2,345,915 9,383,660 12 2016-17 1,133,690,376 98,862,918 1,205,067,458 12,050,675 292,060 (181,093) 12,161,642 2,432,328 9,729,313 13 2017-18 1,179,037,991 99,110,076 1,250,662,230 12,506,622 292,060 (187,782) 12,610,900 2,522,180 10,088,720 14 2018-19 1,226,199,510 99,357,851 1,298,071,525 12,980,715 292,060 (194,738) 13,078,037 2,615,607 10,462,430 15 2019-20 1,275,247,491 99,606,245 1,347,367,900 13,473,679 292,060 (201,971) 13,563,768 2,712,754 10,851,014 16 2020-21 1,326,257,390 99,855,261 1,398,626,815 13,986,268 292,060 (209,492) 14,068,836 2,813,767 11,255,069 17 2021-22 1,379,307,686 100,104,899 1,451,926,749 14,519,267 292,060 (217,312) 14,594,016 2,918,803 11,675,212 18 2022-23 1,434,479,993 100,355,161 1,507,349,319 15,073,493 292,060 (225,443) 15,140,110 3,028,022 12,112,088 19 2023-24 1,491,859,193 100,606,049 1,564,979,406 15,649,794 292,060 (233,899) 15,707,955 3,141,591 12,566,364 20 2024-25 1,551,533,561 100,857,564 1,624,905,289 16,249,053 292,060 (242,691) 16,298,422 3,259,684 13,038,737 21 2025-26 1,613,594,903 101,109,708 1,687,218,776 16,872,188 292,060 (251,834) 16,912,414 3,382,483 13,529,931 Totals 2005-06 through 2025-26 7,417,810 250,224,165 6,133,256 (3,761,275) 252,596,147 50,519,229 202,076,917 Totals Total 1977-78 through 2024-25 367,587,588 1/ Revenue net of Housing Set -Aside but gross to tax agency payments. P6402-00011857122v2.doc 9 TABLE 4-B-2 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO.1 ADDED TERRITORY Tax Increment Reveue Projections Assessed Valuation Total Secured Unsecured Incremental General Total Total Redev.. Fiscal growth @ growth New Value Levy(1%) Unitary Tax County Total Housing Fund Year 4.0% 0.25% Value Tax Utility Increment Admin. Gross Tax Fund Before Tax Ag Increment Fees Increment at 20% Pymts./1 1 2005-06 3,693,561,100 79,183,032 Actual 3,116,679,073 31,166,791 138,017 31,304,808 (436,740) 30,868,068 6,173,614 24,694,454 2 2006-07 3,841,303.544 79.380,990 3,264619,475 32,646,195 138.017 32,784,212 (457,379) 32,326.833 6.465.367 25,861.466 3 2007-08 3,994,955.686 79,579,442 15,512,620 3,433,982.689 34,339,827 138,017 34,477,844 (481,008) 33,996,837 6.799,367 27,197,469 4 2008-09 4,170,887038 79,778,391 63,178,605 3.657.778,975 36,577,790 138.017 36,715.807 (512230) 36,203.577 7,240,715 28.962.862 5 2009-10 4,403428.269 79,977,837 18.985,175 3,846,326,221 38,463,262 138,017 38.601.280 (538,535) 38,062,745 7,612,549 30.450.196 6 2010-11 4,599,309,981 80.177,781 4,023.422,704 40.234,227 138,017 40,372,244 (563,242) 39.809,003 7,961,801 31,847,202 7 2011-12 4,783,282.381 80,378,226 4,207595,547 42.075,955 138,017 42,213,973 (588,936) 41.625.037 8,325,007 33,300,029 8 2012-13 4974,613,676 80,579,171 4,399,127.788 43.991,278 138,017 44,129,295 (615,657) 43,513,638 8,702.728 34.810.911 9 2013-14 5,173,598.223 80.780,619 4,598,313.783 45,983,138 138.017 46,121,155 (643.446) 45,477,709 9,095,542 36,382,167 10 2014-15 5,380,542,152 80,982,571 4,805,459.664 48,054,597 138.017 48,192,614 (672,345) 47.520,269 9.504,054 38,016.215 11 2015-16 5,595,763,838 81,185,027 5,020,883,806 50.268.838 138,017 50,346.855 (702,400) 49,644,456 9,928,891 39,715,565 12 2016-17 5,819,594,391 81,387,990 5,244.917,322 52.449,173 138,017 52,587,191 (733,655) 51,853,536 10,370,707 41,482,828 13 2017-18 6,052.378,167 81,591,460 5477,904,568 54,779,046 138,017 54,917,063 (766,159) 54,150,934 10,830,181 43,320.723 14 2018-19 6,294.473,294 81,795,438 5,720.203,673 57202,037 138,017 57,340,054 (799,963) 56,540,091 11,308,018 45.232.073 15 2019-20 6.546.252,226 81,999,927 5,972,187,094 59.721.871 138,017 59,859,888 (835,118) 59,024,770 11,81)4,954 47,219,816 16 2020-2112 6,808,102,315 82,204,927 6,234,242,182 62,342,422 138,017 62,480,439 (871,678) 61,608,761 12,321,752 49,287,009 17 2021-22 7,080426,407 82.410,439 6.506.771,787 65067,718 138,017 65,205,735 (909,699) 64,296.036 12.859,207 51436,829 18 2022-23 7,363,643,463 82,616,465 6.790,194,870 67.901,949 138,017 68.039,966 (949.240) 67,090,726 13.418,145 53,672.581 19 2023-24 7,658,189,202 82,823,006 7,084,947,149 70.849,471 138,017 70,987,489 (990,361) 69,997,127 13,999,425 55,997,702 20 2024-25 7,964,516.770 83,030,064 7,391,481.775 73.914,818 138.017 74.052,835 (1,033.127) 73,019,708 14,603.942 58,415.767 21 2025-26 8,283,097,441 83,237,639 7,710.270,021 77,102,700 138,017 77,240,718 (1,077,601) 76.163,116 15,232,623 60,930,493 22 2026-27 8,614,421,339 83,445733 8,041,802,013 80,418.020 138,017 80.556,037 (1,123,854) 79,432,183 15,886,437 63,545,747 23 2027-28 8,958.998,192 83,654,347 8,386.587,481 83,865,875 138,017 84,003,892 (1,171,956) 82,831,936 16,566,387 66,265,549 24 2028-29 9,317,358,120 83,863,483 8745,156,544 87,451,565 138,017 87,589,583 (1,221,981) 86,367,602 17,273.520 69,094,082 25 2029-30 9,690,052,445 84,073,142 9.118,060528 91,180,605 138,017 91,318,623 (127005) 90,044617 18,008,923 72,035,694 26 2030.31 10,077,654,542 84,283,325 9,505,872,808 95.058,728 138,017 95.196745 (1,328,110) 93868,636 18,773.727 75,094,909 27 2031-32 10,480,760,724 84.494,033 9,909.189,698 99,091.897 138.017 99,229,914 (1,384,377) 97,845,537 19.569.107 78,276.430 28 2032.33 10,899.991,153 84,705,268 10,328.631,362 103,286,314 138,017 103,424.331 (1,442,895) 101.981,436 20,396,287 81,585.149 97,676,400 Total2005-06forward 341,032,979 1,364,131,916 1/ Revenue net of Housing Set -Aside but gross to tax agency payments. 2/ Year in which Project Area is projected to hit tax increment revenue cap. P6402-0001\857122v2.doc 10 TABLE 4-B-3 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 2 Tax Increment Revenue Projections Fiscal Secured Unsecured New Dev. Net Estimated Unitary County Total Housing Total Redev. Year Values Values at Dev. Incremental Tax Utility Admin. Gross Tax Fund Fund before @ 4% per yr. 0.25% Valuation Increment Revenue Fee Increment © 20% Tax Ag Pymts/1 Fee to date (1,036,588) S83,808,325 1 2005-06 1,451,555,514 16,317,319 Actual 1,365,715,386 13,657,154 23,063 (183,749) 13,496,467 2,699,293 10,797,174 2 2006-07 1,509,617,735 16,358,112 1,423,818,400 14,238,184 23,063 (191,554) 14,069,693 2,813,939 11,255,754 3 2007-08 1,570,002,444 16,399,008 40,936,340 1,484,244,005 14,842,440 23,063 (199,670) 14,665,833 2,933,167 11,732,666 4 2008-09 1,675,376.335 16,440,005 100,326,850 1,589,658,893 15,896,589 23,063 (213,829) 15,705,823 3,141,165 12,564,658 5 2009-10 1.846,731,313 16,481,105 155,249,738 1,761,054,971 17,610,550 23,063 (236,850) 17,396,762 3,479,352 13,917,409 6 2010-11 2,082,060,292 16,522,308 1,996,425,153 19,964,252 23,063 (268,465) 19,718,849 3,943,770 15,775,079 7 2011-12 2,165,342,704 16,563,614 2,079,748,871 20,797,489 23,063 (279,657) 20.540,895 4,108,179 16,432,716 8 2012-13 2,251,956,412 16,605,023 2,166,403,988 21,664,040 23,063 (291,296) 21,395,806 4,279,161 17,116,645 9 2013-14 2,342,034,669 16,646,535 2,256,523,757 22,565,238 23,063 (303,401) 22,284,899 4,456,980 17,827,920 10 2014-15 2,435,716,055 16,688,152 2,350,246,760 23,502,468 23,063 (315,989) 23,209,541 4,641,908 18,567,633 11 2015-16 2,533,144,698 16,729,872 2,447,717,122 24,477,171 23,063 (329,081) 24,171,152 4,834,230 19,336,922 12 2016-17 2,634,470,485 16,771,697 2,549,084,735 25,490,847 23,063 (342,697) 25,171,213 5,034,243 20,136,971 13 2017-18 2,739,849,305 16,813,626 2,654,505,484 26,545,055 23,063 (356,857) 26,211.261 5,242,252 20,969,009 14 2018-19 2,849,443,277 16,855,660 2,764,141,490 27,641,415 23,063 (371,583) 27,292,895 5,458,579 21,834,316 15 2019-20 2,963,421,008 16,897,799 2,878,161,360 28,781,614 23,063 (386,898) 28,417,779 5,683,556 22,734,223 16 2020-21 3,081,957,848 16,940,044 2,996,740,445 29,967,404 23,063 (402,825) 29,587,642 5,917,528 23,670,114 17 2021-22 3,205,236,162 16,982,394 3,120,061,109 31,200,611 23,063 (419,389) 30,804,285 6,160,857 24,643,428 18 2022-23 3.333.445,609 17,024,850 3,248,313,012 32,483,130 23,063 (436,615) 32,069,577 6,413,915 25,655,662 19 2023-24 3,466,783,433 17,067,412 3,381,693,398 33,816,934 23,063 (454,531) 33,385,466 6,677,093 26,708,373 20 2024-25 3,605,454,771 17,110,080 3,520,407,404 35,204,074 23,063 (473,163) 34,753,974 6,950,795 27,803,179 21 2025-26 3,749,672,961 17,152,856 3,664,668,370 36,646,684 23,063 (492,539) 36,177,207 7,235,441 28,941,766 22 2026-27 3,899,659,880 17,195,738 3,814,698,170 38,146,982 23,063 (512,691) 37,657,353 7,531,471 30,125,883 23 2027-28 4,055,646,275 17,238,727 3,970,727,555 39,707,276 23,063 (533,648) 39,196,690 7,839,338 31,357,352 24 2028-29 4,217,872,126 17,281,824 4,132,996,503 41,329,965 23,063 (555,444) 40,797,584 8,159,517 32,638,067 25 2029-30 4,386,587,011 17,325,028 4,301,754,592 43,017,546 23,063 (578,111) 42,462,497 8,492,499 33,969,998 26 2030-31 4,562,050,491 17,368,341 4,477,261,385 44,772,614 23,063 (601,685) 44,193,992 8,838,798 35,355,193 27 2031-32 4,744,532,511 17,411,762 4,659,786,826 46,597,868 23,063 (626,201) 45,994,730 9,198,946 36,795,784 28 2032-33 4,934,313,812 17,455,291 4,849,611,656 48,496,117 23,063 (651,698) 47,867,481 9,573,496 38,293,985 29 2033-34 5,131,686,364 17,498,929 5,047,027,846 50,470,278 23,063 (678,215) 49,815,126 9,963,025 39.852.101 30 2034-35 5,336,953,819 17,542,677 5,252,339,048 52,523,390 23,063 (705,791) 51,840,662 10,368,132 41,472,529 31 2035-36 5,550,431,971 17,586,533 5,465,861,058 54,658,611 23,063 (734,471) 53,947,202 10,789,440 43,157,762 32 2036-37 5,772,449,250 17,630,500 5,687,922,303 56,879,223 23,063 (764,298) 56,137,988 11,227,598 44,910,390 33 2037-38 6,003,347.220 17,674,576 5,918,864,349 59,188,643 23,063 (795,318) 58,416,389 11,683,278 46,733,111 TOTALS 296,512,928 I Total Term 1,188.524,835 1215,770,942 863,083,768 1/ Revenue net of Housing Set -Aside but gross to tax agency payments. P6402-00011857122v2.doc 11 TABLE 4-B-4 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 3 Tax Increment Revenue Projections Fiscal I Assessed Valuation ' TI Based On Utility County I Tax Increment Revenues Year Seared Unsecured New Dev. Incremental Tax Rate Of Rev. Admin. Gross Housing Tax. Inc. Growth @ Growth @ Value Value 1.0% Fee Tax Inc. Fund after Housing 4.00% 0.25% Added (0.0134) @ 20% before TA Pymts BY 149,523,255 12005.06 383,280,660 50,081,784 283,839,189 2,838,392 741 (37,961) 2,801,172 560,234 2,240,937 2 2006-07 398,611,886 50,206,988 299,295,620 2,992,956 741 (40,028) 2,953,669 590,734 2,362,935 3 2007-08 414,556,362 50,332,506 11,801,127 327,166,740 3,271,667 741 (43,756) 3,228,652 645,730 2,582,922 4 2008-09 443,411,788 50,458,337 5,875,000 350,221,871 3,502,219 741 (46,839) 3,456,120 691,224 2,764,896 5 2009-10 467,258,260 50,584,483 24,087,500 392,406,988 3,924,070 741 (52,481) 3,872,330 774,466 3,097,864 6 2010-11 510,999,590 50,710,944 412,187,280 4,121,873 741 (55,127) 4,067,487 813,497 3,253,990 M M'�;R�c % ut..➢i_�-- ....41MMAIAT#..i :•15.1: i11- �Y'B 8 2012-13 552,697,157 50,964,816 454,138,718 4,541,387 741 (60,737) 4,481,391 896,278 3,585,113 9 2013-14 574,805,043 51,092,228 476,374,016 4,763,740 741 (63,711) 4,700,770 940,154 3,760,616 10 2014-15 597,797,245 51,219,959 499,493,948 4,994,939 741 (66,803) 4,928,877 985,775 3,943,102 11 2015-16 621,709,135 51,348,008 523,533,888 5,235,339 741 (70,018) 5,166,061 1,033,212 4,132,849 12 2016-17 646,577,500 51,476,378 548,530,624 5,485,306 741 (73,361) 5,412,686 1,082,537 4,330,149 13 2017-18 672,440,600 51,605,069 574,522,414 5,745,224 741 (76,838) 5,669,127 1,133,825 4,535,302 14 2016-19 699,338,224 51,734,082 601,549,051 6,015,491 741 (80,452) 5,935,779 1,187,156 4,748,623 15 2019-20 727,311,753 51,863,417 629,651,915 6,296,519 741 (84,211) 6,213,049 1,242,610 4,970,439 16 2020-21 756,404,223 51,993,076 658,874,044 6,588,740 741 (88,119) 6,501,362 1,300,272 5,201,090 17 2021-22 786,660,392 52,123,058 689,260,196 6,892,602 741 (92,183) 6,801,160 1,360,232 5,440,928 18 2022-23 818,126,808 52,253,366 720,856,919 7,208,569 741 (96,409) 7,112,901 1,422,580 5,690,321 19 2023-24 850,851,880 52,384,000 753,712,625 7,537,126 741 (100,803) 7,437,064 1,487,413 5,949,651 20 2024-25 884,885,955 52,514,960 787,877,660 7,878,777 741 (105,372) 7,774,145 1,554,829 6,219,316 212025-26 920,281,394 52,646,247 823,404,386 8,234,044 741 (110,123) 8,124,661 1,624,932 6,499,729 22 2026-27 957,092,649 52,777,863 860,347,257 8,603,473 741 (115,064) 8,489,149 1,697,830 6,791,319 23 2027-28 995,376,355 52,909,807 898,762,907 8,987,629 741 (120,202) 8,868,168 1,773,634 7,094,534 24 2028-29 1.035,191,409 53,042,082 938,710,236 9,387,102 741 (125,545) 9,262,299 1,852,460 7,409,839 25 2029-30 1,076,599,066 53,174,687 980,250,498 9,802,505 741 (131,100) 9,672,145 1,934,429 7,737,716 26 2030-31 1,119,663,028 53,307,624 1,023,447,397 10,234,474 741 (136,878) 10,098,337 2,019,667 8,078,670 27 2031-32 1,164,449,550 53,440,893 1,068,367,187 10,683,672 741 (142,885) 10,541,528 2,108,306 8,433,222 28 2032-33 1,211,027,532 53,574,495 1,115,078,772 11,150,788 741 (149,132) 11,002,396 2,200,479 8,801,917 29 2033-34 1,259,468,633 53,708.431 1,163,653,809 11,636,538 741 (155,629) 11,481,650 2,296,330 9,185,320 30 2034-35 1,309,847,378 53,842,702 1,214,166,825 12,141,668 741 (162,385) 11,980,024 2,396,005 9,584,020 312035-36 1,362.241,273 53,977,309 1,266,695,327 12,666,953 741 (169,410) 12,498,284 2,499,657 9,998,627 32 2036-37 1,416,730,924 54,112,252 1,321,319,922 13,213,199 741 (176,715) 13,037,225 2,607,445 10,429,780 33 2037-38 1,473,400,161 54,247,533 1,378,124,439 13,781,244 741 (184,313) 13,597,673 2,719,535 10,878,138 34 2038-39 1,532,336,168 54,383,152 1,437,196,064 14,371,961 741 (192,213) 14,180,489 2,836,098 11,344,391 35 2039-40 1,593,629,614 54,519,110 1,498,625,469 14,986,255 741 (200,429) 14,786,567 2,957,313 11,829,254 36 2039-40 1,657,374,799 54,655,407 1,562,506,951 15,625,670 741 (208,972) 15,416,838 3,083,368 12,333,470 37 2040-41 1,723,669,791 54,792,046 1,628,938,582 16,289,386 741 (217,857) 16,072,270 3,214,454 12,857,816 38 2041-42 1,792,616,583 54,929,026 1,696,022,354 16,980,224 741 (227,096) 16,753,868 3,350,774 13,403,094 TOTALS 41,763,627 2005-06 forward 322,938,661 28,150 (4,319,034) 318,647,778 63,729,556 254,918,222 P6402-00011857122v2.doc 12 Fiscal ' ASSESSED VALUE Year Seured Unsecured Projected Forecasted =orecasted at New Growth @ 0.25% Dev. 4.0% TOTAL PRIOR 1 2005-06 2 2006-07 3 2007-08 4 2008-09 5 2009-10 6 2010-11 7 2011-12 8 2012-13 9 2013-14' 10 2014-15 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039.40 2040-41 2041-42 1,607,187,667 1,671,475,174 1,738,334,181 1,809,088,165 1,924,762,387 2,045,063,579 2,126,866,122 2,211,940, 767 2,300,418,397 2,392 435,133 2,488,132,539 2,587,657,840 2,691,164,154 2,798,810,720 2,910,763,149 3,027,193,675 3,148,281,422 3,274,212,679 3,405.181,186 3,541,388,433 3,683,043,970 3,830,365,729 3,983,580,358 4,142,923,573 4,308,640,516 4,480,986,136 4,660,225,582 4,846,634,605 5,040,499,989 5,242,119,989 5,451,804, 788 5,669,876,980 5,896,672,059 6,132,538,941 6,377,840,499 6,632,954,119 6,898,272,284 38 2042-43 7,174,203,175 39 2043-44 7,461,171,302 Totals 11,883,784 11,913,493 11,943,277 11,973,135 12,003,068 12,033,076 12,063,159 12,093,316 12,123,550 12,153,859 12,184,243 12,214,704 12,245,241 12,275,854 12,306,543 12,337,310 12,368,153 12,399,073 12,430,071 12,461,146 12,492,299 12,523,530 12,554,839 12,586,226 12,617,691 12,649,236 12,680,859 12,712,561 12,744,342 12,776,203 12,808,144 12,840,164 12,872,264 12,904,445 12,936,706 12,969,048 13,001,471 1,173,670 41,644,900 41,644,900 TABLE 4-B-5 PALM DESERT REDEVELOPMENT AGENCY PROJECT AREA NO. 4 Tax Increment Revenue Projections 'Estimated Tax Unitary Net Increment at Utility Admin Fee Incremental 1.0% Revenue (SB 2557) Value 1.3821 % 1,031,879,233 1,096,196,449 1,164,258,910 1,275,513,982 1,391,218,137 1,469,904,437 1,551,737,062 1,636,841,865 1,725,349,729 1,817,396,774 1,913,124,564 2,012,680,326 2,116, 217,176 2,223,894,356 2,335,877,474 2,452,338,766 2,573,457,357 2,699,419,534 2,830,419,039 2,966,657,361 3,108,344,052 3,255,697,041 3,408,942,979 3,568,317,581 3,734,065,989 3,906,443,154 4,085,714,222 4,272,154,948 4,466,052,113 4,667,703,974 4,877,420,714 5,095,524,926 5,322,352,105 5,558,251,169 5,803,584,987 6,058,730,949 6,324,081,536 47,657,622 10,318,792 10,961,964 11,642,589 12,755,140 13,912,181 14,699,044 15,517,371 16,368,419 17,253,497 18,173,968 19,131,246 20,126,803 21,162,172 22,238,944 23,358,775 24,523,388 25,734,574 26.994,195 28,304,190 29,666,574 31,083,441 32,556,970 34,089,430 35,683,176 37,340,660 39,064,432 40,857,142 42,721,549 44,660,521 46,677,040 48,774,207 50,955,249 53,223,521 55,582,512 58,035,850 60,587,309 63,240,815 14,669 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1,977 1.977 1,977 1,977 1,977 1,977 (670,019) (142,643) (151,505) (160,912) (176,288) (192,280) (203,155) (214,465) (226,227) (238,460) (251,182) (264,412) (278,172) (292,482) (307,364) (322,841) (338,937) (355,677) (373,086) (391,191) (410,021) (429,603) (449,969) (471,149) (493,176) (516,084) (539,908) (564,685) (590,453) (617,252) (645,122) (674,107) (704,251) (735,601) (768,204) (802,112) (837,375) (874,049) County Total Revenue (Note. actual revenue received) 48,729,657 10,178,126 10,812,437 11,483,654 12,580,828 13,721,879 14,497,866 15,304,883 16,144,168 17,017,014 17,924,763 18,868,810 19,850,608 20,871,667 21,933,557 23,037,911 24,186,428 25,380,874 26,623,086 27,914,976 29,258,530 30,655,814 32,108,978 33,620,258 35,191,977 36,826,553 38,526,500 40,294,434 42,133,073 44,045,246 46,033,895 48,102,077 50,252,975 52,489,897 54,816,284 57,235,715 59,751,911 62,368,743 Total Cumulative Gross Tax Inc. Revenue 48,729,657 58,907,783 69,720,219 81,203,874 93,784,702 107,506,581 122,004,447 137,309,330 153,453,498 170,470,512 188,395,275 207,264,085 227,114,693 247,986,360 269,919,917 292.957,828 317,144,256 342,525,129 369,148,216 397,063,192 426,321,722 456,977,536 489,086,514 522,706,772 557,898,749 594,725,302 833,251,802 673,546,236 715,679,309 759,724,555 805,758,450 853,860,527 904,113,502 956,603,400 1,011,419,684 1,068,655,399 1,128,407,310 1,190,776,053 Housing Fund at 20% 9,738,808 2,035,625 2,162,487 2,296,731 2,516,166 2,744,376 2,899,573 3,060,977 3,228,834 3,403,403 3,584,953 3,773,762 3,970,122 4,174,333 4,386,711 4,607,582 4,837,286 5,076,175 5,324,617 5,582,995 5,851,706 6,131,163 6,421,796 6,724,052 7,038,395 7,365,311 7,705,300 8,058,887 8,426,615 8,809,049 9,206,779 9,620,415 10,050,595 10,497,979 10,963,257 11,447,143 11,950,382 12,473,749 Tax. Inc. after Housing before TA Pymts 8,142,501 8,649,949 9,186,923 10,064,663 10,977,503 11,598,293 12,243,906 12,915,335 13,613,611 14,339,810 15,095,048 15,880,487 16,697,334 17,546,845 18,430,329 19,349,142 20.304,699 21,298,469 22,331,981 23.406,824 24,524,651 25,687,183 26,896,206 28,153,581 29,461 242 30,821,200 32,235,547 33,706,459 35,236,197 36,827,116 38,481,662 40,202,380 41,991,918 43,853,028 45,788,572 47,801,529 49,894,994 13,033,974 6,600,044,931 66,000,449 1,977 (912,190) 65,090,236 1,255,866,289 13,018,047 52,072,189 13,066,559 6,887,045,643 68,870,456 1,977 (951,857) 67,920,577 1,323,786,666 13,584,115 54,336,461 84,463,470 1,340,506,178 91,773 (18,538,468) 1,323,786,866 264,750,2501,020,045,767 P6402-00011857122v2.doc 13 4. The base year assessment roll for each of the Project Areas is identified in Table 4, attached hereto. The first fiscal years shown on Table 4 through 2005-2006 are the actual tax increment revenue figures and are based on reports of the County Auditor -Controller. Base year values are adjusted by the County Auditor -Controller's Office from time to time. The base year values identified are the adjusted values per the most recent reports from the Auditor -Controller's Office. For purposes of this Report, all projections utilize the general levy of one percent. A one percent rate levied on the projected incremental increase in assessed valuation of taxable property in each of the Project Areas would produce the gross tax increment revenues shown on Table 4 for the applicable Project Area. The amounts of tax increment revenues to be set -aside into the Low and Moderate Income Housing Fund of the Agency from each of the respective Project Areas are also shown on Table 4. 5. The Stipulation, as amended, provides that before December 31, 1992, 21 units were to be available to and occupied by very low income households and 78 units were to be available to and occupied by low income households. Under the terms of the Stipulation prior to its first amendment in 1997, the Agency was to develop, acquire, rehabilitate or otherwise assist 366 very low income units, 367 low income units and 367 moderate income units prior to December 31, 1995. At the time of the amendment of the Stipulation in 1997, the Agency had developed or acquired, or caused to be developed or acquired, most of those units, and the 1997 amendment to the Stipulation includes an extension of time relating to such development or acquisition to January 1, 2002, for the very low and low income units, and to January 1, 2006 for the moderate income units. However, the 1997 amendment to the Stipulation also provides that before January 1, 2001, one-half of the units which "remained" to be developed or acquired as of April 15, 1997 under the original Stipulation were to be developed or acquired before January 1, 2001. The "remaining units" as of April 15, 1997, were 96 very low income units (a total of 291 were being provided at that time), 220 low income units (a total of 225 were being provided at that time), and 245 moderate income units (a total of 122 were being provided at that time). In lieu of the development or acquisition of the remaining 245 moderate income units, the 1997 amendment to the Stipulation provides that the Agency is to instead develop or acquire 49 very low income units prior to January 1, 2006. Thus, under the 1997 amendment to the Stipulation, as of January 1, 2001, the Agency was to have developed or acquired a total of 339 very low income units (the 291 being provided on April 15, 1997, plus 48 of the remaining units) and a total of 335 low income units (the 225 being provided P6402-00011857122v2.doc 14 on April 15, 1997, plus 110 of the remaining units). As of January 1, 2002, the Agency was to have developed or acquired 366 very low income units (plus the 21 very low income units provided by December 31, 1992, for a total of 387 very low income units) and 367 low income units (plus the 78 low income units provided by December 31, 1992, for a total of 445 low income units). By January 1, 2006, the Agency is to have developed or acquired the 122 moderate income units (which were already developed or acquired as of April 15, 1997), plus an additional 49 very low income units (49 very low income units being 20 percent of the "remaining" 245 moderate income units). The Stipulation, as amended, also requires the Agency to commence development of 142 very low income units and 60 low income units before December 31, 2003. The Agency is providing the following rental housing units as of August 31, 2005 (based upon the September, 2005 report of rental information provided to the Agency by RPM Management), available at an affordable housing cost and occupied by persons and families at the income levels so indicated: Desert Point Apartments (64 units - 32 studio, 26 one -bedroom and six two -bedroom) 30 very low income 14 low income 20 moderate income One Quail Place Apartments (384 units - 156 one -bedroom and 228 two -bedroom) 150 very low income 154 low income 80 moderate income Neighbors Apartments (24 units - all two -bedroom) 11 very low income 6 low income 7 moderate income Taos Palms Apartments (16 units - all two -bedroom) 6 very low income 8 low income 2 moderate income P6402-0001\857122v2.doc 15 Las Serenas Apartments (150 units - all one -bedroom) 101 very low income 34 low income 15 moderate income Pueblos Apartments (15 units - all studio) 12 very low income 3 moderate income Catalina Gardens Apartments (72 units - 48 studio and 24 one -bedroom) 50 very low income 12 low income 10 moderate income Santa Rosa Apartments (20 units - all two -bedroom) 20 very low income Laguna Palms Apartments (48 units — studios, one and two -bedroom units) 20 very low income 20 low income 8 moderate income California Villas (141 units — one -bedroom) 76 very low income 50 low income 15 moderate income Country Village Apartments (66 units — all studios) 33 very low income 33 low income Hovely Gardens Apartments (162 units — 72 two -bedrooms, 72 three -bedroom and 18 four -bedroom) 73 very low income 89 low income P6402-00011857122v2.doc 16 Sevilla Apartments (103 units — one and two -bedroom units) 22 very low income 81 low income Villas on the Green (15 units — three studio, ten one -bedroom, two two - bedroom) 8 low income 7 moderate income Candlewood Apartments (26 units - all one -bedroom) 13 very low income 13 low income Pacific Assisted Living (two units - one -bedroom) 2 low income Canterra Apartments (31 units — 12 one -bedroom, 17 two -bedroom and two three -bedroom) 31 low income River Run One (two units - studios) 1 low income 1 moderate The report of RPM attached hereto as Attachment No. 3 provides a breakdown of the subcategories of income levels of certain of the foregoing rental units. With respect to the Candlewood Apartments described above, there are currently no affordability restrictions on the project, but the owners accept Section 8 certificates. With respect to the Hovely Gardens Apartments and the Las Serenas Apartments, an aggregate total of 35 units are replacement housing for a street -widening project. With respect to Sevilla Apartments, Villas on the Green, Pacific Assisted Living, Canterra Apartments and River Run One, only limited affordability restrictions have been placed on these units as a part of agreements with developers of each project in exchange for increased density. P6402-00011857122v2.doc 17 The Agency is providing the following ownership housing units available at an affordable housing cost and occupied by the persons and families at the income levels so indicated: Building Horizons(2 units - both three -bedroom) 2 low income Coachella Valley Housing Coalition (11 units - all three -bedroom) 11 low income Desert Rose (161 units - 123 three -bedroom and 38 four -bedroom) 26 very low income 103 low income 32 moderate income Habitat for Humanity (6 units - all four -bedroom) 6 very low income Rebecca Road (2 units - both three -bedroom) 2 low income Portola Palms Mobilehome Park (141 units - number of bedroom not available) 25 very low income 13 low income San Marino Circle (one unit - two -bedrooms) 1 low income Home Improvement Program (141 units) 78 very low income 49 low income 14 moderate income The subcategories of income levels of the above -described ownership housing are set forth on Attachment No. 4. P6402-00011857122v2.doc 18 To date, only limited affordability restrictions have been placed on the above -described homes improved under the Home Improvement Program and three of the four Habitat for Humanity Homes. Thus, the Agency is currently providing 619 very low income units (excluding the above - described very low income units at the Candlewood Apartments and the units improved under the Home Improvement Program), 537 low income units (excluding the low income units at the Candlewood Apartments and the units improved under the Home Improvement Program), and 189 moderate income units (excluding the units improved under the Home Improvement Program). In further meeting its obligations under the Stipulation, as amended, the Agency intends to undertake all of the following: A. The City owns a 20-acre site generally located on 42nd Avenue and Sheryl Street, west of Cook Street. The design for development has an aggregate total of approximately 107 units of very low, low and moderate income single family ownership housing and 27 senior rental housing. The ownership housing is proposed to include 14 units of very low income, self-help housing and 93 single family units. Agency staff expects that the 93 single family units will be made available to both low income and moderate income households. The Agency has entered into an agreement with Community Dynamics to construct the 27 senior rental units and the 93 single family units. Construction began in October of this year. The Agency will solicit proposals from nonprofit developers for the self-help housing. B. A 36-unit apartment project on Santa Rosa Way known as the Palm Village Apartments is currently under construction. All 36 units will consist of two bedrooms, 18 of which will be available to very low income households and 18 of which will be low income households. C. Agency staff is currently negotiating with the owner of an existing 23-unit apartment project located on Shadow Hills Drive. The units in the project consist of one and two bedrooms. The project would consist of 23 low income units. The Agency expects to successfully conclude negotiations by the end of this year. D. Pursuant to a development agreement, the developers of Canterra Apartments on Hovely Lane will provide an additional 31 low income units upon completion of the second phase of the project. The 31 low income units in this second phase will consist of 12 one -bedroom units, 17 two -bedroom units and two three -bedroom units. P6402-00011857122v2.doc 19 E. The Agency is currently negotiating with the owner of a 192-unit mobilehome park in the City to ensure that the affordability of very low, low and moderate units is preserved in connection with a proposed condominium conversion. Preliminary estimates show approximately 35 percent of the mobilehome park to be very low, low or moderate income households. F. The City has entered into a statutory development agreement with the Sares Regis Group which provides for 64 moderate income apartment units. The units will consist of 19 one -bedroom, 39 two -bedroom and six three -bedroom units. G. The City currently owns a three bedroom, single-family rental unit located on Goleta Avenue. Upon the termination of the current rental agreement in January of 2006, the Agency will acquire the residence from the City and sell it to a low income family with appropriate deed restrictions. H. The Agency has established an Acquisition Rehabilitation and Resale Program for existing single family units that become available in the City. The Agency will, when feasible, acquire single family units in need of rehabilitation and restrict the resale to very low, low and moderate income households. I. In order to assure that the Agency will meet the January 1, 2006 very low and low income units requirements (as well as its future construction need as forecasted in the Regional Housing Needs Assessment of the Southern California Association of Governments), Agency staff has directed its property manager to relet moderate income units through attrition as soon as possible to low income households. At the end of the 2005-2006 fiscal year, Agency staff the unit makeup at its various apartment projects to ensure that an economically diverse blend of tenants, so as not to over concentrate any one income group at its larger projects. The Agency has established a Rental Subsidy Program. Under the terms of the Rental Subsidy Program, owners of single family homes, condominiums, mobilehomes or multi -unit apartment complexes who rent to persons and families of very low, low or moderate income may receive direct rental payment assistance from the Agency. Owners must enter into a recorded agreement with the Agency which provides that in exchange for the ongoing direct rental payment assistance, the owner will ensure the affordability of the home, condominium, mobilehome or apartment for the term required by law. Property owners and tenants will be notified of the Rental Subsidy Program by several methods. In addition, the Agency will endeavor to identify all apartment owners in the City and notify them of the program and invite their participation. The Agency will publish notice of the Rental Subsidy Program in local newspapers, including a Spanish language P6402-0001\857122v2.doc 20 newspaper, at least once a year. The Agency will also publish the same notice at least once a year in the City's newsletter, Brightside, which is published monthly and which is sent by mail to every resident in the City. Part of the Rental Subsidy Program provides tenants with a direct opportunity to select apartment projects whose owners will then cooperate with the Program. The Agency has established a First -Time Homebuyers Program. The First -Time Homebuyers Program provides financial assistance in the form of low interest loans to very low, low and moderate income homebuyers. At least once per year, the Agency will publish notice of the Homebuyers Program in local newspapers, including a Spanish language newspaper and in the City's newsletter, Briahtside. Assuming the above -described projects stay on schedule and the Agency is successful in its negotiations the Agency expects that the cumulative effect of the foregoing acquisitions together with the above -described developments will result in an additional 68 very low income units, 45 low income units and 144 moderate income units being provided. The units which will be assisted at the Indian Springs Mobilehome Park, and those which will receive assistance under the First Time Homebuyers Program and the Rental Subsidy Program will be in addition to the foregoing totals. Thus, the Agency expects to comply with the provisions of the Stipulation with respect to developing and acquiring the required number of units by January 1, 2006. Agency staff will continue to pursue other acquisition and development opportunities for affordable housing. 6. The Stipulation, as amended, also provides that the Agency is to meet its existing and future housing needs for very low, low and moderate income households over the life of the Agency's Project Area No. 2. In the Housing Element of its General Plan, the City has included a thorough identification of existing needs, established appropriate priorities reflective of those needs and has included programs (including those described below) which will serve to address those needs. The projected housing needs are identified through the regional housing needs assessment of SCAG. As noted by the Department of Housing and Community Development of the State of California and SCAG, existing need numbers are not used as construction targets, nor are local governments expected to solve their existing need. Nevertheless, as shown by the programs discussed in this report, the Agency is aggressively seeking to address the City's existing need. Consistent with SCAG directives and pronouncements, existing need is being used by the Agency to demonstrate logical and consistent programming, goal setting and the allocation of resources. Attachment No. 1 to this Report is the most recent forecast of SCAG of existing and future (construction) needs of the City. P6402-0001 \857122v2.doc 21 As noted above, to assist in its efforts to meet the existing housing need as soon as practicable, the Agency has established two separate housing payment assistance programs, the Rental Subsidy Program (attached as Exhibit A) and the First -Time Homebuyers Program (attached as Exhibit B). The Agency has also established a Home Improvement Program which is designed to address issues relating to substandard housing in the City. Agency staff makes efforts to both identify eligible homeowners and advertise the availability of the Home Improvement Program. Those efforts will include all those described above in connection with the Rental Subsidy Program and the First -Time Homebuyers Program, including publication of the notice. A component of the Home Improvement Program includes acquisition, rehabilitation and resale of existing housing units that may become available. The Agency will, when feasible, acquire single family units in need of rehabilitation and restrict the resale to very low, low and moderate income households. 7. Attachment No. 2 to this Report is the operating cash revenue pro forma of the Agency's Housing Fund. Attachment No. 2 identifies the total estimated costs of the Agency's housing programs over time. It includes amounts necessary to subsidize housing available at affordable costs to households at the more restrictive income levels for the applicable time periods set forth in the Stipulation, as amended. Those income levels require that for housing units to be made available to very low-income households, at least one-half of the housing units must be affordable to households with 35 percent or less of median income. Of that 50 percent, at least one- third must be affordable to and occupied by households with 25 percent, or less, of area median income and at least 18 percent must be affordable to and occupied by households with 20 percent, or less, of area median income. The remaining very low income units must be affordable to households with 45 percent or less of median income. Those income levels also require that for housing units to be made available to lower income households, at least one-third of the housing units shall be affordable to households with 55 percent or less of median income, one-third to households with 65 percent or less of median income and the remainder to households with 75 percent or less of median income. These income levels further require that for housing units to be made available to moderate - income households, the units shall be at least affordable to moderate -income households who cannot afford housing at market rates. The estimates set forth in Attachment No. 2 are in turn based upon the actual experience of the Agency. The analysis in Attachment No. 2 also takes into account the costs of developing, maintaining and managing the housing units. It also identifies by year the number of additional affordable very low, low and moderate -housing units the Agency expects to fund. Amounts necessary to pay annual debt service for prior indebtedness of the Low and Moderate Income Housing Fund have been identified in the row labeled "Debt Service Pledge." P6402-0001\857122v2.doc 22 Based upon the estimates and projections set forth in Attachment No. 2, the estimated total amounts necessary to meet the obligations of the Agency to acquire, develop or rehabilitate housing units for occupancy by households at the income levels specified above, as compared to amounts available in the Low and Moderate Income Housing Fund to meet those obligations, are detailed in Attachment No. 2. Attachment No. 2 also identifies debt service on bonds issued to fund the purchase and construction of units within the Agency's housing stock and includes among other costs, the total annual required payment for housing units for occupancy at the more restrictive income levels specified in the Stipulation, as amended (i.e., 20, 25, 35, 45, 55, 65 and 75 percent of median income). Attachment No. 2 also provides the basis for the annual housing obligations. Attachment No. 2 identifies a beginning Housing Fund balance of $31,467,793 and includes detailed estimates of other income such as bond proceeds and investment earnings and operating income from the Agency -owned affordable housing, which is available monies of the Agency in the funding of the Agency's housing programs. Attachment No. 2 sets forth a present value calculation of the projected cost of the housing requirements of the Stipulation, as amended, together with a present value calculation of the projected available revenues from the Agency's Housing Fund. As shown on Attachment No. 2, from both a cumulative total and present value standpoint, the Agency will have sufficient moneys over the life of Project Area No. 2 to meet the housing requirements. Based upon the foregoing analysis of past, current and projected future assessed values of taxable property in all Project Areas of the City, the tax increment revenues set -aside into the Low and Moderate Income Housing Fund of the Agency, as shown on Table 4 and Attachment No. 2, will be more than sufficient to meet the obligations of the Agency under the Stipulation, as amended. After making the required set -asides into the Housing Fund from tax increment revenues allocated and paid to the Agency through fiscal year 2005-2006, and after deducting debt service requirements on existing indebtedness and obligations to taxing agencies, the surplus (or excess) revenues of the Agency for Project Area No. 1, As Amended and Project Area No. 2 are shown on Table 5 beginning on the following page. P6402-0001 \857122v2.doc 23 Fiscal Year 2005-06 TABLE 5 PALM DESERT REDEVELOPMENT AGENCY PROJECTED AVAILABLE TAX INCREMENT REVENUES NET OF HOUSING SET -ASIDE AND PASS THROUGH PAYMENTS PROJECT AREA NO. 1, AS AMENDED AND PROJECT AREA NO. 2 Projected Net Annual Tax Increment Revenue/1 Debt Service Surplus Net Revenues Project Area No. 1-Original Territory $6,347,892.85 Project Area No. 1-Added Territory $10,158,426.26 Total Project Area No. 1 $16,506,319.10 $9,273,626.25 $7,232,692.85 Project Area No. 2 $5,601,116.84 $2,265,833.75 $3,335,283.09 Fiscal Year 2006-07 Projected Net Tax Increment Revenue/1 Annual Debt Service Surplus Net Revenues Project Area No. 1-Original Territory $6,521,845.38 Project Area No. 1-Added Territory $10,563,028.56 Total Project Area No. 1 $17,084,873.94 $9,277,801.25 $7,807,072.69 Project Area No. 2 $5,767,057.68 $2,185,045.00 $3,582,012.68 Fiscal Year 2007-08 Project Area No. 1-Original Territory Project Area No. 1-Added Territory Total Project Area No. 1 Project Area No. 2 Fiscal Year 2008-09 Project Area No. 1-Original Territory Project Area No. 1-Added Territory Total Project Area No. 1 Project Area No. 2 Fiscal Year 2009-10 Projected Net Tax Increment Revenue/1 Annual Debt Service Surplus Net Revenues $6,743,583.44 $11,026,220.13 $17,769,803.57 $9,276,081.25 $8,493,722.32 $5,984,654.89 $2,189,596.25 $3,795,058.64 Projected Net Tax Increment Revenue/1 Annual Debt Service Surplus Net Revenues $6, 936, 229.97 $11,638,280.74 $18,574,510.72 $9,274,871.25 $9,299,639.47 $6,260,416.39 $2,191,031.25 $4,069,385.14 Projected Net Tax Increment Revenue/1 Annual Debt Service Surplus Net Revenues Project Area No. 1-Original Territory $7,133,555.67 Project Area No. 1-Added Territory $12,153,938.73 Total Project Area No. 1 $19,287,494.40 $9,275,621.25 $10,011,873.15 Project Area No. 2 $6,708,782.27 $2,189,560.00 $4,519,222.27 P6402-00011857122v2.doc 24 The amounts of surplus described on Table 5 are projected through fiscal year 2005-2006 because the Agency may incur long-term indebtedness, which is based upon the tax increment revenues as anticipated in 2005-2006. For example, the Agency may issue long-term bonds and place a portion of the proceeds in an escrow. The proceeds placed in the escrow would only be withdrawn by the Agency in the future if the future tax increment revenues allocated to the Agency met the projections. If the projections were not met, the tax increment revenues would not support the debt represented by the proceeds of the bonds placed in the escrow, and those proceeds would then be used to call and redeem a like principal amount of bonds prior to their stated maturity date. Pending their withdrawal from the escrow (either for the purpose of expenditure by the Agency or for the purpose of call and redemption of bonds) those proceeds would be invested at a rate of interest sufficient to pay interest on the bonds from which the escrowed proceeds were derived. The amounts of tax increment revenues described as surplus on Table 5 constitute "excess tax increments" within the meaning of that term under paragraph 2 of the Stipulation, as amended, and are not and will not be necessary to meet the housing requirements set forth in paragraph 1.a, b and c of the Stipulation, as amended, with respect to Project Areas Nos. 1 and 2, and are not and will not be necessary to meet the housing requirements set forth in paragraph 1.d with respect to Project Area No. 2. Long term obligations (including, without limitation, bonds, notes and other evidences of indebtedness) of the Agency to finance redevelopment activities unrelated to affordable housing which are payable on an annual basis from such amounts, will constitute "prior indebtedness" within the meaning of that term under paragraph 2 of the Stipulation, as amended. P6402-0001\857122v2.doc 25 LIST OF ATTACHMENTS ATTACHMENT NO. 1: Regional Housing Needs Assessment ATTACHMENT NO. 2: Agency's Cash Revenue Housing Fund Pro forma — Number of Units to be provided by Year ATTACHMENT NO. 3: Income Level Subcategories for Rental Units and Ownership Units EXHIBIT A: RENTAL SUBSIDY PROGRAM EXHIBIT B: FIRST TIME HOMEBUYERS PROGRAM P6402-00011857122v2.doc 26 SCAG RHNA99 Coachella Valley Income Level (% of All Households Households with any Problems Households with. Overpayment Households with Overcrowding Adopted Existing Need - All Incomes Housing Problems Detail PALM DESERT Less than 30 to 50 to 80 to Greater 30% 50% 80% 95% than 95% Renters 515 " 718 1,294 581 2,414 5,521 Owners 496 576 942 556 7,201 9,771 Total 1,010 1,294 2,236 1,137 9,615 15,292 Households: Total Renters 420 714 1,084 360 469 3,047 Owners 373 _ 450 477 227 1,423 , 2,950 Total 793 1,164 1,562 586 1,891 5,997 Households: Renters 385 714 992 360 358 2,808 Owners 373 428 477 227 1,423 2,928 Total 759 1,142 1,469 586 1,780 5,736 Households: Renters 0 92 147 97 132 467 Owners 18 28 30 14 75 163 Total 18 118 177 110 207 630 Households: ATTACHMENT NO. 1 Adopted RHNA Construction Need (Nov.'00) Jurisdiction is PALM DESERT Draft Construction Need (11/99) •9 444 Reduction Per Local Revision Request c_ 0 Reduction Per Appeal (8100) c. 0 Redistributed Units at 0 ADOPTED FINAL CONSTRUCTION NEED FINAL ADOPTED NUMBERS BY Income Category Very Low Income —•� Low Income —• 0 Moderate Income Above Moderate Income —4 Total •••� Draft (11/99) 77 67 = 85 215 444 County is Riverside 444 INCOME Adopted (11/00) 77 67 85 215 444 ATTACHMENT NO. 1 rid DP C S000NI 0� e3uele8 yseD 8ulpu3 NR U 2 CO M NI. O W.{b.1 (N_UJ U N CA w N O O N ,oV OD 04200 0 V + O V a o b o o m v o a 0 0 0 0 a O m 000. + N ✓ a N tbV1 +N a as N O a o C O O O O - N O at coA IN ✓ O U o a 0. o 0 V O + O O > O U o 0 0 0 T yW W N V N 0 N N a N 10 01 W co U o -. b Co 13 N w 0 0 . N . 0.0 A P 0 f0 m i + N aW b O 0 0 N 00 0 0 0 0 00 0 ATTACHMENT NO. 2 DDDD > 3.1.1 ow 0 nZ vS 2 �D 71 9oDD ~ S N'�E�c3=3;�'o o3o.m DmggiommAm m s Mill id 3o N d x w N m n o o= p. y m r m N O n= N A w m•, 01 3 � C Z -n o3 �3 -i n $4Q? m O m _ 0 N tDi o of c v, 0 N 0 23 mdT o.§ 3 Gl o :Paz., o S m No Oo 3 (QV 0 3 3 3 n. 0 • d 01 3 n U E.... 0 3 m o N ._ o. a- N n n o o d 2 o Ol U o • Z O O a 3 2 C - D o 9 w w w O 0 N N U V U U cn 0 o' W O N V A + C (NP � O� p N1 N a31AiaS lgep leliy ewo3ul 3OIA:l3S 1830 S3SN3dX31 O ' on 3 W253 w n sldy wled N N V {a N pp�� + • tNpp U pp�� tWpp S .bba O OOOO w� ODU p♦W + A W OaN1 OHO O0�O S 0 0 0 0 0+ O O O i W N O 6 O O O O O a ✓ 40 IJ ,J. N w p NNI bb o a W 0 0 O A 0 0 fT N� tNT W 4 O S Ol m Y O N co.. N • V O O boa,. O+ U O W + 0) .0 C 60. Os O O O S O W N O t 0 a 0> 0 0 O 000 V O O O O O O O U O N W a a U U O 0 00. 0� O UO W N V O U W 0m. 0 0 O 00 a 0 0 0 0 0 0 0 0 O a U U O J w w N + U O U W U O C W O O .w 0 O O U W C a o Wog g U O W O g V O .... U W m W O. "Do rn W + t0 + G T O S+ O w 0 (� O Of 00 0 O O 00) 00 NS a O O O U O O m O a ow o. a W N W U O O O O 0 O N w • N V .0 + S N N bb'O O O O 0 0 , o m W. W. V 0 NW NV fJ IJ 0 0 0 0 wi.: a0 N N N 01 a N O 0 p Np m . O G ✓ a wVN NO 0 {b{�� D1 U a G G b O O W .0 O s SE9'66Z'Y N U Q O 0 + N VT N W + 01 N O (, w o U (41 O O N o m owm U - N .a O V O) G K O O 040. N N . mm N pAp1 {AJ W O N - w O N T N O 0,MW tN0 0 0 S (T 6 V aG G 00tp tJ O+tOp V 10 U N O OO +N N + O O W O o pp� ▪ N + a N OU W m W W S + O mN bOo' 0 N COCha N 0 N s [£s19901 U 0 0 AO U N G m U N W U w 01 0 O N O pp� "LAN .. -40 w co O -. O co b N P N OI 0 O O m N O CA CO N O 0 N N O w0 o O N Ot fd w + V CO CO J N • N N O pOf W A O] O V N _ N a 3), W !0 O N 0a O vv. fD W O (0 0� W ro N tOT W p�� (0 0+ *0( W m V O -'0 O V O+ O N rod ro C ;OOL9L 0I a3ueieg Vsep BUMu3 sainilPuedz3 • enuanaa o yoo ; He vNDO=E== - l' os m w a m • q �agogn d. oo'S �d ^)Q0 o `� ° m n m o f m 3 a c fT Oo o m y ,$ 0 3 n -• N ev-i v x u of i) (") U I o� III"' d o 3 m o n` n O. o <�m v a C)0o m ZO V -n m o m 0 o m N O - D D O . ou — 'n '°rn 3 D n n 9 N u (4 0 q. s -1 D O y a N 2 o U M U U D D D b D b D 0 W W 0 c nnm�1 g; :;v ▪ > h fe flS •0 o �1 E rtII.ilu o3 D 4; Z 23ona�,d mD � �n m os m < G 2,r,n cN n�„ g ,,,.v 1o'om n o m o� t V 01 • m en('4 A L ▪ 0) V V O O 6p 0 0 O 0 0 0 O 0{T 01 O O N 6 N O O O O 0)> N0 N w ow•U mUa mm bp N O O) U • s O W O C o + a,O W fn O� O CI V O O N O C1 ± tT O o o soin O O 0 O N O W O 10 Ol N SN0 p♦P1 f00 V P ' N N O O E O t011 O O O M W O P N su P P P 5 N W 4 KJ u 0 0 OD 0 1W0 O O O Co + • M A + u a a a us,U P A to -0 0 O N • O O O N 10 N al• f0 O O V O ) p a 0U s o N O O O p Pd 0 0 0 m pNN • O a O P N tV� O U O O O g O V 000 N N O O Id S Ps. P A coo 40 T.N 0 0 0 u :.es. + N PW 0 ♦ V O O V A O 0 M O 0 0 0 (40 n 1J J O O n O W V W W A W OCi . N U f0 - N • w w CD Cm P 0 O O a 5 a3lni9S 1Veo ieyy awo3ul adwaS ;ciao - IeioignS 33IA83S 1B30 tT T . - O a W yP tWtJJ U fWp O O + b A a 0 P W f0 to U 0 A A N +ow a N m 000 + O 4 coto co O co O"s.O O P W + O A T N us O N o W fD Nco C D 01 N N P a 4 s o v v . S U N N 4 P 00 0 co • TT . 0 Ov v N as P CO0 W W N N A U p A + T O W m A O S3SN3dX3� • T 0 r o 0.0 < m S Vflh(!H1 i m > D C <r0m 0° wf5 O A .10 3• i• n rt• 3 a iio o m N O mp 0 y N 0 A H A F InN > _ CI Z �n 0 o ' 3 3 > m $ N0 fitly a6eil'A wled 0 O b CD co V -0s A 2 W GoN N Of m co T to Co a a + fOJ fop tN0 1�0 4 us O A17.1 O O) tp V m CO O P 0 N iv ON G W + fJ O O i0 CM N W + O w O OJ (01 0 O O 0 O O en O O N N 10 U W A + 00 O 0 0 P P f0 a A 0 0 A g w 20-O+ N Vj IV • W P U W co - O v O - CT • P $ 0) O m O: J� (T W co _f0 W O N W CO O) O O O L U t0 O7 J+ + V O 'CO s N O U 0) U W O O O N f0 VN V W 0 0)0 W O 0 N fO+U P N N a N N N NR t N + W W N N CO V 4 P 4 m N — A co N J ✓ N O CO N 40 w N N N pNp (T W P + 07 0 O (O. 7,7 A 'CT m 0 Q T 0 O N COT O '4 tUO 0 �i ppA11 07 W L. N + W N N N V A (yA� P 4 OV O O] (T • (O f 0 A U V A fP0 O O) a ▪ Ql O O UO) O N O W N V >-+ V W N N+ N A 0 OD0Pr. C + N +N N us n m .iN N O O V C0m NGi.P+O NW V J OCW0 OC{VO CT QAfNAW Q_DWA n As s t.` 0 NV O O AN 'co . A W CO C., N en O PPPUV1. O OD O O (O tp N 0 V p D V O O G.,W JV V :Al w c. V + N U • ON W +WN N OW pV�Ay P co OPN - OWAO N W C Vc- .0 UD in N NOWW N V CON 00, en CT O O U mAO P 0N C.,N 0UO N 4P NW OCo'. WU tJNo y 0) N OO 0 N C. W N N 0 Q 2 aaueleg gseo 6ulpu3 sainslpuadx3 - enuened 2 )0 a CA CA eaIAieS;gap oi4V ewoaul **Inns slap • IelolgnS M N a, N P 7,5 U N t0 > CO�T N N N tOD O 01 • fL.J IT a o m u cT- m u <T twpp !.) ago {T AA Olw ((ATT Y CT O O �j NJ CUT O O N U ID N W V V W U O N O O co+ p 1 O O O N 0, _ N_ coo N N a. p AU N co N W {T O O P O W 0 .. co N O (C0U + A _IAp T 0. + CO N N N co (T U O O g N (O O N N O O O N 0 8 Q - O 0 NN O O N N N N N a W 0 0 0 N • N O N W 4 W ▪ up 03 • 01 0 0 Co U O O O U + • CJ aN trig CT U U U 50 m V U O i0 . M N O C m . a O o O U m N O U U N J O -0tT 0 O) O O m a0) ip V O N 0 a 0 + U • gON (T N N + N Np CT CUT 0)) N (T 33IAa3S IBM S3SN3dX3I sldy aBeIM weed N U + a •)'' m 2 w 0 a$) 40 N - 4OCT) NM O V O O) U a + Cp N N Co W 0 O + N CO U 10 10 N W N A w + N N a U !p N V - U N 0 co • co L> v OV▪ ) • N W V mN o rn a o m aOVV sOV• O • NV NCTN G.) p M ((� CDO m o ▪ 01 VIN_ N W N a f� U4O -+ N ... l W+ UT ONCT O OOp • M NWV Vo• 0 +Np N a UNWlp ▪ EfO 0 O +▪ DON 0 V 40 0A N N O T OMO 0 0 O 0 U U U CO W CO _ M 50 My p yl N a N W V CO U N O J O 0 co. V 0 0 0 M N W A 2 N40 n N 0N Co N • O WO O O a o u 0 0 0 IV • N • ua b Ip V U CO s cc 0 0 0 0 CT 0 0 CO U W 0 T. N T. m U 0 O a O) N UT m(O ~ W Co0N A -. CJ UVwU a O UCDNVgV UN U a OTVN CO 0 O + VUN WT AOoD o UW N m> o OUV U VO V UO N O w O UO Co U UN OOU M N • N N A U RI 4 • A N • W U W .CUT coN N Ca CaU D+ aZ.• m 008 o o, , (N, a N A N CUD U U O O O V w N o wD o w Co N - O N GO a CUO 0 a 0 .rD N W CT W . O 0 0) 00 O C.. CO C0. T pU Ol W CO _ N • • CO O O (0 p N N U N_ 2 g b 0 O 0co ▪ Al N 0 p N J A (0 0N D N O N CT 04, N W N M N GoN O U D O W N L C.N) NU 0-,,, yW N O > Co 0 lT ., U A ID m0 W 0,U a 2 CA O) Al O V N CO Old >1 E SOOLML OL emuele8 yse3 8uIPu3 D D D T. D ➢ D; 03 0 O i c ZZ Z UN n20�2; SNDA 3i 3c cc �.30 8=o N7 na 3e300 J $. N 3aA �'. �.D� 0AZ 0 n of 2 6 R ,$ J 0 m e"iu DTi<� 3-0 .1 32p, Td m D or t�T o w N D .e v o o} 4 x T +O 2 d 2 .� N N m Si O .� < p p N' N ryN 0� Q y T xo m' n3n� >>> o2 crw ND3o&Dn'°H3t 2 JON cno—. �.���a. cry w, d 8 gig m c n W mi��3 nv m`"n3JJmro�&.v 3 0 N N O d Oi = H O C o ?' 0 0 J N} �Q u n m m CDi .ry0 H I m tti 3 . CP) N 0 m j b G S V J 3 C1 6 N Y` J W p Y o A o "0 s % 3 n o m om. a , N n 5,7t a e m p T m0 20 0 � ^ '-' n _ Q 3 Nm w _ o 1 O 9 0 v N o Dm a .0 U w N M U U m N m + W N+ V N i U W m 0 U U OI 0 A N T 2 o a m N + 8 oa W 0 (Nip V (1{�Dy fD 0 0 b P b O O O + N au V m b + a A m N co 0 P 0 0 0 -. N ... M P.a b N {T{� V m N 0 S V.808 0 -. N {Nw N + 0 N W O u N N co U + N O O 0 CO 0 GOO O O b M co W f0 b NNV + W O b CO U O IV O O 0 0 0 CO a 000 N tN N a a O L. O fU A N P a flOD 0 b b N 0 0 O O P P 4 co 000 N M a P W m U A N 0 O O COO GO O O CA 0 O 00 0 M O O W m O A + O MA 0 T <W.� m (003 a0 0 W O + m WW 0 0 OD0 NCO M + N 0 O OD CO N V NV m W N MP N U (OD' g N + O CO U W N U Um U mm n o . WM N O g' O m U tO CO CO . t t0 COW m W W N bA N O U mA 00 O + W m O co > cD 0N w(,J U T 0 U O 0 o N bA O O W 0 O O O N 0 W pp� + L U W U b a 0. 0 + O O O O N N m N U m U N O + O A MO, m m V U 0 03 Nm V m U U m, W N O W CO m W V N a + 0O U g U O N O A U MM 10 0 V m O Tog -61 + 3 + fly . 00 .O4 O O O m m v, a a . 0 b O O 000 e3!Aue$1ga0 Jegy ewoaul (*puss Re0 • !gowns W i $' m a m Cr, o W W W O O V U u TV N O a -ao +OD O N Qom N m vA t0 N N + A O 0 A b' io O U N -.coo + A N v O a a pp� W N O MAM Of M + a N++M O PLOW N m W O Of m O M + a NO] m + Wwwm 33IA83S 1830 T 0 r N f1 T S 0 0* m 0 0 0 0 O O m x 5 m o D= D � S 5 S 5 c�� n c 1 -Cr afnnoGoH�D, C oD m00 o 0 o S A J N n O A y 0 03333om o d— r> a m W 01 m a N O 0 so co 0 y sydy a6eu1,n wiled N W N _ Ni., A N b co v to W co w w 01 w a m V -4 O U N 0 O a eUn N F; (so � O a W m N m m 4 O N O m b b 30 O OI 0 A7 W N T N W V N + N. w m 0 - co mm W O CA) O a + N mw 4m COV CO CO O pm COO O 4 + 0 OC U V 0 0 U 0 m m o N 0 W m e3uvlt8 yseD 6u1pu3 sIJnllpuadx3 - enuenaa } \ k a. 40 \ tO Co 2 8.8 k ft ) a k co cr, 000 co a t=/ cz22immw›R “.7 k}�m#a\2�£Z : 77; »!l3llhIV ak ; %l=_ � - ca 111g3 M%;1£« ■ (s (2}2kƒ»■-s{ : °«3 a:T E.§ | ® !J 7a; 0 ; ata a Co 9,0 )k j/\ ) CO ww ¥\ NJ 0 .00 /)\ NWo NN 0.0 \\j e3!JJaS IQ9O ieyy ew00u1 vo 14 e3pues IQaO - IgownS VO 33IAtI3S 1830 2 CD co CO Sldy 26eIPA wled o ,m J§ \ go bw aa 0 co CO \a k ft I '0 k 1.0 >m§ z,g 0,\k k$0 kk a= 0 RENTAL UNITS Housing Authority Desert Pointe (64) One Quail Place (384) Neighbors (24) California Villas (141) Laguna Palms (48) Taos Palms (16) Las Serenas (150) Pueblos (15) Catalina Gardens (72) Country Village (66) HA Rentals Sub -total Housing Santa Rosa Portola Palms MHP PALM DESERT REDEVELOPMENT AGENCY RESTRICTED UNITS Income Level (% of Riverside County Median for family of four) Very Low Low Mod Total 20 1 21-25 26-35 1 36-45 46-55 I 56-65 I 66-75 76-120 Units 2 7 15 6 9 11 62 68 1 24 4 3 ' 15 29 29 4i 4 5 7 0 1 3 2 7 18 49 27 1 1 9 1 7 10 25 8 13 14 6 47 83 201 158 5 7 1 7 1 3 4 78 59 3 1 9 21 2 18 3 4 17 5 0 0 4 4 17 8 136 124 7 20 64 17 80 384 2 7 24 20 15 141 0 8 48 1 2 16 12 15 150 0 3 15 4 10 72 8 66 0 71 160 980 20 Hsg Rental Sub -total: , 5 7 2 7 0 0 0 0 21 The above units are owned by the Agency. With respect to developer provided units such as Sevilla, Canterra, Vitas on the Green, Candlewood, Pacific Assisted Living, and River Run One, they are not included in these totals but are provided pursuant to Developers Agreements restricting affordability. FOR SALE UNITS Desert Rose (161) Habitat for Humanity (6) Self -Help (11) Building Horizons (2) Rebecca Homes (2) Portola Palms (37) Income Level (% of Riverside County Median for family of four) Very Low Low <20 1 20-25 I 26-35 1 36-40 1 41-45 46-50 51-55 1 56-60 61-65 166-70 1 For Sale Sub -total: I 6 3 5; 5 2 9 3 4 12 11 20 22 2 2 2 1 1 10 1 10 13 32 24 71-75 14 I, 18 18 1 3 2 1 1 5 4 20 22 25 Mod Total 76-80 81-120 Units 13 31 161 6 11 1 2 2 37 13 32 219 ATTACHMENT NO. 3 EXHIBIT"A" City of Palm Desert PALM DESERT REDEVELOPMENT AGENCY Rental Subsidy Program OVERVIEW The creation of this Rent Subsidy Program was authorized by the Agency Board to help those residents whose housing cost exceeds the limits set by Redevelopment Law. This program will assist rent burdened households with the cost of rent up to appropriately determined maximums. The Program will provide assistance to very low or low income persons or families by subsidizing their monthly rent. This subsidy may be pad directly to the landlord or apartment manager or to the tenant upon proof of payment of rent. Selection Criteria Age - To qualify as a "Senior" you must be 62 years or older. One point given for every two-year increment over 62. Income - 75% or Tess of area median income. One point for every 10% below the income limit. (Income figures are provided by the U.S. Department of Housing and Urban Development and updated annually.) Farm Workers - Those employed in the agricultural industry as defined in the Stipulation will receive any additional point. Residency - One point given for every two years of Palm Desert residency, up to a maximum of 15 points. However, Palm Desert residency at the time of application is NOT required. Rent -Burdened - If applicant's rent is 35% or more of income, one-half point will be awarded for every 10% increment above 35%. Palm Desert Government - Twenty points given if applicant was displaced from previous unit through Palm Desert Redevelopment Agency or City of Palm Desert action. Disabled or Handicapped - Are Two and one-half points given if applicant handicapped or disabled. Occupancy - The Agency follows an occupancy standard adopted by Resolution to protect against underutilization and overcrowding of units. Waiting Period - One and one-half points given per year for every year that the applicant's name is on the waiting list. Real Property - An applicant may not own any real property. Maximum Rent - the maximum amount that can be charged for rent by an owner or apartment manager will be that which is determined under the HUD Section 8 standards for the appropriate unit size. Rent Control - The Agency will follow all Federal, State and Local laws or regulations relative to rent control. Retroactivity - The program is not retroactive and will not commence until the first of the month following the month in which the tenant has been qualified for the program and a unit has been located and approved by the Agency. Frequently Asked Questions How long is the wait after applying for the Subsidy Rent Program? There is no way to gauge how long an applicant will be on the waiting list. How does the Subsidy Program work? The Palm Desert Redevelopment Agency is utilizing revenue which it has designated for affordable housing to reduce the rent for tenants in Palm Desert. Participating tenants can live in mobile home parks, apartments, or legal rental units in Palm Desert. In each case, the subsidy is paid directly to the landlord or manager, thus reducing the tenant's rent by the subsidized amount. (Note: The Agency does NOT locate rental units for applicants who wish to move. Tenants must find available rental units on their own.) Who is eligible for Palm Desert's Rental Subsidy Program? Persons or families whose incomes are below 75% of area median income. After the application is submitted, if qualified that applicant's name is placed on a waiting list. What is the selection criteria? Each application for Palm Desert's Rental Subsidy Program is evaluated based upon specified selection criteria (see below) and a rating scale. An applicant's place on the waiting list depends upon accumulated points. What if I am currently participating in another rental assistance program? In case applicants are participating in other programs, the agency will participate only to the extent the applicant's rent will be no Tess than 25% of their monthly income including utilities (utility allowances are established by the Riverside County Housing Authority for the area). How long is the wait after applying for the rent subsidy? There is no way to gauge how long an applicant will be on the waiting list. How can I be sure that my name is kept on the waiting list? On an annual basis, applicants are sent reapplication forms which must be completed and returned to the Palm Desert Redevelopment Agency. Returning the reapplication assures the applicant that his/her name will remain on the waiting list if still qualified for the Program. The reapplication provides staff with the most current information regarding each applicant. How does one apply for Palm Desert's Rental Subsidy Program? An interested party must complete the application which is contained in this brochure and forward it to the Palm Desert Redevelopment Agency, 73-510 Fred Waring Drive, Palm Desert, CA 92260. Which number do I call if I have additional questions about the Program? Please call the Palm Desert Redevelopment Agency at (760) 346-0611. Rev. 0401905 DRAFT— FOR DISCUSSION ONLY EXHIBIT "B" Palm Desert Redevelopment Agency FIRST TIME HOME BUYERS PROGRAM (FTHBP) I. Guidelines 1. Program Overview The First Time Home Buyers Program (FTHBP) provides a deferred repayment loan of up to $75,000 for low -to -moderate income first time homebuyers to purchase a single family detached home in the City of Palm Desert. This Program is specifically designed to provide qualified persons and families with down payment monies necessary to secure financing towards the purchase of a home. To qualify for a FTHBP loan, both the participant and the property must satisfy specific eligibility criteria. 2. Program Participating Parties • Palm Desert Redevelopment Agency The Palm Desert Redevelopment Agency, a public agency operating in the City of Palm Desert, funds the Program with its low and moderate income Housing Fund, to increase, improve, and preserve the community's supply of affordable housing. The Agency serves as the Program Administrator but may contract with an outside administrator to assist with the administration of the program. The Agency provides a Pre -Qualification Questionnaire and Checklist along with Program information to interested participants. • Program Administrator The Program Administrator will oversee the Program and work closely with qualified Lenders by providing training in Program requirements, underwriting criteria, and Program procedures. The Program Administrator assists applicants with the Program guidelines and will provide information regarding eligible Lenders who will provide detailed information on the loan requirements. • Participating Lender(s) Only qualified Lenders approved by the Agency may participate in the Program (See Lender section of guidelines). FTHB Program Manual Palm Desert FTHBP Program Manual Page 2 of 17 3. Eligible Participant • First Time Homebuyers: The Applicant cannot have had any ownership interest in a residential dwelling unit (includes mobile homes regardless of the land ownership by the Applicant) at any time within the three (3) years preceding the application date for Pre -Qualification Checklist. This must be verified by the Lender's examination of the Applicant's federal tax returns for the preceding three (3) years to determine whether the borrower has claimed a deduction for mortgage interest or taxes on a residence. • Income Requirement: The Applicant's annual gross household income must be within the following limits, which represent 120% of median household income for the Riverside County area as published by the Department of Housing and Urban Development (HUD). These income limits change slightly from year to year and will be published by the Palm Desert Redevelopment Agency. Maximum Gross Household Income 2004 Very Low Lower Moderate 1 person $19,000 $30,400 $45,600 2 person $21,725 $34,760 $52,140 3 person $24,425 $39,080 $58,620 4 person $27,150 $43,440 $65,160 5 person $29,325 $46,920 $70,380 6 person $31,500 $50,400 $75,600 7 person $33,675 $53,880 $80,820 8 person $35,850 $57,360 $86,040 • Applicant Assets: The Applicant's assets will be utilized in determining household income as provided for under California law. The Applicant's assets may not exceed $50,000, except as provided by California law. • Affordability Requirements: Applicants must meet established, affordable housing requirements for Low or Moderate Income Households, as defined by California Health and Safety Code Section 50093. "Affordable Housing Cost" is defined as the maximum amount of gross monthly household income that can be used for the cost of housing, which includes the monthly mortgage payment, property taxes, insurance, and homeowners association fees. This calculation will be made by the Lender and varies depending on actual annual household income and the home selected for purchase; however, the cost of housing may not exceed 30% of gross household income, including principal, interest, taxes, and insurance. 73-510 Fred Waring Drive, Palm Desert, California 92260 :• (760) 346-0611 • Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 3of17 4. Eligible Property Must be a single family stick -built 1, 2, 3 or 4 bedroom dwelling unit located in the City of Palm Desert with a life expectancy of at least the term of the affordability restriction described in Section 11 below. Mobile homes may be considered only in the case where the land is also owned by Applicant (both the land and the mobile home will be encumbered as a part of the program). 5. Purchase Price The maximum purchase price of an eligible home is $295,000 increased annually on July 1st by the percentage difference in the Median Income as set by HUD for Riverside County. 6. Maximum Loan Amount The maximum Program loan amount is $75,000 increased annually on July 1st by the same respective percentage as the maximum purchase price is increased. Any costs financed as part of the FTHBP loan must be included in the maximum loan amount. In addition, the Participating Lender will provide the applicant with a Good Faith Estimate of all charges when the applicant is pre -qualified. The FTHBP loan may be used in the form of a down payment and/or for closing costs. 7. Occupancy The applicant must certify that the home will be the household's principal residence and that its occupancy will remain in compliance with the Agency's Occupancy Standards adopted as Resolution No. 484 on October 23, 2003. 8. Minimum Down Payment Requirements The Applicant must contribute a minimum of three percent (3%) of the purchase price toward down payment and/or closing costs. Gift funds may only be used as allowed by the first Lender. 9. Participation Priority Applications will be accepted on a first come, first served basis. In the event that the Agency receives more applications than funds are available, the following order of priority will be applied: 1. Applicants currently living in unsanitary, unsafe, or unhealthful condition; 2. Applicants currently living in an overcrowded condition; 3. Applicants currently paying over 30% of household income in total housing cost; 4. Those with the most suitable family size for the dwelling unit proposed to be purchased; 73-510 Fred Waring Drive, Palm Desert, California 92260 •:• (760) 346-0611 Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 4 of 17 5. Palm Desert residents; 6. Those with employment in Palm Desert; 7. Those with family in Palm Desert; and 8. Others. 10. Property purchase agreement must utilize current Purchase and Sale Agreement forms as accepted by the Department of Real Estate and include conditions regarding the program and the documents required therein. 11. Property Use. Occupancy and Tax Payments Maintenance/criminal activity covenants require the participant to maintain the Property and the improvements in good condition, free from gang or drug -related activities or from other felonious criminal activity or public nuisance and in accordance with the Palm Desert Municipal Code. These covenants are in effect for the term of the Program loan. The Participant must maintain, during the term of the Agency loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structure on the Property. The Participant will be required to make timely payment of property taxes. Agency will encourage Participants and Lenders to establish escrow impound accounts to pay real estate taxes and insurance premiums. The Property must be used as Participant's principal residence and for no other purpose except as expressly approved by the Agency in accordance with the Palm Desert Municipal Code. Participant shall not enter into an agreement for the rental or lease of all or any portion of the Property. 12. Resale of the Property The Property needs to remain "affordable" for a period of forty-five (45) years, beginning on the date the Participant's Deed of Trust is recorded with the County Recorder's Office and ending on the forty-fifth (45th) anniversary thereof. A Unit Regulatory and Lien Agreement shall be recorded against the Property for that time period to enforce the affordability requirement. During the "affordable period", if the Property is sold by Participant to a buyer determined by the Agency to be an eligible Program participant at an Affordable Housing Cost, then, upon the sale, the Participant will not pay the Equity Share described below, but will pay the Agency the remaining principal balance due. After the affordable period, the Property may be sold to any buyer at any price, but if the Property is sold to a buyer not qualified for the Program or at a sales price that exceeds Affordable Housing Cost, upon the sale the Participant still must pay to the Agency the Equity Share in addition to the principal amount of the Agency loan. 73-510 Fred Waring Drive, Palm Desert, California 92260 4• (760) 346-0611 ❖ Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 5 of 17 Equity is defined as the dollar amount that constitutes the difference between the sales price of the Property and the sum of the following amounts: a) The principal and interest due on the "First" note and Trust Deed with the "First Lender". b) The principal on the Note and Trust Deed in favor of the Agency. c) All costs of the sale, including costs of broker's commissions, escrow fees, title costs and recording fees, etc. d) Current year taxes — prorated to the close of escrow. e) The borrower's down payment and all principal reductions made by the borrower. f) Any "Qualified Capital Improvements". The Equity Share is the amount equal to a percentage share of the appreciation in the value of the Property determined by multiplying a percentage factor (the "Applicable Factor") by the difference between the sales price and the purchase price, provided that the Equity Share does not exceed an amount permitted under the law for a shared appreciation loan. The Applicable Factor is calculated by dividing the amount of the Agency loan by the Purchase Price. For example, if the Agency loan is $15,000 and the Purchase Price equals $150,000, the Applicable Factor equals 10%. The Equity Share would then equal: 10% x (Sales Price - $150,000 'Purchase Price') = Equity Share 13. Repayment Terms The Program loan is a second position loan secured by a deed of trust. There are no monthly payments until the first loan is paid off. At such time as the First Lien in favor of the original First Lender is paid in full, fully amortized payments over the remainder of the 45-year term of principal and interest will be due to the Agency on the first day of the second month following the date of the final payment on the First Lien was due. However, in the event the First Lien was refinanced extending the term of the First Lien past its original maturity date, the first payment due date would not change. In the event the term of the refinanced lien is shortened, then the first payment would be due on the first day of the second month following the date of the final payment on the First Lien was due. All monthly payments combined may not exceed the Affordable Housing Cost established by state law. In the event that the combined payments exceed the Affordable Housing Cost, then the Agency's payment will be reduced by the amount that exceeds the Affordable Housing Cost. Any remaining amounts due to the Agency at the end of the term will then be due and payable. The loan and all other applicable payments will become due and be immediately payable in full upon the occurrence of any one of the following "Events of Acceleration": ■ Sale or transfer of the Property without prior written Agency approval; 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 :• Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 6 of 17 • Refinance of the first trust deed for a loan amount more than the original principal balance of the first mortgage being refinanced; or • Refinance without the prior written approval from the Agency; The Agency will not subordinate its deed of trust to a new first deed of trust that has a variable interest rate, an interest rate greater than the original first mortgage. a maturity date beyond the maturity date of the original first mortgage (unless the covenant is extended for the same number of years as the new first loan extends past the original first loan maturity) or any negative amortization associated with it, and will not subordinate below second position. In the event that the Agency loan becomes due and payable prior to the forty-fifth (45th) anniversary of the date that the Trust Deed is recorded with the County Recorder, the Participant must pay the Agency the principal amount of the Agency loan. In the event the Property is sold to a buyer not qualified for the Agency Program, the Participant must pay the Agency the principal on the Loan plus the Equity Share (see Section 11: Resale of the Property). Strict penalties may be imposed on any applicant making a material misstatement, misrepresentation, or fraudulent act on documents submitted to obtain a Program loan. Any person making a negligent material misstatement or misrepresentation in any affidavit or certification made in connection with the application for, or the issuance of a Program loan, shall be subject to all applicable fines and penalties. 14. Subordinate Liens Subordinate liens will not be allowed for any reason unless approved in writing by the Agency in its sole and absolute discretion prior to securing such loan and only for the purpose of qualified home improvements. 15. Account Information To obtain a current account balance or a payoff amount, homeowners must contact the Agency's Program Administrator for information. 16. Approved Lenders Only qualified Lenders approved by the Agency may participate in the Program. They are as follows: 17. Compatible First Mortgages The First Time Home Buyers Program may be used with conventional and FHA fixed- rate loans. The Lender will process the underlying mortgages using standard underwriting procedures, taking into account the value of the Program in qualifying 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 (760) 346-0611 :• Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 7 of 17 applicants. The Lender is expected to maximize the amount of its loan to ensure Participant's housing cost is no more than 30% of gross household income. II. Procedures The Program's loan processing procedures are designed to coincide with the standard mortgage loan processing and underwriting procedures at most mortgage lending institutions. Step 1: Pre -Qualification Questionnaire and Required Documentation Applicant submits to the Agency a completed and signed Pre -qualification Questionnaire and the documentation required to determine the eligibility of Program participation. The documentation required to determine eligibility in the program shall include: At least two years tax returns or equivalent Identification (driver's license, picture identification, proof of citizenship or legal residency Social Security cards for all household members W-2's for the last two years, pay stubs or other form of notification of all household income Other such documentation as may be required to substantiate household income or any other conditions under which eligibility must be verified. Step 2: Information Package If the Agency determines Applicant qualifies, the Agency sends the Applicant an Information Package. The Agency's package contains the following items: • Program Manual • Approved Lenders List Step 3: Participant Prequalification Loan Approval From An Agency Approved Lender Applicant contacts a qualified lender from the Approved Lenders List to obtain prequalification approval. Lender determines if applicant is eligible for the Program loan approval based on preliminary indications of income, purchase price, prior home ownership, and other Program eligibility factors. Step 4: Property Identification Applicant locates a potential property for purchase and enters into a purchase agreement. Agency will not reimburse fees or commissions of real estate professionals or realtors, however, it is strongly recommended that both buyer and seller be 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 :• Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 8 of 17 represented by a real estate professional licensed in the State of California. Said commissions and fees will be allocated and paid through escrow as is customary in Riverside County. Step 5: Real Estate Purchase Contract Real estate purchase contract completed between buyer and seller noting affordable restrictions as required. Step 6. Formal Loan Approval From An Agency Approved Lender Applicant formally applies to an Agency approved lender for a mortgage loan for the purchase of the home. Step 7: Request of Program Commitment/Reservation If applicant pre -qualifies for a primary loan, the Participant will agree to release any documentation provided by Participant to Primary lender for purposes of securing said loan. Lender then submits a Request of Program Commitment/ Reservation package to the Agency's Program Administrator. The package is to include the following: • Lender's Application (FNMA 1003) • Good Faith Estimate • Purchase Agreement signed by both buyer and seller • Escrow instructions, certified copies, Preliminary Title Report • Applicant Affidavit • Lead -Based Paint Hazards Notification Statement (if applicable) The Applicant Affidavit contains all of the certifications and acknowledgements required by the Program, some of which are: • Certification that the residence will be used as the Applicant's Principal Residence and that the Applicant must notify the Agency/Lender when the home ceases being the Principal Residence. • Certification that the Applicant has not had an ownership interest in a residence during the preceding three (3) year period. • Certification that this is a new mortgage loan. • Certification of household income of all adults intending to occupy the property. • Acknowledgement that the Program loan cannot be transferred. • Acknowledgement that any material misstatement of fraud is made under penalty of perjury. Step 8: Formal Agency Approval 73-510 Fred Waring Drive, Palm Desert, California 92260 (760) 346-0611 •: Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 9 of 17 The Agency's Program Administrator reviews the Request of Program Commitment/ Reservation package submitted by the lender. If the package meets Agency requirements, the Agency's Program Administrator initiates one of the following options: • Issues a "Commitment/Reservation Approved Letter" to lender; • Provides a "Additional Information Needed Letter"; or • Provides a "Denial Letter" including reasons for denial. As a part of purchase, the Property must be inspected and its condition approved by the buyer. Any serious code violations or other health and safety deficiencies reported by inspector must be corrected as a condition precedent to funding a Program loan. Step 9: Underwriting of First Mortgage When the lender submits the loan package to its underwriter, it must also send copies of the following to the Agency's Program Administrator: • Appraisal • Lender's Underwriting Worksheet and/or Approval Memorandum Credit Report • Two (2) years signed and completed tax retums All appropriate verifications including but not limited to: • Bank statements as required by Lender for all sources of funds • Pay stubs, W2's • Gift Letters where applicable • Explanation of derogatory credit • MCAW or 1008 • Statement of Household Composition, including Name, Age, and Relationship for everyone who will occupy the home Step 10: Underwriting of Agency Loan Once the Agency receives the Loan Package described in Step 8 from Lender, the Agency will review for completeness. Agency will submit a "Missing Items Checklist" to Lender if any documents are not included. Loan underwriting is suspended until missing items are received. Administrator reviews the documentation for the Program loan and sends a Final Loan Recommendation (FLR) to Participant and a copy to the Lender. The FLR includes one of the following: • Approval of the Program Request for Assistance which authorizes the Agency to draw documents and proceed through funding; or • Denial of the Program Request for Assistance. Step 11: Execution of Loan Documents & Fund Disbursement 73-510 Fred Waring Drive, Palm Desert, California 92260 ❖ (760) 346-0611 s• Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 10 of 17 Upon receipt of an approved FLR and Authorization for Payment, Program Administrator will send the following to the designated escrow: • Agency Executed Escrow Instructions. • Loan Agreement for Participant to execute through escrow. • Promissory Note for Participant to execute through escrow. • Deed of Trust for Participant to execute through escrow. • Unit Regulatory and Lien Agreement for Participant to execute through escrow. • Other documents as required by Agency for Participant to execute through escrow. Step 12: Escrow Process and Closing The escrow company assists Applicant to execute both Lender and the Program documents. Upon execution of loan documents, escrow will contact the Agency's Program Administrator to order funds. (The Agency needs a set of all executed documents.) Upon receipt of funds, the escrow company will effect completion of the transaction and loan closing (escrow closes and documents record). County Recorder's Office sends the recorded loan documents to the Agency. Step 13: Loan Servicing The Program Administrator will service the Program loan as follows: • Review title changes which may constitute an event of default; • Payoff quotation if property is refinanced or sold; • Reconvey if loan is paid -off; and • Monitor other requirements per contract. III. Lender Section The Palm Desert Redevelopment Agency maintains a list of approved Lenders for this Program. Only approved Lenders may participate in this program. This section contains information specifically for Participating Lenders. Approved Lenders must agree to participate in accordance with the Participant, Lender and Program guidelines. 1. Coordinate with Program Administrator Participating Lenders will coordinate the Program requirements with the Agency according to Program Procedures. Program Procedures are designed to coincide with standard mortgage loan processing and underwriting procedures that are in place at most mortgage lending institutions. Recognizing there are procedural variations among 73-510 Fred Waring Drive, Palm Desert, California 92260 + (760) 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual • Palm Desert FTHBP Program Manual Page 11 of 17 the Participating Lenders, the procedures outlined here are meant to serve as guidelines with respect to the sequence of events. However, since time frames are limited, it is recommended that Participating Lenders work closely with Agency to effectuate a timely and successful close of escrow in accordance with the Purchase Contract. 2. Pre -Qualification of Applicant Conventional underwriting standards will be modified to recognize the Program assistance in determining housing expense and indebtedness ratios. In addition, fees associated with the Program loan, charged by the Program Administrator, must be included in costs contained in the Good Faith Estimate. 3. Affidavits and Certifications Applicant and Participating Lender must complete and sign the appropriate Program documents and attest to their validity. The Lender will be required to submit certifications which will state that to the best of the Lender's knowledge, material misstatements do not appear in the application and program documents. If the Lender becomes aware of misstatements, whether negligently or willfully made, it must notify the Agency and the Program Administrator immediately. The Agency will take all appropriate actions to enforce Program requirements. The Lender should also be aware and inform the Applicant that penalties are provided by Federal and California law if a person makes a false statement or misrepresentation to participate in this Program. 4. Verifications The Lender shall verify that the Applicant, the home, and the mortgage transaction comply with the Program restrictions. In conjunction with the Lender's standard verification process and under its agreement with the Agency, the Lender performs a reasonable investigation to verify that all Program requirements have been satisfied. Lender may verify these facts in any reasonable, efficient manner, according to investor/government guidelines for processing mortgage loan applications. 5. Program Charges and Fees The Lender may, at its option, charge each Applicant a non-refundable application fee of up to $50.00 for processing each Program loan. The Lender may also charge reasonable and customary fees as would be charged to a potential borrower applying for a mortgage not to exceed 1.5% of the 1st loan amount, including, but not limited to points, origination fees, underwriting fees, etc. These fees are exclusive of title, escrow charges, and mortgage insurance premiums. Lender fees in excess of 1.5% must be approved in writing by the Program Administrator prior to Agency's loan approval being granted by Lender. 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 (760) 346-0611 + Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 12of17 6, Applicant Eliaibilitv Requirements A. Prior Home Ownership: The Applicant may not have held an ownership interest in a residential dwelling unit within the past three (3) years (includes mobile homes regardless of land ownership by the participant). This must be verified by the Lender's examination of the Applicant's federal tax returns for the preceding three (3). This examination will determine whether the Applicant has claimed a deduction for mortgage interest or taxes on a residence, within the last three years. To demonstrate compliance within this three year requirement, the Applicant must complete and sign the Program Affidavit and provide copies of its last three years signed federal tax returns, or one of the following alternatives: • If the Applicant has filed the short form 1040A or 1040EZ for the last three (3) years, completes and signs the required affidavits, but is unable to produce the signed returns, the Lender will accept a letter from the IRS, or authorized IRS Servicing Agent verifying the filing status of the Applicant. The letter should confirm that the Applicant filed the 1040A or 1040EZ for the years in question. • If the Applicant filed the 1040 Long Form and cannot produce an original copy of the signed tax returns, the Lender will accept a letter [saying what?] from the IRS or authorized IRS Servicing Agent. A 4506 audit will be performed for years in question by third party IRS Service Agent. [?] • In the event the Applicant was not obligated to file federal income tax returns for any of the preceding three years, it will be necessary for the Lender to obtain from the Applicant a completed and signed Income Tax Affidavit which is required in place of the above options, along with the other Program Affidavits. The Income Tax Affidavit must be supported with documented proof of the reason for not filing taxes. Affidavit must also be supported by documented proof that the Applicant was a renter during the specified period (Le., notarized letter from landlord or manager, canceled checks, or rent receipts). • When a Program application is submitted during the period between January 1 and April 15 and the Applicant has not yet filed a federal tax return for the preceding year with the IRS, the Lender may rely on an affidavit of the Applicant. The affidavit will report that the Applicant was not entitled to claim deductions for taxes or interest, on indebtedness, with respect to property constituting a residence for the preceding calendar year. The affidavit must be forwarded to the Agency with the Request of Program Commitment/Reservation package. 73-510 Fred Waring Drive, Palm Desert, California 92260 (760) 346-0611 Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 13 of 17 If the tax returns indicate the Applicant took a deduction for mortgage interest or real estate taxes on property, Applicant must provide proof that the mortgage interest deduction or real estate taxes were related to property that does not contain a residential dwelling unit. Said property will be considered an asset and used to determine income as provided in Section 3 of the Guidelines. • In the event the signed tax returns do show a deduction for interest or taxes on a Principal Residence, or in the event the signed tax returns are not obtained; the Agency will not issue the Program loan because the Applicant does not qualify for this Program. B. Occupancy: The Program Applicant must occupy the acquired residential house as a "Principal Residence". The Lender must obtain from the Applicant, a program affidavit that states the Applicant's intent to use the residence as Principal Residence. This affidavit further states that the Applicant will notify the Agency if the residence ceases to be the Principal Residence. C. Affordability Requirements: Applicants must meet established affordable housing cost requirements as defined by California Redevelopment Law. "Affordable Housing Cost" is defined as the maximum amount of gross monthly household income that can be used for the cost of housing, which includes the monthly mortgage payment, property taxes, insurance, and homeowners association fees. Lender is responsible for determining that all Applicants meet the affordability standards, and the Program Administrator will review and confirm compliance. The calculation of the Affordable Housing Cost will be made by the Lender and varies depending on actual annual household income and the home selected for purchase; however, the cost of housing may not exceed 30% of gross household income. D. Income Limits: The Applicant's annual household income must be less than the following limits, which represent 120% of median household income from the Riverside area published by the Department of Housing and Urban Development (HUD). These income limits change slightly from year-to-year and will be published by the City of Palm Desert. [Section 3 says Agency will do this.] Maximum Annual Gross Income 2004 73-510 Fred Waring Drive, Palm Desert, California 92260 •) (760) 346-0611 •) Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 14 of 17 Very Low Lower Moderate 1 person $19,000 $30,400 $45,600 2 person $21,725 $34,760 $52,140 3 person $24,425 $39,080 $58,620 4 person $27,150 $43,440 $65,160 5 person $29,325 $46,920 $70,380 6 person $31,500 $50,400 $75,600 7 person $33,675 $53,880 $80,820 8 person $35,850 $57,360 $86,040 The following definition of Gross Income must be used when calculating income limits for a Program loan: 1. In calculating gross income, all payments from all sources received by the Applicant and each additional member of the household who is not a minor and who share the same dwelling unit or share in the ownership of the unit, whether in cash or in kind, shall be considered pursuant to Section 6914 of the California Code of Regulations and as generally set forth below: a. The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services [provided they are normal and consistent income of the Applicant?]; b. The net income from operation of a business or profession, or from rental of personal property. In accordance with Section 3 of the Program Guidelines, Ownership in real property [residential or commercial, disqualifies Applicant from this program] [something is missing]; c. Interest and dividends; d. The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similarity types of periodic receipts; e. Payment instead of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay, subject to 2c, below. NOTE: Such payments may be excluded by the lending institution providing the first mortgage for purposes of underwriting, but shall be included in eligibility determinations for the Program; f. Periodic and determinable allowances, such as alimony and child support payments, any regular contributions or gifts received from persons not residing in the dwelling; 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 :• (760) 346-0611 Fax (760) 341-6372 FTHB Program Manual g• Palm Desert FTHBP Program Manual Page 15 of 17 All regular pay, special pay, and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family, spouse, or other person whose dependents are residing in the unit subject to 2c below; h. Public assistance; i. Any earned income tax credit to the extent it exceeds income tax liability; and Any other income that must be reported for federal and state income tax purposes. All other income and assets will be allocated in the computation of household income pursuant to the California Code. 2. The following shall not be considered as income: a. Casual, sporadic, or irregular gifts; b. Amounts that are specifically for, or in reimbursement of, the cost of medical expenses; c. Lump -sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workers compensation), capital gains, and settlement for personal or property losses; d. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to veterans for use in meeting the costs of tuition, fees, books, and equipment; e. Special pay to a serviceman head of household away from home and exposed to hostile fire; f. Relocation payments; g. Foster childcare payments; and h. Amounts specifically excluded by any federal or state statute from consideration as income. 7. Material Changes If an Applicant has a pending application and changes the Property to be purchased, the Lender must submit a new Request of Program Commitment/Reservation package to the Agency indicating that the new package replaces any prior request. The Agency will issue a revised Commitment/Reservation Approval Letter. 73-510 Fred Waring Drive, Palm Desert, California 92260 s• (760) 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 16 of 17 8. Re -Submissions of Returned or Rejected Applications If a Program application has been returned or denied by the Administrator or Agency, any resubmission for reason other than a disqualification of Applicant must include all information as required by a new submission and will be processed on that basis. 9. Changes Prior to Closing The eligibility of Applicant for a Program loan is based upon the Applicant's current income. The Program will issue the Commitment based on factors as they are verified as of the date the Commitment is issued. The income verified for Commitment is valid as long as the loan closes within a reasonable amount of time after the financial information was originally submitted and there are no new sources of income that were not previously reported. Increases (e.g., raises) in income previously reported would not affect the validity of a Program Commitment if the loan closes within 60 days from the time the Program Commitment was issued. If the loan does not close within 60 days, any additional income must be included in household income. If total income exceeds the Program maximum, the Applicant will be disqualified. If an Applicant experiences a change in marital status after issuance of the Commitment and prior to closing, the applicant(s) must still satisfy the prior home ownership requirements contained in the Application Affidavit. Any income added to the household income because of a new spouse will be considered and may effect the eligibility of the Applicant. 10. Changes of Home Ownership Status or Amount of Mortgage Loan If the Applicant acquires a present ownership interest in a principal residence prior to loan closing, the Program Commitment shall be revoked. If the total acquisition cost of the residence to be purchased in connection with the Program increases so as to require an increase in the amount of the Program subsidy, then the Program Commitment shall be revoked. The Lender would in this case be required to submit a new Request of Program Commitment/Reservation package to the Agency. 11. Other Changes in Circumstances The Program Commitment is issued in reliance upon the Applicant's Affidavit that the requirements necessary for issuance of a qualified Program loan have been met. The Lender must immediately notify the Agency in writing of any change in circumstances upon which the Commitment was issued. Such changes may result in Commitment revocation. 73-510 Fred Waring Drive, Palm Desert, California 92260 •: (760) 346-0611 •: Fax (760) 341-6372 FTHB Program Manual Palm Desert FTHBP Program Manual Page 17of17 12. Conflict of Interest No Program loan shall be issued to a person, or the immediate family of a person, who is in a decision -making position relative to the Program or the issuance of a Program loan. This includes, but is not limited to, staff and immediate family members of staff, of the Lenders, the Agency, and the Program Administrator. 13. Program Administrator— Handling Priority Applications will be accepted and processed on a first come, first served basis according to the date of receipt. In the event that the Agency receives more applications than funds are available, the following order of priority will be applied: 1. Applicants currently living in unsanitary, unsafe, or unhealthful condition; 2. Applicants currently living in an overcrowded condition; 3. Applicants currently paying over 30% of household income in total housing cost; 4. Those with the most suitable family size for the dwelling unit proposed to be purchased; 5. Palm Desert residents; 6. Those with employment in Palm Desert; 7. Those with family in Palm Desert; and 8. Others. 73-510 Fred Waring Drive, Palm Desert, Califomia 92260 • (760) 346-0611 •:• Fax (760) 341-6372 FTHB Program Manual