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HomeMy WebLinkAboutSR - First Amendment to the DDA - Rancho Housing AlliancePALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE: FIRST AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) BY AND BETWEEN RANCHO HOUSING ALLIANCE AND THE PALM DESERT REDEVELOPMENT AGENCY; AND THE CERTIFICATE OF COMPLETION FOR THE SUBJECT DDA SUBMITTED BY DEVELOPER DATE: CONTENTS Recommendation: LAURI AYLAIAN, REDEVELOPMENT MANAGER RANCHO HOUSING ALLIANCE 53-990 ENTERPRISE WAY, STE. 1 COACHELLA, CA 92236 AUGUST 24, 2006 FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT CERTIFICATE OF COMPLETION By Minute Motion, that the Agency Board: Approve the First Amendment to the Disposition and Development Agreement by and between the Palm Desert Redevelopment Agency and Rancho Housing Alliance to revise the limitation on sales price; 2. Authorize City Clerk to file a Certificate of Completion for the rehabilitation of the home at 74-047 San Marino Circle, and 3. Authorize the Chairman to execute the amendment and Certificate of Completion. Executive Summary: By approval of the staff recommendation, the Agency Board will allow a $10,000 increase in the sales price for the affordable home rehabilitated by Rancho Housing Alliance, and will authorize the filing of a Certificate of Completion which will close out this project. The increase in sales price will allow Rancho Housing Alliance, a nonprofit organization, to recover additional expenses incurred in their rehabilitation of the house. The home will still be affordable to the family identified to purchase it. Discussion: In December 2005, the Palm Desert Redevelopment Agency and Rancho Housing Alliance entered into a DDA that conveyed a blighted single-family home to Rancho Housing Alliance, a nonprofit organization, for rehabilitation and subsequent sale to a Staff Report Approval of First Amendment to DDA between Rancho Housing Alliance/Agency and Certificate of Completion Page 2 of 2 August 24, 2006 qualifying moderate -income family. Escrow for the conveyance closed in March 2006 and, since that time, Rancho Housing Alliance has replaced the roof, windows, air conditioning system, garage door, and window blinds, and has installed a block wall, insulation, landscaping, appliances, plumbing, and painted the interior and exterior of the home. The original DDA limited the resale value of the home to Rancho Housing Alliance's purchase price from the Agency plus the estimated cost of repairs and a nominal developer's fee. In performing the actual work, Rancho Housing Alliance ran into several unforeseen conditions and incurred additional costs of approximately $10,000 to correct the newly discovered problems. Rancho Housing Alliance subsequently requested approval to increase the sales price of the home by $10,000 in order to recoup their additional expenses. A $10,000 increase in sales price from approximately $222,000 to $232,000 does not impact the ability of the family identified for the home to be able to qualify for a first mortgage at an affordable housing cost. The Redevelopment Agency will also provide financial assistance to the family via the First Time Home Buyer Program that offers up to a $75,000 loan with three percent interest deferred for thirty years. Agency staff has reviewed the DDA and the renovation of the home and has determined that the improvements are complete and the work has been fully and satisfactorily performed, as is required under the DDA. Consequently, staff recommends approval of the Certificate of Completion and requests that the Agency Chair execute the certificate and First Amendment. Submitted by: Lauri Aylaian Redevelopment Manager Approval: stin McCarthy,'A/'11cpment Dave Yrigoy Director o edevelopment/Housing Carlos L. Orte 90/ , Executive Director oyro td BY RDA ON ;?-a /{-6 6 VERIFIED BY kL)�Jl , Original on file with � t City Clerk s Office GARDA\Maria Hunt\WPDATA\AYLAIAN\STFRPTS\082406FirstAmendCertCompltnRanchoHsg.doc FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT ("Amendment") dated as of August 25 , 2006 (the "Effective Date"), is entered into by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and RANCHO HOUSING ALLIANCE, a California non-profit public benefit corporation (the "Developer"). Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the DDA (as hereinafter defined). RECITALS This Amendment is entered into with respect to the following facts: A. The Agency and Developer have entered into that certain Disposition and Development Agreement executed as of December , 200 5 (the "DDA") regarding the disposition and development of the Property located in the City of Palm Desert (the "City"). herein. B. The Agency and the Developer wish to amend and modify the DDA as provided AGREEMENT NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants and agreements contained in this Amendment the parties hereto agree as follows: Recitals. The foregoing recitals are incorporated herein by reference. 2. Limitation on Sales Price. Section 6.3.4 of the DDA is hereby deleted in its entirety and the following provisions substituted: "Developer shall sell the Site to the Buyer at a price that does not exceed the sum of the Purchase Price, plus up to $53,250 for the costs of rehabilitating the Site pursuant to the Scope of Development as approved by the Agency, plus $15,000 for costs of Developer." 3. Use of Section Titles and Captions. The section titles and captions contained in this Amendment are inserted only as a matter of convenience and for reference, and shall in no way be construed to define, limit, or extend the scope of this Amendment or the intent of any of its provisions. 4. Attornevs' Fees and Costs. The Agency and Developer shall each bear its own attorneys' fees and costs in connection with the disputes addressed herein. 5. Integration of Agreement. This Amendment is the entire agreement between the Agency and Developer with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreement and discussion. It may be amended only by an agreement in writing signed by the Agency and Developer. 6. Agreement To Be Construed According To Local Law of California. This Amendment shall be deemed to have been executed and delivered within the State of California and the rights and obligations hereunder shall be construed and enforced in accordance with, and governed by, the local laws of the State of California. 7. Execution in Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original, with the same effect as if the signatures thereto were on the same instrument. IN WITNESS WHEREOF, the parties hereto have entered into this Amendment as of the day and year first above written. "Developer": RANCHO HOUSING ALLIANCE, a California non-profit public benefit corporation n By: r 1 I JEFFREY A II nvc Executive Director By: Its: "Agency": PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Chairperson ATTEST: Secretary APPROVED AS TO FORM: Richards, Watson & Gershon, a professional corporation By: Jim G. Grayson Agency Counsel State of California County of►versi�� On So � j 28 , Zoolo , before me, e. C-e-Aino a Notary Public, personally appeared Se-�rP1� A. s , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(§0 whose name(p) is/q'e subscribed to the within instrument and acknowledged to me that he/sjxe/016y executed the same in his/h,or/tlxeir authorized capacity(Ws), and that by his/or/their signature(o) on the instrument the person($), or the entity upon behalf of which the person($) acted, executed the instrument. WITNESS my hand and official seal. Signature '1 4 DESCRIPTION OF ATTACHED DOCUMENT: (TITLE OR TYPE OF DOCUMENT) (NUMBER OF PAGES) (DATE OF DOCUMENT) (SIGNER(S) OTHER THAN NAMED ABOVE) emote CEDM Commission # 1410654 Notary INMe _ UNOM W Me Sich county Q'MV Cam. Drplrtat Moy 9, 20071 (seal) Right Thumbprint of Signer (Optional) FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT ("Amendment") dated as of August 25 , 2006 (the "Effective Date"), is entered into by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and RANCHO HOUSING ALLIANCE, a California non-profit public benefit corporation (the "Developer"). Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the DDA (as hereinafter defined). RECITALS This Amendment is entered into with respect to the following facts: A. The Agency and Developer have entered into that certain Disposition and Development Agreement executed as of December , 200 5 (the "DDA") regarding the disposition and development of the Property located in the City of Palm Desert (the "City"). herein. B. The Agency and the Developer wish to amend and modify the DDA as provided AGREEMENT NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants and agreements contained in this Amendment the parties hereto agree as follows: Recitals. The foregoing recitals are incorporated herein by reference. 2. Limitation on Sales Price. Section 6.3.4 of the DDA is hereby deleted in its entirety and the following provisions substituted: "Developer shall sell the Site to the Buyer at a price that does not exceed the sum of the Purchase Price, plus up to $53,250 for the costs of rehabilitating the Site pursuant to the Scope of Development as approved by the Agency, plus $15,000 for costs of Developer." 3. Use of Section Titles and Captions. The section titles and captions contained in this Amendment are inserted only as a matter of convenience and for reference, and shall in no way be construed to define, limit, or extend the scope of this Amendment or the intent of any of its provisions. 4. Attornevs' Fees and Costs. The Agency and Developer shall each bear its own attorneys' fees and costs in connection with the disputes addressed herein. 5. Integration of Agreement. This Amendment is the entire agreement between the Agency and Developer with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreement and discussion. It may be amended only by an agreement in writing signed by the Agency and Developer. 6. Atzreement To Be Construed According To Local Law of California. This Amendment shall be deemed to have been executed and delivered within the State of California and the rights and obligations hereunder shall be construed and enforced in accordance with, and governed by, the local laws of the State of California. 7. Execution in Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original, with the same effect as if the signatures thereto were on the same instrument. IN WITNESS WHEREOF, the parties hereto have entered into this Amendment as of the day and year first above written. "Developer": RANCHO HOUSING ALLIANCE, a California non-profit public benefit corporation By: Its: F .. l iAY S i;s-c Director By: Its: "Agency": PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Chairperson ATTEST: Secretary APPROVED AS TO FORM: Richards, Watson & Gershon, a professional corporation By: Jim G. Grayson Agency Counsel 2 State of California } )SS. County of } On 3O � y •2,� , 2,o o � , , before me, Ld� e (ecienv a Notary Public, personally appeared Se-4--ce� !�• $ , personally known to me (or proved to me on the basis of satisfactory evidence) to be the personas) whose name(p) is/qtre subscribed to the within instrument and acknowledged to me that he/sMe/fey executed the same in his/qdr/tF*ir authorized capacity(ies), and that by his/tier/t"ir signature($) on the instrument the person($), or the entity upon behalf of which the person( acted, executed the instrument. WITNESS my hand and official seal. j EDDIE CEDE NO ` Comminlon # 1410654 Notary Pubic - Caitomla Rhr *le County ilamy Comm. 00 a May 9.20071 Signature (seal) DESCRIPTION OF ATTACHED DOCUMENT: (TITLE OR TYPE OF DOCUMENT) (NUMBER OF PAGES) (DATE OF DOCUMENT) Right Thumbprint of Signer (Optional) (SIGNER(S) OTHER THAN NAMED ABOVE) RECORDING REQUESTED BY: PALM DESERT REDEVELOPMENT AGENCY AND WHEN RECORDED RETURN TO: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92660 [This document is exempt from Documentary Transfer Tax pursuant to Revenue and Taxation Code Section 11922] CERTIFICATE OF COMPLETION WHEREAS, Rancho Housing Alliance, a California non-profit public benefit corporation (the "Developer") is the owner of certain real property situated in the City of Palm Desert, California described in Exhibit A which is attached hereto and made a part hereof (the "Site"), and has constructed and developed certain improvements on and about the Site (the "Improvements"); and WHEREAS, pursuant to Section 5.16 of the Disposition and Development Agreement (the "DDA") entered into by and between the Palm Desert Redevelopment Agency, a public body, corporate and politic (the "Agency") and the Developer, the Agency has agreed to furnish the Developer with a Certificate of Completion ("Certificate") upon the completion of construction and development of the Improvements, and such Certificate is to be in such form as to permit it to be recorded in the Recorder's Office of Riverside County; and WHEREAS, the DDA states that the Certificate shall constitute conclusive determination of satisfactory completion of the construction and development of the Improvements as required by the DDA; and WHEREAS, the Agency has determined that the construction and development of the Improvements as required by the DDA has been satisfactorily completed. NOW, THEREFORE, it is hereby stated by the Agency that: 1. The Agency does hereby certify that the construction and development of the Improvements has been fully and satisfactorily performed and completed as required by the DDA. 2. Nothing contained in this instrument shall modify any provisions of the DDA. IN WITNESS WHEREOF, the Agency has executed this Certificate this 25 August 2006. PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Attest: Rachelle D. Klassen, Secretary Carlos L. Ortega, Executive Director EXHIBIT A To Certificate of Completion Rancho Housing Alliance LEGAL DESCRIPTION Lot 16, Block 1 in Palma Village Unit No. 1 in the City of Palm Desert, County of Riverside, State of California, as per map filed in Book 19, Pages 68 and 69, of Maps in the office of the County Recorder of said county.