HomeMy WebLinkAboutSR - AQUISITN - APN 634-241-042PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE ACQUISITION OF APN 634-241-042
SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: MARCH 8, 2007
CONTENTS: CERTIFICATE OF ACCEPTANCE OF DEED
Recommendation:
By Minute Motion,
1) Authorize the acquisition of 43-710 Kelsey Court (APN 634-241-042) for the
purpose of retaining affordability covenants and resale if necessary in
anticipation of the expiration of the 60 day Right of Refusal period;
2) Approve a Silent Second Trust Deed in an amount necessary to secure an
affordable housing cost pursuant to Redevelopment Law for either a direct
sale or Agency sale; and
3) Authorize the Executive Director to execute any documents necessary to
facilitate this transaction. Funds are available in the Housing Set -Aside
Fund.
Executive Summarv:
The Agency has the first right of refusal to purchase resales at Desert Rose in order to maintain
affordability covenants and resell the unit to another qualified buyer. If the Agency fails to execute
its option to purchase within a 60-day period, the homeowner can sell the house to a non -qualified
buyer and the Agency would lose its covenants on the property.
Discussion:
The Agency has the first right of refusal to purchase properties from owners in Desert Rose who
desire to sell. Staff desires to exercise the Agency's option to purchase in order to retain
affordability covenants in the event that it becomes necessary prior to the expiration of the 60-day
Right of Refusal to purchase period. This will allow for additional time to identify a low income
family to purchase the unit.
Staff will endeavor to qualify a buyer and have the sale negotiated directly between the seller and
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Staff Report
Authorize the Acquisition of 634-241-042
March 8, 2007
Page 2
new qualified buyer, however due to the qualification process it is not always feasible within the
time frame required.
The home was purchased on March 15, 2005, for the sale price of $110,700.00 There has been
two owner(s) and based on the formula for resale described in the Unit Regulatory Agreement, the
owner is authorized to sell the home for $111,844.00 plus commissions and reasonable closing
costs. The Agency has the right to purchase the properties for the same amount as the owners
are authorized to sell.
If it becomes necessary for the Agency to purchase the home to maintain affordability, a low or
moderate income family will be identified from an established waiting list and will purchase the
home directly from the Agency subject to the Public Hearing process.
In either event, it will be necessary for the Agency to provide a Second Trust Deed to a new buyer
in an amount necessary to secure an affordable housing cost in order for them to qualify to
purchase the home. The new buyer will be required to sign a new Unit Regulatory Agreement for
a covenant period of 30 years as prescribed in the Desert Rose Unit Regulatory Agreement.
Monies are available in the Agency's Housing Set -Aside Fund.
Submitted by: Department Head:
J n M. Moore `—P1"ave Yrigo n
sing Authority Administrator Director of velopment/Housing
JMM:JG:pl
Carlos L. Orteg , xecutive Director
Paul Gibson, Director of Finance
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VERIFIED BY
Original on file with City Clerk's Office
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A. P. N .634-241-042
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed
from JOSE NORIEGA AND LIDIA CLAROS. to THE PALM DESERT REDEVELOPMENT
AGENCY, a public body, corporate and politic, the legally described property as: Lot 42
of Tract Map No. 27546, in the City of Palm Desert, County of Riverside, State of
California, as per map recorded in book 249 of maps, pages(s) 63 through 68 inclusive,
of the official records of Riverside County,also known as 43-710 Keslev Court, is hereby
accepted by order of the Agency Board on behalf of the Agency pursuant to Minute Motion
of the Agency Board on March 8. 2007, the Grantee consents to the recordation thereof
by its duly authorized officer.
Date: March 8. 2007
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
Richard S. Kelly, Chairman
State of California }SS
County of }
On , 20 , before me, , a Notary Public,
personally appeared , personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature