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Home My WebLink AboutDraft 09-10 Neighborhood Stabilization Pgrm & MOU (C28970)CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT CITY COUNCIL RESOLUTION NO. 09-35 AND AGENCY RESOLUTION NO. 559 APPROVING THE DRAFT 2009-2010 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) ACTION PLAN; AND APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM DESERT AND COUNTY OF RIVERSIDE FOR NEIGHBORHOOD STABILIZATION PROGRAM FUNDING SUBMITTED BY: VERONICA TAPIA, REDEVELOPMENT ACCOUNTANT/ JANET MOORE, DIRECTOR OF HOUSING DATE: MAY 21, 2009 CONTENTS: 2009-2010 NSP DRAFT ACTION PLAN NEPA EXEMPTION FORMS Recommendation: That the City Council/Agency Board open the joint public hearing and following testimony, take the following action: Waive further reading and adopt: Resolution No. 09- 35 , a resolution of the City Council of the City of Palm Desert approving the draft 2009-2010 Neighborhood Stabilization Program (NSP) Action Plan; 2. Resolution No. 559, a resolution of the Palm Desert Redevelopment Agency approving the draft 2009-2010 Neighborhood Stabilization Program Action Plan; 3. Approve the Memorandum of Understanding (MOU) between the City of Palm Desert and the County of Riverside for NSP funding; and Contract No. C28970 4. Authorize the City Manager/Executive Director to finalize and execute the NSP plan and MOU joint agreement. Executive Summary: The Neighborhood Stabilization Program (NSP) is a special allocation of Community Development Block Grant (CDBG) funds provided through the U.S. Department of Housing and Urban Development (HUD) under the Housing and Recovery Act of 2008. The City of Palm Desert is eligible to receive $326,784 in NSP funding. Applicants that do not meet the $1 million threshold individually are required to submit a joint application. Therefore, the City of Palm Desert will need to partner with the County of Riverside, the City of Coachella, and the City of Palm Springs in order to meet the requirement to pursue funding. This public hearing is necessary to provide an opportunity to all persons who may be affected by the proposed activities to participate and comment, prior to submission of the application. Staff Report NSP Program and MOU Page 2 of 3 May 21, 2009 Discussion: The basic intent of the NSP is to mitigate the impacts of increasing foreclosures and falling home prices by purchasing foreclosed and abandoned homes and other residential properties at a discounted value, rehabilitating or redeveloping these properties if necessary, and reselling or reusing the properties. Currently, there are three Tiers of funding available through NSP. Based on a formula relative to the number of foreclosures and per mortgage percentage of home foreclosures, Tier 1 jurisdictions were determined to have the greatest need and received direct allocations, provided the allocation was more than $1 million. Tier 2 jurisdictions were those where need was identified, but their respective allocation was less than $1 million. On its own, the City of Palm Desert is eligible for $326,784; therefore, it is considered a Tier 2 jurisdiction. Within the County of Riverside there were five jurisdictions that did not qualify for Tier 1 funding; those include Palm Desert, Palm Springs, Calimesa, Coachella, and Rancho Mirage for a total of $2,300,235. In order to meet the minimum application threshold of $1 million, the State permits jurisdictions in Tier 2 to combine their allocations with other contiguous jurisdictions through a joint agreement. Contiguous is defined by HUD as jurisdictions that are located within the boundaries of the same county. As a result, the City of Palm Desert may enter into a joint agreement with the County of Riverside, the City of Palm Springs, and the City of Coachella. The County of Riverside would apply as the lead agency to meet the contiguous requirement. Both Rancho Mirage and Calimesa have decided not to seek Tier 2 NSP funding. If a joint agreement is not approved, the funding allocated to these Tier 2 cities will be reallocated county-wide for those areas which it has designated as having the greatest need and may not be in the Coachella Valley. In addition to the joint agreement, the City is required to prepare an Action Plan for the NSP Program. Under the requirements provided by HUD, the City of Palm Desert must give priority emphasis to the areas of greatest need, including those: 1. With the greatest percentage of foreclosures; 2. With the highest percentage of homes financed by subprime mortgage related loans; and 3. Identified as likely to face a significant rise in the rate of home foreclosures. Additionally, under the NSP requirements, participating jurisdictions may perform the following activities: A. Establish financing mechanisms for purchase and redevelopment of foreclosed-upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers. B. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. G:\rda\Veronica Tapia\Word Files\Staff Reports\NSP Action Plan Staff Report.doc Staff Report NSP Program and MOU Page 3 of 3 May 21, 2009 C. Establish land banks for homes that have been foreclosed upon. D. Demolish blighted structures. E. Redevelop demolished or vacant properties. Although the draft Action Plan identifies many activities, the primary focus of the Action Plan will be to provide an enhanced First-Time Home Buyers (FTHB) Program. The Program will offer a financing mechanism to eligible first-time home buyers to enable them to directly acquire foreclosed or abandoned single-family homes using NSP funds. Additionally, the Program will provide down-payment assistance to low- and moderate-income households that have not owned homes within a three-year period. The program will be available for households with an annual income that is no greater than 120% of the area median income as published by HUD. Finally, the Program will provide up to 20% of the purchase price with a 15-year affordability period as a"silent second" loan, plus a rehabilitation component to enhance the physical appearance of the home and remove all health and safety concerns to satisfy the Housing Quality Standards (HQS). The total amount of assistance for each home will not exceed $75,000 (which includes both down payment assistance and rehab). As part of the overall County of Riverside study, the Economic Development Agency developed a map of geographical areas of greatest need with the County using the HUD requirements and local data. These maps, along with other data sources, were used in determining the areas within Palm Desert of greatest need. The areas identified as having the greatest need within Palm Desert include Palma Village, Palm Desert Country Club, and the North Sphere. It is the intent to not only target and stabilize these neighborhoods in the short term but to strategically incorporate modern, green-building, and energy-efficiency improvements in NSP activities thereby providing increased sustainability and attractiveness of housing and neighborhoods. Staff recommends that the City Council/Agency Board adopt Resolution Nos. 09- and ; approve the Action Plan and MOU joint agreement as to form; and authorize the City Manager/Executive Director to finalize and execute the NSP plan and MOU joint agreement. Sub 'tted by: � �� Veronica Tapia, Redevelopment Accountant Department Head: Department Head: ; �,�<��' �<�.��x-Z�� Ja(net oore, Director of Housing Approval: < uave Apprc John G.\rda\'ye of Redevelopment/Hsg. McCarthy, ACM ment /I Wohlmuth, City Manager/Exec. Dir. Tapia\Word Files\Staff Reports\NSP Action Plan Staff Report.doc RESOLUTION NO. 09-35 A RESOLUTION OF THE CITY OF PALM DESERT, PALM DESERT, CALIFORNIA, APPROVING THE DRAFT 2009-2010 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) ACTION PLAN AND MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM DESERT AND COUNTY OF RIVERSIDE FOR NSP FUNDING NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City of Palm Desert (the "City") in cooperation with the Palm Desert Redevelopment Agency, has established an Action Plan for the Neighborhood Stabilization Program (the "Program") for very low, low and moderate income residents within the City. Section 2. The City has a limited budget for the Program. As a result, the Program is based on a first-come-first-served basis, except that urgent needs and improvements related to health and safety hazards will have first priority. Section 3. The City must enter into a MOU joint agreement with the County of Riverside in order to apply for funding associated with NSP. Section 4. The City Council wishes to approve the 2009-2010 Action Plan for the program that is outlined in Exhibit A attached hereto and incorporated herein by this reference. Section 5. That the City Manager necessary or desirable to implement this inconsistent with the intent hereof. may take any action which he believes is Resolution so long as such action is not PASSED, APPROVED AND ADOPTED, at the regular meeting of the City of Palm Desert held on this day of 2009, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: ROBERT A. SPIEGEL, MAYOR RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT RESOLUTION NO. 559 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, APPROVING THE DRAFT 2009-2010 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) ACTION PLAN AND MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM DESERT AND COUNTY OF RIVERSIDE FOR NSP FUNDING NOW, THEREFORE, THE AGENCY BOARD OF THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency (the "Agency") in cooperation with the City of Palm Desert, has established an Action Plan for the Neighborhood Stabilization Program (the "Program") for very low, low and moderate income residents within the City. Section 2. The Agency has a limited budget for the Program. As a result, the Program is based on a first-come-first-served basis, except that urgent needs and improvements related to health and safety hazards will have first priority. Section 3. The City must enter into a MOU joint agreement with the County of Riverside in order to apply for funding associated with NSP. Section 4. The Agency Board wishes to approve the 2009-2010 Action Plan for the program that is outlined in Exhibit A attached hereto and incorporated herein by this reference. Section 5. That the Executive Director may take any action which he believes is necessary or desirable to implement this Resolution so long as such action is not inconsistent with the intent hereof. PASSED, APPROVED AND ADOPTED, at the regular meeting of the Palm Desert Redevelopment Agency held on this day of 2009, by the following vote to wit: AYES: NOES: ABSENT: ABSTAI N: ATTEST: ROBERT A. SPIEGEL, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT — REDEVELOPMENT AGENCY 3 � ' �"` � '�. �, �,; �� , �� , � : �°�� . ,� s �, . � � � : ��: � �� ;��s 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: (760) 346-0611 Fax: (760) 341-6372 www.cityofpalmdesert.org 2009-2010 ONE YEAR ACTION PLAN TABLE OF CONTENTS A. AREAS OF GREATEST NEED .....................................................................3 B. DISTRIBUTION OF USES OF FUNDS ...........................................................4 C. DEFINITIONS AND DESCRIPTIONS .............................................................7 1. BLIGHTED STRUCTURE 2. AFFORDABLE RENTS 3. CONTINUE AFFORDABILITY 4. HOUSING REHABILITATION STANDARDS : : D. LOW INCOME TARGETING .........................,�......................r.....................10 E. ACQUISITIONS AND RELOCATION..........,... .........................:....................10 F. PUBLIC COMMENT ............................,�,......................................:.............11 G. NSP INFORMATION BY ACTIVITY..........'.;,.�,,......,x...... ................................12 1. ACQUISITION, REHAB AND RESALE-F�R�T TIME HOMEBUYERS 2. ACQUISITION, REHABI�"1'ATIC?N, AND REt�'TAL OF AFFORDABLE UNITS � 3. ENHANCED FIRST TIME �OM� �l,1YER PRO�RAM 4. ACQUISITION AND REHA�I�,ITATIQh� b� �ORECLbSED AND OF NEW MULTI-F,�11�LY RF1`dTAL PR��"S VACANT MULTI-FAMILY PROPERTIES, OR TH�, CONSTRUG710N 5. RED��I.OPMENT C3� VACANT C�R DEMOLISHED PROPERTIES, OR THE REDEVEC.�i�11t��T OF A�CC�UIF��I� AND DEMOLISHED RESIDENTIAL �'�tCI��RTIE� �{�R NON-RESID�NTIAL USES 6. PROGRI�1� ADMlitittSTRATION ATTACF��NT A- NSP TARGET AREA MAP ATTACHMENT � - NSP FQRECLOSURE DATA ATTACHMENT C --NSP;�NCOME LIMITS ATTACHMENT D - PUBLIC COMMENTS Page 2 of 28 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) A. AREAS OF GREATEST NEED The City of Palm Desert is a 26-square mile city located in eastern Riverside County, California. Incorporated November 26, 1973, it is centered in the heart of the Coachella Valley. With a blend of for-sale single-family homes, senior, and multi-family rental units, Palm Desert continues to be a leader among the desert communities in the development of affordable housing. As of March 31, 2009, there were more than 839 foreclosed properties (REOs) in the City of Palm Desert, which is nearly 2.8% of all housing units. If you �t��ude the "pre- foreclosure" and "units at auction", the number of impacted housit't� �hits is nearly 1,978, or 6.5% of all housing units (Attachment B). In August, 2007, CNN Money.com (per Realtytrac.com) repor�ed the ct�mbined Riverside/San Bernardino metropolitan region of California to be the ft�[i'th most impacfi� �rea by foreclosures in the U.S., with 1 foreclosure default filing for every�� households. A year��r Realtytrac.com reported that Riverside County alone had 11,485 f�t�losure filings, or 1 in eve�'y;63 housing units in the foreclosure process. The State of California has received $145 million in 1��? f�t�ing to address abandoned and foreclosed homes. The State has ann�ced that the �ityof Palm Desert is eligible to receive up to $326,784 in NSP funding that m��=�;�,�d for the fo�tawing activities: • Establish financing mechanisms fi�;�he put��e,and rede�relopment of foreclosed homes and residenti�l properties, irl�uding �,i��;��nisms as soft-seconds, loan loss reserves, and sha,red�!��t�/ loans for�;�yu�=�t'1�-modei��income homebuyers; • Purchase and reh�bilitate h�r�es and ��idential properties that have been abandoned or foreclosed upon, in order;�;sell, ren�;'�it redevelop such homes and properties; • Establish lanci banks for hat'�3s that have �en foreclosed upon; • Demolish blight��# Structu�'��f�i€�� • Rede�slop demolis�l�c� �r vacant pri��i�s. (Note: Ht��ng data b�,d upon i#�ltyTrac and California Department of Finance reports) Targetir��:�A►reas of Greatest Need The numb+�`:�nd concentratip� of foreclosed units varies throughout the City's NSP program area. There �tr'e pockets of h�vy concentrations within several participating neighborhoods. The City has determined th�# the most effective and appropriate method to identify and target the areas with the �r�atk�t need and most impacted by the foreclosure crisis is a correlation between actual forec�i�i units (using an established local data source) and HUD's Foreclosure and Abandonment Risk Score data. As noted above, the City is using RealtyTrac data to map the actual foreclosed units. The HUD Risk Scores are indicated by 2000 U.S. Census block groups and do not necessarily correspond to other boundaries. In the populated urban areas, the census block groups are smaller and therefore more numerous; conversely, block groups in rural areas are much larger, yet they contain fewer people and fewer foreclosures. The HUD Foreclosure and Abandonment Risk Score data for the City's program area is available upon request. Page 3 of 28 HUD's Risk Scores are based upon the following factors: • Area unemployment rate; • Area average housing sales price decline (since the peak of the market); • High cost loan rate (mortgages with interest-only payment options, stated income mortgages, mortgages with high loan to ratios, etc.); • The predicted 18 month underlying foreclosure rate; and • Housing units that have been vacant for at least 90 days. After thorough review and analysis of the available forecic�sure data and HUD Risk Scores, the City has identified and selected the targeted areas of g�'e�test needs (N�P Target Areas) for the City NSP. There are a total of three (3) NSP Target Ar��s, and all NSP assi�fi,�nce will be limited to these target areas. The primary criteria used to select these target are�s were: 1. Concentration of actual foreclosed units; 2. HUD risk scores of no less than 7; �t�� 3. Areas most suitable for targeted and ��d, NSP assis��nce. The table below provides basic informatia�i for ea��i (�SP Target �rea. The information includes target area name, correspond�ng HUD Risk �core, ��tt[ �'te general description of the area. Palma Village 7, 8, 9 Palm Desert Country Club 8 North Sphere 7, 9 Attachment A to this NS�'tJr� Year �'lart �qr�t�i�s a map that provides visual representation of the City's l�P;'f�rgst Areas,,;.'1'�e map indicafes fihe fixed boundaries of the target areas, concentt�#c�ns of fts�sed urtits, and HUD Risk Scores. In addition, it identifies major roads and highways and con%i�s a leg�t�€1 identifying the types of foreclosed properties. Given tl� �ze of the City, attd the amnunt of NSP funds, the City has determined that designating �hree target are� is appropriate and equitable. Further, these limited target areas will allow for tF�+� focused inv�#ment of NSP funds in neighborhoods that have been most impacted by th�'F�reclosure �risis. B. DISTRIBUTION ANC') USES OF FUNDS B.1. Distribution of NSP Funds The City of Palm Desert will distribute the NSP funds by targeting areas with the "greatest need" within the NSP Program Area in accordance with the requirements of Section 2301(c)(2) of Housing and Economic Recovery Act of 2008. The City will comply with the "greatest need" targeting requirements by prioritizing the distribution and use of NSP funds to those neighborhoods and communities with the: Page 4 of 28 • Highest percentages of home foreclosures; • Highest percentages of homes financed by sub-prime mortgage related loans; and • Areas most likely to experience a significant rise in the rate of home foreclosure (Predicted 18 month underlying problem foreclosure rate). These targeted areas of greatest need are identified in Section A. Th� City has determined that the most effective and appropriate method to identify and target ar�� ttvith the greatest need is by correlating the actual foreclosed unit data with HUD's Foreclo,� and Abandonment Risk Score data. The HUD Risk Score incorporates the sub-prime rnt�t'tg��e related loan data and the areas most likely to experience significant increase in fcN�Glt�sur� �rate data. This correlated data is presented in the various NSP maps found in Attachment A. Ffi��v�yer, the NSP maps provide adequate detail to identify and target impacted ��'E��s. B.2. Uses of NSP Funding NSP funds will be used in one (1) primary activity, plus adminf��ition: 1. Acquisition, rehabilitation, and resal� tca first-time hom�b�yers - No specific amount of NSP funds have been allocated to this use �t �h� t�me, however t�uring the eligible time period, the City may desire to reprogram funds for �'t�� pu�t�e. 2. Acquisition, rehabilitation, and rental, to v�ry-low,irt�rr�e p�rsons - No specific amount of NSP funds have been all�� t� this use �tthi� ��t'r're, howe��t' during the eligible time period, the City may desire to rE�pr�gram f[�nds for this �tpose. 3. Enhanced First-Time Home BuyBr Program -$�94,106. 4. Acquisition and rehabit�t�tion t�f forecl��d, vacant multi-family properties, new construction of multi-farriily t'8rit�1 projec� � No specific amatmt of NSP funds have been allocated to this use at this tirt�e, however d�ring the eligible time period, the City may desire to reprogram funds for this purpose. 5. Rede�telflpment of vacant or demo�ished properties for non-residential uses including public facilities, c€a�mmercial uses, or. mixed residential and commercial uses. No specific amount of NSP funds h�v� been allocat�d to this use at this time, however during the eligible time period, the City may de�re to reprbg�'am funds for this purpose. 6. NSP program adrrrit�i�tration: administration costs will not exceed ten-percent (10%) of the NSP grant and ten-percent (10%) of program income -$32,678. NSP 1 ACQUISITION, REHABILITATION, AND RESALE TO FIRST-TIME HOMEBUYERS The City of Palm Desert will acquire and rehabilitate foreclosed, or abandoned (for at least 90 days) single family homes and sell them to income-eligible first-time homebuyers. The City will partner with various public and private non-profit organizations to carry out this activity, including, but not limited to the County of Riverside. The final sales price will not exceed the Page 5 of 28 cost of acquisition, rehabilitation, and resale. Acquisitions will average at least 15% below the current market appraised value as determined within sixty (60) days of the date of the purchase offer. Homes may be purchased in bulk from a single seller. The eligible home buyers must not have owned a home in the previous three (3) years, have a household income that does not exceed 120% median and attend a HUD certified home buyer counseling session. The full acquisition, rehabilitation, and resale may be funded with NSP funds. At this time, the City proposes to allocate a total of $0 of current NSP funds; however during the eligible time period, the City may desire to reprogram funds for this purpose. Fut� NSP funds that may be allocated to the City will be used for combined activities such as �r��isition, rehabilitation, and resale to first time homebuyers. NSP 2 ACQUISITION, REHABILITATION, AND RENTAL C� A�FORDABLE UNITS The City of Palm Desert may acquire and rehabilitate fcrredosed, abandoned (for at least 90 days) single family homes and rent them to hous�l�lds earning not more than 12Q% of the City area median income (Attachment C). The City u€ti�t partner with �rious public and private non- profit organizations to carry out this activity, includii�, but not 1�t»ited to the County of Riverside. Acquisitions will average at least 15% below the curre�tt m�t'�cet appraised value as determined within sixty (60) days of the date of the purchase offer. Hs�mes may be purchased in bulk from a single seller. The full acquisition and rehabilitation may kie fund�d vVi�th NSP funds. The City proposes to allocate a total of $0 of current NSP funds; however.d�a�n� ihe eligible time period, the City may desire to reprogram funds fc��'�ti� �urpose. Futur� NSP funti� ihat may be allocated to the City will be used for combin+� �ctivities such as ac�taisition, rehabilitation, and rental of affordable units. NSP 3 ENHAIdCED FIRST TIME HOME BUYER PROGRAM The City of P2tlt'Ct pesert will'c�ffer a financing mechanism to eligible first-time home buyers to enable ti1��'i to direcf�y �cquire ft��eclosed or abandoned single family homes using NSP funds. The �'t�faanced First Ti►'t� t lome �u,yer Program provides down-payment assistance to low and moder�fi�3-income househt�ds that h�ve not owned homes within a three-year period. The program � available for hou��holds with an annual income that is no greater than 120% of the area medi�r� income as publ`tshed by HUD (Attachment C). The Enhanced FTHB Program provides 20°l0 "!af #he purchas�i=price with a 15-year affordability period as a"silent second" loan plus a rehabilita�i€�n compart�rit to enhance the physical appearance of the home and remove all health and saf�fiy �an�i'is to satisfy the Housing Quality Standards (HQS). The total amount of assistance for each it�nie will not exceed $75,000 (which includes both down payment assistance and rehab). A variety of inedia will be used to inform the public and potential homebuyers of the homebuyer assistance program including the website: www.cityofpalmdesert.org. Brochures in English and Spanish will be distributed to businesses, schools, and other public areas. The City will partner with community organizations, employment centers, fair housing groups, lenders, and housing counseling agencies which will be in the forefront of disseminating information about the Enhanced FTHB program. Page 6 of 28 The down payment assistance and rehabilitation costs will be funded with NSP funds. The City proposes to allocate $294,106 of current NSP funds to this activity. NSP 4 ACQUISITION AND REHABILITATION OF FORECLOSED AND OF NEW MULTI-FAMILY RENTAL PROJECTS VACANT MULTI-FAMILY PROPERTIES, OR THE CONSTRUCTION The City of Palm Desert will meet its requirement to expend at least twenty-five (25%) of the NSP allocation on projects that provide affordable housing to the persons and families earning less than 50% area median income through monies held by the State.for this purpose. The City will partner with various public and private development organizatio�� o provide for the redevelopment or new construction of affordable multi-family rent�! projects. The City will use and operate this allocation of NSP funds in a form compatible �tvI�'i �he use of HOME funds to the extent that NSP and HOME regulations do not contradict. All designated NSP units will be reserved and affordable tc� households e�ming less than fifty percent (50%) of the area median income. The City �ill require and monitor �°�egulatory agreement to ensure an affordability period of atl�:�St fifty-five (55) years. NSP funds will be eligible for use in any aspect of developm�nt including land acquisition, soft development costs, and hard construction costs. The �ity �rrtrposes to allocate $0 of the City's current NSP funds to this activity; however during the etigi�#e time period, the City may desire to reprogram funds for this purpose. Future NSP,funds that may be allocated to the City may be used for this purpose. NSP 5 REDEVELOPMENT OF �ACANT �l� ��MOLISM�D PROPERTIES, OR THE R�C't�YELOPMENT OF' ACQUIREC3 AND DEMOLISHED RESIQ��TIAL PRfJPERTIES �t�R NON-RESIDENTIAL USES INGI.�C'�ING PUBL.IC FACILI'�S. The City will consider proposals tc� u.�,N�P funds for eligible costs associated with activities under this category. NSP �unds wiil be tit�it�c! #�s �rojects providing eligible public facilities in the NSP Tar�et;�i'e��. Public f��i�ies would includ�; health clinics, community center and parks, as well as fd�lities for childcare, sE:niors, job training, neighborhoods, and other eligible public faciliti�s. As noted above, no NSP fut'�ds have been allocated to this activity under this Plan. However, if specific projE�cts under this c�tegory are approved by the City, sufficient NSP funds will be reprogramme�i from NSP activi#y 3. Additionally, in the event future NSP funds are allocated to the City, they m�y be used ft�r this purpose. NSP 6 ADMIh11STRATION The City will allocate not more than 10% of the NSP grant to the administration of the above stated programs and projects. The City proposes to allocate $32,678 of current NSP funds to this activity. C. DEFINITIONS AND DESCRIPTIONS (1) Definition of "blighted structure" in context of state or local law. Page 7 of 28 The City of Palm Desert defines blight consistent with the California Health and Safety Code definition of a blighted structure as: California Health and Safetv Code Section 33030 It is found and declared that there exist in many communities blighted areas that constitute physical and economic liabilities, requiring redevelopment in the interest of health, safety, and general welfare of the people of these communities and of the state. A blighted area is one that contains BOTH of the following: a. An area that is predominately urbanized, as the term is d��ined in section 33320.1, and is an area in which the combination of conditions sE�t f€�Cth in Section 33031 is so prevalent and so substantial that it causes a reducticart; oi�, or`f��k of, proper utilization of the area to such an extent that it constitutes a seri�us physical ��td economic burden on the community that cannot reasonably be expec#�d to be reversed or alleviated by private enterprise or governmental action, o,r bs�fh, without redevelopm�nt. b. An area that is characterized by one or C�c�re condition� set forth in any"p��agraph of subdivision (a) of Section 33031 and one or �Ti�re cont�it�ns set forth in any paragraph of subdivision (b) of Section 33031. A blighted area that contains the conditions d�escribed in sul�division (b) may also be characterized by the existence of inadequate ��bti� improvern�rtts or inadequate water or sewer facilities California Health and Saf��t t�i+� Section 33C131 This subdivision des�ri�ies physical ccmditions fihat cause blight: a. Buildings whiGfl are un� t�' u�healthy for persons to live or work. These conditions can be caused by 5�rioLt� �buildin� �q�l� vic�f�tions, serious dilapidation and deterioration caus8d by �ng-term n�lect, constructit�n that is vulnerable to serious damage from s�ismic or g�c�[[c�gic h�z�trds, and faulty or inadequate water or sewer utilities. b. Conditions that pr�vent or �ubstantially hinder the viable use or capacity of buildings or 1€�ts. This condition may be c�used by buildings of a substandard, defective or obs0��#e design or cor�struction given the present general plan, zoning or other develt�pment standards. c. Adjacen� flr ne�rby incompatible land uses that prevent the development of those parcels or oth�� pt�rtions of the project area. d. The existence of subdivided lots that are in multiple ownership and whose physical development has been impaired by their irregular shapes and inadequate sizes, given the present general plan, and zoning standards and present market conditions This subdivision describes economic conditions that cause blight: a. Depreciated o� stagnant property values. Page 8 of 28 b. Impaired property values, due in significant part, to hazardous wastes on property where the agency may be eligible to use its authority as specified in Article 12.5 (commencing with Section 33459). c. Abnormally high business vacancies, abnormally low lease rates, or an abnormally high number of abandoned buildings. d. A serious lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. e. Serious residential overcrowding that has resulted in si�n'�f'icant public health or safety problems. As used in this paragraph, "overcrowding" rlt�r�� xceeding the standard referenced in Article 5(commencing with Section 32� of �hapt�er 1 of Title 25 of the California Code of regulations. f. An excess of bars, liquor stores, or adult-ot'iertted businesses thaf h�s resulted in significant public health, safety, or welfare prtyblems. g. A high crime rate that constitutes a serious threat ta fl�e public safety and welfare. (2) Definition of "affordable rents" The City of Palm Desert defines affordaE�l�; rer��s �onsistent with ihe California Health and Safety Code definition of affordable rents �5: California Health and Saf��jt ��i� Section 5{�p53; (a) For any rer►t�l housing ci+��oelopmen�:��at receives assistance prior to January 1, 1991, and � condition of �'tat assistan� is compliance with this section, "affordable rent" with r�s�ect to (Qvt�3r it��rl�e hou�eholds shall not exceed the percentage of the gross income caf khe;��upan�'�� or �tousehold established by regulation of the d�p�rtit�ent that ��t�ll not be less than 15 percent of gross income nor exceed 25 percerit c�f gross incc�me. {b) For any rental �pusing dev�lopment that receives assistance on or after January 1, 1991, and a conciition of that assistance is compliance with this section, "affordable C`ent," including a t'�asonable utility allowance, shall not exceed: i. For extremely (pw income households the product of 30 percent times 30 percent of the ar� m�1`t�n income adjusted for family size appropriate for the unit. ii. For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. iii. For lower income households whose gross incomes exceed the maximum income for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local Page 9 of 28 funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. iv. For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. (3) Continued affordability for NSP assisted housing. For homebuyers, the City of Palm Desert will adopt the affordability periods required in the HOME regulations defined in 24 CFR Part 92. The City will c+�Ctird a t'�ulatory agreement against title to the property requiring owner-occupancy by an initially det�r'mined first time home buyer earning not more than 120% of the area median #r�Ct�me. This afford��ility period will be allowed to terminate where homeowner repays the .It�rt upon transfer, sale or refinancing of the home. For single-family rental units, the City of Palm Dese�,�ill adapt the affordability per`iods required in the HOME regulations defined in 24 CFR Part 92. 'fi�� G[iy will record a regulatory agreement against title to the property requiring afft�rdable rents to t�'te very low-income population or those households earning not more than 50°lo t�fi t�Ie area median income. For multi-family rental units, the City of P�Irt'� Desert wiil require r�ts affordable to the very low- income population or those households eari��ng not:�'lot�a #I�n 50% of the area median income for a minimum period of fifty�fiv+� 455) years. '��te �i�j� will ret��`ti a regulatory agreement against title to the property requir�rtg propet'�y managemet�f and maintenance in addition to affordable rents for the term of i�te regulatory agr�eement. (4) Housing rehabilit�t�Qn stand�r�d� �ttat will ap�ply to NSP assisted activities. The City of P�lirt'1 C�esert will �dppt the HUD defined Housing Quality Standards (HQS) as its standard for rehab�lit�ttian. D. L�W-INCOME TARGETING The legis(�tive statute indic�#es that 2�% of the funds be used for housing individuals and families wF'��e incomes do nat exceed 50% of the area median income (Attachment C). A minimum of 25°l� of the total a�location to the State will be used to meet this statutory requirement. TF��refore the t�ty's allocation of $326,784 is net of the 25% requirement. E. ACQUISITIONS & �EtOCATION All activities below are anticipated to be initiated upon the release of NSP funds. All funds will be initially committed within eighteen (18) months. Several of these activities anticipate the receipt of program income which will continue to be used within the NSP guidelines until the program ends (estimated July 2013). a. No conversions are anticipated. As indicated in Section B above, a small number of units may be acquired and demolished. The City does not anticipate any of these units to have affordability covenants; however, some of these may have been occupied and/or Page 10 of 28 owned by low- and moderate-income households. The number of units in this category should not exceed eight (8). b. The number of NSP affordable housing units made available to low-, moderate-, and middle-income households reasonably expected to be produced by the various activities are as follows: i. Acquisition/Rehabilitation/Resale to First-Time Homebuyer: With an allocation of $0 of NSP allocated and expended for this activity, the City anticipates (0) units being made available to households with incomes at 51 % to 120% of the area median income. The amount of final NSP assistance per unit will t�p+�nd upon purchase price of units, rehabilitation costs, disposable income t�f purch��er (affordability), and the availability of private and other non-NSP finaneing. It is anticipated that most units will be sold to households earning b�tween 75% and 't2(J% of the area median income. In the event that other private and ��-NSP fund�,are limited, the City may have to finance all or a larger portion of thc3 sale of a ui�it. This will result in a significantly lower number of units being �nads �vailable. ii. Acquisition/rehabilit�ii+�r�l,rental: With an �tlocation of $0 for this activity, the City anticipates up to (0) itrtits b�it�g acquired, ret�abilitated, and made available to rent to households earni�i� less th��t 120% of t�e area median income. The amount of final NSP assista�e per ur�i# wi[f depend upon purchase price of units and final re�t�E�ilit�tion costs. iii. En�nced First-Fi�'!ne HomebUyer: With an allocation of $294,106, the City antici�tes that up tc� t�n (10) uni�s will be made available to households with incomes �t 51 % tc� 1��1°lo taf ihe are� tnedian income. The amount of final NSP assistancer�ier �f�i� will deperid t�p�on purchase price of units, rehabilitation costs, Cli�pc�sable irt��ime of purchaser �affordability), and the availability of private and other rto�-NSP financing. It is anticipated that most units will be sold to househalt�5� earnirtg between 75% and 120% of the area median income. The City c�f Palm Desert do�� not intend to demolish or convert any existing low or moderate income dw��ling units. F. PUBLIC COMMEI�T -»��71ZEN PARTICIPATION On May 6, 2009, the Draft NSP One Year Plan for the City's NSP allocation was placed on the City's website (www.citvofpalmdesert.orq). Printed versions of the draft NSP plan were made available at the following location: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Page 11 of 28 On May 6, 2009, the City published a Public Notice in the Desert Sun (a publication of general circulation) informing the public of the availability of the Draft NSP One Year Plan for public comment and review. All comments received will be included in Attachment D of this document. G. NSP ACTIVITY INFORMATION (1) Activitv Name: (NSP 1) Acquisition, Rehabilitation, and Resale to First- Time Homebuyers - $0 (2) Activitv Tvpe: NSP eligible use: Purchase and rehabilitate homes and residential prc�p�rties that have been dbandoned or foreclosed upon, in order to sell to eligible buyer$ �hrc�ugh a First Time HomebUyer Program CDBG eligible activity: 24 CFR 570.201 (a) acquisition and (bJ disposition 24 CFR 570.202 rehabilitation and presenuat'rtir� t�Gtivities for ht�mes and other residential properties (3) National Obiective: Fu�1ds wil[ �neet the rt�tion� c�bjective t�f benefiting low, moderate, and middle-income persons; �t� defin�i by NSP reg�ihations (120% of area median income), by the sale of rehabilitated hc�mes to households earnir�g not more than 120% of the area median income (Attachmerrt �). (4) Proiected Start Date: ��cu�it�n of fh� NSP Rgreement by HUD (5) Proje�ted End C��ter: The pi�i��ected end date is July 30, 2013 (6) ReSpt�nsible Oraanizat#t�: Janet Moori�. City of Palm ae�ert 73-510 Fred W�ring Drive Palm Desert, CA 92�6Q Phone: 760.346.0611 - Fax: 760.341.6372 (7) Location Description: This activity will be limited to all of the designated NSP Target Areas mapped in Attachment A. (8) Activitv Description: The City of Palm Desert will acquire and rehabilitate foreclosed or abandoned single family homes and sell them to income-eligible first-time homebuyers. The City will partner with various public and private non-profit organizations to carry out this activity, including, but not limited to the Housing Authority of the City of Palm Desert. The final sales Page 12 of 28 price will not exceed the cost of acquisition, rehabilitation, and resale. All individual acquisitions will be at least 5% below the current market appraised value as determined within sixty (60) days of the date of the purchase offer. The minimum average discount for the entire NSP portfolio will be at least 15% below the current market appraised values. Homes may be purchased in bulk from a single seller. The eligible home buyers must: not have owned a home in the previous three (3) years; have a household income that does not exceed 120% median; and attend a HUD certified home buyer counseling session. Acquisition/Rehabilitation: Tarqet Areas. This activity will be limited to all of the designate� �1�P Target Areas mapped in Attachment A. Bliqhted structures. Unoccupied homes, vacant for a p8�'it�d of 90 days th�# may be inhabitable and require rehabilitation to improve sustainability ar�! �ttractiveness of housirtg and neighborhoods. Eliaible Proqerties. Blighted single-family homes th�# have be�rt foreclosed upon, bank-owned or real estate owned (REO) and certified as vacant for � p�rit�d of 90 days. The City will give priority to properties constructed after Ja�uary 1, 2000; o!�l�r dwellings are eligible if they are suitable for renovation and if rehabilitati�ai� ��ts are reason�l��e. However, all properties must be post-1978 and must not be listed on, r�t eligi�� #or listing t�n; the National Register of Historic Places. Apqraisals. The current m�c� ��tpraised val�e �s,#he value af"� foreclosed upon home or residential property that,i�, i�stabli�d througl� �r� appraisal made in conformity with the appraisal requirements i��' the Uniform Relocatio�t Act at 49 CFR 24.103 and completed within sixty (60) days prior tc� an offer ma�e for the prop�rky by a grantee, sub recipient, developer, or individual homebuyer: Discount. F'rc�p�erk��s must 1��3:p�rchased at a mir�imum average discount rate of 15% below the current m�arket-appr$i��d value. DisplaC�ment, relocation, r�hd acquisition. The relocation requirements of Title II and the acquisifi�ri.requirements of TitJe III of �he Uniform Relocation Act (URA) and Real Property Acquisition Pt�licies Act of 1�7i�, and the implementing regulations at 24 CFR Part 42. All reasonable st�ps must be tak�n to minimize the displacement of persons as a result of activity assisted with N�F�' Funds. Environmental Review. The environmental effects of each activity carried out with NSP funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and related authorities listed at 24 CFR Part 58. Projects may be required to comply with Laws and Authorities of §58.5: Historic Preservation, Floodplain & Wetlands, Coastal Zone, Aquifers, Endangered Species, Rivers, Air, Farmlands, HUD Environmental Standards and Environmental Justice. Rehabilitation Standards. Any NSP-assisted rehabilitation of a foreclosed-upon home or residential property shall be to the extent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability, in order to sell, rent, or Page 13 of 28 redevelop such homes and properties. The rehabilitation will strategically incorporate modern, green-building, and energy-efficiency improvements thereby providing increased sustainability and attractiveness of housing and neighborhoods. Labor Standards. Every contract for the rehabilitation of housing that includes 8 or more units assisted with NSP funds must contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act. The Davis-Bacon Act requires that all contractors and subcontractors performing on federal contracts (and contractors or subcontractors performing on federally assisted contracts under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits, as determirt�d by the Secretary of Labor, for corresponding classes of laborers and mechanics emplt�yed on similar projects in the area. Resale: a. Sales Price. The final sales price will be na greater than the initial'acquisition and rehabilitation costs. NSP regulations dire�°�t, if an abandoned or foreCic�sed-upon home or residential property is purchaser�� t�developed, t� otherwise sold tp an individual as a primary residence, then such ��le shal! b+� in an amount equal to or less than the cost to acquire and redevelop or reh�bilitat� Such home or property up to a decent, safe, and habitable cortd�tion. (Sales and c�t�sing costs are eligible NSP redevelopment or rehabilitation t�st�,�;;Note that th� maximum sales price for a property is determined by aggregating aIf �sts �f=�r.quisition, r�h�bilitation, and redevelopment (including related activity delivery t�sts, whi�h generally m�y include, among other items, costs related tq the sale of th� property}. b. Income Res�ri��ns. Lovu, moderat�; ��td middle income (LMMI) households whose incomes are at t�r below 12(�'�lo of the are� median income, adjusted by family size at the time of occup�ncy, for the Gity of Palm Desert. c. Terms of Affori�,hility, Momes s�i�11 be �;ffordable for a minimum of fifteen (15) years. d, �ounselinc�, Each li�i�3buyer must receive and complete at least 8 hours of hc�mebuyer couns�ling fr�irn a HUD-approved housing counseling agency before abtaining a mortg�[g� loan. The homebuyer will obtain a mortgage loan from a lender wht� agrees to comp�y with the bank regulators' guidance for non-traditional mortgages. (9) Total Budqe�; The full acq�isition, rehabilitation, and resale may be funded with NSP funds. The City propos�s to alloc,,�� total of $0 of current NSP funds to the activities including: Acquisition, rehabilifation �i�st� resale to first time homebuyers. (10) Performance Measures. At least (0) units of housing will be acquired, rehabilitated, and resold to households earning not more than 120% of the area median income. (1) Activitv Name: (NSP 2) Acquisition, Rehabilitation, and Rental of Affordable Units -$0 (2) Activitv Tvqe: NSP eligible use: Page 14 of 28 Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to renUlease to qualified 120% AMI families. CDBG eligible activity: 24 CFR 570.201 (a) acquisition and (b) disposition 24 CFR 570.202 rehabilitation and preservation activities for homes and other residential properties (3) National Obiective: Funds will meet the national objective of benefiting low, moderate, and middle-income persons, as defined by NSP regulations (120% of at-e� median income), by rental of rehabilitated homes to households earning not more that� '1�% of the area median income (Attachment C). (4) Proiected Start Date: Execution of the NSP Agreement by HUD (5) Proiected End Date: The projected end date is Jul�r 30, 2013 (6) Responsible Orqanization: Janet Moore City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: 760.346.0611 Fax: 760.341.6372 (7) Location Descriptiort: This acfivity will be li�'tited to all of the designated NSP Target Areas mapped in Attachmertt A. (8) Activitv Descriqtion� The City t��;�alm D�sert w�11 �cquire and rehabilitate foreclosed, abandoned single family Ptt�n� �nt� rertt t�'� #c� hi�useholds earning not more than fifty percent (50%) of tl� �ity �re� med��#� it�come. The Citjr will partner with various public and private non- profit org��izations tc� carry out this activity, including, but not limited to the Housing Authority of the Gity t�f Palm Desert. Acquisitic�rl/Rehabilitation: Taraet Areas. This activity wi�l be limited to all of the designated NSP Target Areas mapped in Attachment A. Bliahted structures. Ur�+�i�cupied homes, vacant for a period of 90 days that may be inhabitable and require rehabilitation to improve sustainability and attractiveness of housing and neighborhoods. Eliqible Properties. Blighted single-family homes that have been foreclosed upon, bank-owned or real estate owned (REO) and certified as vacant for a period of 90 days. The City will give priority to properties constructed after January 1, 2000; older dwellings are eligible if suitable for renovation and if rehabilitation costs are reasonable. However, all properties must be post-1978 and must not be listed on, or eligible for listing on, the National Register of Historic Places. Page 15 of 28 Appraisals. The current market appraised value is the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the Uniform Relocation Act at 49 CFR 24.103. Discount. Properties must be purchased at a minimum average discount rate of 15% below the current market-appraised value. Displacement, relocation, and acquisition. The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Act (URA) and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42. All reasonable steps must be taken to minimize the displacement of pet'svns as a result of activity assisted with NSP Funds. Environmental Review. The environmental effects of each act�t�iy cat'ried out with NSP funds must be assessed in accordance with the provisions of th� National E�ivir�nmental Policy Act of 1969 (NEPA) and related authorities listed at 24 CFR F��r� 58. Projects m�y be required to comply with Laws and Authorities of §58.5: Historic Pr+�servation, Floodplain & Wetlands, Coastal Zone, Aquifers, Endangered Species, Rive�; Air, Farmlands, HUD Envit`onmental Standards and Environmental Justice. Rehabilitation Standards. Any NSP-assisted rehabilita�i� ,pf � foreclosed-upon home or residential property shall be to the extettt necessary to co�ply with applicable laws, codes, and other requirements relating to housing s�fety; quality, and �i��itability, in order to sell, rent, or redevelop such homes and properties. tlrtdert� R�build 20ti� Program, rehabilitation will strategically incorporate modern, green-bui�ding, ar�d,�tt�rgy-efffiiq�ncy improvements thereby providing increased sustainability and attra�venes� �ifi F��it��i�g artd neighborhoods. Labor Standards. Every �qntract fc�r the rehaf�i��tion of housing that includes 8 or more units assisted with NSP furtds must cont�irt a provisit�rt requiring the payment of not less than the wages prevailing in th� locality, as pt`�determinet� �3y the Secretary of Labor pursuant to the Davis-Bacon Act. The �avis-Bac�r� ;�t requires th��t all contractors and subcontractors performing on federal cor�`tr�c�� (��d cori°tr��tz�r;� t�r subcontractors performing on federally assisted cc�#1�s �r�der th� �lated Acts) in exeess of $2,000 pay their laborers and mechanics not les� tFt�n the pr�u�iiing w�g� rates and fringe benefits, as determined by the Secretary of Labor,'��'ir corresponding �lasses r�f laborers and mechanics employed on similar projects in the area. Rent: a. Affordable Rents» Ti're City of Palm Desert will adopt affordable rents as defined by the Califom[a Hea(ifi and Safety Code Section 50053 (b) (4) as the minimal compliance with this stand�i: The maximum monthly allowances for utilities and services (excluding telephone) will not exceed utility allowance set by the Housing Authority of the City of Palm Desert. b. Income Restrictions. Program will be limited to households whose incomes do not exceed 120% area median income, adjusted by family size at the time of occupancy, for the City of Palm Desert. The City will prioritize rental housing under this activity for households earning less than fifty percent (50%) area median income. Page 16 of 28 c. Terms of Affordabilitv. HOME program standards at 24 CFR 92.252(e) provides that the length of the affordability period per existing housing unit shall remain affordable for a minimum of fifteen (15) years. (9) Total Budqet: The full acquisition, rehabilitation, and rental may be funded with NSP funds. The City proposes to allocate a total of $0 of current NSP funds to the combined activities including: Acquisition, rehabilitation, and rental of affordable units. (10) Performance Measures. Approximately (0) units of housing will be acquired, rehabilitated, and rented to households earning not more than 120% of the area median income. Priority will be given to households earning less than fifty-percent (50%) of are median income. (1) Activitv Name: (NSP 3) Enhanced First-Time Home Buy�r Prt�gram -$294,106 (2) Activitv Tvpe: NSP eligible use: Establish financing mechanisms for purchase art�t r�developmet�t of foreclosed upc�n homes and residential properties, including such mechanisr�� as soft seconds, loan loss reserves, and shared-equity loans for low and moderate income hom�buyers. CDBG eligible activity: 24 CFR 570.201 (n) direct homeownershi� assist�r�t� (3) National Obiective: Fur�c��:�vi(1 tneet the ri��iprt�l c�bjective af benefiting low, moderate and middle-income persons� �s defined by NSP rec�ul�tions (120% of area median income), by providing direct homec�vt+nership assi�tance to htouseholds earning not more than 120% of the area median income. (4) Proiected Start Date: �c.�tivn of tFte hISP Rgreement by HUD (5) Pro�et:t�d End ��t�: The prciject end date is July 30, 2013. (6) Re�ponsible Orqanization: Janet Moot� City of Palm C�Sert 73-510 Fred Warir'� Drive Palm Desert, CA �22£0 Phone: 760.346.0611 Fax: 760.341.6372 (7) Location Description: This activity will be limited to all of the designated NSP Target Areas mapped in Attachment A. (8) Activitv Description: The City of Palm Desert will offer a financing mechanism to eligible first time home buyers in their effort to directly acquire foreclosed, abandoned single family homes. The Enhanced First Time Home Buyer Program provides down-payment assistance to low and moderate-income Page 17 of 28 households that have not owned homes within a three-year period. The program is available for households with an annual income that is no greater than 120% of the area median income as published by HUD. The Enhanced FTHB Program provides 20% of the purchase price with a 15-year affordability period as 0%, "silent second" loan plus a rehabilitation component to enhance the physical appearance of the home and remove all health and safety concerns as listed in the Housing Quality Standards (HQS). The total amount of assistance for each home will not exceed $75,000 (which includes both down payment assistance and rehab). A variety of inedia will be used to inform the public and potential homebuyers of the homebuyer assistance program. Brochures in English and Spanish will be distributed to businesses, schools, and other public areas. The City will partner with communi�y t�anizations, employment centers, fair housing groups, lenders, and housing ct�t�nseling agencies which will be in the forefront of disseminating information about the Enh�t��d; FTH6 program. The down payment assistance and rehabilitation costs will b�:��indec� vtrith NSP funds. Target Areas. This activity will be limited to all of the designafied NSP %rr�et Areas mapped in Attachment A. Blicthted structures. Unoccupied homes, vacant fc�r � period of 90 days that may be require minimal rehabilitation to improve sustainability at�c! �ttractivenes8 qf housing and neighborhoods. Eliqible Proqerties. Blighted single-fam[!�r homes that hav� been foreclosed upon, bank-owned or real estate owned (REO) and certifi�d a� t�acant for a p�riq�i of 90 days. The City will give priority to properties constructed after J��uar�r 1r��L1Q0; older`dav�llings are eligible if they are suitable for renovation and if rehabilitatiori �osts are t'�a�onable. Hc�wever, all properties must be post-1978 and must not be listed on, or eli�ible f4r l��ti�tg on, the National Register of Historic Places. Appraisals. The currertt market ap�`tsed value i� the value of a foreclosed upon home or residential property th8t is establisl�d through a�1 dppraisal made in conformity with the appraisal requiremenfis of the Ur�i�r��m F��location ��t at 49 CFR 24.103 and completed within 60 days prior to an offer m�d� �r the pr�� by a grantee, sub recipient, developer, or individual hc��tu��'. Discou�rE. Properties mtist be putchased at a minimum average discount rate of 15% below the current market-appraised v�lue. Displacem�tt..relocation, ar�l;�cauisition. The City will require that all homes be vacant for a minimum pe�l ;of ninety (9�M} days prior the purchase offer in an effort to avoid displacement and relocation. Under this, ��ivity, the City will not directly acquire or demolish properties. Environmental Revie�r. The environmental effects of each activity carried out with NSP funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and related authorities listed at 24 CFR Part 58. Projects may be required to comply with Laws and Authorities of §58.5: Historic Preservation, Floodplain & Wetlands, Coastal Zone, Aquifers, Endangered Species, Rivers, Air, Farmlands, HUD Environmental Standards and Environmental Justice. Rehabilitation Standards. Home acquisitions funded with this activity may also receive an assistance to repair or rehabilitate the otherwise blighted conditions. NSP-assisted rehabilitation Page 18 of 28 of a foreclosed-upon home or residential property shall be to the extent necessary to comply with Housing Quality Standards. Labor Standards: Federal Labor Standards and Davis Bacon wages will not be required by this activity. Income Restrictions. Homebuyer must be low, moderate, and middle income (LMMI) households whose incomes are at or below 120% of the area median income, adjusted by family size at the time of occupancy, for the City of Palm Desert. Terms of Affordabilitv. Homes shall be affordable for a minimum of fi'��en (15) years. Counselinq. Each homebuyer must receive and complete at le��t � hours of homebuyer counseling from a HUD-approved housing counseling agency b�fore t�lataining a mortgage loan. The homebuyer will obtain a mortgage loan from a lender wh�ti agrees td comply with the bank regulators' guidance for non-traditional mortgages. (9) Total Budqet: The down payment and rehabilit�tic�n may be funded with NSF funds. The City proposes to allocate $294,106 of NSP fttn+ds to this activity. (10) Performance Measures: Approximately ten (10) ut'�ts c�f �+ousing will be acquired and/or rehabilitated by households earning nat more than 120°% �fthe area median (1) Activitv Name: (NSP 4) Acquisition �nd Ft��bilitation of �oreclosed, Vacant Properties, or New Construction of Mu1iI•Family 1'�ental Proj��Gts -$0 (2) Activitv Tvpe: NSP eligible use: Purchase and rehabifii�te homes �nd c�sidential prt�perties that have been abandoned or foreclosed upon, in ordertt� ��II, renf, ar rede�et€�p �uch homes and properties. Redevelnp demolisFted or vac�rtt properties Establish financing mechartisms for purchase and redevelopment of foreclosed upon homes and residential properties CDBG eligibie ��tivity: 24 CFR 570.201 (a} acqui3it�on and (b) disposition 24 CFR 570.202 reh�bilitation and preservation activities for homes and other residential properties (3) National Obiective: Funds will meet the national objective of benefiting very low income persons, as defined by NSP regulations (50% of area median income), by providing rental housing households earning not more than 50% of the area median income. (4) Proiected Start Date: Execution of the NSP Agreement by HUD (5) Proiected End Date: The project end date is July 30, 2013. Page 19 of 28 (6) Responsible Oraanization: Janet Moore City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: 760.346.0611 Fax: 760.341.6372 (7) Location Description: This activity will be limited to all of the desig��ted NSP Target Areas mapped in Attachment A. (8) Activitv Description: The City of Palm Desert will meet its requirement to set aside at least t�nty-five percent (25%) of the NSP allocation to provide affordable housing to i#'�e population eamirtg less than fifty percent (50%) area median income. The City will pat'tner with various public �rtd private development organizations to provide for the red�tt?�c�pment or new construcfit�rt of affordable multi-family rental projects. The City will use and t�►erate this allt�ation of NSP funds in a form compatible with the use of HOME funds to the exte�� that NSF� ��id HOME regulations do not contradict. All designated NSP units will be reserv�d�an�; affordable to hc�useholds earning less than 50% of the area median income. The City wiN �qu't� �nd monitor �t t'�gulatory agreement ensure an affordability period of at least fifty-five (55} years. N,�F� funds wit) ;!� eligible for use in any aspect of development includirtg land acquisi�ion, soi� deve�Qpmer�i costs, and hard construction costs. Tarqet Areas. This ac#ivity will be limited to all of the designated NSP Target Areas mapped in Attachment A. Bliqhted structures. UnocCupied 1`esidenti�t pr€�pe�ti�;s, vacant for a period of 90 days that may be inhabitab� �nd �equire r�t,�bilitation to imprt�ve sustainability and attractiveness of housing and neighborhoods. V�cant ar demolished will also be included in the definition of blight. Eliaible Properties. Blighted multi-f�mily residential that have been foreclosed upon, bankowned or real e�t�te owned (REO) �nd certi�red as vacant for a period of 90 days. Vacant or demolished properties will als� be eligible to the extent that those properties or developed as affordable, multi-family, rent�l projects. Appraisals. The curt'�t�t market appraised value is the value of a foreclosed upon home or residential property th�t� �s established through an appraisal made in conformity with the appraisal requirements of the Uniform Relocation Act at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property by a grantee, sub recipient, developer, or individual homebuyer. Discount. Properties must be purchased at a minimum average discount rate of 15% below the current market-appraised value. Displacement. relocation, and acauisition. The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Act (URA) and Real Property Page 20 of 28 Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42. All reasonable steps must be taken to minimize the displacement of persons as a result of activity assisted with NSP Funds. Environmental Review. The environmental effects of each activity carried out with NSP funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and related authorities listed at 24 CFR Part 58. Projects may be required to comply with Laws and Authorities of §58.5: Historic Preservation, Floodplain & Wetlands, Coastal Zone, Aquifers, Endangered Species, Rivers, Air, Farmlands, HUD Environmental Standards and Environmental Justice. Rehabilitation Standards. Any NSP-assisted rehabilitation of a far�losed-upon home or residential property shall be to the extent necessary to comply �vli�i �pplicable laws, codes, and other requirements relating to housing safety, quality, and h��biliiy?, in order to construct or redevelop properties. Construction or rehabilitation will strat�gically inc�porate modern, greenbuilding, and energy-efficiency improvements ther�Ely providing inct�sed sustainability and attractiveness of housing and neighborhoods. Labor Standards. Every contract for the rehabilit�t�n of housing t,�at includes 8 or more units assisted with NSP funds must contain a provision r�uiring th�;payment of not less than the wages prevailing in the locality, as predetermined by fih� ,�t`�tary of Labor pursuant to the Davis-Bacon Act. The Davis-Bacon AGt r�quires that all trot�tractors and subcontractors performing on federal contracts (and cc��if�tt�rs or subcorit�ctors perForming on federally assisted contracts under the related Act�� in �x� of $2,000�°�ay their laborers and mechanics not less than the prevailing wage rates an+d #ringe be��fits, as def�tmined by the Secretary of Labor, for corresponding classes of laborers �nd m��ha�it� �mployed on similar projects in the area. Affordable Rents. The �ity of Palm pesert will �at�pt affordable rents as defined by the California Health and Safety Code �+�ction 5005� �b) (2) as the minimal compliance with this standard. The maximum monthly �Ibwa�t��s for u�l��ies and services (excluding telephone) will not exceed utility allowan� set b�'the Ht�t�sing,Authority of the City of Palm Desert. Income, F��trictions. �tery low ��ome households whose incomes are at or below 50% of the area m�#ian income, �dj�tsted byf�mily size at the time of occupancy, for the City of Palm Des�r�, - Terms of Af�qcdabilitv. The ler�gth of the affordability period shall be for minimum period of fifty- five (55) year�, (9) Total Budqet. N�P futtds will be eligible for use in any aspect of development including land acquisition, soft develt��ment costs, and hard construction costs. The City proposes to allocate $0 of current NSP funds to this activity. (10) Performance Measures: Approximately 0 units of housing will be produced and made available and affordable to households earning not more than 50% of the area median income. (1) Activitv Name: (NSP 5) Redevelopment of vacant or demolished properties, or the redevelopment of acquired or demolished residential properties, for eligible public facilities - $0 Page 21 of 28 (2) Activitv Tvpe: NSP eligible use: Acquire abandoned or foreclosed upon blighted residential properties, redevelop, and construct public facilities; redevelop demolished or vacant properties for the construction of public facilities or improvements. CDBG eligible activity: 24 CFR 570.201 (a) acquisition, (b) disposition, and (c) public facilitie� (3) National Obiective: Funds will meet the national objective of b�I�fiting low, moderate, and middle-income persons, as defined by NSP regulations (12Q�1r, �i'�ar��.median income). (4) Proiected Start Date: Execution of the NSP Agreemealt by HUD (5) Proiected End Date: The projected end date is J�ty 30, 2013 (6) Responsible Orqanization: Janet Moore City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: 760.346.0611 Fax: 760.341.6372 (7) Location Descriptitan: This activi°ty will be lirriited to all of the designated NSP Target Areas mapped in Attachrr��7# A. (8) Activitv Description: (�} 7h� �iCy of Pa�t» �3�ert will acquire and rehabilitate foreclosed or abandonet� �i�aC�I� fiamily ht�t+�� that are blighi'�c1. The City will demolish and/or redevelop these properti� for eligible pt�blic f�t�Ities; (b) The City will redevelop demolished or vacant prope�ii�s for eligible public faciHtieS. All acquis[tions, if applicabfe, will average at least 15% below the current market appraised value as dt�#ermined within sir�ty (60) days of the date of the purchase offer. Homes may be purchased in krulk from a singl+� seller. Acq uisition/Rehabilit�tiort: Taraet Areas. This activity will be limited to all of the designated NSP Target Areas mapped in Attachment A. Bliqhted structures. Unoccupied homes, vacant for a period of 90 days that may be inhabitable and require rehabilitation to improve sustainability and attractiveness of housing and neighborhoods. Eliaible Properties. (1) Blighted single-family homes that have been foreclosed upon and certified as vacant for a period of 90 days, and certified as non-suitable for rehabilitation. (2) Page 22 of 28 vacant or blighted non-residential properties acquired without NSP funds. All properties must not be listed on, or eligible for listing on, the National Register of Historic Places. Appraisals. The current market appraised value is the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the Uniform Relocation Act at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property by a grantee, sub recipient, developer, or individual homebuyer. Discount. Properties must be purchased at a minimum average discount rate of 15% below the current market-appraised value. Displacement. relocation, and acpuisition. The relocation requit'�t��3hts of Title II and the acquisition requirements of Title III of the Uniform Relocatiot�; �4i:t (UF�,A} and Real Property Acquisition Policies Act of 1970, and the implementing regul�tions at 2� CFR Part 42. All reasonable steps must be taken to minimize the displa�ent of persons �5 a result of activity assisted with NSP Funds. Environmental Review. The environmental effec#�.t�f each activity carried out with NSP funds must be assessed in accordance with the provisior�� f the I��i�nal Environmentaf Policy Act of 1969 (NEPA) and related authorities listed at 24 CFF� t�rt �; Projects may be required to comply with Laws and Authorities of §5$.5: Historic Pre��rv�tion, Floodplain & Wetlands, Coastal Zone, Aquifers, Endangered Sp�cie5, Rivers, Air, F�rmlands, HUD Environmental Standards and Environmental Justice. Rehabilitation Standards. Any NSP-assisted rehabil�t�'�ar� r�� redevelopment of a foreclosed- upon home or residential pr�t��rfiy� or other v�+r,��fi ��blighted p�'�perty, shall be to the extent necessary to comply with �pplicab� laws, cod��, and other requirements relating to housing safety, quality, and habitability, in orcfer to sell, rent, or redevelop such homes and properties. The rehabilitation will str�iegically i�Gorporate mod�rn, green-building, and energy-efficiency improvements thereby prr�vidir�� ncreased su�ta'tnability and attractiveness of housing and neighbonc��dz�: Labor Standards. Every c�ntract fpr the rehabilitation of housing that includes eight (8) or more units �ssisted with NSP furtds must C�ntain a provision requiring the payment of not less than the wag�� prevailing in the l+��ality, a� predetermined by the Secretary of Labor pursuant to the Davis-Baccir� Act. The Davis-��con Act requires that all contractors and subcontractors performing or� federal contraCt� (and contractors or subcontractors performing on federally assisted contrac�ks under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits, as determined by the Secretary of Labor, for corresponding classes of laborers and mechanics employed on similar projects in the area. Resale: Not applicable for NSP-funded public facilities (9) Total Budaet: At this time, the City has not allocated any current NSP funds to this activity. The acquisition, redevelopment, or construction of eligible public facilities may be funded with NSP funds if approved by the City. Page 23 of 28 (10) Performance Measures. Approximately (0) public facilities will be constructed to serve a LMMI area with a HUD Risk Score of seven (7) or higher. (1) Activitv Name: (NSP 6) Administration $32,678 (2) Activitv Tvpe: (include NSP eligible use & CDBG eligible activity) NSP — General Administration and Planning Activities 24 CFR 570.205 and 206. (3) National Obiective: Not applicable to NSP Administrative ac�l�iti�s (4) Proiected Start Date: Execution of the NSP Agreement by HUD (5) Proiected End Date: Continued grant administratit�l� through June 2013. (6) Responsible Orqanization: Janet Moore City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: 760.346.0611 Fax: 760.341.6372 (7) Location Description: N/A (8) Activitv DescriptiK�n: This activity �s grant admi�tistration which includes, but is not limited to, the following activities: �neral rt�rt�gement, oversight, coordination, public information, reporting, evaluation, and �t�dir�� costs. (9) Total �udaet: T�percent (10%) of the NSP grant ($32,678) and ten-percent (10%) of Progr�m Income. (10) PerFCtrmance Measure�. Perform�nce measures not applicable to NSP administrative activities. Page 24 of 28 City of Palm Desert Neighborhood Stabilization Program One Year Plan � 92260 � 92211 � 92261 � Total Pre-foreclosure 485 357 842 ATTACHMENT B CITY OF PALM DESERT NSP FORECLOSURE DATA Auction 167 130 297 Bank Owned 461 �78 $3,9 Source: RealtyTrac March 31, 2009 * State of California Dept. of Finance January 1, .�Qt?8 estimates (table E-5) ** Previous report September 12 , 2008 Total � 1,113 � 865 1 I 1,978 1 Page 26 of 28 City of Palm Desert Neighborhood Stabilization Program One Year Plan ATTACHMENT C CITY OF PALM DESERT NSP INCOME LIMITS FY 2009 Income Limits for 50% of HUD Area Median Income 1 person 2 person 3 person 4 person 5 person 6 person 7 person 8 person Household household Household Household Household househo� household household 23,300 26,650 29,950 33,300 35,950 3$,��i50 41,300 43,950 � FY 2009 Income Limits for 120% of HUD Ar�a Medi�t� tncome 1 person 2 person 3 person 4 person 5 perspt� 6 person � 7 person 8 person Household household Household Household Hous�hold household hptssehold household � 55,920 63,960 71,880 79,920 86,280 92,760 99,920 105,480 � Page 27 of 28 City of Palm Desert Neighborhood Stabilization Program One Year Plan ATTACHMENT D CITY OF PALM DESERT PUBLIC COMMENTS Page 28 of 28 Contract No. C28970 MEMORANDUM OF UNDERSTANDING BY AND AMONGST COUNTY OF RIVERSIDE NEIGHBORHOOD STABILIZATION PROGRAM MEMBERS 1. Parties and Date. 1.1 This Memorandum of Understanding for the County of Riverside Neighborhood Stabilization Program Coalition ("MQU"� is dated as of , 2009, for reference purposes carlly, by �rid amongst the public agencies that have signed below on the attached sic�rt�ture p�rg�s, The parties hereto are sometimes referred to individually as "Party" and collectively as the "Parties". 2. Recitals. 2.1 On July 30, 2008, major housing legislation knt�vvrt �s the "Housing and Economic Recovery Act of 2008" ("HERA") was sigr�ed into law. 2.2 One of the programs cre�t�d under HERA is the "Neighborhood Stabilization Program" ("NSP"). The NSR �Ils for the appropriation of $3.92 billion for emergency assistance for the redevelopment of ab�ndone� and foreclosed upon homes and residential properties. 2.3 In early October, 2t}D8, the U.S. C�epartment of Housing and Urban Development ("HUD"� published its "Notice of allocations, waivers granted, alternative requirements ��plied, �nd statutory �rogram requirements" for the NSP ("Notice"). The effective date t�� the Notice is �eptemb�r �9, 2008. 2.4 Pursuant to the Nc�iice, the NSP funds are to be considered Community Deve(opment Block Grant ("CDBG") funds unless as stated otherwise in the Notice. 2.5 i'he Notice ident�fed the State of California, through its Department of Housing and Cflmmunity Qev�iopment ("HCD") and the County of Riverside as eligible to receive NSP funds as direct recipients from HUD, as well as the maximum amount of the allocation av�til�ble to each such direct recipient. The allocation to HCD is $145, 071, 506. 2.6 In addition, HCD has identified another five (5) jurisdictions within the County of Riverside that may receive an allocation of less than One Million Dollars, provided these jurisdictions file a joint application with other such jurisdictions, or may allow their respective counties to receive their allocation ("Tier 2 Jurisdictions"). The proposed allocation to these Tier 2 Jurisdictions totals $2,300,325. Contract No. C28970 2.7 As a result of the meeting held March 30, 2009, the agencies decided to formalize the creation of the joint agreement by entering into this MOU, identifying the County of Riverside as the Lead Agency. 2.8 The goals of the joint agreement include sharing information and strategies for NSP implementation, creating economies of scale by jointly implementing certain aspects of each agency's NSP. 3. Terms. 3.1 Incorporation of Recitals. The Recitals set forth ak�t�ve are true and correct and are incorporated herein by reference as though fully set fort� irt fii�is MOU. 3.2 Term. This MOU shall commence as ta each Party on #he date said Party executes this MOU, and shall remain in effect until terminated by all of the Parkies. Any Party may withdraw from this MOU as further set forth be�ow. 3.3 Headings. Article and Section Headings, paragraph captions or marginal headings contained in this MOU are for conveni�n�e �nly and shal� h�ave no effect in the construction or interpretation of any provisia�t �terein. 3.4 Notification. All notices and cc�mmunications hereunder shall be provided by electronic mail, or by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and 2�ddressed as designated on the attached signature pages. Any notice so given sh�ll be consider+�t� served on the other party upon transmittal of electronic mail, or fhr+�e (3) days after` deposit in the U.S. mail, first class postage prepaids return receipt requested, and addressed to the Party at its applicable address. Actu�( rt�at�ce �h�ll be deemed adequate notice on the date actual notice occurred reg�rt�less of the method of service. 3.5 Execution in Caunterpart. This MOU may be executed in several counterp�rts, and all so executed shall constitute one agreement, notwithstanding that all Parties �re not signatories t4 the original or the same counterpart. 3.6 Third Party 6e�te�ciaries. Nothing in this MOU shall be construed to confer any rights upon �ny party r1o# signatory to this MOU. 3.7 Governing Law. This MOU shall be governed by and construed with the laws of the State of California. 3.8 Entire Agreement. This MOU constitutes the entire agreement between the Parties relating to the subject matter hereof and supersedes any previous agreements or understandings. Any amendment to this MOU shall be in writing, signed by all of the Parties hereto. 2 Contract No. C28970 [Signatures on following page] [SIGNATURE BLOCKS AND CONTACT INFORMATION FOR NOTICE TO BE INSERTED] NOTICE OF PUBLIC HEARING FOR DESIGN PHASE Notice of Public Hearing to Receive Public Comments on Opportunities for Neighborhood Stabilization Program (NSP) Funding NOTICE IS HEREBY GIVEN that the City of Palm Desert, in conjunction with the County of Riverside, will conduct a public hearing at the regularly scheduled Housing Commission meeting on May 13, 2009, at 3:30 p.m., and on Thursday, May 21, 2009, at 4:00 p.m. at an adjourned meeting of the City Council. Both meetings will be held at 73-510 Fred Waring Drive, Palm Desert, CA, to review opportunities for NSP funding from the State of California. The State of California has received $145 million in NSP funding to address abandoned and foreclosed homes. The State has announced that the City of Palm Desert, jointly with the City of Palm Springs, City of Coachella, and County of Riverside, are eligible to receive up to $2,300,235 in NSP funding, of which the City of Palm Desert is eligible for $326,784 that may be used for the following activities: 1. Establish financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers; 2. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; 3. Establish land banks for homes that have been foreclosed upon; 4. Demolish blighted structures; and 5. Redevelop demolished or vacant properties. Housinq Activities: Receiving NSP funding must provide and improve permanent residential structures that will be occupied by a household whose income is at or below 120% of area median income (LMMH). Area Benefit Activities: Receiving NSP funding must benefit all the residents of a primarily residential area in which at least 51 % of the residents have incomes at or below 120% of area median income (LMMA). Limited Clientele Activities: Receiving NSP funding must serve a limited clientele whose incomes are at or below 120% of area median income (LMMC). In addition to the funding noted above, the State has set aside 25% of the $145 million in NSP funds for targeted, over-the-counter sub-grants to eligible applicants who will specifically target households at 50% or less of AMI as beneficiaries of these funds. If you are unable to attend either the public hearing, you may direct written comments prior to the date of the hearing to: City of Palm Desert, Housing Department, 73-510 Fred Waring Drive, Palm Desert, CA 92260, by Wednesday, May 21, 2009. Information may be obtained, or a public file on NSP activities may be reviewed, at the above address between the hours of 8:00 a.m. and 5:00 p.m. on weekdays. The program manager can be contacted at 760.346.0611, ext. 327, or by email at jmoore@ci.palm-desert.ca.us. If you plan on attending the public hearing and need a special accommodation because of a sensory or mobility impairment/disability, or have a need for an interpreter, please contact the program manager at 760.346.0611, ext. 327, to arrange for those accommodations to be made. Notification 48 hours prior to the meeting will enable the City to make reasonable accommodations to assure accessibility at the meeting. The City of Palm Desert promotes fair housing and makes all programs available to low- and moderate-income families regardless of age, race, color, religion, sex, national origin, sexual preference, marital status, or disability. Dated this 1 st day of May, 2009. S�'�e RA HELLE D. KLASSEN, C Y CLERK � CITY OF PALM DESERT, CALIFORNIA City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 California Department of Housing and Community Development Neighborhood Stabilization Program (NSP) NEPA Determination of Exemption Grantee: �I�Y OF PALM DESERT Grant Number: �oysMuxirr A9 � �4C S c � �O M x N � O ^� � '�"�;,,. � { ��zrFon��' Except for the applicable requirements of §58.6, the responsible entity does not have to comply with other provisions of law or authorities cited in §58.5. Below, please check the applicable activity(ies) to be implemented, which are considered exempt per §58.34(a): ❑(1) Environmental and other studies, resource identification and the development of plans and strategies; ❑ (2) lnformation and financial services; ❑ (3) Administrative and management activities; ❑(4) Public services that will not have a physical impact or result in any physical change, including but not limited to services concerned with employment, crime prevention, child care, health, drug abuse, education, counseling, energy conservation and welfare or recreational needs; ❑ ❑ ❑ a ❑ a (5) Inspections and testing of properties for hazards or defects; (6) Purchase of insurance; (7) Purchase of tools; (8) Engineering or design costs; (9) Technical assistance and training; (10) Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair or restoration activities necessary only to control or arrest the effects from disasters, imminent threats or physical deterioration; ❑(11) Payment of principal and interest on loans made or obligations guaranteed by HUD; ❑(12) Any of the categorical exclusions listed in §58.35(a) provided that there are no circumstances that require compliance with any other Federal laws and authorities cited in §58.5. (This is determined by completing the site-specific Statutory Worksheet form, which identifies the status of ALL compliance factors as "A".) Statutes and Regulations fisted at §58.6 - Other Requirements A. FLOOD /NSURANCE / FLOOD DISASTER PROTECTION ACT (1) Does the project involve the acquisition, construction or rehabilitation of structures, buildings or mobile homes? � No. Flood insurance is not required. The review of this factor is completed. Skip to Section B. Coasta/ Barriers Resources Acf. ❑ Yes. Continue to question 2. (2) Is the structure or part of the structure located in a FEMA-designated Special Flood Hazard Area? � No. Cite Source Document (FEMA/FIRM floodplain zone designation, map panel number, date or other credible source). FEMa t�tap Dated June 18, 1996 Rev: Pane1 No. 060�629003,0 (r�one B) Flood insurance is not required. The review of this factor is completed. Skip to Section B. Coastal Barriers Resources Act. ❑ Yes. Cite Source Document (FEMA/FIRM floodplain zone designation, map panel number, etc.). . Continue to question 3. 15 (3) Is the community participating in the National Flood Insurance Program (or has less than one year passed since FEMA notification of Special Flood Hazards)? ❑ Yes. Flood insurance under the National Flood Insurance Program must be obtained and maintained for the economic life of the project in the amount of the total project cost. A copy of the flood insurance policy declaration must be kept in the Environmental Review Record. � No. [Federal assistance may not be used in the Special Flood Hazards Area.] B. COASTAL BARRIERS RESOURCES ACT (1) Does the project involve any one of the following uses of Federal assistance? - acquisition, construction, repair, improvement or rehabilitation of public facilities; - acquisition, construction, repair, improvement or rehabilitation of residential or non-residential structures; - flood insurance for new or substantially improved structures; - erosion control or stabilization of inlet, shoreline or inshore areas. ❑ No. Cite Source Documentation. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. � Yes. Continue to question 2. (2) Is the project in an area along the Atlantic Coast, Gulf of Mexico, or Great Lakes? � No. Cite Source Documentation. There are no Coastal Barrier Resources on the U.S. West Coast. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. ❑ Yes. Continue to question 3. (3) Is the project located in a coastal barrier resource designated on a FEMA map? ❑ No. Cite Source Documentation. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. ❑ Yes. [Federal assistance may not be used in such an area.] C. A/RPORT RUNWAY CLEAR ZONES AND CLEAR ZONES DISCLOSURES (1) Does the project involve the sale or acquisition of an existing building or property within a Civil Airport's Runway Clear Zone, Approach Protection Zone or a Military Installation's Clear Zone? �ro ect loc�te� 5+ m�les �ro nearest airport. Confirmed � No. Cite Source Documentation. y�'eviewer s nowle Qe o t�ie area. Project complies with 24 CFR 51.303(a)(3). The review of this factor is completed. ❑ Yes. Disclosure statement must be provided to buyer and a copy of the signed disclosure statement must be maintained in this project's Environmental Review Record [24 CFR 51.303(a)(3)]. I hereby certify that the identified activities have been reviewed and determined to be Exempt per 24 CFR 58.34(a) and 24 CFR 58.6. Veronica Tapia Redevelopment Accountant Preparer Name � Title Preparer Signature: , Z(.(',`L�--�/�-e-�t1 i��-�-- - � John M. Wohlmuth City Responsible Entity (RE) Qffidial a e Title J RE Official Signature: -r � 16 Date: 5-15-09 Manager /�/� � Date: � l S 1 � California Department of Housing and Community Development Neighborhood Stabilization Program (NSP) Categorical{y Excluded Activities NOT Subject to §58.5 Grantee: CITY OF PALM DESERT Pf0)eCt NatTle: Enhanced First Time Homebuyer Grant Number: Date: 5-15-09 c��ux'ry �9 � , �� R �•� O � �� 7°3��,;,, y� C`lL7FOR�P • HUD has determined that the following categorically excluded activities would not alter any conditions that would require a review or compliance determination. The recipient remains responsible for carrying out any applicable requirements under §58.6. Below, please check the applicable activity that is eligible per §58.35(b): ❑ (1) Tenant-based rental assistance; ❑(2) Supportive services including, but not limited to, health care, housing services, permanent housing placement, day care, nutritional services, short-term payments for rent/mortgage/utility costs, and assistance in gaining access to local, State, Federal government benefits and services; ❑(3) Operating costs including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training and recruitment and other incidental costs; ❑(4) Economic development activities, including but not limited to, equipment purchases, inventory financing, interest subsidy, operating expenses and similar costs not associated with construction or expansion of existing operations; [x] (5) Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, and similar activities that result in the transfer of title. WARNING: Homebuyer assistance for units not already under construction will require compliance with environmental authorities cited in §58.5 (i.e. Statutory Worksheet). ❑(6) Affordable housing pre-development costs including legal, consulting, developer and other costs related to obtaining site options, project financing, administrative costs and fees for loan commitments, zoning approvals, and other related activities which do not have a physical impact. Statutes and Regulations listed at §58.6 - Other Requirements A. FLOOD /NSURANCE / FLOOD DISASTER PROTECTION ACT (1) Does the project involve the acquisition, construction or rehabilitation of structures, buildings or mobile homes? � No. Flood insurance is not required. The review of this factor is completed. Skip to Section B. Coastal Barriers Resource Act. ❑ Yes. Continue to question 2. (2) Is the structure or part of the structure located in a FEMA designated Special Flood Hazard Area? x[] No. Cite Source Document (FEMA/FIRM floodplain zone designation, map panel number, date or other credible source). FEMA Map Dated June 1.8, 1996 .�tev. Panel No. 0606290003D (Z.one Flood insurance is not required. The review of this factor is completed. Skip to Section B. Coastal Barriers Resource Act. ❑ Yes. Cite Source Document (FEMA/FIRM floodplain zone designation, map panel number, date or other credible source). Continue to question 3. 17 (3) Is the community participating in the National Flood Insurance Program (or has less than one year passed since FEMA notification of Special Flood Hazards)? ❑ Yes. Flood insurance under the National Flood Insurance Program must be obtained and maintained for the economic life of the projecf in the amount of the tota/ project cost. A copy of the *flood insurance policy declaration must be kept in the Environmental Review Record. � No. [Federal assistance may not be used in the Special Flood Hazards Area.] B. COASTAL BARR/ERS RESOURCES ACT (1) Does the project involve any one of the following uses of Federal assistance: - acquisition, construction, repair, improvement or rehabilitation of public facilities; - acquisition, construction, repair, improvement or rehabilitation of residential or non-residential structures; - flood insurance for new or substantially improved structures; - erosion control or stabilization of inlet, shoreline or inshore areas? ❑ No. Cite Source Documentation. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. Ox Yes. Continue to question 2. (2) Is the project in an area along the Atlantic Coast, Gulf of Mexico, or Great Lakes? � No. Cite Source Documentation. There are no Coastal Barrier Resources on the U.S. West Coast. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. ❑ Yes. Continue to question 3. (3) Is the project located in a coastal barrier resource designated on a FEMA map? ❑ No. Cite Source Documentation. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. ❑ Yes. [Federal assistance may not be used in such an area.] C. A/RPORT RUNWAY CLEAR ZONES AND CLEAR ZONES D/SCLOSURES (1) Does the project involve the sale or acquisition of an existing building or property within a Civil Airport's Runway Clear Zone, Approach Protection Zone or a Militafy Installation's Clear Zone? Project located 5+ miles from nearest airport. Confirmed �x No. Cite Source Documentation. bv reviewer' � knowledge of the area. Project complies with 24 CFR 51.303(a)(3). The review of this factor is completed. ❑ Yes. Disclosure statement must be provided to buyer and a copy of the signed disclosure statement must be maintained in this project's Environmental Review Record [24 CFR 51.303(a)(3)]. I hereby certify that the identified Projects/activities have been reviewed and determined to be Categorically Excluded and NOT Subject to §58.5 per 24 CFR 58.35(b) and 24 CFR 58.6. Veronica Tapia Preparer Name Redevelopment Accountant Title Preparer Signature: John M. Wohlmuth �� e� �� - , . City Manager Responsible Entity (RE) 'ci I ame Title RE Official Signature. . / 18 Date: 5-15-09 Date: �lSr/d i � � City of Palm Desert Neighborhood Stabilization Program One Year Plan Page 25 of 28 ATTACHMENT A CITY OF PALM DESERT NSP TARGET AREA MAP