HomeMy WebLinkAboutAcquire Prop - APN 634-241-042 (Desert Rose)PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE ACQUISITION OF APN 634-241-042 IF NECESSARY
IN ANTICIPATION OF THE EXPIRATION OF THE FIRST RIGHT OF
REFUSAL PERIOD
OWNER(S): Jaime and Yuriria Vivanco
43-710 Kelsey Court
Palm Desert, CA 92211
SUBMITTED BY: Janet M. Moore, Director of Housing
Jessica Gonzales, Management Analyst - Housing
DATE: August 26, 2010
CONTENTS: Certificate of Acceptance of Deed
Recommendation
By Minute Motion:
1) Authorize the acquisition of 43-710 Kelsey Court (APN 634-241-042) for
the purpose of retaining affordability covenants and resale if necessary in
anticipation of the expiration of the 60 day Right of Refusal period;
2) Approve a Silent Second Trust Deed in an amount necessary to secure
an affordable housing cost not to exceed $65,000, pursuant to
Redevelopment Law for either a direct sale or Agency sale; and
3) Authorize the Executive Director to execute any documents necessary to
facilitate this transaction.
Funds are available in Acquisition Rehab and Resale Account No. 870-4492-464-
4001 and Homebuyer Assistance Account No. 870-4699-464-4001.
Executive Summary
The Agency has the first right of refusal to purchase resales at Desert Rose in order to maintain
affordability covenants and resell the unit to another qualified buyer. If the Agency fails to
execute its option to purchase within a 60-day period, the homeowner can sell the house to a
non -qualified buyer and the Agency would lose its covenants on the property.
Backaround
Once an owner notifies the Agency of their intent to sell, Agency staff begins identifying potential
buyers from an interest list. In some cases this takes a good portion of the 60-day exercise
period. Because of this, staff recommends exercising the Agency's option to purchase in order
to retain affordability covenants in the event that it becomes necessary prior to the expiration of
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Staff Report
Authorize the Acquisition of43-710 Kelsey Court, Jaime and Yuriria Vivanco
August 26, 2010
Page 2 of 3
the 60-day Right of Refusal to purchase period. This will allow for additional time to identify a low
income family to purchase the unit.
Staff will endeavor to qualify a buyer and have the sale negotiated directly between the seller
and new qualified buyer, however due to the qualification process it is not always feasible within
the time frame required.
The home was purchased on April 24, 2007, for the sale price of $117,244. Based on the
formula for resale described in the Unit Regulatory Agreement, the owner is authorized to sell
the home for $128,722 plus commissions, reasonable closing costs. The Agency has the right
to purchase the properties for the same amount as the owners are authorized to sell.
If it becomes necessary for the Agency to purchase the home to maintain affordability, a low or
moderate income family will be identified from an established interest list and will purchase the
home directly from the Agency subject to thepublic hearing process.
In either event, it will be necessary for the Agency to provide a Second Trust Deed to a new
buyer in an amount necessary to ensure an affordable housing cost not to exceed $65,000 in
order for them to qualify to purchase the home. The new buyer will be required to sign a new
Unit Regulatory Agreement for a covenant period of up to forty-five (45) years as prescribed in
the Desert Rose Unit Regulatory Agreement.
Funds are available in Acquisition Rehab Resale Account No. 870-4492-464-4001 and
Homebuyer Assistance Account No. 870-4699-464-4001.
Fiscal Analvsis
The fiscal impact to the Agency will be in an amount necessary to secure an affordable housing
cost for either a direct sale or Agency sale.
If it becomes necessary for the Agency to purchase the home to maintain affordability, the
additional fiscal impact will be minimal to include any maintenance costs necessary until the
property is resold to a qualified buyer.
Submitted by:
Jes i Gonzales, an ement Analyst- Housing
Department Head:
z
J n t M. Moore,-I�irector of Housing
Appr a
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Paul Gibson, Director of Finance
BY RDA t �}
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A. P.N. 634-241-042
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant
Deed from Jaime and Yuriria Vivanco, to THE PALM DESERT REDEVELOPMENT
AGENCY, a public body, corporate and politic, the legally described property as: Lot 42
of Tract Map No. 27546, in the City of Palm Desert, County of Riverside, State of
California, as per map recorded in book 249 of maps, page(s) 63 through 68 inclusive,
of the official records of Riverside County, also known as 43-710 Kelsev Court, Palm
Desert, CA 92211, is hereby accepted by order of the Agency Board on behalf of the
Agency pursuant to Minute Motion of the Agency Board on August 26, 2010, the
Grantee consents to the recordation thereof by its duly authorized officer.
Date:
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
la
Cindy Finerty, Chairman
State of California )
SS.
County of Riverside )
On , 2010, before me, M. Gloria Martinez, a Notary Public, personally
appeared Cindv Finertv, , who proved to me on the basis of satisfactory evidence to be
the person(s) whose (names(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the persons(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct
WITNESS my hand and official seal
Signature
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