HomeMy WebLinkAboutAqustn - 75435 Wildflower Ln (Desert Rose)PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE ACQUISITION OF APN 634-062-024 IF
NECESSARY IN ANTICIPATION OF THE EXPIRATION OF THE
FIRST RIGHT OF REFUSAL PERIOD
OWNER(S): Douglas B. Mueller
75435 Wildflower Lane
Palm Desert, CA 92211
SUBMITTED BY: Janet M. Moore, Director of Housing
Jessica Gonzales, Management Analyst - Housing
DATE: May 13, 2010
CONTENTS: Certificate of Acceptance of Deed
Recommendation
By Minute Motion:
1) Authorize the acquisition of 75435 Wildflower Lane (APN 634-062-
024) for the purpose of retaining affordability covenants and resale if
necessary in anticipation of the expiration of the 60 day Right of
Refusal period;
2) Approve a Silent Second Trust Deed in an amount necessary to
secure an affordable housing cost pursuant to Redevelopment Law
for either a direct sale or Agency sale; and
3) Authorize the Executive Director to execute any documents necessary
to facilitate this transaction. Funds are available in Account No. 870-
4492-464-4001.
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.
Staff Report
Authorize the Acquisition of 634-062-024, Mueller, Douglas B.
May 13, 2010
Page 2 of 3
Backqround
The Agency has the first right of refusal to purchase properties from owners in Desert Rose
who desire to sell. 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 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 October 5, 2000, for the sale price of $96,500.00. Based on
the formula for resale described in the Unit Regulatory Agreement, the owner is authorized
to sell the home for $131,317.00 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 waiting list and will
purchase the home directly from the Agency subject to the public hearing process.
In either event, it will be necessary for the Agency to provide a Second Trust Deed to a
new buyer in an amount necessary to ensure an affordable housing cost in order for them
to qualify to purchase the home. The new buyer will be required to sign a new Unit
Regulatory Agreement for a covenant period of up to forty-five (45) years as prescribed in
the Desert Rose Unit Regulatory Agreement.
Funds are available in Account No. 870-4492-464-4001.
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.
Staff Report
Authorize the Acquisition of 634-062-024, Mueller, Douglas B.
May 13, 2010
Page 3 of 3
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:
leigement
ca Gonzales—�
M Analyst - Housing
Department Head:
Ano-i4. Moore
Director of Housing
Approval:
Paul Gibson
Director of Finance
sti McCarthy
ACM edevelopmen
V Wohlmuth
utive Director
BY RDA
oN C5 (�-9-01U
VERIFIED BY�7�Y� r
Original on file with City CI
G \rda\Patty Leon\JMM\staff report\ACQUISITIONS\Mueller, Douglas 051310 doc
A.P.N. 634-062-024
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant
Deed from DOUGLAS B. MUELLER, to THE PALM DESERT REDEVELOPMENT
AGENCY, a public body, corporate and politic, the legally described property as: Lot
110 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 75435 Wildflower Lane, is
hereby accepted by order of the Agency Board on behalf of the Agency pursuant to
Minute Motion of the Agency Board on Mav 13, 2010, the Grantee consents to the
recordation thereof by its duly authorized officer.
Date:
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
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
G \rda\Patty Leon\JMM\staff reporMCQUISITIONS\Mueller, Douglas 051310 doc