HomeMy WebLinkAboutAquisition Desert Rose 75340 Kelsey Circle APN 634-242-007-8PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE ACQUISITION OF A PROPERTY LOCATED IN
DESERT ROSE KNOWN AS APN 634-242-007-8 (75-340 KELSEY
CIRCLE SOUTH) IF NECESSARY IN ANTICIPATION OF THE
EXPIRATION OF THE FIRST RIGHT OF REFUSAL PERIOD
OWNER(S): Estate of Esperanza Odom
75-340 Kelsey Circle
Palm Desert, CA 92211
SUBMITTED BY: Janet M. Moore, Director of Housing
Jessica Gonzales, Management Analyst - Housing
DATE: March 10, 2011
CONTENTS: Certificate of Acceptance of Deed
Recommendation
By Minute Motion, that the Agency Board:
1) Authorize the acquisition of 75-340 Kelsey Circle South (APN 634-242-
007-8) for the purpose of retaining affordability covenants and resale, if
necessary in anticipation of the expiration of the 60 day first right of
refusal period, in the amount pursuant to the Affordable Agreement
approximately $107,294.00 to be increased by reasonable closing
costs and commissions);
2) Approve a Silent Second Deed in an amount necessary to secure an
affordable housing cost pursuant to Redevelopment Law for either a
direct sale or Agency resale from Housing Set -Aside Fund monies;
3) Authorize the Finance Director to draw monies from the relative funds
to facilitate the transaction; and
4) Authorize the Executive Director or his designee 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 properties in Desert Rose, when the
seller desires to sell, 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
Staff Report
Authorize the Acquisition of 634-242-007-8
March 10, 2011
Page 2 of 3
would lose its covenants on the property.
Backqround
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 desires to exercise its option to purchase the home
located at 75-340 Kelsey Circle South, in the event that it becomes necessary prior to the
expiration of the 60-day First Right of Refusal period. This will allow for additional time to
identify a qualified buyer to purchase the home.
Staff will endeavor to qualify a buyer and have the sale negotiated directly between the
seller and qualified buyer; however due to the qualification process it is not always feasible
within the timeframe required.
The home was purchased on September 4, 1997, for the sale price of $73,950.00 which
includes an Agency Trust Deed in the amount of $1,479.
Pursuant to the Unit Regulatory Agreement ("Affordable Agreement"), the Executor of the
estate is authorized to sell the home in the amount which is the lesser of either the fair
market value of the property or the sum of the calculated resale price which is
approximately $107,294.00 plus commissions and reasonable closing costs, (i.e.,
$107,294.00 plus closing costs estimated at $2,087.20 for a purchase price consideration
of approximately $109,381.20). The Agency has the right to purchase the properties for
the same amount as the owners are authorized to sell to a qualified buyer.
If it becomes necessary for the Agency to purchase the home to maintain affordability, a
low or moderate income household will be identified from an established interest list and
will purchase the home directly from the Agency subject to the public hearing process.
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 Affordable Agreement.
Monies are available in Acquisition Rehab and Resale Account No. 870-4492-464-4001
and Homebuyer Assistance Account No. 870-4699-464-4001. Staff is requesting that the
Director of Finance draw monies from the relative funds for the purpose of completing this
transaction.
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Staff Report
Authorize the Acquisition of 634-242-007-8
March 10, 2011
Page 2 of 3
Fiscal Analysis
The fiscal impact to the Agency will be in an amount necessary to purchase the home to
maintain affordability and any maintenance costs necessary until the property is resold to a
qualified buyer.
Submitted by:
,_1 Q______
Jesic Gonzales, AMan Analyst
Approval:
41, /,j �iV /,.
Ksti i McCarthy, ACM ;evelopment
J Wohlmuth, Executive Director
Department Head:
net . Moore, Director of Housing
Paul Gibson, Director of Finance
BY RDA
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VERIFIEDBY
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Original can file t+Ath `,ity Clerk's Office
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A.P.N. 634-242-007-8
CERTIFICATE OF ACCEPTANCE OF DEED
(Gov. Code 27281)
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant
Deed from ESPERANZA ODOM, to THE PALM DESERT REDEVELOPMENT
AGENCY, a public body, corporate and politic, the legally described property as: Lot
126 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 75-340 Kelsev Circle South,
is hereby accepted by order of the Agency Board on behalf of the Agency pursuant to
Minute Motion of the Agency Board on March 10, 2011, the Grantee consents to the
recordation thereof by its duly authorized officer.
Date:
PALM DESERT REDEVELOPMENT AGENCY
A public body, corporate and politic
Jean M. Benson, Chairman
State of California )
SS.
County of Riverside )
On , 2011, before me, M. Gloria Martinez, a Notary Public, personally
appeared Jean M. Benson , 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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