2005 11 15 RDAea# 4 4 4AZ
Redevelopment Agency Agendas are
Available on the City s Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La auinta, California 92253
Regular Meeting
Tuesday, November 15, 2005 — 2:00 p.m.
Beginning Resolution No. RA 2005-12
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Perkins, Sniff, and Chairman Osborne
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE
WITH AGENCY'S
REAL
PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE,
PURSUANT TO
GOVERNMENT CODE SECTION 54956.8
CONCERNING
POTENTIAL TERMS
AND
CONDITIONS OF ACQUISITION AND/OR
DISPOSITION
OF A PORTION OF
525 ±
ACRES LOCATED AT THE SOUTHWEST
CORNER OF
AVENUE 52
AND"-
JEFFERSON STREET. PROPERTY
OWNER/NEGOTIATOR: THEODORE LENNO'1, DDC DESERT DEVELOPMENT, INC.
0ol
Redevelopment Agency Agenda 1 November 15, 2005
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING BETWEEN THE REDEVELOPMENT AGENCY AND CITY
COUNCIL TO CONSIDER THE SALE OF REAL PROPERTY LOCATED AT 52-625
AVENIDA RUBIO BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY
AND ANGELA JUAREZ.
A. MINUTE ORDER ACTION
2. JOINT PUBLIC HEARING BETWEEN THE REDEVELOPMENT AGENCY AND CITY
COUNCIL TO CONSIDER THE SALE OF REAL PROPERTY LOCATED AT 53-940
EISENHOWER DRIVE BY AND BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND BRENDA DIEHL.
A. MINUTE ORDER ACTION
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on
December 6, 2005 commencing with closed session at 2:00 p.m. and open session at
3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of November 15, 2005, was
posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the
bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on Thursday,
November 10, 2005.
DATED: November 10, 2005
JUNE S. GREEK, CMC, City Clerk
City of La Quinta, California
003
Redevelopment Agency Agenda 3 November 15, 2005
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR DOUG EVANS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
PROPERTY REGARDING ENA NEGOTIATIONS WITH CVHC FOR PROPERTY
LOCATED AT THE SOUTHWEST CORNER OF DUNE PALMS AND AVENUE 48.
PROPERTY OWNERS/NEGOTIATORS: COACHELLA VALLEY HOUSING COALITION.
RECESS TO CLOSED SESSION
RECONVENE AT 3:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear
within the Consent Calendar or matters that are not listed on the agenda. Please complete
a "request to speak" form and limit your comments to three minutes. When you are called
to speak, please come forward and state your name for the record. Please watch the
timing device on the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF NOVEMBER 1, 2005
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED NOVEMBER 15, 2005.
2. RECEIVE AND FILE TREASURER'S REPORT AS OF SEPTEMBER 30, 2005.
3. RECEIVE AND FILE REVENUE AND EXPENDITURES REPORT DATED SEPTEMBER
30, 2005.
BUSINESS SESSION - NONE
002
Redevelopment Agency Agenda 2 November 15, 2005
Titit
"
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: NOVEMBER 15, 2005
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated November 15, 2005
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated November 15, 2005 of whic $307,087.97
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
004
ce,itif 4 eeP Qu&rcv
COUNCIL/RDA MEETING DATE: November 15, 2005
ITEM TITLE: Transmittal of Treasurer's Report
dated September 30, 2005
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: _C;—L
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
005
F
OF fKti
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: November 15, 2005
BUSINESS SESSION:
ITEM TITLE: Transmittal of Revenue and Expenditure
Report dated September 30, 2005 CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
Transmittal of the September 30, 2005 Statement of Revenue and Expenditures for
the La Quinta Redevelopment Agency.
Respectfully submitted,
i
Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Revenue and Expenditures, September 30, 2005
00f;
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LORP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
REMAINING
BUDGET RECEIVED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,675,400.00
21,728.90
6,653,671.10
50,900.00
14,433.85
36,466.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
276,000.00
47,412.00
228,588.00
150,000.00
347,927.05
(197,927.05)
0.00
0.00
0.00
0.00
29,299.60
(29,299.60)
0.00
1,708.38
(1,708.38)
0.00
521,008.07
(521,008.07)
0.00
0.00
0.00
7,152,300.00
983,517.85
6,168,782.15
DEBT SERVICE FUND:
Tax Increment
26,701,600.00
86,915.64
26,614,684.36
Allocated Interest
93,100.00
33,090.67
60,009.33
Non Allocated Interest
0.00
0.00
0.00
Interst - County Loan
0.00
0.00
0.00
Interest Advance Proceeds
0.00
0.00
0.00
Transfers In
3,945,802.00
976,470.99
2,969,331.01
TOTAL DEBT SERVICE
30,740,502.00
1,096,477.30
29,644,024.70
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
12,500.00
33,925.92
(21,425.92)
Non Allocated Interest
500,000.00
(54,902.12)
554,902.12
Litigation Settlement Revenue
0.00
0.00
0.00
Loan Proceeds
0.00
0.00
0.00
Rental Income
0.00
0.00
0.00
Transfers In
1,863,412.00
273,000.00
1,590,412.00
TOTAL CAPITAL IMPROVEMENT
2,375,912.00
252,023.80
2,123,888.20
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
0.00
0.00
0.00
Non Allocated Interest
0.00
0.00
0.00
Litigation Settlement Revenue
0.00
0.00
0.00
Bond proceeds
0.00
0.00
0.00
Rental Income
0.00
0.00
0.00
Transfers In
0.00
0.00
0.00
TOTAL CAPITAL IMPROVEMENT
0.00
0.00
0.00
007
z
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
BUILDING HORIZONS
LQ RENTAL PROGRAM
LQ HOUSING PROGRAM
LOWMOD VILLAGE APARTMENTS
2nd TRUST DEED PROGRAM
LQRP - REHABILITATION
APT REHABILITATION
FORECLOSURE
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
07/01/2005 - 09/30/05 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,900.00
2,242.65
0.00
2,657.35
265,405.00
14,595.12
0.00
250,809.88
125,000.00
0.00
0.00
125,000.00
332,000.00
53,991.08
0.00
278,008.92
320,000.00
0.00
0.00
320,000.00
400,000.00
0.00
0.00
400,000.00
3,298,340.00
0.00
0.00
3,298,340.00
0.00
0.00
0.00
0.00
136,000.00
0.00
0.00
136,000.00
150,000.00
0.00
0.00
150,000.00
679,574.00
169,893.51
0.00
509,680.49
3,945,802.00
976,470.99
0.00
2,969,331.01
9,657,021.00
1,217,193.35
0.00
8,439,827.65
537,800.00 6,240.00 0.00 531,560.00
2,500,000.00 2,500,000.00 0.00 0.00
BOND INTEREST
7,805,905.00
3,938,313.13
0.00
3,867,591.87
INTEREST CITY ADVANCE
1,116,237.00
281,615.41
0.00
834,621.59
PASS THROUGH PAYMENTS
13,076,663.00
411,155.87
0.00
12,665,507.13
ERAF SHIFT
3,000,000.00
0.00
0.00
3,000,000.00
TRANSFERS OUT
4,374,737.00
1,249,470.99
0.00
3,125,266.01
TOTAL DEBT SERVICE
32,411,342.00
8,386,795.40
0.00
24,024,546.60
CAPITAL IMPROVEMENT FUND:
PERSONNEL
SERVICES
LAND ACQUISITION
ASSESSMENT DISTRICT
ADVERTISING -ECONOMIC DEV
ECONOMIC DEVELOPMENT
BOND ISSUANCE COSTS
4,900.00
2,242.65
0.00
2,657.35
307,362.00
24,114.04
0.00
283,247.96
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
55,000.00
0.00
0.00
55,000.00
0.00
0.00
0.00
0.00
CAPITAL - BUILDING 0.00 0.00 0.00 0.00
REIMBURSEMENT TO GEN FUND 319,515.00 79,878.74 0.00 239,636.26
TRANSFERS OUT 24,407,059.00 1,803,986.41 0.00 22,603,072.59
TOTAL CAPITAL IMPROVEMENT
25,093,836.00
1,910,221.84
0.00
23,183,614.16
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
(4,594.00)
0.00
0.00
(4,594.00)
TOTAL CAPITAL IMPROVEMENT
(4,594.00)
0.00
0.00
(4,594.00)
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE BOND FUND:
Allocated Interest
Non Allocated Interest
Bond proceeds (net)
Transfer In
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Developer funding
Vista Dunes MHP Rental Rev
2nd Trust Deed Repayment
ERAF Shift - Interest
Sale of Land
Transfer In
TOTAL LOW/MOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
REMAINING
BUDGET RECEIVED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,445,900.00
12,302.98
3,433,597.02
275,300.00
17,685.36
257,614.64
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11,297.89
(11,297.89)
0.00
112,097.40
(112,097.40)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,721,200.00
153,383.63
3,567,816.37
0.00
0.00
0.00
0.00
0.00
0.00
1,418,400.00
373,764.12
1,044,635.88
0.00
0.00
0.00
1,418,400.00
373,764.12
1,044,635.88
DEBT SERVICE FUND:
Tax Increment
13,783,600.00
49,211.93
13,734,388.07
Allocated Interest
0.00
21,999.32
(21,999.32)
Non Allocated Interest
0.00
0.00
0.00
Interest Advance Proceeds
0.00
0.00
0.00
Transfer In
6,828,246.00
7,104,024.01
(275,778.01)
TOTAL DEBT SERVICE
20,611,846.00
7,175,235.26
13,436,610.74
CAPITAL IMPROVEMENT FUND:
Allocated Interest
37,100.00
12,156.83
24,943.17
Non Allocated Interest
0.00
0.00
0.00
Developer Agreement
0.00
5,120,062.12
(5,120,062.12)
Transfers In
0.00
0.00
0.00
TOTAL CAPITAL IMPROVEMENT
37,100.00
5,132,218.95
(5,095,118.95)
0 P.9
4
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE BOND FUND
2nd TRUST DEEDS
LAND
BOND ISSUANCE COSTS
TRANSFERS OUT
LOW/MODERATE TAX FUND:
07/01/2005 - 09130105 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
TOTAL LOW/MOD BOND 0.00 0.00 0.00 0.00
0 00 1 542 86
PERSONNEL
2,900.00
1,357.14
SERVICES
280,628.00
41,972.28
0.00
238,655.72
2ND TRUST DEEDS
1,000,000.00
0.00
0.00
1,000,000.00
2ND TRUST DEEDS FROM CENTERPOINTE
2,520,000.00
0.00
0.00
2,520,000.00
48TH AND ADAMS - FROM CENTERPOINTE
1,423,203.00
710.00
0.00
1,422,493.00
WASH/MILES PROJECT
0.00
0.00
0.00
0.00
VISTA DUNES MOBILE HOME PARK
0.00
79,751.59
0.00
(79,751.59)
LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ
0.00
0.00
0.00
0.00
47TH/ADAMS PROJECT
776,239.00
0.00
0.00
776,239.00
FORECLOSURE ACQUISITION
150,000.00
0.00
0.00
150,000.00
REIMBURSEMENT TO GEN FUND
350,708.00
87,676.99
0.00
263,031.01
TRANSFERS OUT
1 706 754 00
1,982,532.01
0.00
(275,778,01)
TOTAL LOW/MOD TAX
8,210,432.00
2,194,000.01
0.00
6,016,431.99
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
51,021,866.00
48.00
0.00
51,021,818.00
LAND
3,000,000.00
0.00
0.00
3,000,000.00
TRANSFERS OUT
1,167,353.00
316,278.43
0.00
861,074.57
TOTAL LOW/MOD BOND
55,189,219.00
316,326.43
0.00
54,872,892.57
DEBT SERVICE FUND:
SERVICES
195,970.00
0.00
0.00
195,970.00
BOND PRINCIPAL
200,000.00
100,000.00
0.00
100,000.00
BOND INTEREST
319,168.00
160,646.25
0.00
158,521.75
INTEREST CITY ADVANCE
1,593,358.00
368,886.52
0.00
1,224,471.48
PASS THROUGH PAYMENTS
11,726,665.00
25,828.27
0.00
11,700,836.73
TRANSFERS OUT
1,706,754.00
1,982,532.01
0.00
(275,778.01)
TOTAL DEBT SERVICE
15,741,915.00
2,637,893.05
0.00
13,104,021.95
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
1,356.56
0.00
1,543.44
SERVICES
195,162.00
1,175.08
0.00
193,986.92
ADVERTISING -ECONOMIC DEV
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMENT ACTIVITY
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
23,903.00
5,975.76
0.00
17,927.24
TRANSFERS OUT
5,606,525.00
5,123,484.00
0.00
483,041.00
TOTAL CAPITAL IMPROVEMENT
5,828,490.00
5,131,991. 00
0.00
696,498.60
O10
T4ht 4 w*fAQ"
COUNCIL/RDA MEETING DATE: November 15, 2005
A Joint Public Hearing Between the City Council
and Redevelopment Agency to Consider the Sale of
Real Property Located at 52-625 Avenida Rubio By
and Between the La Quinta Redevelopment Agency
and Angela Juarez
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the sale of the single-family home located at 52-625 Avenida Rubio to
Angela Juarez for a purchase price of $165,000, and authorize the Executive
Director to execute the necessary documents.
FISCAL IMPLICATIONS:
The Agency will receive approximately $82,000 from sale proceeds and will fund a
$75,000 silent second trust deed loan; funding the second trust deed loan will
insure that the dwelling is affordable to a very low-income household.
BACKGROUND AND OVERVIEW:
In August, 1995, the Agency acquired 50 single-family homes in the Cove to
remove them from bankruptcy proceedings filed by the then owner, Coachella
Valley Land. Known as the La Quinta Rental Housing Program, these dwellings
were rented to very low-income Section 8 households. In February 1998, the
Agency directed staff to sell two units per year first to qualified tenants, and
second, to other eligible very low-income households. Since 1998, the Agency has
also been substantially rehabilitating these units in order to count them towards the
Agency's affordable housing production requirements. State law requires existing
dwellings be substantially rehabilitated (wherein the rehabilitation costs are 25% or
greater than current market value) in order to count them as part of the Agency's
affordable housing production efforts. Property rehabilitation costs have been
funded from rental income.
oil
S:\CityMgr\STAFF REPORTS ONLY\PH 4 RDA Rubio.doc
When the Agency initiated relocation activities at the Vista Dunes Mobile Home
Park, staff began working with interested Park residents who could qualify for first
trust deed mortgage loans to purchase homes that were in the Rental Housing
Program or featured an Agency sponsored silent second trust deed mortgage. The
Rental Housing Program property manager and/or local realtors (in the case of
homes with silent second trust deed mortgages) continually contact staff when
Rental Housing Program homes are vacant, or when Agency second trust deed
mortgage homes are offered for sale. Ms. Juarez is a Vista Dunes resident who
expressed interest in purchasing a home. A Rental Housing Program home was
available and she subsequently qualified for a first trust deed mortgage loan.
The sale transaction would be structured wherein an Agency silent second trust
deed mortgage would cover the difference between the sales price, and the down
payment and an affordable first trust deed mortgage. If this sale is authorized, the
unit will be sold for $165,000 with the buyer funding an 18% or $30,000 down
payment, and a private lender originating a $60,000 first trust deed mortgage (the
maximum loan the homebuyer can obtain and have overall housing costs affordable
to a very low-income household). The Agency would convert $75,000 of its equity
into a silent second trust deed loan. This sale would be the 19th Rental Housing
Program unit to be sold; ten were sold to existing tenants, and nine to non -tenant
households.
Attachment 1 is a Summary Report that further details this transaction. Pursuant
to the Redevelopment Law, a joint public hearing of the City Council and Agency
Board must be held prior to approving the sale of Agency property purchased with
tax increment revenue.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency include:
1. Approve the sale of the single-family home located at 52-625 Avenida Rubio
to Angela Juarez for a purchase price of $165,000, and authorize the
Executive Director to execute the necessary documents; or
2. Do not approve the sale of the single-family home located at 52-625 Avenida
Rubio to Angela Juarez for a purchase price of $165,000, and do not
authorize the Executive Director to execute the necessary documents; or
3. Provide staff with an alternative direction.
012
S:\CityMgr\STAFF REPORTS ONLY\PH 4 RDA Rubio.doc
Respectfully submitted,
- /i 40/�e
Douglas . Evans
Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Summary Report
013
S:\CityMgr\STAFF REPORTS ONLY\PH 4 RDA Rubio.doc
ATTACHMENT #1
SUMMARY REPORT
FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
ANGELA JUAREZ
November 15, 2005
INTRODUCTION
This document is the Summary Report ("Report") for the proposed Sale Agreement
("Agreement") between the La Quinta Redevelopment Agency ("Agency") and
Angela Juarez ("Buyer"). The Agreement facilitates the sale of an Agency owned
single-family dwelling to the Buyer.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code (California Community Redevelopment Law) and presents the
following:
• A summary of the proposed transaction.
• The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
The Subject Pro erty
The home is a vacant 3-bedroom 2-bath single-family dwelling located at 52-625
Avenida Rubio within La Quinta Redevelopment Project Area No. 1 ("Property"). In
August, 1995, the Agency acquired 50 single family homes to remove them from
bankruptcy proceedings filed by the then owner, Coachella Valley Land. Known as
the La Quinta Rental Housing Program, these dwellings were rented to very low
income Section 8 households. In February 1998, the Agency directed staff to sell
two units per year first to qualified tenants, and second, to other eligible very low
income households. Since 1998, the Agency has also been substantially
rehabilitating these units in order to count them towards that Agency's affordable
housing production requirements. State law requires that an existing dwelling be
substantially rehabilitated (wherein the rehabilitation costs are 25% or greater than
014
current market value) in order to count them as part of the Agency's affordable
housing production efforts. Property rehabilitation costs have been funded from
rental income. The existing tenant recently vacated the property and per Agency
policy, staff initiated the sale of this unit to a very low income household.
A SUMMARY OF THE PROPOSED TRANSACTION
The Agency is in the process of relocating residents from the Vista Dunes Mobile
Home Park. The Buyer, a Vista Dunes resident who was being relocated,
expressed interest in purchasing a home in La Quinta and subsequently qualified for
a first trust deed loan. The Agreement facilitates the sale of the Property to the
Buyer, who will occupy the dwelling. The $165,000 sales price will be funded
through a combination of the Buyer's $30,000 down payment, a $60,000 first
trust deed mortgage, and $75,000 of the Agency's equity that will be converted
into a silent second trust deed loan. This second trust deed loan will include
covenants to insure that the Property will remain affordable to very low income -
household for 45 years.
THE COST OF THE SALE TO THE AGENCY
The Agency has invested $127,750 in the Property through a combination of the
$86,500 initial purchase cost and $41,250 of expenses related to substantially
rehabilitating the dwelling. Since 1998, the Agency has been substantially
rehabilitating the Rental Housing Program units in order to count them towards the
Agency's affordable housing production requirements. State law requires that
existing dwellings be substantially rehabilitated (wherein the rehabilitation costs are
25% or greater than current market value) in order to count them as part of the
Agency's affordable housing production efforts. Property rehabilitation costs were
funded from rental income.
Per the Agreement the Agency will sell the Property for $165,000; of this amount
the Agency will receive $82,000 in sale proceeds and convert $75,000 of its
equity into a silent second trust deed mortgage loan of $75,000 in order to insure
that the annual costs are affordable to very low income households. The Agency
will recover 64% of its investment to date from the sale proceeds.
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND
BEST USES PERMITTED BY THE AGENCY'S REDEVELOPMENT PLAN
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. Current
residential property sales for like dwellings in the Cove market area indicate values
of $210,000 to $225,000 for three bedroom, two bath single family dwellings in
good condition.
Gi5
1aquinta\1ghp\renta1 housing\Sum Rpt 52-625 Rubio11-05
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED DETERMINED BY THE
USE, AND WITH THE CONDITIONS, COVENANTS
The Agreement provides that the Property will be sold for $165,000. This value
was selected in order to facilitate the sale at a cost affordable to a very low income
household.
EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE
AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT
The Agreement does not eliminate blight in that it does not facilitate a transaction
that remedies blight. Instead the Agreement expands the supply of affordable
ownership housing in the Project Area. Prior to the sale, the Agency substantially
rehabilitated the Property to extend the Property's economic life, to reduce the
maintenance burdens for the family that will occupy this unit, and to improve
operating efficiencies by installing low water landscaping and efficient heating, air
conditioning and water heating devices. The Agreement includes covenants that
require the dwelling to remain affordable to very low income households for a 45
year period. This effort not only preserved housing that was affordable to very low
income households but will also insure that this dwelling remains affordable for the
longest feasible time.
iaquinta\lghp\rental housing\Sum Rpt 52-625 Rubio11-05
TW�p 44Q"
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: November 15, 2005 CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
A Joint Public Hearing Between the City Council PUBLIC HEARING:
and Redevelopment Agency to Consider the Sale of
Real Property Located at 53-940 Eisenhower Drive
By and Between the La Quinta Redevelopment
Agency and Brenda Diehl
RECOMMENDATION:
Approve the sale of the single-family home located at 53-940 Eisenhower Drive to
Brenda Diehl for a purchase price of $165,000, and authorize the Executive
Director to execute the necessary documents.
FISCAL IMPLICATIONS:
The Agency will receive approximately $79,000 from sale proceeds and will fund a
$78,000 silent second trust deed loan; funding the second trust deed loan will
insure that the dwelling is affordable to a very low-income household.
BACKGROUND AND OVERVIEW:
In August, 1995, the Agency acquired 50 single-family homes in the Cove to
remove them from bankruptcy proceedings filed by the then owner, Coachella
Valley Land. Known as the La Quinta Rental Housing Program, these dwellings
were rented to very low-income Section 8 households. In February 1998, the
Agency directed staff to sell two units per year first to qualified tenants, and
second, to other eligible very low-income households. Since 1998, the Agency has
also been substantially rehabilitating these units in order to count them towards the
Agency's affordable housing production requirements. State law requires existing
dwellings be substantially rehabilitated (wherein the rehabilitation costs are 25% or
greater than current market value) in order to count them as part of the Agency's
affordable housing production efforts. Property rehabilitation costs have been
funded from rental income.
When the Agency initiated relocation activities at the Vista Dunes Mobile Home
Park, staff began working with interested Park residents who could qualify for first
trust deed mortgage loans to purchase homes that were in the Rental Housing
017
S:\CityMgr\STAFF REPORTS ONLY\PH 5 RDA Eisenhower.doc
Program or featured an Agency sponsored silent second trust deed mortgage. The
Rental Housing Program property manager and/or local realtors (in the case of
homes with silent second trust deed mortgages) continually contact staff when
Rental Housing Program homes are vacant, or when Agency second trust deed
mortgage homes are offered for sale. Ms. Diehl is a Vista Dunes resident who
expressed interest in purchasing a home. A Rental Housing Program home was
available and she subsequently qualified for a first trust deed mortgage loan.
The sale transaction would be structured wherein an Agency silent second trust
deed mortgage would cover the difference between the sales price, and the down
payment and an affordable first trust deed mortgage. If this sale is authorized, the
unit will be sold for $165,000 with the buyer funding a 19% or $32,000 down
payment, and a private lender originating a $55,000 first trust deed mortgage (the
maximum loan the homebuyer can obtain and have overall housing costs affordable
to a very low-income household). The Agency would convert $78,000 of its equity
into a silent second trust deed loan. This sale would be the 20th Rental Housing
Program unit to be sold; ten were sold to existing tenants, and ten to non -tenant
households.
Attachment 1 is a Summary Report that further details this transaction. Pursuant
to the Redevelopment Law, a joint public hearing of the City Council and Agency
Board must be held prior to approving the sale of Agency property purchased with
tax increment revenue.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency include:
1. Approve the sale of the single-family home located at 53-940 Eisenhower
Drive to Brenda Diehl for a purchase price of $165,000, and authorize the
Executive Director to execute the necessary documents; or
2. Do not approve the sale of the single-family home located at 53-940
Eisenhower Drive to Brenda Diehl for a purchase price of $165,000, and do
not authorize the Executive Director to execute the necessary documents; or
3. Provide staff with an alternative direction.
Respectfully submitted,
A, - 6 4 � �_'a , -
Douglas R vans
Community Development Director
S:\CityMgr\STAFF REPORTS ONLY\PH 5 RDA Eisenhower.doc
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Summary Report
01J
S:\CityMgr\STAFF REPORTS ONLY\PH 5 RDA Eisenhower.doc
ATTACHMENT 1
SUMMARY REPORT
FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
BRENDA D1EHL
November 15, 2005
INTRODUCTION
This document is the Summary Report ("Report") for the proposed Sale Agreement
("Agreement") between the La Quinta Redevelopment Agency ("Agency") and
Brenda Diehl ("Buyer"). The Agreement facilitates the sale of an Agency owned
single-family dwelling to the Buyer.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code (California Community Redevelopment Law) and presents the
following:
• A summary of the proposed transaction.
The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
The Subject Property
The home is a vacant 3-bedroom 2-bath single-family dwelling located at 53-940
Eisenhower Drive within La Quinta Redevelopment Project Area No. 1 ("Property").
In August, 1995, the Agency acquired 50 single family homes to remove them
from bankruptcy proceedings filed by the then owner, Coachella Valley Land.
Known as the La Quinta Rental Housing Program, these dwellings were rented to
very low income Section 8 households. In February 1998, the Agency directed
staff to sell two units per year first to qualified tenants, and second, to other
eligible very low income households. Since 1998, the Agency has also been
substantially rehabilitating these units in order to count them towards that
Agency's affordable housing production requirements. State law requires that an
existing dwelling be substantially rehabilitated (wherein the rehabilitation costs are
040W0
25% or greater than current market value) in order to count them as part of the
Agency's affordable housing production efforts. Property rehabilitation costs have
been funded from rental income. The existing tenant recently vacated the property
and per Agency policy, staff initiated the sale of this unit to a very low income
household.
A SUMMARY OF THE PROPOSED TRANSACTION
The Agency is in the process of relocating residents from the Vista Dunes Mobile
Home Park. The Buyer, a Vista Dunes resident who was being relocated,
expressed interest in purchasing a home in La Quinta and subsequently qualified for
a first trust deed loan. The Agreement facilitates the sale of the Property to the
Buyer, who will occupy the dwelling. The $165,000 sales price will be funded
through a combination of the Buyer's $32,000 down payment, a $55,000 first
trust deed mortgage, and $78,000 of the Agency's equity that will be converted
into a silent second trust deed loan. This second trust deed loan will include
covenants to insure that the Property will remain affordable to very low income -
household for 45 years.
THE COST OF THE SALE TO THE AGENCY
The Agency has invested $127,750 in the Property through a combination of the
$86,500 initial purchase cost and $41,250 of expenses related to substantially
rehabilitating the dwelling. Since 1998, the Agency has been substantially
rehabilitating the Rental Housing Program units in order to count them towards the
Agency's affordable housing production requirements. State law requires that
existing dwellings be substantially rehabilitated (wherein the rehabilitation costs are
25% or greater than current market value) in order to count them as part of the
Agency's affordable housing production efforts. Property rehabilitation costs were
funded from rental income.
Per the Agreement the Agency will sell the Property for $165,000; of this amount
the Agency will receive $79,000 in sale proceeds and convert $78,000 of its
equity into a silent second trust deed mortgage loan of $78,000 in order to insure
that the annual costs are affordable to very low income households. The Agency
will recover 62% of its investment to date from the sale proceeds.
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND
BEST USES PERMITTED BY THE AGENCY'S REDEVELOPMENT PLAN
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. Current
residential property sales for like dwellings in the Cove market area indicate values
021
laquinta\lghp\rental housing\Sum Rpt 53-940 Eisenhower
of $210,000 to $225,000 for three bedroom, two bath single family dwellings in
good condition.
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED DETERMINED BY THE
USE, AND WITH THE CONDITIONS, COVENANTS
The Agreement provides that the Property will be sold for $165,000. This value
was selected in order to facilitate the sale at a cost affordable to a very low income
household.
EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE
AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT
The Agreement does not eliminate blight in that it does not facilitate a transaction
that remedies blight. Instead the Agreement expands the supply of affordable
ownership housing in the Project Area. Prior to the sale, the Agency substantially
rehabilitated the Property to extend the Property's economic life, to reduce the
maintenance burdens for the family that will occupy this unit, and to improve
operating efficiencies by installing low water landscaping and efficient heating, air
conditioning and water heating devices. The Agreement includes covenants that
require the dwelling to remain affordable to very low income households for a 45
year period. This effort not only preserved housing that was affordable to very low
income households but will also insure that this dwelling remains affordable for the
longest feasible time.
G
laquinta\lghp\rental housing\Sum Rpt 53-940 Eisenhower