CC Resolution 1995-079^!I RESO*QN 95-79
A RESOL*ON OF THE LA QUINTA CITY COUNCIL
APPROVING A SECOND AMENDMENT TO
DISPOS*ON AND DEVELOPMENT AGREEMENT BY
AND BETWEEN LA QUINTA REDEVELOPMENT
AGENCY AND BUILDING HORIZONS
WHEREAS, the La Quinta Redevelopment Agency the Agency") and Building
Horizons the Developer") entered into a certain Disposition and Development Agreement, dated
as of September 30, 1994 the DDA") for the disposition and development of certain private and
public improvements within the La Quinta Redevelopment Project the Project"); and
WHEREAS, the Developer and the Agency entered into a First Amendment to the
DDA, dated as of the 18th day of July, 1995; and
WHEREAS, the Developer and the Agency are proceeding to perform their respective
obligations pursuant to the DDA; and
WHEREAS, the Developer and the Agency desire to enter into a Second Amended
DDA to modif* the DDA in order to i) include low income persons or households to which the
Agency will provide assistance; ii) decrease the down payment requirement to zero percent 0%)
of the purchase price to provide more favorable terms for the low and moderate income purchaser;
and iii) replace certain attachments of the DDA to conform to the Agency's currently approved form
documents relating to its affordable housing second trust deed assistance program in the form
attached hereto as Exhibit A" incorporated herein, which constitutes the Second Amendment");
and
WHEREAS, the approval and execution of the Second Amendment will facilitate the
orderly completion of improvements by the Developer as contemplated in the DDA and in
ftirtherance of the Redevelopment Plan for Project Area No.1 the Redevelopment Plan"); and
WHEREAS, the Agency is authorized to use tax increment revenues to increase,
improve, and preserve the community's supply of low- and moderate-income housing available at
affordable housing cost pursuant to Health and Safety Code Section 33334.2 and
WHEREAS, the Agency and the City Council of the City of La Quinta have
conducted a duly noticed joint public hearing regarding the proposed acquisition and disposition of
real property in accordance with California Health and Safety Code Sections 33431 and 33433; and
WHEREAS, the staff report pertaining to the Second Amendment, which has been
on display prior to the joint public hearing in accordance with Section 33433 of the California
Health and Safety Code Section 33433, contains a detailed description of the provisions of the
Amendment;
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Resolution 95-79
NOW, THEREFORE, the La Quinta City Council does resolve as follows:
Section l*. The Second Amendment is exempt under the California Environmental
Quality Act pursuant to California Code of Regulations Section 15303(a) due to the fact that the
project consists of construction of two residential units on two previously existing lots.
Section 2. The City Council flirther finds and determines that: a) the approval of the
First Amendment will promote the objectives of the Redevelopment Plan and promote the health,
safety and welfare of the citizens of the City of La Quinta; b) the Amendment is consistent with the
orderly development of the improvements to be provided by the Developer pursuant to the DDA;
and c) the Amendment provides for the enhanced ability for moderate income individuals to
purchase a newly developed unit to increase the community's supply of moderate units pursuant to
Health and Safety Code Section 33334.2.
Section 3. The City Council approves the Second Amendment in the form of Exhibit A"
and authorizes and directs the Chairman and Secretary to execute that Second Amendment and such
other documents as may be determined by Agency Counsel to be necessary or appropriate to
effectuate the DDA as now amended.
PASSED, APPROVED AND ADOPTED this 17th day of October, 1995 by the following
vote:
AYES: Council Members Cathcart, Perkins, Sniff, Mayor Pena
NOES: None
ABSENT: Council Member Bangerter
ABSTAIN: None
JOHNP A, yor
City of La Quinta, California
AT E
AUNDRA L. JUH A, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
DAWN C. HONEYWELL, City Attorney
City of La Qrnnta, California
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^!I tic I * * * I
SECOND AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
BY AND BETWEEN
LA QUINTA REDEVELOPMENT AGENCY
AND
BUILDING HORIZONS
THIS SECOND AMENDMENT Second Amendment Yt) is entered into this 17th day of
October, 1995, by and between the LA QUINTA REDEVELOPMENT AGENCY Agency")
and BUILDING HORIZONS Developer").
RECITALS
WHEREAS, the Agency and the Developer entered into a Disposition and Development
Agreement, dated September30, 1994 the DDA"), a copy of which is on file as a public record
with the City Clerk of the City of La Quinta and which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer entered into a First Amendment to the DDA
dated the 18th day of July, 1995 the First Amendment"), a copy of which is on file as a public
record with the City Clerk of the City of La Quinta and which is incorporated herein by
reference; and
WHEREAS, the Agency and the Developer desire to enter into a Second Amendment to
the DDA in order to I) include low income persons or households to which the Agency will
provide assistance; ii) decrease the down payment requirement to zero percent 0%) of the
purchase price to provide more favorable terms for the low and moderate income purchaser; and
iii) replace certain attachments of the DDA to conform to the Agency's currently approved form
documents relating to its affordable housing second trust deed assistance program.
AGREEMENT
NOW, THEREFORE, the Agency and the Developer do hereby agree to amend the DDA
as follows:
Section 1. Amend all references to Moderate Income" to Low and/or Moderate
Income" except for those definition sections provided in Sections 2 and 3 below.
Section 2. Amend Subsection 401(2)(a) of the DDA relating to the definition of
Affordable Housing Cost" to read as follows:
a) Affordable Housing Cost" shall be that purchase price which
would result in maximum monthly housing payments for a thirty 30) year
mortgage for that portion of the purchase price which is to be paid in the form of
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loan proceeds under currently prevailing mortgage loan rates or the interest rate of
any below-market mortgage program for which such purchaser has obtained a first
trust deed loan, for the low and moderate income groups calculated pursuant to
Health and Safety Code Section 50052.5, which sets forth the following formula:
Lower Income Households whose gross incomes exceed the
maximum income for very low income households and do not exceed seventy
percent 70%) of the area median income adjusted for family size, the product of
thirty percent 30%) times seventy percent 70%) of the area median income
adjusted for family size appropriate for the unit. In addition, for any lower
income household that has a gross income that equals or exceeds seventy percent
70%) of the area median income adjusted for family size, it shall be optional for
any state or local flinding agency to require that affordable housing cost not
exceed thirty percent 30%) of the gross income of the household.
Moderate Income Households not less than twenty-eight percent
28%) of the gross income of the household, nor more than the product of thirty
five percent 35%) times the greater of one hundred ten percent 110%) of area
median income adjusted for family size appropriate for the Affordable Unit, or the
gross income of the household for households earning greater than one hundred
percent 110%) and not more than one hundred twenty percent 120%) of the area
median income adjusted for family size.
Section 3. Add the following Subsection 401 2)(b) to include the definition of
Lower Income Household":
b) Lower Income Household" shall mean a household earning not
greater than eighty percent 80%) of Riverside County median income, as determined by the
United States Department of Housing and Urban Development from time to time, as set forth in
Health and Safety Code Section 50093.
Section 4. Amend item 6 of the Hypothetical Example on the Maximum Sales Price
Illustration Attachment No.12 of the DDA) to read as follows:
6. Down payment on house 0% of Sales Price.
SectionS. The following attachments to the DDA shall be deleted as attachments and
replaced at the time of the sale of the unit to conform to the Agency's currently approved
standard forms with respect to its affordable housing second trust deed assistance program:
i) Buyer Promissory Note Attachment No.8);
ii) Second Deed of Trust Attachment No.9); and
iii) Declaration of Conditions, Covenants and Restrictions Attachment No.10).
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^!I Section 6. This Second Amendment and the provisions of the DDA, which remain in
effect, collectively constitute the Amended DDA.It The Amended DDA integrates all of the
terms and conditions of agreement between the parties, and supersedes all negotiations or
previous agreements between the parties with respect to the subject matter hereof.
Section 7. Bach of the parties hereto warrants and represents to the other that it has
the flill power and authority to enter into and execute this Second Amendment, that all
authorizations and approvals required to make this Second Amendment binding upon such party
have been obtained, and that the person or persons executing this Second Amendment on behalf
of such parties has been filly authorized to do so.
The effective date of this Second Amendment shall be the date of execution by the
Agency.
October 17, 1995 REDEVELOPMENT AGENCY OF THE
CITY OF LA QUINTA
By:
STANLEY SNIFF, Chairman
City of La Quinta, California
ATTEST:
SAUNDRA L. JUHOLA, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
DAWN C. HONEYWELL, Agency Counsel
City of La Quinta, California
BUILDING HORIZONS
By:
Its:
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