1996 04 16 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
MINUTES
April 16, 1996
Regular meeting of the La Quinta Redevelopment Agency was called to order by
Chairman Sniff.
PRESENT: Board Members Adolph, Henderson, Holt, Perkins, Chairman Sniff
ABSENT: None
CONFIRMATION OF AGENDA Confirmed
APPROVAL OF MINUTES
MOTION It was moved by Board Members Adolph/Holt to approve Minutes of April
2, 1996 as submitted. Motion carried unanimously.
PUBLIC COMMENT None
PUBLIC HEARINGS
JOINT PUBLIC HEARING WITH THE CITY COUNCIL
1. AGREEMENT AND ESCROW INSTRUCTIONS FOR THE SALE OF REAL
PROPERTY BY AND BETWEEN THE CITY OF LA QUINTA AND MR. AND MRS.
JOSE SANCHEZ FOR THE PROPERTY LOCATED AT 53-880 AVENIDA VILLA.
Mr. Frank Spevacek, consultant with Rosenow, Spevacek Group, advised that
the purpose of the public hearing is to take public testimony regarding the sale
of property owned by the Redevelopment Agency to Mr. & Mrs. Jose Sanchez.
The property was purchased by the Agency in August, 1 995 to preserve its
affordable housing covenant. The previous owner purchased it from Stockman
Development in 1992 as part of an affordable housing project, but could not
find a qualified buyer when they needed to relocate and approached the
Agency about purchasing it to preserve the affordability covenant. The
Agency purchased the house at a cost of $110,000, this amount, $34,632
was the existing Agency second trust deed mortgage, with an additional
$75,368 paid by. the Agency to retire the first trust deed mortgage. In
February, 1996, the Agency received an offer of $1 11,500 from the Sanchez?,
who qualified for first trust deed financing subject to a lender?s appraisal. The
appraisal indicated a current market value of no more than $102,000. The
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escrow instructions provide that the property would be sold to the Sanchez
for a price of $102,000. $73,675 would be funded through their first trust
deed mortgage and $28,325 would be financed through an Agency second
trust deed. The second trust deed mortgage of about $34,632 will be
recorded against the property to insure the continued affordability to low-
income households and covenants that will last for 30 years.
In response to Board Member Holt, Mr. Spevacek advised that this is a typical
transaction relative to redevelopment agency affordable housing assistance.
It's also typical in that affordability covenants are recorded as part of the
second trust deed and the Agency is given the first right of refusal to re-
purchase the unit to preserve that?covenant.
The Chairman declared the PUBLIC HEARING OPEN. There being no one
wishing to speak, the Chairman declared the PUBLIC HEARING CLOSED.
MOTION It was moved by Board Members Henderson/Holt to approve the
agreement and escrow instructions regarding the disposition of the property
located at 53-880 Avenida Villa. Motion carried unanimously.
BUSINESS SESSION
1. CONSIDERATION OF A REQUEST FOR PROPOSALS TO BE CIRCULATED TO
QUALIFIED FIRMS FOR PROPERTY MANAGEMENT AND REAL ESTATE
SERVICES RELATED TO THE 50 SINGLE-FAMILY HOMES INVOLVED IN THE
LA QUINTA HOUSING PROGRAM.
Mr. Herman, Community Development Director, advised that on March 1 9,
1996, the Agency reviewed the Agency's ownership and management status
of 50 single-family homes in the Cove. The Council directed staff to draft an
RFP to solicit proposals from property management and real estate service
agencies. The RFP describes this as a five-year program whereby the potential
property-management agency would have real-estate-agency rights should the
Agency decide to sell the properties. Staff recommended approval to distribute
the RFP and asked that two Agency Members be appointed to serve on the
Selection Committee.
Board Member Henderson and Chairman Sniff volunteered to serve on the
Selection Committee.
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MOTION- It was moved by Board Members Henderson/Perkins to approve the
Request for Proposals and authorize circulation to qualified firms and appoint
a Selection Committee comprised of staff, housing consultant, and two Agency
Board Members, namely, Board Member Henderson and Chairman Sniff.
Motion carried unanimously.
2. CONSIDERATION OF A RESIDENTIAL REHABILITATION PROGRAM INVOLVING
SINGLE-FAMILY AND UP TO FOUR-UNIT, MULTI-FAMILY DWELLINGS, AND
A SECOND TRUST DEED MORTGAGE PROGRAM FOR THE REDEVELOPMENT
AGENCY PROJECT AREAS.
Mr. Herman, Community Development Director, asked the Council to provide
staff with input and direction in regard to possibly adding the following three
programs to the Agency's already established housing program: 1) purchase,
rehabilitate, and resale homes; 2) provide low-interest rehabilitation loans, and;
3 provide silent second trust deeds to households within Project Area Nos.
1 and 2.
In response to Board Member Holt, Ms. Honeywell, legal counsel, advised that
maintenance covenants were used to insure proper maintenance in the past,
but in order to be compatible with HUD and Fannie Mae first trust deeds, the
Agency has eliminated the maintenance requirements.
Mr. Spevacek, consultant with Rosenow, Spevacek Group, advised that it?s
difficult to get first trust deed funding from HUD and Fannie Mae if they feel
that the second trust deeds have onerous covenants that may impair their
ability to refinance the mortgage.
Board Member Perkins felt that first-time home buyers should be given
preference in regard to these programs.
Board Member Holt felt that it should be left open to all eligible home buyers,
pointing out that many people have lost their homes due to poor economic
conditions.
Agency Board concurred on directing staff to proceed with a program
encompassing the five points in the staff report.
MOTION It was moved by Board Members Perkins/Holt to direct staff to
formulate a specific program to proceed with the proposed rehabilitation
program in accordance with Board discussion. Motion carried unanimously.
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CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED APRIL 16.1996.
2. TRANSMITTAL OF TREASURY REPORT DATED FEBRUARY 29, 1996.
3. CONSIDERATION OF SELECTION OF BROKER/DEALER LISTING OF FINANCIAL
INSTITUTIONS.
4. ACCEPTANCE OF BID FOR ASSESSMENT/SEWER HOOK-UP SUBSIDY
PROGRAM PROJECT 96-07 TO HENDRICKSON CONSTRUCTION CO.
MOTION It was moved by Board Members Holt/Perkins to approve the
Consent Calendar as recommended. Motion carried unanimously.
DEPARTMENT REPORTS
1. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED FEBRUARY
29, 1g96.
MOTION- It was moved by Board Members Holt/Perkins to receive and file the
Revenue and Expenditures Report dated February 29, 1996. Motion carried
unanimously.
CHAIR AND BOARD MEMBERS' ITEMS None
Agency recessed to Closed Session.
CLOSED SESSION
Conference with Agency's real property negotiator pursuant to Government
Code Section 54956.8, concerning potential terms and conditions ot
acquisition and/or disposition of real property located at the northeast corner
of Avenue 48 and Adams Street. Applicant: Thomas Bienek.
Agency Board reconvened with no decision being made which requires reporting
pursuant to Section 54957.1 of the Government Code Brown Act).
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There being no further business, the Agency was adjourned.
Res?ectfuIly submitted
UNDRA L. JUHOLA, Secretary
La Quinta Redevelopment Agency
I
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