1991 04 16 RDA Minutesc LA QUIL? REDEVELOP?ENT AGENCY
MiNUTES
APRIL 16, 1991
Regular meeting of the La Quinta Redevelopment Agency was called to
order, Chairman Pena presiding.
PRESENT: Mr. Bohnenberger, Mrs. Franklin, Mr. Rushworth,
Mr. Sniff, Chairman Pena
ABSENT: None
PUBLIC HEARING None
BUSINESS SESSION
1. CONSIDERATION OF A SELF-HELP HOUSING PROGRAM IN CONJUNCTION
WITH COACHELLA VALLEY HOUSING COALITION.
Council Member Rushworth advised that he was on the Board of
Directors for Coachella Valley Housing Coalition and would
therefore abstain.
a. Report by C. V. Housing Coalition.
FRED WOLFF, Board Member of C. V. Housing Coalition,
addressed the Agency giving background information on the
Housing Coalition?fl and advised that they are the biggest
developer of affordable housing in the Valley.
JOHN MEALY, Executive Director of C. V. Housing
Coalition, addressed the Agency and displayed artist
renderings of projects that are taking place in other
areas. One of the displays, Palma Village is in the City
of Palm Desert. The homes are 1200 and 1300 sq. ft. with
two car garages. The Coalition has built 20 self-help
homes in the City of Palm springs, 40 in the City of
Coachella and 60 are currently under construction in
Mecca, with 40 more to be started in Coachella. What is
proposed for La Quinta is to develop 20 self-help single
family homes on scattered lots throughout the Cove. The
houses will meet all City standards and be comparable to
the homes that have been displayed and constructed under
the self-help method. In this program the Coalition
recruits and train low income families to build their
homes. The people who will participate in the program
will have incomes that will be less than 80 percent of
the County median income. The Coalition has staff that
will work with each group of 10 families through the
entire process. Construction takes approximately 10
months with no families moving into their homes until all
are complete. Financing will be available through the
State of California, California Housing Finance Agency at
a reduced interest rate of about 7 1/2 percent on first
mortgage, a deferred mortgage from the State of
California up to $15,000 per household, depending on each
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households need and depending on final designs and the
cost of the houses that are worked out with the City1
there will likely be a need for additional subsidy from
the City and this normally takes the part of the deferred
loan. This is a loan which no payments are due until the
original family sells the house or until they live in the
house for a certain number of years. After a number of
years, the loan is forgiven. A proposal has been
submitted to the City staff. First stage of the project
would be obtaining all the funding and locating the lots
and recruiting the families, which is normally done by
contract with the local government for a proposed amount
of $30,000. Once the financing is obtained and the
families are identified and determined to be eligible,
then construction can start.
In response to Council Member Sniff, Mr. Kiedrowski
advised that the proposal Mr. Mealy was referring to was
not included in the agenda packet. If Council wishes to
go forward with the project a proposal will be submitted
to Council at a later date.
In response to Mrs. Franklin, Mr. Mealy explained that
the $100,000. for technical assistance costs to CVHC is
the cost to process each home. It is figured to cost
approximately $10,000 per house to put the project
together, recruit and train the families and oversee the
construction. The Coalition has a staff of construction
supervisors. There are two home packager's assigned to
this prOject, one to each group that would recruit and
train the families and package their application. The
applications are submitted to CHAPA and FHA for funding.
In response to Mr. Bohnenberger, Mr. Mealy advised that
the lots have not been selected and the homes would
comply with all the requirements for the Cove area.
Mr. Kiedrowski advised that one of the reasons for the
higher costs is that the homes will look the same as
other homes built in the Cove. One of the reasons for
not using the Federal Program as used in other
Communities is that Federal Program only allows a one car
garage and our City standard requires a two car garage.
Staff has reviewed all of the regulations and once plans
are submitted, a more detailed review will take place.
In response to Mr. Sniff, Mr. Mealy advised that a novice
builder could probably build a better house than a
construction company. people who build their own homes
take pride in their homes and they make sure they are
built right. These homes get the same inspections as
other homes.
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In response to Mr. Sniff, Mr. Mealy advised that he does
not have the exact figures, but lenders have indicated
that the rate of foreclosure is much lower than that of
conventional loans
Mrs. Franklin stated that in concept this looks like a
wonderful idea and would like to proceed with it.
Chairman Pena concurred and added that in talking with
people who have dealt with self help housing they have
indicated that it is a very successful program.
Mr. Kiedrowski advised that if Council wishes to build
additional homes, money will be added to the low/mod
housing fund. There has been discussion about purchasing
a 10 acre site and building a small subdivision of
low/mod homes in La Quinta.
Mr. Mealy advised that he hopes to be invited back to
build a larger subdivision after these homes are
completed.
In response to Mr. Sniff, Mr. Mealy advised that the
$30,000 pays for CVHC to put together the contract and
obtain the financing and subsidy, recruit the families
and hire the staff for the project, the $300,000 is a
deferred loan of $15,000 to 20 individual families who
will build their homes. The $100,000 is the technical
administrative costs, which is half of what it costs to
administer the project.
In response to Chairman Pena, Mrs. Honeywell advised that
by approving this and going forward with it and coming
back and approving an agreement, some of the 20 percent
set aside will be used as is obligated, to assist the
low/mod families in the community.
FRANK SPEVACEK, representing the Rosenow Spevacek Group,
addressed the Agency advising that his firm has met with
CVHC and reviewed their proposal and are presently in
conference with legal Counsel.
MOTION It was moved by Mr. Bohnenberger/Mrs. Franklin
to proceed and prepare a contract for consideration at a
future meeting.
MARK MORAN, 78-635 Bottlebrush, addressed the Agency and
advised that CVHC is an excellent organization along with
others that haven't been looked at and asked that before
a decision is made, the Agency explore other
organizations.
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Chairman Pena advised that this is for Council conceptual
approval. After this project, other organizations will
be explored.
Mr. Bohnenberger commented that this organization is an
outstanding organization. They have done other projects
here in the valley and is not aware of any other
organization that have done projects in the Valley and
saw no reason not to pursue the contract with CVHC.
There will be plenty of other opportunities and more than
enough set aside funds for future projects.
Mr. Sniff concurred with Mr. Bohnenberger and added that
he sees no reason why this would preclude in any way in
the City dealing with other organizations in the future.
Motion carried with Mr. Rushworth abstaining.
CONSENT CALENDAR
1. APPROVAL OF MINUTES OF APRIL 2, 1991.
2. TRANSMITTAL OF JUNE 30, i??o AUDITED FINANCIAL STATEMENT.
MOTION: It was moved by Mr. Sniff/Mrs. Franklin to approve
the Consent Calendar. Motion carried unanimously?1.
CLOSED SESSION
Discussion of Negotiations with Transpacific Development Co.
Regarding Specific Plan 89-14 pursuant to Government Code Section
54956.8
There being no further business, the meeting was adjourned.
AUNDRA L. JU A, Secretary
La Quinta Redevelopment Agency
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