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1996 11 19 RDA Minutesv LA QUINTA REDEVELOPMENT AGENCY MINUTES NOVEMBER 19, 1996 Regular meeting of the La Quinta Redevelopment Agency was called to order at the hour of 3:00 PM by Mayor Holt, followed by the Pledge of Allegiance. PRESENT: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt ABSENT: None PUBLIC COMMENT None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION It was moved by Board Members Adolph/Perkins to approve the minutes of November 5, 1996 as submitted. Motion carried with Board Member Holt abstaining. BUSINESS SESSION 1. CONSIDERATION OF AMENDMENT TO THE OWNER PARTICIPATION AGREEMENT BETWEEN THE LA QU!NTA REDEVELOPMENT AGENCY AND THE LA QUINTA REAL ESTATE PARTNERSHIP CLIFFHOUSE RESTAURANT). RESOLUTION NO. RA 96-09 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING A FIRST AMENDMENT TO OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE AGENCY AND LA QUINTA REAL ESTATE PARTNERSHIP. It was moved by Board Members Holt/Henderson to adopt Resolution No. RA 96-09 as submitted. Motion carried unanimously. BIB] 01-07-1997-U01 08:33:03AM-U01 RDAMIN-U02 11-U02 19-U02 1996-U02 vLa Quinta Redevelopment Agency Page 2 November 19, 1996 Minutes 2. CONSIDERATION OF APPROVAL OF SERVICE CONTRACT WITH MEROX CORPORATION, DBA LA QUINTA REAL ESTATE MR. RUPERT YESSAYIAN) FOR PROPERTY MANAGEMENT AND REAL ESTATE SERVICES RELATED TO THE 49 SINGLE-FAMILY HOMES OWNED BY THE REDEVELOPMENT AGENCY INVOLVED IN THE LA QUINTA HOUSING PROGRAM. MOTION It was moved by Board Members Holt/Henderson to approve the service contract with Merox Corporation, dba La Quinta Real Estate, instruct the Executive Director to sign the contract and authorize the appropriation of $180,000 from the Project Area No. 1 Low Mod Account. Motion carried unanimously. 3. CONSIDERATION OF REQUEST TO APPROVE THE PURCHASE OF A SINGLE-FAMILY RESIDENTIAL PROPERTY AT 52-445 AVENIDA MENDOZA TO RETAIN THE AGENCY'S CC&R'S AND SECOND TRUST DEED AGAINST THE PROPERTY. Mr. Spevacek, Agency Consultant with Rosenow, Spevacek Group, advised that the home in question is one of the Stockman Homes that were constructed in 1 994 and the Agency has a Second Trust Deed that would insure the continued affordability of this unit for the next 40 years. The current owner has been delinquent on her mortgage payment in the past, however, this time, the bank has notified her and the Agency that in order to recoup their Costs, they're going to auction this unit at a Trustees Sale. Staff is looking for the Board's authorization to place a bid in for the purchase of this unit in order to save the Second Trust Deed investment the Agency has made into this unit of $34,632 and allow the Agency to re-sell the unit and keep the affordability covenant in place. In response to questions from the Board, Mr. Spevacek and Ms. Honeywell, Agency Legal Counsel, advised that an exterior review of the unit indicates that the unit is in ok" shape. A similar unit sold about eight months ago for $100,000. The owner is currently living in the house and would have to be evicted. There is an option of working with the property owner to help her cure the default and letting her stay in the house, but timing is a problem. Board Member Henderson wished to see alternatives explored for the future when situations like this arise. BIB] 01-07-1997-U01 08:33:03AM-U01 RDAMIN-U02 11-U02 19-U02 1996-U02 vLa Quinta Redevelopment Agency Page 3 November 19,1 996 Minutes MOTION It was moved by Board Members Henderson/Holt to approve the acquisition of the property located at 52-445 Avenida Mendoza at a Trustee's Sale scheduled for November 26, 1996, at 10:30 AM and authorize the City Manager to appropriate the funds from the Low Mod Account in an amount not to exceed $95,000. Motion carried unanimously. 4. CONSIDERATION AND IMPLEMENTATION OF AN AFFORDABLE HOUSING PROGRAM TO PROVIDE HOUSING ASSISTANCE WITHIN PROJECT AREAS NO.1 AND NO.2 AND APPROPRIATION OF THE NECESSARY FUNDS. Mr. Spevacek, Agency Consultant with Rosenow, Spevacek roup, advised that in April 1 996, the Board reviewed a program outline on various types of programs to provide financial assistance for rehabilitating existing housing units, purchasing and refurbishing dilapidated housing units, providing Second Trust Deed Mortgages on a not-project or development specific basis", but to make them available citywide. Attached is a draft program based on the Board's discussion at that time. The draft program basically puts forth the specific objectives and missions we are attempting to accomplish and provides two residential rehab programs and loans up to $25,000 that would be available for single families and up to four units for multi-family units for rehab efforts. Those loans would not be accompanied by affordability covenants. It also incorporates a refurbishment program that would work in conjunction with the City's Code enforcement efforts in the cove to find and seek out dilapidated units the Agency may be able to purchase and refurbish and offer for sale. Those units would include affordability covenants. The program also includes an expanded Second Trust Deed Program that would be made available on a citywide basis to local realtors and developers wherein low and very low income households would be able to afford an opportunity for an Agency Second Trust Deeds for purchase of housing within both Project Areas. Staff anticipates that first-year funding for this program would be approximately $500,000 in low-mod funds derived from tax increments and combining those funds with HUD loans for both rehabs and purchases. Board Member Henderson noted that in the future she will be looking at eliminating references to the Cove" area. In response to Board Member Henderson, Mr. Spevacek advised that it hasn't been limited to first-time" home buyers and the program could be more BIB] 01-07-1997-U01 08:33:03AM-U01 RDAMIN-U02 11-U02 19-U02 1996-U02 vLa Quinta Redevelopment Agency Page 4 November 19,1996 Minutes specific in indicating that. Ms. Honeywell, Agency Legal Counsel pointed Out that there is no requirement limiting it to first-time" home buyers. However, the Agency has no flexibility with the income criteria. MOTION It was moved by Board Members Henderson/Holt to approve the Affordable Housing Program, authorize the appropriation of an amount not to exceed $500,000 from the low mod housing tax increment fund for Project Areas No. 1 and No.2 and implementation of the programs with the slight modification of pulling the Cove out wherever appropriate. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED NOVEMBER 19, 1996. 2. TRANSMITTAL OF TREASURY REPORT DATED SEPTEMBER 30, 1996. MOTION It was moved by Board Members Henderson/Holt to approve the Consent Calendar as recommended. Motion carried unanimously. DEPARTMENT REPORTS 1. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED SEPTEMBER 30.1996. MOTION It was moved by IBoard Members Adolph/Holt to receive and file the revenue and Expenditures Report dated September 30,1 996. Motion carried unanimously. CHAIR AND BOARD MEMBERS' ITEMS None BIB] 01-07-1997-U01 08:33:03AM-U01 RDAMIN-U02 11-U02 19-U02 1996-U02 vLa Quinta Redevelopment Agency Page 5 November 1 9, 1996 Minutes PUBLIC HEARINGS None CLOSED SESSION None There being no further business, the meeting was adjourned. AUNDRA L. JUHOLA, Secretary La Quinta Redevelopment Agency BIB] 01-07-1997-U01 08:33:03AM-U01 RDAMIN-U02 11-U02 19-U02 1996-U02