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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 BIB] 07-19-1996-U01 07:34:16AM-U01 RDAMIN-U02 04-U02 16-U02 1991-U02 cLa Quinta Redevelopment Agency 2 April 16, 1991 Minutes 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. BIB] 07-19-1996-U01 07:34:16AM-U01 RDAMIN-U02 04-U02 16-U02 1991-U02 cLa Quinta Redevelopment Agency 3 April 16, 1991 Minutes 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. BIB] 07-19-1996-U01 07:34:16AM-U01 RDAMIN-U02 04-U02 16-U02 1991-U02 cLa Quinta Redevelopment Agency 4 April 16, 1991 Minutes 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 BIB] 07-19-1996-U01 07:34:16AM-U01 RDAMIN-U02 04-U02 16-U02 1991-U02