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HomeMy WebLinkAboutAGENDA REPORT 1988 1207 CC REG ITEM 08IMOORPARK ITEM - JOHN PATRICK LANE Mayor ELOISE BROWN Mayor Pro Tern JOHN GALLOWAY Councilmember CLINT HARPER, Ph.D. Councilmember BERNARDO M. PEREZ Councilmember MAUREEN W. WALL City Clerk N E M O R A. N D U M T0: The Honorable City Council FROM: Patrick J. Richards, Director of Community Development STEVEN KUENY City Manager CHERYL J. KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police DATE: December 1, 1988 (CC meeting of 12/7/88) SUBJECT: TRACT 4147, RPD-1049 - VILL.A CAMPESINA CORP./DEFERRED LOAN ,RGREENENT Background The city, in approving Resolution No. 86-297 approved a 62 unit single family residence for low income households. Under Condition No. 23 of RPD-1049 it was implied that the CDBG funds were to be used for the purchase of the homes and such monies were to receive a deferred payment status. Other restrictions were imposed such that the dwellings remained available to low income households. Discussion At this time the Cabrillo Economic Development Corporation (the app'Licant for this project) has presented to the city twenty-two (22) deferred loan agreements. Staff has reviewed the resolution of approval (Resolution No. 86-297), the agreement implementing Villa Campesina Mutual Self Help Housing project and Resolution No. 85-232 which authorized the Mayor to execute the CDBG and all subsequent documents. At this time staff is advising the Council of the form which the deferred loans are to be approved and to note that there are forty (40) remaining agreements to approve. As of this writing staff has not yet received the City Attorney's comments regarding the text, content, or :Form of the agreement. Because of a sense of urgency the Mayor- will sign the first twenty-two Deferred Loan Agreements at this time, although there may be a noted for subsequent: agreements to resolve any outstanding matters. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 TR4147/CHRONI PJR:IIAR:DT:JS:C1I:cr1 December 1, 1988 Page 2 Recommended Action Receive and file. Attachments: Resolution No. 85-297 (Condition No. 23) Resolution No. 85-232 Deferred Loan Agreement (sample) MOORP'ARK, CAEIPOkNEIA City► r0own l MIoeting PWI EON TR4147/CHRONI PJR:MAR:DT:JS:CM:crl RESOLUTION NO. 85- 232 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK. CALIFORNIA. AUTHORIZING THE MAYOR TO EXECUTE THE CDBG GRANT AGREEMENT AND SUBSEQUENT DOCUMENTS RELATED THERETO ON BEHALF OF THE CITY. WHEREAS, the State of California Department of Housing and Community Development has informed the City of Moorpark that it is eligible for a grant award in the amount of $600000.00; and WHEREAS, implementation of said grant award requires the execution of a State CDBG Grant Agreement; and WHEREAS, said Grant Agreement requires that a certified resolution of the City Council authorizing a designated official to sign the Grant Agreement be forwarded along with the Grant Agreement to the State Department of Housing and Community Develo- opment; NOW, THEREFORE, BE IT RESOLVED, that the Mayor of the City of Moorpark is hereby authorized to execute the CDBG Grant Agreement, and all subsequent documents related theretq on behalf (1 of the City of Moorpark; and ` BE IT FURTHER RESOLVED, that two certified copies of this resolution be forwarded to the State Department of Housing and Community Development, together with the signed CDBG Grant Agreement. PASSED AND ADOPTED this 7th day of October, 1985. A'Myor of the City'of Moorpark, California ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF VENTURA ) SS. CITY OF MOORPARK ) I, DORIS D. BANKUS , City Clerk of the City of Moorpark, California, do hereby certify that the foregoing Resolution No. 85-232 was adopted by the City Council of the City of Moorpark at a regular meeting thereof held on the 7th day of October 19 85 and that the same was adopted by the following roll call vote: AYES: Councilmembers Ferguson, Woolard and Mayor Prieto; NOES: Counciimember Yancy-Sutton; ABSENT: Councilmember Weak. WITNESS my hand and the official seal of said City this 7th day of October 19 85 4City4er:V� Page 4 of 7 19. That patio covers shall conform to the "Patio Cover Policy" adopted by the City Council on May 15, 1985. The required patio cover setback of 10 feet shall be measured from the rear property.. line. Accessory struc- tures shall be located a minimum 5 feet from the rear and side property. line. Patio covers and accessory structures shall cover no more than 40 percent of the provided rear yard area. 20. That prior to issuance of the zone clearance of each unit, an "Uncondi-. tional" Will -Serve Letter for water and sewer service shall be obtained from Ventura County Waterworks District No. 1.. 21. That all first time sales of the residences within this subdivision shall be sold exclusively to households of very low or low income as defined by the Department of Housing and Urban Development. All units shall be owner occupied. 22. That prior to the resale of any unit within this subdivision, the pro- spective buyer and/or seller shall provide the following information to the Department of Community Development. o Selling price of the unit offered for sale. o Statement of combined annual income for.the household pur- chasing the unit offered for sale. o An independent appraisal of the market value of the unit offered for sale. o New owners must execute waivers of their right to protest the formation of assessment districts for bicycle path and equestrian trail improvements (Tract 4147 Condition No. 18) and future street improvements (Tract No. 4147 Condition No. 37) . 23. After receipt of the information required by Condition No. 22, the City shall determine if the prospective buyer has a combined household income level of "very -low" or "low" as defined by the Department of Housing and Urban Development. The City shall also determine if the selling price of the unit is for an amount not to exceed the market value specified by the independent appraisal. If the City approves the sale of the unit based on the above information and determinations, any outstanding Community Development Block Grant deferred loan money shall be "rolled - over" to the prospective buyer. If the City does not approve either the prospective buyer -or selling price, based on household income or unit selling price, the seller of the house may find a new prospective buyer, or pay back to the City the outstanding balance and accumulated interest on 'the CDBG deferred loan. In order to approve the sale of any unit, the City must also determine that at least 20% (12 units) of the project are presently occupied by households with very low or low incomes asp, required by Condition No. 20 of Tract 4147. i Cc0 OL 59047A/H-4 ,-ri ��� ,- t•'` DEFERRED LOAN AGREEMENT This Agreement is entered into this ;Jj_h day of A2Z1L(z.4��rzf , 1,988 by and between the City of Moorpark, hereinafter referred to as City, and husband & wife__ _ hereinaFter referred _ to as Borrower(s) who is/are purchasing property located at _12435 James Weak Avenue Moorpark., California and described as: Lot Number 3 of Tract Number 't1`t7 in the City of Moorpark, County of Ventura, State of California, according to Map recorded on February 26, 1988 in Book 112 at Pages 7 through 10 inclusive of Miscellaneous Records (Maps) in the office of the Country Recorder of the County of Ventura, State of California. This Agreement is made For the purpose of financing the purchase of property with CDBG Funds provided by City. ThereFore, City and Borrower(s) agree as Follows: 1. Without the written consent of City, this Agreement is not assignable by the Borrower(s) either- in whole or in part. 2. Time is of the essence of this Agreement. 3. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. `f . Deferred Loan a. City agrees to loan to the Borrower(s) the amount OF $7, S` B .00 For the purpose of purchasing the property. Tile loan shall be Free of interest, except as provided hereafter. b. Each Borrower agrees to reside on the property continuously From the date construction work is completed and occupancy is delivered to Borrower(s). With the approval of City, residence on the property by one or more members of the Borrower(s)'s immediate Family may be substituted for residence on the property by the Borrower(s). C. The Deferred Payment Loan principal shall become immediately due and payable at such time as either: 1) the BorrowerCs)' or approved Family member ceases to maintain continuous residence on the property in accordance with paragraph page 1. 0f Lt 4.b. ; 2) title to the property is "transferred", as :is defined hereaFter; or 3) Five years From the date of the Note and Deed of Trust. d. - . City may at any time, at its sole discretion convert the Deferred Payment Loan into a grant. e. The Borrower(s) may, with permission of City, make payment to City For the purpose of diminishing the Deferred Payment Loan principal. There will be no penalty For prepayment. F. Before the loan closing, the Borrower(s) shall deliver to City the Following documents: (1) A duly executed and binding Promissory Note For the Deferred Payment Loan amount stated heretofore in Li.a. Such Promissory Note shall be payable to, and in a Form approved by City. (2) A duly executed, .legally binding recordable City security .interest in the property. Such security shall give the best available lien over the property to protect C:ity's interest under this Agreement, shall be in the Form approved by City, and shall require the Borrower(s) to maintain the property in a good state of repair, insure the property, and pay all taxes levied on the property, among other provisions. U. Upon the transfer of title to the property, the City will approve transfer of this Agreement with responsibility for the unpaid principal to the new owner of the property, provided the new owner meets current low income eligibility guidelines For the HUD Community Development Block Grant Programs. The Borrower(s) shall have the responsibility of providing documentation as to the need in support of the request. h. For the purposes of this Agreement, the term "immediate family" includes the Borrower(s) spouse, parents, parents -in-law and dependent children, provided said Family member meets current eligibility guidelines as established For the HUD Community Development Block grant Programs. i. For purposes of this Agreement, "TransFer of Title" means: should the Borrower(s) agree to ❑r actually sell, convey, transfer, dispose of, lease for any period of time (whether orally or in writing) or Further encumber the real property described in the Deed of Trust securing this Note, or any part of it, or any interest in it, then all obligations secured by this Note may be declared due and payable, at the option of City. page P nV `f 5. Loan C.,losinCl The date of loan closing shall be the date upon which escrow is closed. B. Termination for Default a. lF the Borrower(s) fails to perform the covenants herein contained and in the manner herein provided, City may terminate this Agreement by written notice to the Borrower(s). b. If this Agreement is terminated by City under paragraph (a) before the loan closing date, City shall be relieved of any obligation which it may have hereunder. C. If this Agreement is terminated by City under paragraph (a) after the.loan closing date, the Borrower(s) shall immediately become liable For repayment to City or its designee, of the outstanding principal at the date of termination plus interest From said date on unpaid principal at the then current rate of- interest on California Court judgments, until paid. 7. Insurance The applicant shall maintain Fire insurance adequate to cover- all encumbrances on the property. City shall be designated as loss payee For the amount of the loan. A policy or certificate of insurance showing the proper loss payee endorsement shall be Forwarded to City and included in the Borrower(s) file. B. As used herein, the acronym "HUD" refers to the Department of Housing and Urban Development of the United States of America. S. Renewal When the loan becomes due in five years, the City will refinance on the same terms for additional five year periods not to exceed a total loan period of twenty -Five years if the Family cannot repay the loan at that time. The determination to permit reFi.nancing shall be based on the then combined annual income and any assets and related factors for the household seeking to refinance the unit. Specifically, such refinancing will be allowed as long as the Farmers Home Administration CFmHA) determines that the Borrower(s) still requires FmHA Financing. page 3 of If 10 - Subseguernt Use of Funds Any .loan funds repaid to the City will be used by the City for other low income projects in the City of Moorpark. 11. Binding on Successors The covenants and conditions herein contained shall bind and benefit the heirs, successors and permitted assigns of the Borrower(s) and of City. B RROWER: CITY OF MOORPARK By page 4 of `k