Vista Dunes - City of La Quinta

Project Description

The La Quinta Redevelopment Agency is aggressively achieving its affordable housing production mandates; the Agency must produce 2,307 dwellings of which 925 must be affordable to very low income households.  Since 1989, the Agency has produced 1,052 single and multi-family dwellings of which 53% or 475 units are affordable to very low income households.  RSG has been managing the Agency’s affordable housing initiatives since 1989.

In 2003, RSG facilitated discussions with the redevelopment Agency Board that created the vision for Vista Dunes.  The Agency’s goal was to redevelop a dilapidated travel trailer park with in-fill workforce housing that blends with the surrounding upper-income community, embraces sustainable design principles, and compliments the desert environment.  Vista Dunes is a LEED Platinum, 80-unit multi-family rental community that is affordable to very low income family households (households earning 30 to 50 percent of the median income for Riverside County).  When residents occupied their new homes in 2008, Vista Dunes was the largest affordable multi-family development to achieve LEED Platinum certification.

Prior to the Agency’s acquisition in 2004, the 9.5 acre site was developed with a 92-space travel trailer park.  The park opened in 1956 as a travel trailer recreation facility offering overnight and weekly accommodations.  By 1980, the travel trailer park was converted to full-time occupancy; 398 residents occupied the park in 2004.  The park was overcrowded, the infrastructure was failing, and a majority of the coaches were dilapidated.  Additionally, police and paramedic service calls were very high, and the property was negatively impacting surrounding neighborhood. 

RSG’s Involvement

Instead of retaining a development company to undertake this endeavor, the Agency tasked RSG as the Development Manager.  The Agency elected to develop Vista Dunes in order to reduce developer fees and related development management costs.  As Development Manager, the RSG project team performed the following tasks:   

Acquisition

RSG served as the acquisition agent, managing park acquisition activities.  The first job was to negotiate the acquisition of the travel trailer park.  The Agency’s acquisition offer was presented in September 2003, and the park was acquired in May 2004.  Further, each space was occupied with a coach that was owned by one or more of the residents; the residents rented their space from the park owner.  RSG worked with each coach owner to appraise and subsequently acquire his or her coach.  Acquiring the coaches involved reaching settlement agreements, validating and completing HCD and DMV documentation, transferring title, and other related activities.  After the coaches were acquired, RSG provided property management oversight services until relocation was completed.  Coaches in decent condition and safe for persons to occupy were sold, at a price equal to transfer fees, to local migrant farm workers.  Non-salvageable coaches were remediated for asbestos and recycled.  RSG coordinated all aspects of site clearance on behalf of the Agency.

Relocation / Site Clearance

RSG coordinated relocation settlements with the 92 households.  The relocation process was problematic and difficult.  There was a very limited supply of comparable units within the Coachella Valley, particularly within the City of La Quinta.  Waiting for suitable comparable units to become available extended the relocation schedule.  During this time, the Agency increased relocation benefits to accommodate escalating housing prices; the final cost was double the original budget.  Another obstacle was litigation filed by three residents, aided by California Rural Legal Assistance (CRLA). Their complaint was that the Agency unfairly and unjustly relocated residents, and would not redevelop the park with affordable housing.  The litigation lasted from August 2004 through October 2005, and at the conclusion, all the claims were dismissed.  This delay caused some of the remaining residents to postpone moving in hopes of receiving greater relocation benefits. 
After the Agency relocated the residents and disposed of the coaches, the site was cleared for development. 

Design/Construction

The Agency’s original design concept envisioned factory-built modular homes.  As the design progressed and the Agency’s desires for quality, durability and energy efficiency grew, the cost of modular units equaled the cost of site built homes. Therefore, the decision was made to site build the homes; this choice afforded greater design flexibility and generated more local jobs.
RSG retained and managed the architecture and development engineering services; under RSG’s direction, this team prepared the site and building plans that embraced “green” and sustainable design principles.  These principles included:

• Thermal chimneys to better ventilate the dwellings
• Tankless water heaters to reduce energy/water consumption
• Dual flush toilets to reduce water consumption
• Low flow and oxygenated shower heads and faucets
• Photovoltaic solar panels for each dwelling to reduce utility costs
• Landscaped trellises to shelter south and west facing walls from the desert sun
• Radiant barrier roof sheathing
• Drought tolerant indigenous landscaping

RSG also prepared development cost estimates and schedules.  Once design and entitlements were approved, RSG prepared construction bid specifications and assisted the Agency with selecting the construction contractor.   

RSG oversaw the construction management team and assisted with construction management throughout construction.

Property Sale

While the La Quinta Redevelopment Agency designed and developed Vista Dunes, it elected to sell the completed development.  RSG prepared the request for proposals to solicit property acquisition/management proposals from for profit and non-profit affordable housing entities.  National Community Renaissance (National Core) was subsequently selected because they proposed to secure 9% tax credits, they had extensive in-house property management experience, and their superior after school and adult education programs. RSG negotiated and structured the Affordable Housing Agreement between the Agency and National Core. National Core was awarded $12,170,412 in 9 percent federal tax credits; their application received a perfect score.  However, just prior to receiving the tax credit allocation, the project was deemed to not be eligible because some of the development costs were funded with tax-exempt bond funds.  The 9 percent credits were subsequently converted to 4 percent tax credits.

Affordable Housing Compliance

Affordable housing units counted towards an agency’s inclusionary requirement, must be affordable and occupied by low-income persons.  RSG currently provides housing compliance monitoring services to the Agency. 

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