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HomeMy WebLinkAboutCT 99-01; Carlsbad Beach Group Investors; 2000-0618826; Affordable Housing Agreement/ReleaseDCIC in 2000-0618826 Recording Requested by: City of Carlsbad When Recorded Mail to: City of Carlsbad Citv Clerk’s Office At&: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 NtlU 14s 2000 4~02 PM UTICI~ REcms SM DIEGD CBNTY RECWDER’S OFnIX AFFORDABLE HOUStNG AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (“Agreement“) is entered into this 3 1 ST day of A 9 ,2000, by and between the CITY OF CARLSBAD, a municipal corporation (hereinaft r referred to as the “City”), and CARLSBAD BEACH GROUP INVESTORS, LLC. a California Limited Liability Corporation, (hereinafter referred to as the “Developer”), is made with reference to the following: RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 99-Ol), which provides conditional approval of the construction of 5 lots/IO unit residential subdivision (“Project”). B. Condition No. 13 of Planning Commission Resolution No. 4728 states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developer’s affordable housing obligation (“Affordable Housing Obligation”), as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 4728 provides that the Affordable Housing Obligation will be satisfied by applying the requirements set forth in this Agreement for one (1) affordable housing lots (“Affordable Housing Lots”). The Affordable Housing Lots which are subject to this Agreement are: Lot 1 of Carlsbad Tract No. 99-01, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. JJ 0 Y 7 L filed with the County Recorder of San Diego County on %-&h 2~fi~~o . C. Developer intends to construct the required inclusionary units concurrent with the project’s market units which are also identified within the Site Development Plan attached as Exhibit “A”. The Affordable Housing Lots shall be subject to this Agreement and this Agreement shall be recorded on each Affordable Housing Lot. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. The Recitals Are True And Correct. H:\Word\Carlsbad Beach Estates AHA 8/30/2000 1 P-IL-00 &?y J-%-J k c”l~uy k?v, t m fiq/kdG , iq ,. *. h 8917 - 2. SATlSFACTtON OF AFFORDABLE HOUSING REQUIREMENTS THROUGH CONSTRUCTION OF SECOND DWELLING UNITS. Performance under this Agreement satisfies the Developer’s obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by reason of the approvals of the Tentative Map of CT 99-01, including Condition No. 13 listed in Planning Commission Resolution No. 4728 and any other applicable condition of approval. 3. SECOND DWELLtNG UNITS. (a) Construction of Second Dwelling Units. Developer shall at the time a residential structure is constructed on the Affordable Housing Lot, include in such residential structure a Second Dwelling Unit as defined under and subject to the requirements contained in Municipal Code Section 21 .I 0.015. (b) Restriction on Rental of Second Dwellinq Units. The maximum monthly rent for any Second Dwelling Unit, subject to this Agreement, which becomes rented or leased shall not exceed an amount equal to thirty percent (30%) of the gross monthly income of a low-income household, adjusted for household size, at eighty percent (80%) of the San Diego County median income, as such median income is published by the United States Department of Housing and Urban Development. A schedule showing the calculation of the maximum rental amount as for 1996 is attached to this Agreement as Attachment “B”. (c) Declaration. Developer shall require the purchaser from Developer of an Affordable Housing Lot upon which a Second Dwelling Unit has been constructed to sign an affidavit or declaration under penalty of perjury, in a form prescribed by the City Planning Director, which states that if the Second Dwelling Unit on the Affordable Housing Lot is rented that it shall be rented at a monthly rental rate not to exceed the rate set forth in Paragraph 3(b). (d) Deed Restriction. Prior to the sale of an affected lot, the Developer shall provide proof to the City Planning Director that the language contained in Attachment “C” has been included in each deed prior to the sale of an affected property and will run with the land so as to restrict subsequent transfers. 5. AFFORDABLE HOUStNG CREDtT In addition, the Developer shall pay .5 (or, one-half) times the average subsidy needed to make affordable to a lower income household one newly constructed typical housing unit as appropriate in accordance with the requirements set forth in 21.85 of the Carlsbad Municipal Code, and City Council Policies 57 and 58, dated September 12, 1995. The fee shall be paid prior to the Developer receiving a building permit for the project. H:\Word\Carlsbad Beach Estates AHA 8/30/2000 2 8918 6. REMEDtES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 13 of Planning Commission Resolution No. 4728. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 99-01. 7. HOLD HARMLESS Developer will indemnity and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their offtcial capacity (hereinafter collectively referred to as “lndemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, obtained, allegedly caused by, arising out of or retaining in any manner to developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. Developer shall obtain, at its expense, comprehensive general liability insurance for development of the Project naming Indemnities as additional insureds with aggregate limits of not less than one million dollars ($l,OOO,OOO) purchased by Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State of California, with a current Best’s Key Rating of not less than A-V, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the Project. 8. NOTtCES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: Merit Group, Inc., Managing Member Carlsbad Beach Group Investors, LLC. 2171 El Camino Real, Ste. 202 Oceanside, CA 92054 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 9. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. H:\Word\Carlsbad Beach Estates AHA S/30/2000 3 8919 - 10. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. The restriction set forth in Paragraph 3(b) above shall terminate as to the Affordable Housing Lot at such time as the Second Dwelling Unit on the Affordable Housing Lot has reached the end of its useful life, which is assumed to be not less than 55 years from the date of completion of original construction. 11. SUCCESSORS This Agreement shall benefti and bind Developer and any successive owners of Affordable Housing Lots. 12. SEVERABtLtTY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER Carlsbad Beach Group Investors, LLC A California Limited Liability Company By: Merit Group, Inc. CITY Its: Managing Member City of Carlsbad, a municipal corporation By: H. David Buckmaster Its: President By: By: Its: APPROVED AS TO FORM: ii-z@=- CITY ATTORNEY H:\Word\Carlsbad Beach Estates AHA S/30/2000 4 8920 - ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY Lot 1 of Carlsbad Beach estates, in the City of Carlsbad, County of San Diego, State of California, according to Map 14047, filed in the Office of the County Recorder of San Diego County, September 29,200O. h 8921 - ATTACHMENT B MAXIMUM MONTHLY RENTAL AMOUNT H:\Word\Carlsbad Beach Estates AHA 8/30/2000 6 8922 - 8923 -. A , . r . . ATTACHMENT C DEED RESTRICTION A Second Dwelling Unit has been constructed as part of this property, and shall be maintained and utilized in accordance with the requirements of Carlsbad Municipal Code Section 21 .I 0.015 for the useful life of the main structure (estimated to be 55 years). The maximum monthly rent for the Second Dwelling Unit, if rented or leased, shall not exceed an amount equal to thirty percent (30%) of the gross monthly income of a low-income household, adjusted for household size, at eighty percent (80%) of the San Diego County median income as such median income is published by the United States Department of Housing and Urban Development from time to time. Prior to subsequent transfers of the property, seller shall require the purchaser to submit a signed affidavit or declaration under penalty of perjury on a form satisfactory to the City Planning Director, to the Planning Department, which acknowledges that the purchaser has read and understands the restrictions as they relate to the Second Dwelling Unit. H:\Word\Carlsbad Beach Estates AHA S/30/2000 7 L rA -,* , I . 8924 h STATE OF CALIFORNIA > COUNTYOF h Q;tq 1 SS. ti > On b* 3\ lw before me, bf\% p. Kd i$-b&qw%b personally known to me (or proved to me on the basis of satisfactory evidence) to be the perso& whose name,@) to the within instrument and acknowledged to me tha@she+they executed the same eir authorized capacityfies), and that by(&he&kk signature+) on the instrument the person@, or the entity upon behalf of which the person@) acted, executed the instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA > > ss. COUNTY OF > on before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal.