HomeMy WebLinkAboutFermanian, George & Stone, Rodney; 1985-01-08;0 SO CAL DEVELOPMENT e
BUILDERS 9 DEVE
11300 Sorrento Valley Road, 5
San Diego, Califorr
(619) 4
January 8, 1985
Mr. Martin Orenyak
Director of Building and Planning
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
Dear Marty:
Please find enclosed fully executed copy of the Developer
Agreement between ourselves and the City of Carlsbad for
the La Costa Racquet Club.
We are pursuing loan arrangements with our lender and the
underwriters and will be in touch with you as we begin
preparation of final documents for the loan.
Thanks again for your cooperation.
Respectfully yoursI
. Fermanian
Enc .
D
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DEVELOPER AGREEMENT
among
CITY OF CARLSBAD, CALIFORNIA
and
RODNEY E'. STONE
and
GEORGE A. FERMANIAN
Dated as of December 1, 1984
0 e
TABLE OF CONTENTS
Page
Section 1 Definitions and Interpretation ...... 1
Section 2 Residential Rental Property ....... 4 Section 3 Lower-Income Tenants ........... 5
Section 4 Regulatory Agreement ........... 6
Section 5 Governing Law .............. 6
Section 6 Amendments ................ 6
Section 7 Notice .................. 6
Section 9 Multiple Counterparts .......... 7
Section 10 Assignment ................ 7
Section 8 Severability ............... 7
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THIS DEVELOPER AGREEMENT (the "Agreement") is made and
entered into as of December 1, 1984, by and among the CITY OF
CARLSBAD, a municipal corporation of the State of California
(together with any successor to its righ'ts, duties and
obligations, the "City"), and RODNEY F. STONE and GEORGE A.
FERMANIAN (collectively, the "Owner").
_-_-_-_-__ WITNESSETH:
WHEREAS, the City is authorized by Chapter 7, Part 5 of
Division 31 (commencing with Section 52075) of the Health and
Safety Code, as amended (herein called the "Act") to issue
revenue bonds for the purpose of financing the development of
multifamily rental housing;
WHEREAS, Section 103(b)(4)(A) of the Internal Revenue Codc
of 1954, as amended (the "Code"), provides that the interest 01
obligations issued by or on behalf of a state or political
subdivision thereof substantially all of the proceeds of which
are to be used to provide projects for residential rental
property shall be exempt from federal income taxation if, amon5
other requirements and with certain exceptions, at least twent]
percent (20%) of the units in each project are to be occupied
by individuals of low or moderate income within the meaning of
and €or the period required by Section 103(b)(12)(C) of the
Code;
WHEREAS, the City has determined to assist in financing a
multifamily rental housing development for the Owner by
providing funds to make a mortgage loan to the Owner to finance
the construction of a 320-unit multifamily rental housing
development (the "Project"), provided that certain conditions
with respect to the occupancy of the Project are satisfied; anc
WHEREAS, the parties hereto desire to enter into this
Agreement in order to set forth the terms of occupancy for the
units in the Project to be set aside for persons of low and
moderate income;
NOW, THEREFORE, in consideration of the mutual covenants
and undertakings set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which hereby are
acknowledged, the City and the Owner hereby agree as follows:
Section 1. Definitions and Interpretation. The following terms shall have the respective meanings assigned to
them in this Section 1 unless the context in which they are
used clearly requires otherwise:
0 0
"Act" - Chapter 7, Part 5 of Division 31 of the Healtl
"Adjusted Income" - The adjusted income of a person
and Safety Code of the State of California.
(together with the adjusted income of all persons over the age
of 18 who intend to reside with such person in one residential
unit) as calculated in the manner prescribed in Regulation
Section 1.167(k)-3(b)(3).
"Affordable Rent" - A monthly rent which does not
exceed 30 percent of one-twelfth of the maximum adjusted annual
income at which a household of appropriate size is deemed to bt
a "lower income" family in the County of San Diego for purpose:
of the leased housing program established under Section 8 of
the United States Housing Act of 1937, as amended, based upon
the following appropriate household sizes for various types of
residential units in the Project and assuming 80 percent as thc
percentage of median gross income which qualifies as "lower
income I' :
Residential Unit No. of Persons in Famil]
One bedroom 2
Two bedrooms 4
"Area" - The San Diego, California Metropolitan
Statistical Area.
"Bond Counsel" - Stradling, Yocca, Carlson & Rauth,
counsel to the City with respect to the issuance of bonds for
the Project.
"Low and Moderate Units'' - The dwelling units in the
Project designated for occupancy by Lower-Income Tenants.
Lower-Income Tenant" - A person whose Adjusted Income,
which when combined with the Adjusted Income of all other
persons over the age of 18 years residing in the same unit,
does not exceed 80 percent of the Median Income for the Area.
In no event will the occupants of a unit be considered to be Lower-Income Tenants if all of such occupants are students
defined in Section 151(e)(4) of the Code), no one of whom is
entitled to file a joint return under Section 6013 of the Code.
(as
"Median Income for the Area" - The median income for
the Area as most recently determined by the Secretary of
Housing and Urban Project under Section 8 of the United States
Housing Act of 1937, as amended, or if programs under Section E
are terminated, median income for the Area determined under the
method used by the Secretary prior to such termination.
19 8 lp/2 0 62 - 10 -2-
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"Qualified Project Period" - The period beginning on
the later of (i) the first day on which at least 10 percent of
the dwelling units in the Project are first occupied or
the date of the issuance of the Bonds and ending on the later
of (a) the date which is io years after the first day on which
at least 50 percent of the dwelling units in the Project are
first occupied, or (b) the date which is a qualified number of days after the date on which any of the dwelling units in the
Project is first occupied, or (c) the date on which any
assistance provided with respect to the Project under Section E of the United States Housing Act of 1937 terminates. For
purposes of clause (b), the term "cpalified number of days"
means, with respect to the Bonds, 50 percent of the number of
days comprising the term of the Bonds with the longest maturitl
(ii)
II Regulations" - The Income Tax Regulations from time to time promulgated or proposed by the Department of the
Treasury pursuant to the Code.
"Regulatory Agreement" - The Regulatory Agreement and Declaration of Restrictive Covenants to be entered into by and
among the City, the Owner and the trustee with respect to the bonds which shall be recorded in the real property records for the County of San Diego.
"Very Low Income Tenants" - Lower-Income Tenants whose adjusted gross income does not exceed 50 percent of median
gross income for the San Diego Metropolitan Statistical Area,
as most recently determined by the United States Department of
Housing and Urban Project.
Unless the context clearly requires otherwise, as used in this Agreement, words of the masculine, feminine or neuter gender shall be construed to include each other gender when
appropriate and words of the singular number shall be construed
to include the plural number, and vice versa, when
appropriate. This Agreement and all the terms and provisions
hereof shall be construed to effectuate the purposes set forth
herein and to sustain the validity hereof.
The defined terms used in the preamble and recitals of
this Agreement have been included for convenience of reference
only, and the meaning, construction and interpretation
of all defined terms shall be determined by reference to this
Section 1 notwithstanding any contrary definition in the
preamble or recitals hereof. The titles and headings of the
sections of this Agreement have been inserted for convenience
of reference only, and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or
provisions hereof or be considered or given any effect in
construing this Agreement or any provisions hereof or in
ascertaining intent, if any question of intent shall arise.
1981~/2062-10 -3-
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Section 2. Residential Rental Property. The Owne: hereby acknowledges and agrees that the Project is to be owned managed and operated as a project for "residential rental
property" (within the meaning of Section 103(b)(4)(A) of the
Code) for a term equal to the longer of (i) the term of the
Bonds or (ii) the Qualified Project Period determined with
respect to the Project. To that end, the Owner hereby
represents, covenants, warrants and agrees as follows:
(a) The Project will be constructed for the purpose of providing a residential rental project, and the Owner shall
own, manage and operate the Project as a project to provide
multifamily residential rental property comprised of a buildinc
or structure or several interrelated buildings or structures,
each consisting of more than one dwelling unit, together with
any functionally related and subordinate facilities, and no
other facilities, in accordance with Section 103(b)(4)(A) of
the Code and Section 1.103-8(b) of the Regulations, and the
Act, and in accordance with such requirements as may be impose(
thereby on the Project from time to time.
(b) All of the dwelling units in the Project will be similarly constructed units, and each dwelling unit in the
Project will contain complete separate and distinct facilities
for living, sleeping, eating, cooking and sanitation for a
single person or a family, including a sleeping area, bathing
and sanitation facilities and food preparation facilities
equipped with a cooking range, refrigerator and sink.
(c) None of the dwelling units in the Project will ai
any time be utilized on a transient basis, or will ever be usec
as a hotel, motel, dormitory, fraternity house, sorority house,
rooming house, nursing home, hospital, sanitarium, rest home 01
trailer court or park.
(d) No part of the Project will at any time be owned
or used as a cooperative housing corporation, or a community apartment project or a stock cooperative. Other than obtainin(
a condominium map on the Project, and obtaining a white report from the California Department of Real Estate, the Owner shall
not take any steps in connection with a conversion of the
Project to a condominium ownership,, except with the prior
written approving opinion of Bond Counsel that the interest on
the Bonds will not become taxable thereby. The final
subdivision map to be recorded for the Project shall state the
restriction against converting the ownership of the Project to
a condominium ownership during the term of the Regulatory
Agreement.
(e) All of the dwelling units in the Project will be
available for rental on a continuous basis to members of the
general public and the Owner shall not discriminate on the
19 8 lp/2 062 - 10 -4-
e a ..
basis of race, creed, color, sex, age or national origin in the
lease, use or occupancy of the Project or in connection with
the employment or application for employment of persons for the
operation and management of the Project; at least 20 percent ol
the dwelling units in the Project will be leased or rented, or
available for lease or rental, to Lower-Income Tenants on a
continuous basis; at least half of the units to be so leased 01
rented to Lower-Income Tenants will be available for occupancy
on a priority basis by Very Low Income Tenants in accordance
with Section 3(c) below; and the Owner will not give preference
to any particular class or group in renting the dwelling units
in the Project, except to the extent that dwelling units are
required to be leased or rented to Lower-Income Tenants or to
be available for occupancy on a priority basis by Very Low
Income Tenants.
(f) The Low and Moderate Units will be intermingled
with all other dwelling units in the Project and will be of a
quality, and offer a range of sizes and number of bedrooms,
comparable to the other units in the Project. Tenants in the
Low and Moderate Units will have equal access and enjoyment to
all common facilities of the Project.
(9) The Owner will accept as tenants, on the same basis as all other prospective tenants, lower-income persons
who are holders of certificates for federal housing assistance
payments for existing housing pursuant to Section 8 of the
United States Housing Act of 1937 or a successor federal program, or who are recipients of other income subsidies; and,
in connection therewith, the Owner will not apply tenant
selection criteria to such lower-income persons which are more
burdensome than the criteria applied to any other prospective
tenants.
Section 3. Lower-Income Tenants. Pursuant to the
requirements of the City, Section 103(b)(4)(A) of the Code and
Section 52080 of the Act, the Owner hereby represents, warrant:
and covenants as follows:
(a) Throughout the Qualified Project Period, not les: than 20 percent of the completed units in the Project shall be
continuously occupied by Lower-Income Tenants at an Affordable
Rent. For this purpose, a unit occupied by a Lower-Income
Tenant who at the commencement of the occupancy is a
Lower-Income Tenant shall be treated as occupied by such an
individual or family during their tenancy in such unit, even
though they subsequently cease to be a Lower-Income Tenant.
Moreover, such unit shall be treated as occupied by a
Lower-Income Tenant until reoccupied, other than for a
temporary period, at which time the character of the unit shall
be redetermined. In no event shall such temporary period
exceed 31 days.
198 lp/2 0 62 - 10 -5-
e e I.
* (b) The Owner will verify a household's income as required by the terms of the Regulatory Agreement to be
prepared by the City's Bond Counsel either by obtaining (i) a copy of a Lower-Income Tenant's federal income tax return for
the tax year immediately prior to the commencement of such Lower-Income Tenant's occupancy, (ii) an employer's
verification of such Lower-Income Tenant's current income, or,
(iii) if the Lower-Income Tenant is unemployed or if the tax
return is unavailable, other satisfactory evidence of income
for such year.
(c) Throughout the Qualified Project Period, the
Owner will: (a) maintain a list of persons who have notified
the Owner of their desire to rent a unit in the Project and whc
have Adjusted Incomes which would qualify them as Very Low
Income Tenants, and (b) offer to rent at least half of the Low
and Moderate Income Units (subject to the availability thereof at any time) on a priority basis to the persons on such list
prior to offering to rent such units to any other persons and
in choosing such Very Low Income Tenants shall use selection
criteria no more burdensome than shall be applied to other
prospective tenants. To fulfill its obligation under this
subparagraph (c), the Developer shall, at least 45 days prior
to renting any unit in the Project, notify the City Housing
Authority in writing of the date on which it intends to start
renting units; and when directed by the City (i) at least 30
days prior to renting any units in the Project, mail notice to
all persons currently on the list; and (ii) publish a notice of
the availability of such units to qualified Very Low Income
Tenants in a local newspaper designated by the City.
Thereafter, throughout the Minimum Rental Period, upon
receiving notice from a Lower-Income Tenant or a Very Low
Income Tenant of such tenant's intent to vacate a Low and
Moderate Unit, the Developer shall immediately mail a notice tc
the City Housing Authority stating the date on which such unit will be available for occupancy and the rent for such unit, anc
shall mail notice to at least 5 persons on the list per unit
coming vacant. The Developer agrees to make the units coming
vacant available, on a priority basis, first to any Very Low
Income Tenants who are Section 8 certificate holders or the
recipients of another rent subsidy and second to other Very Lob
Income Tenants. Nothing contained in this Section shall
require the Owner to offer to rent such units to such persons
on terms and conditions which are more favorable than the term:
and conditions on which such units will be offered to the
public generally.
(d) The Owner will maintain complete and accurate
records pertaining to the Low and Moderate Units, and will permit any duly authorized representative of the City, the
Trustee or the Department of the Treasury or the Internal
198 lp/2 0 62 - 10 - 6-
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Revenue Service to inspect the books and records of the Owner
pertaining to the incomes of Lower-Income Tenants residing in
the Project.
Section 4. Regulatory Agreement. Bond Counsel
shall incorporate the provisions of this Agreement into the
Regulatory Agreement to be executed by the Owner with respect
to the Project.
Section 5. Governing Law. This Agreement shall be
governed by the laws of the State of California and the
obligations, rights and remedies of the parties hereunder shall
be determined in accordance with such laws.
Section 6. Amendments. This Agreement shall be
amended only by a written instrument executed by the parties
hereto or their successors and assigns.
Section 7. Notice. Any notice or certificate
required to be given hereunder shall be given by certified or
registered mail, postage prepaid, return receipt requested, at
the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:
City: City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Attn: Director of Building and Plannil
Owner : Rodney F. Stone
George A. Fermanian
11300 Sorrento Valley Road
San Diego, California 92121
Notice shall be deemed given three (3) business days afte: the date of mailing.
Section 8. Severability. If any provision of thir
Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining portion:
hereof shall not in any way be affected or impaired thereby.
Section 9. Multiple Counterparts. This Agreement
may be simultaneously executed in multiple counterparts, all o
which shall constitute one and the same instrument, and each o which shall be deemed to be an original.
Section 10. Assignment. The Owner may not assign
its interests hereunder, other than to a partnership in which Rodney F. Stone and George A. Fermanian remain as general
partners, without the express written consent of the City.
1981p/2062 - 10 -7-
a IJ) , -'
Section 11. Expenses. On the date of issuance of the bonds, the Owner shall pay to the City the sum of one
tenth of one percent of the aggregate principal amount of th
bonds to reimburse the City for the expenses incurred in con
nection with the issuance of the bonds.
IN WITNESS WHEREOF, the City and the Owner have
executed this Agreement by duly authorized representatives, all on the date first written hereinabove.
(SEAL) CITY OF CARLSBAD
f /d, BY i /'$L-~L.., ,: - ,, d/ c- -fY-*2 ,t-:r,-.
1 ATTEST:
i /qJ, / By $/ i City Clerk
1981p/2062-10 -8-
File 12-27 84 -
Re: Original Developer Agmt
(Fermanian)
The original agmt was given to Bibi for transmittal
to the developer for signature.
K.
.- =.
L.
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DEVELOPER AGREEMENT
among
CITY OF CARLSBAD, CALIFORNIA
and
RODNEY F. STONE
and
GEORGE A. FERMANIAN
Dated as of December 1, 1984
0 0
TABLE OF CONTENTS
Page
Section 1 Definitions and Interpretation ...... 1 Section 2 Residential Rental Property ....... 4
Section 3 Lower-Income Tenants ........... 5
Section 4 Regulatory Agreement ........... 6
Section 5 Governing Law .............. 6 Section 6 Amendments ................ 6
Section 7 Notice .................. 6
Section 8 Severability ............... 7
Section 9 Multiple Counterparts .......... 7
Section 10 Assignment ................ 7
0 0
THIS DEVELOPER AGREEMENT (the "Agreement") is made and
entered into as of December 1, 1984, by and among the CITY OF
CARLSBAD, a municipal corporation of the State of California
(together with any successor to its rights, duties and
obligations, the "City") , and RODNEY F. STONE and GEORGE A.
FERMANIAN (collectively, the "Owner").
WITNESSETH: --________
WHEREAS, the City is authorized by Chapter 7, Part 5 of
Division 31 (commencing with Section 52075) of the Health and
Safety Code, as amended (herein called the "Act") to issue
revenue bonds for the purpose of financing the development of
multifamily rental housing;
WHEREAS, Section 103(b)(4)(A) of the Internal Revenue Cod
of 1954, as amended (the "Code"), provides that the interest o
obligations issued by or on behalf of a state or political
subdivision thereof substantially all of the proceeds of which
are to be used to provide projects for residential rental
property shall be exempt from federal income taxation if, amon
other requirements and with certain exceptions, at least twent
percent (20%) of the units in each project are to be occupied
by individuals of low or moderate income within the meaning of and for the period required by Section 103(b)(12)(C) of the
Code;
WHEREAS, the City has determined to assist in financing a
multifamily rental housing development for the Owner by
providing funds to make a mortgage loan to the Owner to financ
the construction of a 320-unit multifamily rental housing
development (the "Project"), provided that certain conditions
with respect to the occupancy of the Project are satisfied; an
WHEREAS, the parties hereto desire to enter into this Agreement in order to set forth the terms of occupancy for the
units in the Project to be set aside for persons of low and
moderate income;
NOW, THEREFORE, in consideration of the mutual covenants
and undertakings set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which hereby are
acknowledged, the City and the Owner hereby agree as follows:
Section 1. Definitions and Interpretation. The
following terms shall have the respective meanings assigned to
them in this Section 1 unless the context in which they are
used clearly requires otherwise:
e 0
"Act" - Chapter 7, Part 5 of Division 31 of the Healt
and Safety Code of the State of California.
"Adjusted Income" - The adjusted income of a person
(together with the adjusted income of all persons over the age
of 18 who intend to reside with such person in one residential
unit) as calculated in the manner prescribed in Regulation Section 1.167(k)-3(b)(3).
"Affordable Rent" - A monthly rent which does not exceed 30 percent of one-twelfth of the maximum adjusted annua
income at which a household of appropriate size is deemed to k
a "lower income" family in the County of San Diego for purpose
of the leased housing program established under Section 8 of
the United States Housing Act of 1937, as amended, based upon
the following appropriate household sizes for various types of
residential units in the Project and assuming 80 percent as th
percentage of median gross income which qualifies as "lower
income" :
Residential Unit No. of Persons in Famil
One bedroom 2
Two bedrooms 4
"Area" - The San Diego, California Metropolitan
Statistical Area.
"Bond Counsel" - Stradling, Yocca, Carlson & Rauth, counsel to the City with respect to the issuance of bonds for
the Project.
"Low and Moderate Units" - The dwelling units in the
Project designated for occupancy by Lower-Income Tenants.
Lower-Income Tenant" - A person whose Adjusted Income
which when combined with the Adjusted Income of all other
persons over the age of 18 years residing in the same unit,
does not exceed 80 percent of the Median Income for the Area.
In no event will the occupants of a unit be considered to be
Lower-Income Tenants if all of such occupants are students (aE
defined in Section 151(e)(4) of the Code), no one of whom is
entitled to file a joint return under Section 6013 of the Code
"Median Income for the Area" - The median income for the Area as most recently determined by the Secretary of
Housing and Urban Project under Section 8 of the United State:
Housing Act of 1937, as amended, or if programs under Section
are terminated, median income for the Area determined under tl.
method used by the Secretary prior to such termination.
1981p/2062-10 -2-
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"Qualified Project Period" - The period beginning on
the later of (i) the first day on which at least 10 percent of
the dwelling units in the Project are first occupied or (ii)
the date of the issuance of the Bonds and ending on the later of (a) the date which is 10 years after the first day on which
at least 50 percent of the dwelling units in the Project are
first occupied, or (b) the date which is a qualified number of
days after the date on which any of the dwelling units in the
Project is first occupied, or (c) the date on which any
assistance provided with respect to the Project under Section
of the United States Housing Act of 1937 terminates. For
purposes of clause (b), the term "qualified number of days" means, with respect to the Bonds, 50 percent of the number of
days comprising the term of the Bonds with the longest maturit
Regulations" - The Income Tax Regulations from time 11
to time promulgated or proposed by the Department of the
Treasury pursuant to the Code.
"Regulatory Agreement" - The Regulatory Agreement and
Declaration of Restrictive Covenants to be entered into by and
among the City, the Owner and the trustee with respect to the
bonds which shall be recorded in the real property records for
the County of San Diego.
"Very Low Income Tenants" - Lower-Income Tenants whos
adjusted gross income does not exceed 50 percent of median
gross income for the San Diego Metropolitan Statistical Area,
as most recently determined by the United States Department of
Housing and Urban Project.
Unless the context clearly requires otherwise, as use
in this Agreement, words of the masculine, feminine or neuter
gender shall be construed to include each other gender when
appropriate and words of the singular number shall be construe
to include the plural number, and vice versa, when
appropriate. This Agreement and all the terms and provisions
hereof shall be construed to effectuate the purposes set forth
herein and to sustain the validity hereof.
The defined terms used in the preamble and recitals o
this Agreement have been included for convenience of reference only, and the meaning, construction and interpretation of all defined terms shall be determined by reference to this
Section 1 notwithstanding any contrary definition in the
preamble or recitals hereof. The titles and headings of the
sections of this Agreement have been inserted for convenience
of reference only, and are not to be considered a part hereof
and shall not in any way modify or restrict any of the terms o
provisions hereof or be considered or given any effect in
construing this Agreement or any provisions hereof or in
ascertaining intent, if any question of intent shall arise.
1981p/2062-10 -3-
0 0
Section 2. Residential Rental Property. The Owne
hereby acknowledges and agrees that the Project is to be owned
managed and operated as a project for "residential rental
property" (within the meaning of Section 103(b)(4)(A) of the
Code) for a term equal to the longer of (i) the term of the
Bonds or (ii) the Qualified Project Period determined with
respect to the Project. To that end, the Owner hereby
represents, covenants, warrants and agrees as follows:
(a) The Project will be constructed for the purpose
of providing a residential rental project, and the Owner shall own, manage and operate the Project as a project to provide
multifamily residential rental property comprised of a buildin
or structure or several interrelated buildings or structures,
each consisting of more than one dwelling unit, together with
any functionally related and subordinate facilities, and no
other facilities, in accordance with Section 103(b)(4)(A) of
the Code and Section 1.103-8(b) of the Regulations, and the
Act, and in accordance with such requirements as may be impose
thereby on the Project from time to time.
(b) All of the dwelling units in the Project will be
similarly constructed units, and each dwelling unit in the
Project will contain complete separate and distinct facilities
for living, sleeping, eating, cooking and sanitation for a
single person or a family, including a sleeping area, bathing
and sanitation facilities and food preparation facilities
equipped with a cooking range, refrigerator and sink.
(c) None of the dwelling units in the Project will a
any time be utilized on a transient basis, or will ever be use as a hotel, motel, dormitory, fraternity house, sorority house
rooming house, nursing home, hospital, sanitarium, rest home o
trailer court or park.
(d) No part of the Project will at any time be owned
or used as a cooperative housing corporation, or a community
apartment project or a stock cooperative. Other than obtainin
a condominium map on the Project, and obtaining a white report
from the California Department of Real Estate, the Owner shall
not take any steps in connection with a conversion of the Project to a condominium ownership, except with the prior
written approving opinion of Bond Counsel that the interest on
the Bonds will not become taxable thereby. The final
subdivision map to be recorded for the Project shall state the
restriction against converting the ownership of the Project tc
a condominium ownership during the term of the Regulatory
Agreement.
(e) All of the dwelling units in the Project will be
available for rental on a continuous basis to members of the
general public and the Owner shall not discriminate on the
1981p/2062-10 - 4-
e 0
basis of race, creed, color, sex, age or national origin in th
lease, use or occupancy of the Project or in connection with
the employment or application for employment of persons for th
operation and management of the Project; at least 20 percent o
the dwelling units in the Project will be leased or rented, or
available for lease or rental, to Lower-Income Tenants on a
continuous basis; at least half of the units to be so leased o
rented to Lower-Income Tenants will be available for occupancy
on a priority basis by Very Low Income Tenants in accordance
with Section 3(c) below; and the Owner will not give preferenc
to any particular class or group in renting the dwelling units
in the Project, except to the extent that dwelling units are
required to be leased or rented to Lower-Income Tenants or to
be available for occupancy on a priority basis by Very Low
Income Tenants.
(f) The Low and Moderate Units will be intermingled
with all other dwelling units in the Project and will be of a
quality, and offer a range of sizes and number of bedrooms,
comparable to the other units in the Project. Tenants in the
Low and Moderate Units will have equal access and enjoyment to all common facilities of the Project.
(9) The Owner will accept as tenants, on the same
basis as all other prospective tenants, lower-income persons
who are holders of certificates for federal housing assistance
payments for existing housing pursuant to Section 8 of the
United States Housing Act of 1937 or a successor federal
program, or who are recipients of other income subsidies; and,
in connection therewith, the Owner will not apply tenant
selection criteria to such lower-income persons which are more
burdensome than the criteria applied to any other prospective
tenants.
Section 3. Lower-Income Tenants. Pursuant to the
requirements of the City, Section 103(b)(4)(A) of the Code and Section 52080 of the Act, the Owner hereby represents, warrant
and covenants as follows:
(a) Throughout the Qualified Project Period, not lee
than 20 percent of the completed units in the Project shall be
continuously occupied by Lower-Income Tenants at an Affordable
Rent. For this purpose, a unit occupied by a Lower-Income
Tenant who at the commencement of the occupancy is a
Lower-Income Tenant shall be treated as occupied by such an
individual or family during their tenancy in such unit, even
though they subsequently cease to be a Lower-Income Tenant. Moreover, such unit shall be treated as occupied by a
Lower-Income Tenant until reoccupied, other than for a
temporary period, at which time the character of the unit shal
be redetermined. In no event shall such temporary period exceed 31 days.
1981p/2062-10 -5-
0 a
(b) The Owner will verify a household's income as
required by the terms of the Regulatory Agreement to be
prepared by the City's Bond Counsel either by obtaining (i) a copy of a Lower-Income Tenant's federal income tax return for
the tax year immediately prior to the commencement of such Lower-Income Tenant's occupancy, (ii) an employer's
verification of such Lower-Income Tenant's current income, or,
(iii) if the Lower-Income Tenant is unemployed or if the tax
return is unavailable, other satisfactory evidence of income
for such year.
(c) Throughout the Qualified Project Period, the Owner will: (a) maintain a list of persons who have notified
the Owner of their desire to rent a unit in the Project and wh
have Adjusted Incomes which would qualify them as Very Low
Income Tenants, and (b) offer to rent at least half of the Low
and 'Moderate Income Units (subject to the availability thereof
at any time) on a priority basis to the persons on such list
prior to offering to rent such units to any other persons and
in choosing such Very Low Income Tenants shall use selection
criteria no more burdensome than shall be applied to other
prospective tenants. To fulfill its obligation under this
subparagraph (c), the Developer shall, at least 45 days prior
to renting any unit in the Project, notify the City Housing
Authority in writing of the date on which it intends to start
renting units; and when directed by the City (i) at least 30
days prior to renting any units in the Project, mail notice to
all persons currently on the list; and (ii) publish a notice o
the availability of such units to qualified Very Low Income Tenants in a local newspaper designated by the City.
Thereafter, throughout the Minimum Rental Period, upon
receiving notice from a Lower-Income Tenant or a Very Low
Income Tenant of such tenant's intent to vacate a Low and
Moderate Unit, the Developer shall immediately mail a notice t
the City Housing Authority stating the date on which such unit
will be available for occupancy and the rent for such unit, an
shall mail notice to at least 5 persons on the list per unit
coming vacant. The Developer agrees to make the units coming
vacant available, on a priority basis, first to any Very Low
Income Tenants who are Section 8 certificate holders or the recipients of another rent subsidy and second to other Very Lo
Income Tenants. Nothing contained in this Section shall
require the Owner to offer to rent such units to such persons
on terms and conditions which are more favorable than the terr
and conditions on which such units will be offered to the
public generally.
(d) The Owner will maintain complete and accurate
records pertaining to the Low and Moderate Units, and will
permit any duly authorized representative of the City, the
Trustee or the Department of the Treasury or the Internal
1981p/2062-10 -6-
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Revenue Service to inspect the books and records of the Owner
pertaining to the incomes of Lower-Income Tenants residing in
the Project.
Section 4. Regulatory Agreement. Bond Counsel
shall incorporate the provisions of this Agreement into the
Regulatory Agreement to be executed by the Owner with respect
to the Project.
Section 5. Governing Law. This Agreement shall bt
governed by the laws of the State of California and the
obligations, rights and remedies of the parties hereunder shal:
be determined in accordance with such laws.
Section 6. Amendments. This Agreement shall be
amended only by a written instrument executed by the parties
hereto or their successors and assigns.
Section 7. Notice. Any notice or certificate
required to be given hereunder shall be given by certified or
registered mail, postage prepaid, return receipt requested, at
the addresses specified below, or at such other addresses as
may be specified in writing by the parties hereto:
City: City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Attn: Director of Building and Planni
Owner : Rodney F. Stone
George A. Fermanian
11300 Sorrento Valley Road
San Diego, California 92121
Notice shall be deemed given three (3) business days afte
the date of mailing.
Section 8. Severability. If any provision of thi
Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining portion
hereof shall not in any way be affected or impaired thereby.
Section 9. Multiple Counterparts. This Agreement
may be simultaneously executed in multiple counterparts, all o
which shall constitute one and the same instrument, and each o
which shall be deemed to be an original.
Section 10. Assignment. The Owner may not assign
its interests hereunder, other than to a partnership in which Rodney F. Stone and George A. Fermanian remain as general
partners, without the express written consent of the City.
1981p/2062 - 10 -7-
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Section 11. Expenses. On the date of issuance
of the bonds, the Owner shall pay to the City the sum of one
tenth of one percent of the aggregate principal amount of th
bonds to reimburse the City for the expenses incurred in con
nection with the issuance of the bonds.
executed this Agreement by duly authorized representatives, all on the date first written hereinabove.
(SEAL) CITY OF CARLSBAD
IN WITNESS WHEREOF, the City and the Owner have
BY L/41-f&, /;;i J @;-&*~
ATTEST:
BY 3 &Z%i 1 PkLLJ*? City Clerk
RODNEY F. STONE
GEORGE A. FERnaINIAN
1981p/2062-10 -8-
e,’ .. .
DECEMBER 4, lay
TO :
FROM:
1983 SINGLE-FAMILY MORTGAGE REVENUE BOND PROGRAM
CXTY MANAGER
Director e o Building and Planning
Total Issue: $20,000,000
1983 Program Requirements: a $137,9y
A. First-Time Homebuyers
B. Maximum Sales Price:
(110% of Regional
C. Income Aver Limitation: age ) <-3 (150% of Median -
. $26,612)
Program Characteristics as of September 17, 1984:
Total Mortgages: 55
Fund Disbursement: $6.7 Million
Projected Disbursement 1984: $7.1 Million
Average Sales Price: $96,486
Average Monthly Mortgage
Payment: $993.00
Average Interest Rate: 9.9%
Average Borrower Age: 31
Buyer Profile:
Income Range :
Less than 50% of Median 1
50% to 100% of Median 5
100% to 120% of Median 19
30 120% to 150% of Median -
TOTAL 55 -
Employment Type:
Professional 25.7% Executive
Man age r i a 1- 14.3% Craftsman
Tec hni cal . 11.4% Self-Employed
Military Officer 4.3% Sales Inside
Government Admin, 2.9% Sales Outside
Skilled Labor 5,7% Retired
Unskilled Labor 2-93 Other
White Collar 8,6%
MARTY
MO : hm j
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T
AFFORDABLE RENT @ % Median Size' of Annual Monthly
dF
\
Income Family Income Income 25% 304
1 $13,860 $1,155.00 $288.75 $346.50 2 $15,840 $1,320.00 $330 -00 $396 00 3 $17,820 $1,485.00 $371.25 $445.50 75% 4 $19,800 $1,650.00 $412.50 $495.00 5 $21,038 $1,753.13 $438.28 $525 -94 6 $22,275 $1,856.25 $464.06 $556.88
7 $23,513 $1,959.38 $489.84 $587.81 $24,750 $2,062.50 $51 5.63 $618.75 8
$308.00 $352.00 &%?$ $14,784 $1,232.00 $1,408.00
$19,008 $1,5816.00 $396 -00 0 $440,00 $467.50 $495.00 $594 .OO 7 $25,080 $2,090.00 $522.50 $627.00 8 $26,400 $2,200.00 $550.00 $660.00
1 $15,708 $1,309.00 $327 . 25 $392.70 2 $17,952 $1 9496.00 $374 -00 $448.80 3 $20,196 $1,683.00 $420.75 $504.90 4 $22,440 $1,870.00 $467.50 $561 -00 $596.06 5 $23,843 $1,986.88 $496 -72 6 $25,245 $2,103.75 $525.9 4 $631.1: 7 $26,648 $2,220.63 $555.16 $666.15 8 $28,050 $2,337.50 $584.38 $701.25
1 $16,632 $1,386.00 $346.50 $41 5.8C
2 $19,008 $1,584.00 $396 .OO $475=2C 3 $21,384 $1,782.00 $445.50 $534.6( 4 $23,760 $1,980.00 $495 .OO $594.0C $631.1: 5 $25,245 $2,103075 $525 94 6 $26,730 $2,227.50 $556 .a8 $668.2:
7 $28,215 $2,351.25 $587.8 1 $705 - 3E 8 $29,700 $2,475 .00 $618.75 $742.5(
1 $17,556 $1,453.00 $365 75 $438 9(
2 $20,064 $1,672.00 $4 18.00 $501.6(
3 $22,572 $1,881 .OO $470 25 $564.3 4 $25,080 $2,090.00 $522.50 $627 .O $26,648 $2,220.63 $555.16 $666.1 5 6 $28,215 $2,351 -25 $587.81 $705 . 3
8 $31,350 $2,612.50 $653 . 13 $783.7
--------------i-------------------------
- __I_-_-_I -~ _I___- --- -- -e- .'" --*-- - . . .. . . 3- / u & -- $16,896 m-gz $23,760 :;*o: $1,980 .OO -6
__--a -_--.C------
85%
90%
95%
7 $29,783 $2,481.88 $620.47 $744.5
-
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% Median Size of Annual Monthly AFFORDABLE RENT @
Income Family Income Income 25% 30
1 $18,480 $1,540.00 $385 -00 $462.00 2 $21,120 $1,760-00 $440 -00 $528.00
3 $23,760 $1,980.00 $495 -00 $594 -00 100% 4 $26,400 $2,200 .OO $550 -00 $660 -00
5 $28,050 $2,337 50 $584 . 38 $701 -25 6 $29,700 $2,475.00 $6 18 -75 $742 . 50
8 $33,000 $2,750.00 $687.50 $825 .OO
1 $19,404 $1,617.00 $404.25 $485.10 2 $22,176 $1,848.00 $462.00 . $554.40 3 $24,948 $2,079.00 $519.75 $623 . 70 105% 4 $27,720 $2,3 10.00 $577 . 50 $693 . 00
- 5 $29,453 $2 , 454 38 $61 3.59 $736.31 6 $31 , 185 $2,598.75 $649 . 69 $779 63 7 $32,918 $2,743. 13 $685.78 $822 . 94 8 $34,650 $2 , 887.50 $721 -88 $866.25
1 $20,328 $1,694 .OO $423 . 50 $508.20
2 $23,232 $1,936.00 $484 .OO $580.80
3 $26,136 $2,178.00 $544.50 $653 . 40 110% 4 $29,040 $2,420.00 $605 . 00 $726.00
5 $30,855 $2,571.25 $642 . 8 1 $771 -38 6 $32,670 $2,722.50 $680.63 $816.75
8 $36,300 $3,025.00 $756 . 25 $907 . 50
1 $21,252 $1,771 .OO $442.75 $531 30 2 $24,288 $2 9 024.00 $506.00 $607.20 3 $27,324 $2 9 277 00 $569.25 $683 . IC 1155 4 $30,360 $2 p 530 .OO $632.50 $759. oc 5 $32,258 $2,688.13 $672 03 $806.44 6 $34,155 $2,846.25 $71 1.56 $853.8e 7 $36,053 $3 , 004.38 $751 -09 $901.31 8 $37,950 $3,162-50 $790 63 $948 75
1 $22,176 $1,848.00 $462.00 $554.4c
2 $25,344 $2,112.00 $528 .OO $633 6C
3 $28,5 12 $2,376.00 $594 00 $7 12.8C
1205 4 $31,680 $2,640.00 $660.00 $792 OC 5 $33,660 $2 9 805 -00 $70 1 . 25 $84 1 . 5C 6 $35,640 $2,970.00 $742.50 $891 .OC
7 $37,620 $3,135.00 $783 75 $940 . 5(
----I_---------------------------------------------
7 $31,350 $2,612.50 $653 . 13 $783.75
7 $34,485 $2,873.75 ~ $718.44 $862.13
8 $39 , 600 $3 y 300 -00 $825.00 $990 .oc
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ATTACH&
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AFFORDABU RENTS FOR THE COUNTY OF SAN DIEGO
$26,400 is the HUD median income
for a family of four as of July, 1983
% Median Size of Annual Monthly AFFORDABLE RENT @
IIlCCXC? Family Income Income 25% 3c
------------------------____1____u__________----------------
1 $9,240 $770.00 $192.50 $231 .OC
2 $10,560 $880 00 $220.00 $264 . OC 3 $1 1,880 $990 * 00 $247.50 $297 O( 50s 4 $13,200 $1,100.00 -$275.00 $330 O( 5 $14,025 $1,168.75 $292.19 $350.6: 6 $14,850 $1,237.50 $309 38 $37 1 .2; 7 $15,675 $1,306.25 $326.56 $391 .Si 8 $16,500 $1,375-00 $343.75 $4 12.5(
- 1 $10,164 $847 -00 $21 1175 $254.1C
2 $1 1,616 $968 .OO $242.00 $290 . 4C 3 $13,068 $1,089.00 $272 25 $326 . 7C 555 4 $14,520 $1,210.00 $302.50 $363 OC 5 $15,428 $1,285.63 $321 -41 $385 6s 6 $16,335 $1,361.25 $340.31 $408.3t 7 17,243 $1,436.88 $359 0 22 $431 *OE
1 $1 1,088 $924.00 $231 . 00 $277.2C
2 $12,672 $1,056.00 $264.00 $316.8C 3 $14,256 $1,188.00 ,I $297 00 $356.4C
605 4 $15,840 $1,320.00 $330 -00 $396 .OC 5 $16,830 $1,402.50 $350 63 $420 . 75 $;g:t% $1,567.50 $391.88 $470.25 6 7
1 $12,012 $1,001 .oo $250.25 $300.3( 2 $13,728 $1 , 144.00 $286 .OO : 343.2C
8 $18,150 $1,512.50 $378 13 $453.75
$1,485.00 $371.25 $445.5(
8 $19,800 $1,650.00 $412.50 $495 .O(
4 2 $15,444 $1,287.00 $321 -15 $386. io
652 4 $17,160 $1,430.00 $357 50 $429 *oa
5 $18,233 $1,519.38 $379 4 84 $455.8 1 6 $19,305 $1,608.75 $4CZ*59 '.- $382.63 7 $20,378 $1,698.13 3224.53 $509.44
8 $21,450 $1,787.50 5446 -88 $536.25
1 $12,936 $1,078.00 ?69 . 50 $323.4C
2 $14,784 $1,232.00 S308.00 $369.6( 3 ;:e .532 $:.386.00 346.50 $415.8( 4 .$:S,480 $7,540.0O $385 .OO S362.0C
.- ;;9,635 $1,636.25 $409 . 06 $490.8t 6 .520,?90 7,732.50 $433 13 $5? - .7: 7 321,945 2: ,328.75 $457 19 $540.6: 8 23,100 $1,925.00 $481 -25 $577 5(
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RESOLUTION NO. 7853
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, APPROVING A DEVELOPER
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND RODNEY
F. STONE AND GEORGE A. FERMANIAN.
WHEREAS, the City of Carlsbad, California, does herel
resolve as follows:
1. That certain developer agreement between the Cit]
Carlsbad and Rodney F. Stone and George A. Fermanian, a co]
which is attched hereto, marked Exhibit 1, and incorporate1
by reference, is hereby approved.
2. The Mayor of the City of Carlsbad is hereby aut
and directed to execute said agreement for and on behalf o
City of Carlsbad.
PASSED, APPROVED AND ADOPTED at a regular meeting of
City Council of the City of Carlsbad held the 18th day of
December, 1984, by the following vote, to wit:
AYES:
NOES: None
Council Nmbers Casler, Lewis, Kulchh, Chick and Pett
1 I
1 ABSENT: None
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/* e- /44kV t &Qjlc;l,
1
MARY H. LASLER, Mayor
#/Iq LC 71 . t P. 4 ;\.'.z ci Z.%&-, ALETHA L. RAUTENKRANZ, City Ckerk
27
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