HomeMy WebLinkAbout2006-05-02; City Council; 18547; Crescent Del Sol Estates Affordable Housing1
CITY OF CARLSBAD - AGENDA BILL
AB# 18,547
MTG. 5/2/06
DEPT. H/RED
TITLE: APPROVAL OF AN AFFORDABLE HOUSING
AGREEMENT TO ALLOW A HOUSING ALTERNATIVE TO
SATISFY THE INCLUSIONARY HOUSING REQUIREMENT
FOR THE CRESCENT DEL SOL ESTATES SUBDIVISION
DEPT. HD^^^M"
CITYATTY. J.tf
CITY MGR. /££P>
RECOMMENDED ACTION:
ADOPT Council Resolution No.2006-109 APPROVING an Affordable Housing
Agreement with Crescent del Sol, LLC, to allow a housing alternative (second dwelling unit) to
satisfy the Inclusionary Housing requirement for the Crescent del Sol Estates subdivision.
ITEM EXPLANATION:
The Crescent del Sol Estates project is located on the north side of Date Avenue, east of
Garfield Street. The Planning Commission has approved the development of an eight unit single
and two family residential product on a .98 acre parcel of land, with one (1) second dwelling unit
to comply with the City's Inclusionary Housing Ordinance. The developer is seeking City Council
approval of an Affordable Housing Agreement to allow construction of the second dwelling unit
as a housing alternative under the City's Inclusionary Housing Ordinance.
The Inclusionary Housing Ordinance allows the Council to approve a housing alternative when
that alternative supports specific housing policies and goals. Alternatives include, but are not
limited to, acquisition and rehabilitation of affordable units, conversion of existing market units to
affordable units, construction of special needs housing projects or programs (shelters,
transitional housing, etc.), and the construction of second dwelling units. Approval of the housing
alternative shall be based on findings that new construction would be infeasible or present
unreasonable hardship in light of such factors as project size, site constraints, market
competition, price and product type disparity, developer capability, and financial subsidies
available.
Due to the small size of the market rate development (8 single and two family units) and the very
substantial financial subsidy that would be required to make a market rate unit affordable, the
developer has indicated that it would present an unreasonable hardship upon the Crescent del
Sol Estates development to require that one of the units be made affordable to a low income
household. Therefore, the developer is proposing to construct the second dwelling unit within
the approved residential development to satisfy the inclusionary housing requirement. While the
proposed second dwelling unit will be a newly constructed unit and will be located within the
market rate development as required, it is considered to be a housing alternative, as defined by
Section 21.85.070 of the Inclusionary Housing Ordinance. Therefore, the alternative requires
City Council approval.
Staff Recommendation
The developer's justification for constructing a housing alternative to satisfy the inclusionary
requirement has been reviewed by Housing and Redevelopment Department staff. Staff
concurs with the developer that the small size of the new market rate development and the
substantial subsidy required to make one of the units affordable to low income households
would be financially difficult and present an unreasonable hardship. Therefore, staff
recommends that the City Council approve the proposed affordable housing agreement to allow
a second dwelling unit within the market rate development as an alternative to satisfy the
inclusionary housing requirement for the Crescent del Sol Estates subdivision.
Page 2
Affordable Housing Agreement
Prior to the issuance of a final map or issuance of any building permits for the project, the
developer is required to enter into an Affordable Housing Agreement with the City that binds the
developer to the specifics of the affordable housing project. The Agreement will require the
second dwelling unit be rented at an amount which is affordable to a low income household
earning 70% or less of the San Diego County Area Median Income (AMI), and the tenant's
income does not exceed 80% of AMI. It is requested that the Affordable Housing Agreement,
attached as Exhibit 2, be approved by the Council in substantially the form presented and
subject to final approval by the City Attorney.
ENVIRONMENTAL REVIEW
The Planning Director has determined that the project is categorically exempt from the
requirements of the California Environmental Quality Act. No further environmental review is
required as part of the approval of the alternative to satisfy the City's Inclusionary Housing
Ordinance.
FISCAL IMPACT
The Developer has made no request for financial assistance for this project. Therefore, there will
be no fiscal impact to the City.
EXHIBITS
1. City Council Resolution No. 2006 -109 , to approve an affordable housing
agreement to allow the Crescent del Sol Estates Subdivision to utilize the housing alternative
of a second dwelling unit to satisfy the City's Inclusionary Housing requirements.
2. Affordable Housing Agreement.
DEPARTMENT CONTACT: Frank Boensch, (760)434-2818, fboen@ci.carlsbad.ca.us
1 CITY COUNCIL RESOLUTION NO. 2006-109
2 APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT WITH CRESCENT DEL
SOL, LLC, TO ALLOW A HOUSING ALTERNATIVE THROUGH THE
3 CONSTRUCTION OF A SECOND DWELLING UNIT TO SATISFY THE
4 INCLUSIONARY HOUSING REQUIREMENT FOR THE CRESCENT DEL SOL
ESTATES SUBDIVISION.
5
6 WHEREAS, on October 19, 2005, the Planning Commission approved the Crescent del
7 Sol Estates subdivision for the development of 8 single and two family residential units on
o property located on the north side of Date Avenue, east of Garfield Street, including a
9 requirement to provide one housing unit affordable to low income households per the City of
10
Carlsbad's Inclusionary Housing Ordinance; and
11
WHEREAS, the developer of the Crescent del Sol Estates subdivision has proposed to
12
meet the project's Inclusionary Housing Ordinance requirement with an alternative housing
solution which would result in the developer providing one second dwelling unit within the
j5 market rate development which will be affordable to low income households; and
16 WHEREAS, the Inclusionary Housing Ordinance allows, at the discretion of the City
17 Council, a housing alternative when the proposed alternative supports specific housing policies
18 and goals and a determination is made that the new construction would be infeasible or present
19 unreasonable hardship; and
20 WHEREAS, based upon the City Council's determination that it would be financially
21
infeasible and would represent an unreasonable hardship upon the subject developer to make one
22
of the one or two family residential units within the subject development affordable to low
23
income households and the proposed alternative to satisfy the inclusionary requirement through
25 the construction of one second dwelling unit on the site of the market rate development does
26 meet the goals of the Inclusionary Housing Ordinance and the City's Housing Element; and
27
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Page 2
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3 WHEREAS, the City Council did hold a public meeting to consider the developer's
4 request to approve an affordable housing agreement to allow one second dwelling unit to satisfy
the inclusionary housing requirement for the Crescent del Sol Estates subdivision located on the
6 north side of Date Avenue, east of Garfield Street; and
7
WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring
8
to be heard, said City Council considered all factors relating to the proposed inclusionary
housing alternative,
j j NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City
12 of Carlsbad, California, does hereby find as follows:
13 1. The above recitations are true and correct.
14 2. The developer's proposal to provide one second dwelling unit affordable to low
income households on the site of the market rate development as an alternative to
constructing one single or two family residential unit and making it affordable to low
. , income households to satisfy the inclusionary housing requirement for the Crescent
del Sol Estates subdivision is consistent with the goals and objectives, and serves the
17 priorities of, the City of Carlsbad's Housing Element, Consolidated Plan, the
Inclusionary Housing Ordinance, and the Carlsbad General Plan.
18
3. As required by Section 21.85.070 of the Carlsbad Municipal Code, the City Council
19 hereby finds that the requirement to construct one single or two family residential unit
and make it affordable to low income households within the Crescent del Sol Estates
20 market rate development would be financially infeasible and would present an
unreasonable hardship on the developer due to the development's small project size
of 8 units and the substantial subsidy required to make that unit affordable to a low
22 income household.
23 4. That based on the information provided within the City Council staff report and
testimony presented during the public meeting of the City Council, the City Council
24 hereby approves an Affordable Housing Agreement, in substantially the form
presented and subject to final approval by the City Attorney, to allow one second
25 dwelling unit on the site of the market rate development as an acceptable housing
alternative to providing one single or two family residential unit affordable to low
income households to satisfy the Inclusionary Housing requirement for the Crescent
27 del Sol Estates subdivision.
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5. That the Community Development Director or his or her designee is authorized by
the City Council to execute all documents related to approval of the subject
alternative inclusionary housing proposal, including but not limited to an Affordable
Housing Agreement in substantially the form presented to the City Council and
subject to final approval by the City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of
the City of Carlsbad, California, held on the 2nd day of May t 2006, by the
following vote, to wit:
AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: None
ABSTAIN:
ATTEST:
LORRAINE M. WOOD,
v x •*• ' \x
"'»mn^x
PageS
(SEAL)
COPY
Recording Requested by:
City of Carlsbad
When Recorded Mail to:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad. California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this2Aa day of
May ,2006, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter
referred to as the "City"), and Crescent del Sol a limited liability company, (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 05-01 , Condominum Permit 05-09,
and Coastal Development Permit 05-06. which provides conditional approval of the construction of
eight ( 8 ) condominium units ("Project").
B. Condition No. 12 of Planning Commission Resolution No. 5974. states that this
Affordable Housing Agreement shall be entered into between the City and the Developer as a means of
satisfying the Developers' affordable housing obligation ("Affordable Housing Obligation"), as such is
defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No.5974
provides that the Affordable Housing Obligation will be satisfied by applying the requirements set forth in
this Agreement for one (1) affordable housing lot ("Affordable Housing Lot"). The Affordable Housing
Lot which are subject to this Agreement are:
Lot E.U.A. #4 of Carlsbad Tract No, 05-01 in the City of Carlsbad, County of
San Diego, State of California, according to Map thereof No. 1803 filed with the County
Recorder of San Diego County on August 25. 1924 .
C. Developer intends to construct the required inclusionary units concurrent with the project's
market units that are also identified on 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.
2. SATISFACTION OF AFFORDABLE HOUSING REQUIREMENTS THROUGH
CONSTRUCTION OF A SECOND DWELLING UNIT.
1/30/03
Performance under this Agreement satisfies the Developers' obligation for affordable housing
under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Tentative Map CT
05-01 . including Condition No. 12 listed in Planning Commission Resolution No. 5974 and,
any other applicable condition of approval.
3. SECOND DWELLING 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 21.10.015.
(b) Restriction on Rental of Second Dwelling Unit. The maximum monthly rent for any Second
Dwelling Unit, subject to this Agreement, which becomes rented or leased shall not exceed an amount of
thirty percent (30%) of 1712th of the gross annual income of a low-income household, adjusted for
household size, at seventy percent (70%) 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. For
purposes of this Agreement, "Rent" shall include a utility allowance as established and adopted by the City
of Carlsbad Housing Authority, as well as all required monthly payments made by the tenant to the lessor
in connection with use and occupancy of a housing unit and land and facilities associated therewith,
including any separately charged fees, utility charges, or service charges assessed by the lessor and payable
by the tenant (but not including fees and charges resulting from any default by the tenant or damage caused
by the tenant, or fees or charges paid by the tenant to third party utilities or other providers). A sample
schedule showing the calculation of the maximum rental amount as for 2006 is attached to this Agreement
as Attachment "B".
(c) Restriction on Tenant Income. The Affordable Units shall be available to households with
incomes not exceeding 80% of the median income for San Diego County, adjusted for actual household
size.
(d) 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). Developer shall forward the original declaration to the City
Planning Director for maintenance in the City's files, and retain a copy for its own files in the event proof
becomes necessary.
(e) 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 Exhibit "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.
4. REMEDIES
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. 12 of
Planning Commission Resolution No. 5974 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. 05-01 .
5. HOLD HARMLESS
Developer will indemnity and hold harmless (without limit as to amount) City and its elected
officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as
1/30/03
"Indemnitees"), 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 Developers' actions or defaults
pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect
thereto. Developer's 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 ($1,000,000) 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.
6. NOTICES
All notices required pursuant to this Agreement shall be in writing and may be given by personal
delivery or by registered 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
Arm: Housing & Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
TO THE DEVELOPERS:
Mr. Wayne Blass, President
Crescent del Sol, LLC
7237 Sanderling Court
Carlsbad, CA 92011
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.
7. 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.
8. 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.
9. SUCCESSORS
This Agreement shall benefit and bind Developers and any successive owners of Affordable
Housing Lots.
1/30/03
10. SEVERABILITY
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
and year first above written.
CITY
. '" City of Carlsbad, a Municipal corporation
DEVELOPER
Cresbent del Sol, LLC
By: t
/ayne^Blass /Sandra L. Holder
President Community Development Director
By:
Name
Title
Proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement
must be signed by one corporate officer from each of the following two groups.
*Group A. **Group B.
Chairman, Secretary,
President, or Assistant Secretary,
Vice-President CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under
corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
By:
1/30/03
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
I
State of California
County of
»V/- <?/On
Date
personally appeared
before me,
LS
Place Notary Seal Above
ss.
_ ^xU
me /nd Title of "officer "(e.g., "Jiwe'Ctoe, Notary Publlr^'
Nanjrt*T
*""
of Sj0ner(s)
personally known to me
I...1 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, execute^Hhe instrument.
WITNES
Though the information below ;s not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of frt/s form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
L Individual
! ; Corporate Officer — Title(s):
! j Partner —' :. Limited ! ' General
i J Attorney in Fact
L ! Trustee
I [ Guardian or Conservator
[..! Other:
Signer Is Representing:
Number of Pages:
RIGHT THUMBPRINT
OF SIGNER
Top of ihunib here i
/o
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
LOT 1 IN BLOCK'T" OF PALISADES NO. 2 IN THE CITY OF CARLSBAD, COUNTY OF
SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1803,
FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,
AUGUST 25, 1924.
1/30/03
ATTACHMENT B
MAXIMUM MONTHLY RENTAL AMOUNT
County of San Diego Metropolitan Statistical Area
Household Income Limits
Note: The following household Income limits are adjusted for a high cost area as
per the Federal Housing Act of 1937 and calculated using HCD methodology to
comply with Health and Safety Code Sections 50052.5 and 50093.
2006
San Diego MSA Median Income $ 64,900
U.S. Department of Homing and Urban Development
EFFECTIVE: March 8, 2006
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
30%
Annual Monthly 30.00%
Income Income Monthly
$14,500
$16,550
$16,650
$20,700
$22,350
$24,000
$25,650
$27,300
$1.208
$1.379
$1,554
$1.725
$1.863
$2.000
$2,138
$2.275
$363
$414
$466
$518
$559
$600
$641
$683
35%
Annual Monthly 30.00%
Income Income Monthly
$16,900
$19.300
$21.750
$24,150
$26.100
$28.000
$29.950
$31.900
$1.408
$1,608
$1,813
$2.013
$2.175
$2,333
$2.496
$2,658
$423
$483
$544
$604
$653
$700
$749
$798
40%
Annual Monthly 30.00%
Income Income Monthly
$19,300
$22,100
$24,850
$27,600
$29,800
$32.000
$34,200
$36,450
$1,608
$1,842
$2,071
$2,300
$2,483
$2,667
$2,850
$3,038
$483
$553
$621
$690
$745
$800
$855
$911
Very Low Income
50%
Annual Monthly 30.00%
Income Income Monthly
$24,150
$27.600
$31,050
$34,500
$37.250
$40.000
$42,800
$45,550
$2,013
$2,300
$2,588
$2,875
$3,104
$3,333
$3,567
$3,796
$604
$690
$776
$863
$931
$1,000
$1,070
$1,139
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
60%
Annual Monthly 30.00%
Income Income Monthly
$29,000
$33,100
$37,250
$41,400
$44,700
$48,000
$51.350
$54,650
$2,417
$2,758
$3,104
$3,450
$3,725
$4,000
$4.279
$4.554
$725
$828
$931
$1,035
$1,118
$1,200
$1,284
$1,366
65%
Annual Monthly 30.00%
Income Income Monthly
$31,400
$35,900
$40,350
$44,850
$48,450
$52,050
$55,600
$59,200
$2,617
$2,992
$3,363
$3.738
$4,038
$4.338
$4.633
$4.933
$785
$898
$1.009
$1.121
$1.211
$1,301
$1,390
$1.480
70%
Annual Monthly 30.00%
Income Income Monthly
$33,800
$38.650
$43.450
$46,300
$52.150
$56.050
$59,900
$63,750
$2,817
$3.221
$3,621
$4,025
$4,346
$4,671
$4,992
$5,313
$845
$966
$1,086
$1,208
$1.304
$1.401
$1,498
$1,594
Low Income
80%
Annual Monthly 30.00%
Income Income Monthly
$38,650
$44,150
$49,700
$55,200
$59,600
$64.050
$68.450
$72,850
$3,221
$3,679
$4,142
$4,600
$4,967
$5,338
$5.704
$6.071
$966
$1,104
$1,243
$1.380
$1.490
$1,601
$1.711
$1.821
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
100%
Annual Monthly 30.00%
Income Income Monthly
$45,450
$51.900
$58,400
$64,900
$70,100
$75,300
$80,500
$85,650
$3,788
$4,325
$4,867
$5,408
$5,842
$6.275
$6.708
$7.138
$1,136
$1,298
$1,460
$1,623'
$1,753
$1,883
$2,013
$2,141
115%
Annual Monthly 30.00%
Income Income Monthly
$52,250
$59,700
$67,150
$74,650
$80,600
$86,600
$92,550
$98,500
$4,354
$4,975
$5,596
$6.221
$6.717
$7,217
$7.713
$8,208
$1,306
$1,493
$1.679
$1,866
$2,015
$2,165
$2,314
$2,463
Moderate Income
120%
Annual Monthly 30.00%
Income Income Monthly
$54,500
$62.300
$70,100
$77,900
$84,100
$90,350
$96,550
$102,800
$4,542
$5,192
$5,842
$6,492
$7,008
$7,529
$8,046
$8,567
$1,363
$1.558
$1,753
$1,948
$2,103
$2,259
$2,414
$2,570
140%
Annual Monthly 30.00%
Income Income Monthly
$63,600
$72,700
$81,750
$90,850
$98,150
$105.400
$112,650
$119,950
$5,300
$6,058
$6,813
$7.571
$8,179
$8,783
$9,388
$9,996
$1,590
$1.818
$2.044
$2.271
$2,454
$2,635
$2,816
$2,999
Note: Income levels 80% and below are adjusted by a HUD high cost area allowance.
This general Income Information Is calculated from the U.S. Department of Housing and Urban
Development (HUD) Income figure*. Specific program requirements may vary.
1/30/03
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 21.10.015
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 seventy percent (70%) 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. The Affordable Units shall be available to households with incomes not exceeding
80% of the median income for San Diego County, adjusted for actual household size. 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
understand the restrictions as they relate to the Second Dwelling Unit.
1/30/03
May 04 2006 3:59PM HP LHSERJET 333O P-2
OPERATING AGREEMENT for CRESCENT DEL SOL, LLC
A. THIS OPERATING AGREEMENT is entered into as of February 17,
2004 by and between Wayne Blassingame, Carol Blassingame and Tuzo
Jerger (sometimes referred to as "Class B Members," or
"Participating Members")and each of the other persons whose names
are set forth in Schedule A under the heading Class A Members and
such persons and any additional persons admitted after the date
of this Agreement (sometimes referred to herein as "Class A
Members" or "Non-Participating Members"). All the "Members" are
sometimes referred to individually as a "Member" and/or
collectively as the "Members."
B. The Members have formed a limited liability company under
the Beverly-Killea Limited Liability Company Act. The Articles of
Organization of the Company filed with the California Secretary
of State on February 2, 2004 are hereby adopted and approved by
the Members. A copy of the Articles are attached hereto as
Schedule D.
C. The Members enter into this Agreement 'to form and provide
for the governance of the Company and the conduct of its
business, and to specify their relative rights and obligations.
NOW THEREFORE, the Members agree as follows:
ARTICLE I: DEFINITIONS
Capitalized terms ' used in this Agreement have the meanings
specified in this Article or elsewhere in this Agreement and when
not so defined shall have the meanings set forth in California
Corporations Code section 17001.
1.1. "Act" means the Beverly-Killea Limited Liability Company
Act (California Corporations Code §§17000-17655), including
amendments from time to time.
1.2. "Affiliate" of a Member means (1) any Person directly or
indirectly, through one or more intermediaries, controlling,
controlled by, or under common control with the Member. The term
"control" (including the terms "controlled by" and "under common
control with") means the possession, direct or indirect, of the
power to direct or cause the direction of the management and
policies of a Person, whether through membership, ownership of
voting securities, by contract, or otherwise.
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terminated by the provisions of this Agreement or as provided by
law.
2,8. The name and address of the Manager, who is also a
Member is as follows:
Name Address
Wayne Blassingame "7237 Sanderling Court, Carlsbad,
California 92009
ARTICLE III: CAPITAL AND CAPITAL CONTRIBUTIONS
3.1. The names, addresses, initial Capital Contributions and
Class A Interests of the Class A Members are set forth on
Schedule A. The names, addresses, and Class B Interests of the
Class B Members are set forth on Schedule B. If a Member fails to
make the initial Capital Contributions specified in this Section
within 30 days after the effective date of this Agreement, that
Member's entire Membership Interest shall terminate, and that
Member shall indemnify and hold the Company and the other Members
harmless from any loss, cost, or expense, including reasonable
attorney fees caused by the failure to make the initial Capital
Contribution.
3.2. The Manager may determine from time to time that Capital
Contributions in addition to the Members' initial Capital
Contributions are needed to enable the Company to conduct its
business. On making such a determination, the Manager shall give
notice to all Members in writing at least 90 days before the date
on which such additional Capital Contribution is due. The Notice
shall set forth the amount of additional Capital Contribution
needed, the purpose for which it is needed, and the date by which
the Members shall contribute. Each Member shall be required to
make an additional Capital Contribution in an amount that bears
the same proportion to the total additional Capital Contribution
that such Member's Capital Account balance bears to the total
Capital Account balances of all Members. No Member may
voluntarily make any additional Capital Contribution.
3.3. If a Member fails for 30 days to make an additional Capital
Contribution required under Section 3.2:
(a) The Defaulting Member shall indemnify and hold the Company
and the other Members harmless from any loss, cost, or expense,
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13.12. Time is of the essence of every provision of this
Agreement that specifies a time for performance.
13.13. This Agreement is made solely for the benefit of the
parties to this Agreement and their respective permitted
successors and assigns, and no other person or entity shall have
or acquire any right by virtue of this Agreement.
IN WITNESS WHEREOF, th4 parties have executed or caused to be
executed this Agreement on\the day and year first above written.
CLASS B MEMBERS:
lassingame, Managing Member
Carol
, eraper
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