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Home My WebLink AboutCT 14-10; Boyd, Brady and Renee; 2020-0727222; Affordable Housing-Regulatory Agreement & Dec. of Restrictive CovenantsRECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: DOC# 2020-0727222 111111111111 1 1111 111111111111 111 1111111H 11111 11 111 11111 11111 NI 1111 Nov 18, 2020 08:00 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PAGES: 20 City of Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, CA 92008 No fee for recording pursuant to Government Code Section 27383 t<NA 2:6-0216-‘A AGREEMENT CONTAINING COVENANTS AND RESTRICTIONS GOVERNING RENTAL OF AFFORDABLE SECOND OR ACCESSORY DWELLING UNIT THIS AGREEMENT CONTAINING COVENANTS AND RESTRICTIONS GOVERNING RENTAL OF AFFORDABLE SECOND OR ACCESSORY DWELLING UNIT (the "Agreement") is made and entered into as of November-5, 2020 (the "Effective Date"), by and between the City of Carlsbad, a municipal corporation (the "City"), and Brady Charles Boyd and Renee Amanda Boyd, as Trustees of The Brady and Renee Boyd Family Trust dated March 19, 2014, or any successor in interest (collectively, the "Owner") with reference to the following: RECITALS A.Owner is the fee owner of that certain property in the City of Carlsbad, California, which is more particularly described in Exhibit A (the "Property"). As of the Effective Date, two (2) housing units are located, or will be constructed, on the Property. One unit shall be referred to herein as the "Primary Unit" and the other unit shall be referred to herein as the "Second or Accessory Dwelling Unit". Such units are designated on Exhibit B. B.The Property, and other real property, are the subject of Tentative Map CT 14-10, and Site Development Plan 14-15, which provided conditional approval of the construction of one hundred twenty-three single family dwelling units (the "Master Development"). C.Condition No. 15 of Planning Commission Resolution No. 7226 for the Master Development required, among other things, that the City and Lennar Homes of California, Inc. (the "Developer") enter into that certain Affordable Housing Agreement dated as of August 24, 2018, and recorded in the Official Records of San Diego County (the "Official Records") on April 25, 2019, as document 2019-0151230 (the "Affordable Housing Agreement"). The Affordable Housing Agreement encumbers the Property and the other real property on which the Master Development is developed. D.The Affordable Housing Agreement satisfied the Developer's affordable housing obligation, as set forth in Chapter 21.85 of the Carlsbad Municipal Code (the "Affordable Housing Obligation"). The Owner, as the owner of the Property, is the successor-in-interest to the Developer. 1 1010 \1712059295.1(revii/06/2039) E.In conjunction with the approval of the Master Development, the Developer requested, and the City approved, the ability to satisfy the Master Development's Affordable Housing Obligation by providing the Second or Accessory Dwelling Unit on the Property as an alternative to providing for-sale single family dwelling units, as affordable units, in accordance with Chapter 21.85 of the Carlsbad Municipal Code. Such approval is a form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code (the "Incentive"). Accordingly, the Owner is required to make the Second or Accessory Dwelling Unit available for rent exclusively to Low Income Households (as defined below) at an Affordable Rent (as defined below). F.This Agreement is required to be entered into by the City and the Owner, and recorded in the Official Records against the Property, in accordance with Section 4d of the Affordable Housing Agreement in order to comply with the requirements of the Affordable Housing Obligation and Chapter 21.85 of the Carlsbad Municipal Code. NOW THEREFORE, it is hereby agreed by and between the City and the Owner (each a "Party", and, collectively, the "Parties") as follows: ARTICLE I DEFINITIONS As used in this Agreement, the terms set forth below shall have the following meanings (other defined terms herein not referenced below shall have the meanings where first used). 1.1 "Affordable Rent" means the maximum allowable Rent for the Second or Accessory Dwelling Unit, equal to one-twelfth (1/12th) of thirty percent (30%) of seventy percent (70%) of the Median Household Income for Low Income Households, adjusted for assumed household size of two persons in a one-bedroom or three persons in a two-bedroom. 1.2 "Eligible Household" means a household that has been determined to be eligible to be a Tenant of the Second or Accessory Dwelling Unit as a Low Income Household. 1.3 "HCD" means the State of California Department of Housing and Community Development, or any successor 1.4 "HUD" means the U.S. Department of Housing and Urban Development, or any successor. 1.5 "Low Income Household" means a household whose income does not exceed the low income limits applicable to San Diego County, adjusted for household size, as determined by HUD and published annually by the US Department of Housing and Urban Development and/or the State of California Department of Housing and Community Development. As of the Effective Date, such income limit is approximately equal to eighty percent (80%) of Median Household Income. 2 1010 \170059295.1(rev11/06/2019) 1.6 "Median Household Income" means median yearly income in San Diego County as determined by HUD and published by HCD. 1.7 "Rent" means the total monthly payment by the Tenant of the Second or Accessory Dwelling Unit for all of the following: (1) use and occupancy of the Second or Accessory Dwelling Unit and land and all facilities associated with the Second or Accessory Dwelling Unit, including but not limited to parking, storage, and use of any common areas; (2) any separately charged fees or service charges assessed by the Owner to the Tenant, except security deposits; (3) an allowance for utilities paid by the Tenant as established by the Carlsbad Housing Authority, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but not telephone service, Internet, or cable or subscription TV; and (4) any other interest, taxes, fees or charges for use of the Property or associated facilities that are assessed by a public or private entity other than the Owner and paid by the Tenant. 1.8 "Tenant" means an Eligible Household entitled by written or oral agreement with the Owner to have the exclusive right to occupy the Second or Accessory Dwelling Unit as a home or residence to the exclusion of all others. ARTICLE 2 OWNER'S OBLIGATIONS 2.1 Rental of Second or Accessory Dwelling Unit to Eligible Households. The Owner shall ensure that the Second or Accessory Dwelling Unit is rented to, and occupied by, Eligible Households in accordance with this Agreement. The Owner shall not use the Second or Accessory Dwelling Unit for any other purpose other than as set forth in this Agreement; provided, however, nothing in this Agreement shall be deemed to prohibit the Second or Accessory Dwelling Unit from being vacant so long as such vacant Second or Accessory Dwelling Unit is not used by Owner (or any other person) for any purpose, including, but not limited to use by the Owner in conjunction with the use and occupancy of the Primary Unit. Except as set forth in the preceding sentence nothing in this Agreement limits the use or occupancy of the Primary Unit. (a)Income Certification. The Owner shall not enter into a lease or rental agreement, or receive Rent from a Tenant, for the Second or Accessory Dwelling Unit unless the Owner has made a good faith effort to verify that the income provided by an applicant in an income certification is accurate by taking one or more of the following steps as a part of the verification process: (1) obtain a pay stub for the most recent pay period; (2) obtain an income tax return for the most recent tax year; (3) conduct a credit agency or similar search; (4) obtain an income verification form from the applicant's current employer; (5) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (6) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. Copies of tenant income certifications shall be available to the City upon request. (b)Maximum Allowable Rent. The maximum Rent charged to the Tenant of the Second or Accessory Dwelling Unit shall not exceed Affordable Rent. 3 1010\17\2059295. I (rev I I /06/2019) (c)Increased Income of Tenants. If, upon recertification of a Tenant's income pursuant to Section 2.2, the Owner determines that the Tenant's household income has increased and exceeds the qualifying income for a Low Income Household, then such Tenant shall continue to be considered an "Eligible Household", and shall be permitted to continue to occupy the Second or Accessory Dwelling Unit, at the rent set forth in subsection (b), above; provided, however, nothing in this Agreement shall prohibit the Owner from terminating such tenancy upon the expiration of such Tenant's lease. Following such Tenant's vacancy, the Owner shall lease the Second or Accessory Dwelling Unit to an Eligible Household. (d)Information. At the request of the Owner, the City shall provide the Owner with the low and very low income limits applicable to San Diego County, adjusted for household size, as published from time to time by HUD and/or HCD. 2.2 Annual Certification. The Owner shall certify the Tenant's household income on an annual basis. The Owner shall provide the City with a certification, in the form attached as Exhibit C, no later than June 30th of each year of the Term setting forth the following information with respect to the Tenant occupying the Second or Accessory Dwelling Unit: unit address, Tenant name, size of Tenant's household, unit size, and date first occupied, and a copy of the annual income certification obtained by the Owner from the Tenant. The purpose of the yearly Owner certification is to document Owner's compliance with the restrictions set forth herein. 2.3 Lease Provisions. The Owner shall use a form of Tenant lease addendum (the "Tenant Lease Addendum") approved by the City for the Second or Accessory Dwelling Unit, a copy of which is attached as Exhibit D. The City shall either approve or specify its basis for disapproval, if any, within thirty (30) days after the Owner submits such proposed form lease to City. The Tenant Lease Addendum shall, among other matters: (a)provide that the Rent may not be raised more often than once every twelve (12) months. The Owner will provide the Tenant with at least sixty (60) days written notice of any increase in Rent, and any Rent increase shall not violate the limitations imposed by this Agreement; (b)prohibit the Second or Accessory Dwelling Unit (or any portion of the Second or Accessory Dwelling Unit) from: (i) any sublease, except as permitted by Section 2.6, below; (ii) use as a "short-term vacation rental" (as such term is defined in Chapter 5.60 of the City of Carlsbad Municipal Code, as may be amended from time to time); (iii) use for tourist or transient use, or any other short-term rental; and (iii) being listed on any "hosting platform" (as defined in California Business & Professions Code 22590, as may be amended from time to time), including, but not limited to any Internet-based "hosting platform", such as "airbnb.com", or any similar service; (c)require the Tenant to provide an annual income certification to the Owner; (d)include, at Owner's option, the obligation for Tenant to provide a security deposit not exceeding two months' rent; and 4 1010117 \ 2059295.1(rev11/06/2019) (e) be for an initial term of one year. 2.4 Inspection. For purposes of confirming compliance with this Agreement, the Second or Accessory Dwelling Unit shall be made available by Owner to be inspected by the City during regular business hours upon seventy-two (72) hours' written notice; provided, however, that any such inspection shall occur only once during any twelve (12) calendar month period unless: (i) the City receives a complaint that a Tenant is occupying the Second or Accessory Dwelling Unit in violation of this Agreement (or that the Owner is otherwise violating this Agreement); or (ii) a new Tenant is occupying the Second or Accessory Dwelling Unit, in which case City may re-inspect. The Owner hereby irrevocably grants the City (and its agents) a right of entry to enter the Property for the purposes of such inspection. 2.5 Records. The Owner shall maintain reasonably complete and accurate records pertaining to such rental of the Second or Accessory Dwelling Unit throughout the duration of each tenancy. Owner shall permit any authorized representative of the City to inspect such records of any current Tenant upon reasonable notice, including those resident files pertaining to said rental, for the purpose of confirming compliance with the terms, conditions and covenants of this Agreement. 2.6 Assignments and Subletting. The Owner shall at no time permit the Tenant to assign its leasehold interest in the Second or Accessory Dwelling Unit or to sublet all or a portion of the Second or Accessory Dwelling Unit to any person other than to another Eligible Household. Owner shall have the right to approve or disapprove any proposed assignment or sublease at Owner's sole discretion; provided that prior to approving any proposed assignment or sublease, Owner shall comply with the provisions of Section 2.1 above to confirm the eligibility of the proposed assignee or sub-lessee. 2.7 Agreement to Limitation on Rents. (a)The Owner acknowledges that the Property, as a component of the Master Development, received the Incentive from the City in connection with the approval of the Master Development, and the Incentive is a form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. Sections 1954.52(b) and 1954.53(a)(2) of the Costa-Hawkins Act provide that, where an owner has received such assistance, certain provisions of the Costa-Hawkins Act do not apply if a property owner has so agreed by contract. The Owner hereby agrees to limit the Rents for the Second or Accessory Dwelling Unit, as provided in this Agreement, in consideration of the Property's receipt of the Incentive and further agrees that any limitations on Rents imposed on the Second or Accessory Dwelling Unit are in conformance with the Costa-Hawkins Act. (b)The Owner further warrants and covenants that the terms of this Agreement are fully enforceable. The Owner agrees and acknowledges that the City would not have provided the necessary approvals for the Master Development without the obligation to record this Agreement against the Property in the Officials Records, and that in providing the necessary approvals for the Master Development, the City was relying on the restrictions imposed on the Second or Accessory Dwelling Unit by this Agreement. 5 I 010'07 \2059295.1(rev11.106/2019) 2.8 Deeds. Owner acknowledges that this Agreement shall be recorded in the Official Records against the Property, and any deed transferring any fee interest in the Property shall include the following language; provided, however, the failure to include the following language shall not limit, waive, or impair the obligations set forth in this Agreement: NOTICE: THE SECOND OR ACCESSORY DWELLING UNIT ON THIS PROPERTY IS REQUIRED TO BE RENTED TO PERSONS MEETING CERTAIN ELIGIBILITY REQUIREMENTS AT A BELOW-MARKET RATE RENT, PURSUANT TO THE CITY OF CARLSBAD MUNICIPAL CODE. FOR MORE INFORMATION, SEE THE AGREEMENT RECORDED AGAINST THIS PROPERTY ENTITLED "AGREEMENT CONTAINING COVENANTS AND RESTRICTIONS GOVERNING RENTAL OF AFFORDABLE SECOND OR ACCESSORY DWELLING UNIT". THE RESTRICTIONS SET FORTH IN SUCH AGREEMENT BIND ALL HEIRS AND SUCCESSORS TO THIS DEED. ARTICLE 3 TERM 3.1 Term. This Agreement shall become effective as of the Effective Date and shall remain in full force and effect for a term of fifty-five (55) years following the recordation of this Agreement in the Official Records unless the City elects, in the City's sole discretion, to terminate this Agreement by written instrument recorded in the Official Records. ARTICLE 4 DEFAULT 4.1 Violations by Owner. Failure of the Owner to cure any default in the Owner's obligations under the terms of this Agreement within thirty (30) days after the delivery of a written notice of default from the City (or such longer period of time up to an additional sixty (60) days as may be necessary to remedy such default, provided that the Owner has commenced action during the thirty (30) days necessary to remedy such default, and the Owner is proceeding with reasonable diligence to remedy such default) will constitute a default under this Agreement. 4.2 Remedies. Subject to the applicable notice and cure period set forth above, the City may exercise any and all remedies available to it at law or equity with respect to the Owner's failure to satisfy the terms of this Agreement. Owner acknowledges that any breach in Owner's performance of Owner's obligations under this Agreement shall cause irreparable harm to the City, and materially impair the public policy objectives set forth in the Carlsbad Municipal Code. Therefore, Owner agrees that the City is entitled to equitable relief in the form of specific performance, and that an award of damages may not be adequate to compensate the City for Owner's failure to perform according to the terms of this Agreement. Notwithstanding the foregoing, the City, in its sole and absolute discretion, may elect the appropriate remedy for Owner's default under this Agreement. 6 1010 '11712059295.1 (rev 11/06/2019) ARTICLE 5 GENERAL PROVISIONS 5.1 Notices. All notices required pursuant to this Agreement shall be in writing and shall be deemed to have been duly given (a) upon personal delivery, including delivery by courier, or (b) three (3) business days after the mailing by registered or certified mail, return receipt requested, to the Party to receive such notice at the addresses set forth below: To the City: City of Carlsbad Housing and Neighborhood Services 1200 Carlsbad Village Drive Carlsbad, CA 92008 To the Owner: Brady Charles Boyd and Renee Amanda Boyd, as Trustees of The Brady and Renee Boyd Family Trust dated March 19, 2014 6611 Encelia Carlsbad, CA 90211 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. 5.2 Entire Agreement. The Recitals set forth above, and all exhibits attached hereto, are hereby incorporated into this Agreement by this reference. This Agreement contains the entire agreement between the Parties as to the subject matter hereof, and supersedes any and all prior arrangements and understandings between the Parties, and no other agreement, statement or promise made by either Party hereto which is not contained herein shall be binding or valid provided, however, that nothing in this Section limits the effect or enforceability of the City of Carlsbad Municipal Code. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties had prepared it. The Parties have read and reviewed this Agreement and agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party (including but not limited to Civil Code Section 1654 as may be amended from time to time) shall not apply to the interpretation of this Agreement. In the event of any conflict between the terms of this Agreement, and the terms of the disclosure statement executed by the City and the Owner in conjunction with this Agreement, the terms of this Agreement shall prevail. 5.3 Amendment. This Agreement may be amended only by the written agreement of the Parties. 5.4 Severability. In the event any limitation, condition, restriction, covenant, or provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, or if any provision of this Agreement is rendered invalid or 7 1010 \17,1059295.1(rev11/06/2019) unenforceable pursuant to any California statute which became effective after the Effective Date, the remaining portions of this Agreement shall nevertheless remain in full force and effect. 5.5 Waiver. The waiver of or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provisions hereof. 5.6 Covenant Running with the Land. The covenants and conditions herein contained shall apply to and bind, during their respective periods of fee ownership, Owner and its heirs, executors, administrators, successors, transferees, and assignees (each a "Transferee") having or acquiring any right, title or interest in or to any part of the Property, whether by operation of law or in any manner whatsoever, and shall run with and burden the Property for the entire Term unless or until released in accordance with Article 3. All of the provisions of this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to applicable laws, including without limitation Section 1468 of the California Civil Code. Each covenant to do, or to refrain from doing, some act on the Property hereunder: (a) is for the benefit of the Property and is a burden on the Property, (b) runs with the Property, and (c) is binding upon each Party and each successive owner during its ownership of the Property or any portion thereof, and shall be a benefit to and a burden upon each Party and the Property hereunder and each other person or entity succeeding in an interest to the Property. 5.7 Assignment and Assumption; Release. Provided that a Transferee expressly assumes Owner's obligations hereunder pursuant to an assignment and assumption agreement in a form approved by the City in connection with the transfer of any part of the Property, the Owner shall be released from all obligations following the recordation of such assignment and assumption agreement in the Official Records. 5.8 Non-Discrimination. The Second or Accessory Dwelling Unit shall be available for occupancy to members of the general public. The Owner shall not give preference to any particular class or group of persons in renting the Second or Accessory Dwelling Unit or selling the Property, except to the extent that the Second or Accessory Dwelling Unit is required to be rented to Eligible Households; provided, however, there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of income (e.g., SSI), age, ancestry, disability, or any other basis prohibited by the Fair Housing Act or the Fair Employment and Housing Act in the leasing, transferring, use, occupancy, tenure, or enjoyment of the Second or Accessory Dwelling Unit nor shall the Owner or any person claiming under or through the Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of Tenants of the Second or Accessory Dwelling Unit. The Owner has agreed to the obligations set forth in this Section in consideration for the Incentive. 5.9 Relationship of Parties. Nothing contained in this Agreement shall be deemed or construed by the Parties or any third party to create the relationship of principal and agent or of partnership or of j oint venture or of association. The relationship of the Parties is that of an owner of real property and an administrator of a City inclusionary housing program; furthermore, the Parties agree and acknowledge that this Agreement is in furtherance of the 8 1010 \1712059295.1(rev11/06/2019) inherent power of City to regulate the use of land within City's jurisdiction. Owner further acknowledges, understands and agrees that the City does not undertake or assume any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Second or Accessory Dwelling Unit (or any other portion of the Property). The City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Property and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Property and will hold the City harmless from any liability, loss or damage as set forth in Section 5.10. Any review by the City of any documents submitted by the Owner to the City pursuant to this Agreement, including, but not limited to any Tenant Lease Addendum, is solely to confirm compliance with the requirements of this Agreement and shall not be deemed to be a representation of any kind of the validity or legal enforceability of such document(s). 5.10 Hold Harmless; Indemnity. Owner shall indemnify, defend (with counsel reasonably selected by the City), and hold harmless the City and its officers, officials, agents, and employees against any and all liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury or death of any person or damage to property or other liability of any nature, or any claims by a Tenant, a former Tenant or prospective Tenant, arising out of Owner's performance of its obligations hereunder, except where the cause of such is the gross negligence or willful misconduct of the City. The indemnification obligations set forth in this Section shall survive any termination or expiration of this Agreement. 5.11 Applicable Law and Venue. This Agreement shall be governed by California law. Venue for any dispute arising out of this Agreement shall be San Diego County. 5.12 Attorneys' Fees and Costs. In the event any action or proceeding in court or other dispute resolution mechanism permitted under this Agreement is commenced by either party to interpret or enforce the terms of this Agreement, the prevailing Party therein shall be entitled to recover from the non-prevailing Party all of the prevailing Party's reasonable costs and expenses in connection therewith, including on any appeal and including expert witness fees, document copying expenses, exhibit preparation costs, carrier expenses and postage and communication expenses, and reasonable attorneys' fees and costs for the services rendered to the prevailing Party in such action or proceeding (which shall include the reasonable costs for services of the City's in-house counsel). 5.13 Mortgagee Protection. No lien created under this Agreement, nor any breach of this Agreement, nor the enforcement of any provision hereof defeats or renders invalid the rights of the mortgagee under any recorded mortgage upon the Property made in good faith and for value. After a mortgagee or other person obtains title to the Property by judicial foreclosure or by other means set forth in the mortgage, the Property shall remain subject to the Agreement. 5.14 Time is of the Essence. In all matters under this Agreement, the Parties agree that time is of the essence. References in this Agreement to days shall be to calendar days. 9 1010 117%2059295.1(revl 1/06/2019) If the last day of any period to give or reply to a notice, meet a deadline or undertake any other action occurs on a day that is not a day of the week on which the City of Carlsbad is open to the public for carrying on substantially all business functions (a "Business Day"), then the last day for giving or replying to such notice, meeting such deadline or undertaking any such other action shall be the next succeeding Business Day. In no event shall a Saturday or Sunday be considered a Business Day. 5.15 Interpretation. The use in this Agreement of the words "including", "such as" or words of similar import when used with reference to any general term, statement or matter shall not be construed to limit such statement, term or matter to the specific statements, terms or matters, unless language of limitation, such as "and limited to" or words of similar import are used with reference thereto. The headings of this Agreement are for convenience only and do not in any way limit or amplify the terms or provisions hereof. All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, or neuter, and to the singular or plural, as the identity of the party or parties may require. 5.16 Government Standards. In the event any standard established and maintained by any governmental agency which is necessary to give effect to this Agreement ceases to exist, and no comparable replacement is issued, the Parties shall create a replacement standard utilizing the formula and factors previously used to create the discontinued standard. 5.17 No Limitation on Municipal Powers. Nothing in this Agreement shall limit, waive, or otherwise impair the authority and discretion of (a) the City's Building Department, in connection with the review and approval of any proposed construction plans for the Property (or any change to such plans), or any use, or proposed use, of the Property; or (b) any other office or department of the City acting in its capacity as a governmental regulatory authority with jurisdiction over the development, use, or operation of the Property. 5.18 Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts, which shall constitute one and the same agreement. Remainder of Page Left Intentionally Blank 10 I 01011712059295.1(revl 1/06/2014) IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date. CITY: crrY OF CARLSBAD, a municipal corporation By Name: (-2s-ve_ie_,_ QA,---1 A.0 rt_ Its: JA- s- C, OWNER: Brady Charles Boyd and Renee Amanda Boyd, as Trustees of Fhe Brady and Renee Boyd Family Trust dated March 19, 2014 git4 ediwth4 44/ Print Name: Brady Charles Boyd, trustee Print Name: Renee Amanda Boyd, trustee (Signatures must be notarized) I 010 \17 \2059295.1(revI1/06/2019) MORGEN FRY Notary Public - California San Diego County Commission # 2268605 My Comm. Expires Dec 24, 2022 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California S County of an Diego On \\ 0\1 \ before me, Morgen Fry, Notary Public (insert name and title of the officer) personally appeared *_.%) ?AA -hoe., who proved to me on the basis of satisfactory evidence to be the person(s) whose name'() istafe- subscribed to the within instrument and acknowledged to me that he/shaithey executed the same in his/he-AI& authorized capacity(ie-0, and that by his/heritheir signatures) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature \ (Seal) BROOKE D. RODRIGUEZ Notary Public - California San Bernardino County T Commission # 2285067 My Comm. Expires May 10, 2023 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF Siv, 1).1f ) ) ) On 1`1111before me, AV),-,- 0 Notary Public, personally appeared acc,oW CiAwit 5 IS :.'( el , who proved to me on the basis of satisfactory evidence to be the person(1) whose name( is/at subscribed to the within instrument and acknowledged to me that he/shekliey executed the same in his/hethhcir authorized eapacity(iek), and that by his/hex/their signatures) on the instrument the person®, or the entity upon behalf of which the person(/) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On 'k1-0', before me, irtib t'-' D r QjjJ kAt Notary Public, person ly appeared .ce,ot_e_, ikvtAm P6r.s.rd, , who proved to me on the basis of satisfactory evidence to be the person() whose name( is/* subscribed to the within instrument and acknowledged to me that Ife/she/thly executed the same in hik/her/their authorized capacity(i/s), and that by lts/her/th,lr signature(si on the instrument the person(), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ) ) ) te V WITNESS my hand and official seal. BROOKE D. RODRIGUEZ Notary Public - California San Bernardino County Commission # 2285067 My Comm. Expires May 10, 2023 101O\17\20.59295.1(rcvl 1/06/2019) A.P.N.: 215-023-11 EXHIBIT "A" PARCEL ONE: UNIT 3 (THE "UNIT"), AS SHOWN ON THE CONDOMINIUM PLAN ("PLAN"), RECORDED ON MARCH 30, 2020, AS INSTRUMENT NO. 2020-0162091, IN OFFICIAL RECORDS OF SAN DIEGO COUNTY, CALIFORNIA ("OFFICIAL RECORDS"), CONSISTING OF A PORTION OF LOT 2 OF CARLSBAD TRACT NO. 14-10, POINSETTIA 61, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS PER MAP NO. 16329 ("MAP"), FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON FEBRUARY 27, 2019 AS INSTRUMENT NO. 2019-7000078, OF OFFICIAL RECORDS OF SAN DIEGO COUNTY, CALIFORNIA. RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, ITS SUCCESSORS IN INTEREST AND ITS ASSIGNEES, TO THE EXTENT NOT ALREADY RESERVED BY INSTRUMENTS OF RECORD: A.ALL OIL RIGHTS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND RIGHTS TO ALL OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, TO ALL GEOTHERMAL HEAT AND TO ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING (COLLECTIVELY, "SUBSURFACE RESOURCES"); B.THE PERPETUAL RIGHT TO DRILL, MINE, EXPLORE AND OPERATE FOR AND TO PRODUCE, STORE AND REMOVE ANY OF THE SUBSURFACE RESOURCES ON OR FROM THE UNIT, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE UNIT WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE UNIT, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS WITHIN OR BEYOND THE EXTERIOR LIMITS OF THE UNIT, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY OF SUCH WELLS OR MINES, BUT WITHOUT THE RIGHT TO ENTER UPON OR DRILL, MINE, EXPLORE, OPERATE, PRODUCE, STORE OR REMOVE ANY OF THE SUBSURFACE RESOURCES FROM THE SURFACE OF THE UNIT OR FROM THE LAND FIVE HUNDRED (500) FEET BELOW THE SURFACE OF THE UNIT; AND C.ALL WATER AND WATER RIGHTS, IF ANY, WITHIN AND UNDERLYING THE UNIT. ALSO RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, ITS SUCCESSORS IN INTEREST AND ITS ASSIGNEES, EASEMENTS FOR ACCESS, ENCROACHMENT, MAINTENANCE, DRAINAGE AND SUPPORT, AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE FOLLOWING DOCUMENTS, ALL RECORDED IN OFFICIAL RECORDS: THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR TREVISO NEIGHBORHOOD ASSOCIATION, RECORDED ON NOVEMBER 7, 2019, AS INSTRUMENT NO. 2019-0513870 (AS AMENDED OR RESTATED, THE "DECLARATION"); AND THE SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR TREVISO NEIGHBORHOOD ASSOCIATION (PHASE 9) RECORDED ON APRIL 3, 2020, AS INSTRUMENT NO. 2020-0173004 (AS AMENDED OR RESTATED, THE "SUPPLEMENTAL DECLARATION"); AND THE DECLARATION OF SOLAR ENERGY COVENANTS, CONDITIONS AND RESTRICTIONS FOR TREVISO NEIGHBORHOOD ASSOCIATION, RECORDED ON NOVEMBER 8, 2019 AS INSTRUMENT NO. 2019-0515536 (TOGETHER WITH ANY AMENDMENTS, COLLECTIVELY, THE "SOLAR ENERGY DECLARATION"); AND THE GRANT OF EASEMENTS FOR SOLAR ENERGY EQUIPMENT, RECORDED ON APRIL 3, 2020, AS INSTRUMENT NO. 2020-0173006 (TOGETHER WITH ANY AMENDMENTS, COLLECTIVELY, THE "SOLAR ENERGY EASEMENT DEED"). Legal Description wAPN Exhibit A 195004-002154 TERMS NOT DEFINED IN THIS GRAND DEED SHALL HAVE THE MEANINGS GIVEN TO THEM IN THE DECLARATION AND SUPPLEMENT DECLARATION. FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, THE RIGHT TO ENTER THE UNIT (I) TO COMPLETE AND REPAIR ANY OF THE IMPROVEMENTS IN THE UNIT AS DETERMINED NECESSARY BY GRANTOR, IN ITS SOLE DISCRETION, (II) TO COMPLY WITH REQUIREMENTS FOR THE RECORDATION OF THE MAP OR THE GRADING OR CONSTRUCTION OF THE COMMUNITY OR (III) TO COMPLY WITH REQUIREMENTS OF APPLICABLE GOVERNMENTAL AGENCIES. GRANTOR SHALL PROVIDE REASONABLE NOTICE TO GRANTEE BEFORE SUCH ENTRY. IF THIS RESERVATION OF RIGHT OF ENTRY IS NOT COMPLIED WITH BY GRANTEE, GRANTOR MAY ENFORCE THIS RIGHT OF ENTRY IN A COURT OF LAW. GRANTEE SHALL BE RESPONSIBLE FOR ALL DAMAGES ARISING OUT OF SUCH FAILURE TO COMPLY, INCLUDING ATTORNEYS' FEES AND COURT COSTS. THE TERM OF THIS RESERVATION OF RIGHT OF ENTRY SHALL AUTOMATICALLY EXPIRE TWELVE (12) YEARS FROM THE DATE OF RECORDATION OF THIS GRANT DEED. FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, ITS SUCCESSORS IN THE INTEREST AND ITS ASSIGNEES, NONEXCLUSIVE EASEMENTS FOR THE INSTALLATION, MAINTENANCE AND REPAIR OF UTILITIES AND RELATED FACILITIES (INCLUDING, BUT NOT LIMITED TO, ELECTRICAL, TELEPHONE, CABLE TELEVISION, GAS, WATER AND SEWER LINES, UTILITY METERS AND STORM DRAINS) AS SHOWN ON THE MAP OR OTHERWISE OF RECORD. PARCEL TWO: AN UNDIVIDED ONE-SIXTH (1/6) FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA DESCRIBED IN THE PLAN. PARCEL THREE: NONEXCLUSIVE EASEMENTS FOR ACCESS, DRAINAGE, SUPPORT, ENCROACHMENT, MAINTENANCE AND REPAIR, AND FOR OTHER PURPOSES, ALL AS MAY BE SHOWN ON THE MAP AND AS DESCRIBED IN THE DECLARATION, THE SUPPLEMENTAL DECLARATION AND THE SOLAR ENERGY DECLARATION. Legal Description wAPN Exhibit A 195004-002154 SECONDARY OR ACCESSORY DWELUNG UNIT 6613 , ENCELIA PLACE TREVISO EXHIBIT 'B' SHEET 1 OF 1 SECONDARY OR ACCESSORY DWELLING UNIT - PHASE 9 (AISLE E) LEGEND LOT LINE CONDOMINIUM UNIT BOUNDARY SECONDARY OR ACCESSORY DWELLING UNIT AREA, NOTE: PRIMARY UNIT AREA INCLUDES ALL OTHER AREA EXCEPT SECONDARY OR ACCESSORY DWELLING UNIT AREA. NOTE THIS DEPICTION IS FOR ILLUS7RATION •PURPOSES ONLY ACTUAL AS-BUILT CONDITION PO'LL CONTROL. SCALE: NOT TO SCALE PREPARED: FEB. Z 2020 REVISED: FEB. Z 2020 TREVISO MAP 16329 - UNIT 3 6611/6613 ENCELIA PLACE CARLSBAD, CA 92011 EXHIBIT C FORM OF OWNER CERTIFICATION To: City of Carlsbad ("City") From: Address of Property: Date: [name of owner(s)} ("Owner(s)") ("Property") By signature below, I/we [insert name or names of Owner(s)] hereby certify to the City, under penalty of perjury, that the Second or Accessory Dwelling Unit located on the Property (the "Second or Accessory Dwelling Unit") is being utilized in accordance with the "Agreement Containing Covenants and Restrictions Governing Rental of Affordable Second or Accessory Dwelling Unit" (the "Agreement") recorded against the Property. In accordance with Section 2.2 of the Agreement, IAve provide the following information regarding the Second or Accessory Dwelling Unit: I. Tenant name: Size of Tenant's household: 3. Second or Accessory Dwelling Unit size (number of bedrooms): 4.Date Second or Accessory Dwelling Unit first occupied by Tenant: 5.A copy of the Tenant's annual income certification is attached. This Owner Certification is signed on , 20 under penalty of perjury. By: Owner signature Due Date: June 30 of each calendar year. Date: C-1 EXHIBIT D FORM OF TENANT LEASE ADDENDUM Affordable Secondary Dwelling Rental Addendum Landlord: Tenant: Premises: This is an addendum ("Addendum") to the Lease of the Premises between Landlord and Tenant. This Addendum modifies the rental agreement between Landlord and Tenant (the "Lease"). If there is a conflict between a provision in the Lease and a provision in this Addendum, this Addendum shall control. 1.Affordability Agreement. The Premises arc part of a property that is subject to an Agreement Containing Covenants and Restrictions Governing Rental of Affordable Second or Accessory Dwelling Unit ("Affordability Agreement") with the City of Carlsbad ("City"). The Affordability Agreement requires that Landlord rent the Premises to Eligible Households and that both Landlord and Tenant comply with the Affordability Agreement. By initialing below, Tenant acknowledges receiving a copy of the Affordability Agreement. Tenant also acknowledges being given the opportunity to review the Affordability Agreement and consult with necessary advisors regarding Tenant's obligations. I confirm that I have received a copy and read the Affordability Agreement. I understand my obligations. Tenant Initials: 2.Obligations Under the Affordability Agreement Confirmed. •Rental to Eligible Households/Initial Lease Term. The Affordability Agreement requires that Landlord only rent the Premises to "Eligible Households" which are defined as "Low Income Households". Tenant confirms that Tenant is an Eligible Household. The initial Lease term is one (1) year. •Income Verification. Tenant has provided Landlord with one of the following for Landlord's use in documenting Tenant's qualification as an Eligible Household: (1)pay stub for the most recent pay period; (2)income tax return for the most recent tax year; (3)income verification form from the applicant's current employer; (4)income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (5)if the applicant is unemployed and has no such tax return, another form of independent verification. Tenant understands that Owner is required to provide a copy of Tenant's income qualifications to the City on the City's request. Tenant consents to Owner sharing with the City all information provided by Tenant to Owner. If Tenant's income subsequently increases so that Tenant no longer qualifies as a Low Income Household, Tenant shall continue to be considered an Eligible Household allowed to occupy the Premises. Tenant understands that Owner is obligated to certify to the City that Owner is in compliance with the Affordability Agreement. Owner must provide a certification to the City each year no later than June 30th. Tenant agrees to provide Owner with income documentation each year as required by the City so that Owner can comply with this requirement. •Maximum Allowable Rent. The Affordability Agreement establishes a maximum limit on the amount of rent that may be charged. Rent for the Premises shall not exceed Affordable Rent even if Tenant's income increases so that Tenant is no longer a Low Income Household. Rent may not be raised more often than once every twelve (12) months. Owner must provide Tenant with at least sixty (60) days written notice of any increase in Rent. Any Rent increase shall not exceed the Maximum Allowable Rent. Landlord is entitled to require Tenant to provide Landlord with a security deposit in an amount not to exceed two (2) months' Rent. •Occupancy Restriction. The Premises must not be used for any of the following: (1) any sublease, except to an Eligible Household, with the prior written approval of Landlord; (ii) as a "short-term vacation rental" (as such term is defined in Chapter 5.60 of the City of Carlsbad Municipal Code, as may be amended from time to time); and (iii) for tourist or transient use, or any other short-term rental. In addition, the Premises must not be listed on any "hosting platform" (as defined in California Business & Professions Code 22590, as may be amended from time to time), including, but not limited to any Internet-based "hosting platform", such as "airbnb.com", or any similar service. •City inspection. Tenant agrees to make the Premises available for inspection by the Owner and the City during regular business hours upon seventy-two (72) hours' written notice; provided, however, that any inspection by the City shall occur only once during any twelve (12) calendar month period unless the City receives a complaint that a Tenant is occupying the Premises in violation of the Affordability Agreement. The City has a right of entry to enter the l'remises for the purposes of such inspection and may do so without the Owner present. 3. Breach of Lease. A violation of this Addendum is a breach of the Lease. The Lease, as modified by this Addendum, is ratified by Landlord and Tenant. LANDLORD Sign: Print: Date: TENANT Sign: Print: Date: TENANT: Sign: Print: Date: